Foundational Concepts and Theories of Ethics and Morality

Posted on Oct 24, 2025 in Philosophy and ethics

Foundational Concepts: Ethics, Law, and Morality

Defining Ethics

Ethics refers to what is right or wrong. It involves conscious and voluntary actions, recognizing that not everything legal is necessarily ethical.

Defining Law

Law consists of rules that must be followed; breaking them results in punishment. Laws are often based on ethical principles, but it is crucial to remember that not everything legal is ethical.

Moral Values and Sources

Moral Values are principles or standards of behavior considered important in life, used to differentiate between what is good or bad.

  • Categories: Moral, aesthetic, and prudence.
  • Sources: School, family, religion, law, and culture.
  • Core Values: Honesty, respect, integrity, loyalty, fairness, and compassion.

Ethical Reasoning and Development

Purposes of Ethical Reasoning

Ethical reasoning serves two primary purposes:

  1. To identify actions that promote the well-being of others.
  2. To identify actions that harm the well-being of others.

Approaches to Ethical Decision-Making

  1. Bottom-up: Seeing what is wrong or right by looking at each specific situation. Decisions are made based on how one feels or reacts in the moment, rather than following strict rules.
  2. Top-down: Using established rules or principles (e.g., don’t lie, keep promises) and applying these rules consistently to every situation.
  3. Reflective Equilibrium: Balancing personal judgment (what feels right) and general principles (rules), adjusting both until they make logical sense.

Levels of Ethics

  1. Macro Level: Focuses on big-picture issues that affect society as a whole (e.g., public health policies or environmental regulations).
  2. Meso Level: Looks at ethics within organizations and communities (e.g., how companies treat employees and follow fair practices).
  3. Micro Level: Deals with personal ethics and individual actions (e.g., honesty, integrity, and professional behavior).

Levels of Moral Development

  1. Preconventional Level: Decisions are based on avoiding punishment (Stage 1) or gaining rewards (Stage 2). Example: A child follows rules to avoid being scolded.
  2. Conventional Level: Decisions focus on meeting social expectations (Stage 3) or maintaining social order (Stage 4). Example: A teenager follows rules to be seen as responsible.
  3. Postconventional Level: Decisions prioritize justice (Stage 5) and universal ethical principles (Stage 6). Example: An adult challenges unfair laws to defend human rights.

Business Ethics

Business ethics involves treating employees fairly, being honest with customers, and doing what is right, not just what maximizes profit.

Two Meanings of Business Ethics

  1. Business = A Game: The primary goal is to make money. If an action is legal, it is considered acceptable. Example: Bluffing in negotiations is okay.
  2. Business = Real Life: Requires being honest and fair always, whether at work or at home. Principles like kindness, justice, and honesty apply universally in business.

Major Ethical Perspectives and Theories

1. Aristotelian Perspective (Virtue Ethics)

Happiness (eudaimonia) is the goal of life and comes from being a good person. Virtue is found by seeking the balance between extremes (the Golden Mean). Developing good character through habit leads to moral excellence. This approach focuses on living well and doing good, not merely accumulating wealth.

2. Epicureanism

Happiness is defined as peace of mind and the absence of pain. The goal is pleasure, but in a balanced way, avoiding stress and suffering. It focuses on mental tranquility (ataraxia) and long-term well-being, achieved through moderation, tranquility, and friendship.

3. Thomism (Aquinas)

The ultimate goal in life is union with God and being a good person. Humans follow Natural Law, which is their participation in God’s eternal law. Virtues help achieve true happiness. Humans are seen as part animal (seeking pleasure) and part rational (thinking).

4. Deontological (Kantian Ethics)

Focuses on doing one’s duty, treating people with respect, and acting based on universal rules rather than feelings. One must always do the right thing to make the world better. People should be treated as ends in themselves, not merely as means to an end (upholding human dignity). Actions should be judged as if they were to become a universal law.

5. Utilitarianism (Bentham & Mill)

The morally correct action is the one that brings the greatest happiness to the largest number of people and minimizes pain. Example: Prioritizing actions that save the most people during a pandemic.

6. Justice Approach (Locke & Rawls)

  • Locke: People possess basic rights—life, liberty, and property—and justice serves to protect these rights.
  • Rawls: Justice should be decided from a neutral standpoint (the “veil of ignorance”), imagining rules without knowing one’s place in society (rich or poor). This ensures rules are fair for everyone.

Justice involves giving people what they deserve and protecting their rights. Fairness means being unbiased and acting in good faith. Types of justice include:

  • Distributive Justice: Fair sharing of resources.
  • Retributive Justice: Fair punishment for wrongdoing.

Fair rules should benefit everyone, especially the least advantaged.

7. Common Good Approach

What is good for everyone is ultimately good for each individual person. A good society helps people live well and work together, focusing on society’s overall well-being and solidarity. Everyone should have access to essential goods like healthcare, education, and security. (A key question remains: Who defines the common good?)

8. Virtue Ethics (General)

We are defined not by what we possess but by what we do; true happiness results from this. Being a good person leads to a good life. Being ethical is about cultivating habits of excellence.

Ethical Tools and Processes

The Materiality Map Process

A tool that helps companies understand what truly matters to their business and their stakeholders.

  1. Identify Stakeholders: Determine who impacts the company and who the company impacts.
  2. Identify Topics/Issues: Determine what concerns matter (e.g., environment, social issues, governance).
  3. Internal Assessment: Company leaders decide what is most important internally.
  4. Stakeholder Assessment: Ask stakeholders how important these topics are to them (often rated 1–10).
  5. Communication: Use surveys, meetings, and reports to gather input.
  6. Plot the Matrix: Map the results to visualize what matters most to both the company and its stakeholders.

Process of Ethical Reasoning

  1. Identify the Company’s Ethics Framework: Know the company’s values, rules, and principles (like honesty, fairness). Aim to avoid harm and support the less privileged.
  2. Look at the Normative Dimensions: Think about what should be done based on universal values (justice, honesty)—the ideal way to act.
  3. Consider Influencing Factors: Notice pressures like company rules, peer influence, or unclear policies. Also consider individual factors: gender, education, age, and locus of control.
  4. Identify the Ethical Issue and Its Intensity: Understand how serious the ethical problem is.
  5. Get the Facts: Check reliable information (facts)—do not rely on opinions or rumors.
  6. Generate and Evaluate Alternatives: Think of all possible solutions, look at the pros and cons, and see which one does the most good and the least harm. (A solution can succeed in both, fail in one, or fail in both.)
  7. Make a Decision: Choose the best option that respects values and is fair to everyone, aiming to do the most good and cause the least harm.
  8. Implement and Monitor: Put the decision into action, watch the results, and adjust if needed.