Introduction to Business Ethics an der TU München

• Business Ethics begins when Friday comes to the Island

• Individual problems → become Social problems

• Focus is on interaction

1. Principal reasons – some are excluded (non- born, minors)

2. Pragmatic reasons – too many affected

3. Motivational reasons – some are unwilling to search for solution

➢ Consequences→crucial for distinguishing good and bad
➢ Reasons (profit maximization)→irrelevant
➢ Only predictable consequences are considered in the evaluation of an action 

➢ John Stuart Mill

distinguishes between certain qualities of happiness

➢ Peter Singer

- action is aimed at achieving certain goals, not cognitive happiness (clean environment for future generations)

- goal achievement→does not have to lead to happiness

Ex. Marketing and PR measures of companies

− Consequentialist→ethically positive behavior – it has positive effect on humans

➢ Description, systematization, explanation of normative systems

• Statement that describes something

• NO evaluation

  ex. Ethnology, Moral psychology, Evolutionary biology, Behavioral economics 

• According to German Law human dignity is inviolable.

1. ➢ Virtue ethical question→“What should I do?”

   • Makes Robinson give up half to Friday

   • Result?➔nobody gets enough to eat

2. ➢ Decoupling of motive and result

   1. Morality is interpreted as an unintended result of intentional action

1. →How to improve supply to satisfy more demand?

   • Best allocation of production factors (labor, material, capital)

   • Scarcity problems should be understood as allocation problems

➢ Expresses evaluation
➢ Evaluation as “fair” or “unfair”;
➢ Contain words as should/ shouldn’t

Ex. Good-Bad; Morally right – Morally wrong
No one, not even public authorities ought to compromise human dignity.

Business ethics:
• Based on conditions, NOT on actions and their motives

Reasons:

1. 1)  Individual virtues cannot solve structural problems

2. 2)  Interaction and Interdependence problem

3. 3)  Conditions of the Modern world

   • −  Rising degree of complexity in modern relationships

   • −  Prevalence of mutual interdependence between individuals, firms and nation states

1. ➢ Greed→main cause of Economic Misconduct
   ➢ Mistrust→against certain population groups (bankers, speculators) 

3. ➢ Criticism→to people involves, not structures