107) Discuss in detail the four ethical decision criteria and relate them to issues and
decisions about corporate social responsibility. Give specific examples to support your
answer.
Suggested answer:
– The four ethical decision criteria are the utilitarian criterion, the rights criterion, the
justice criterion, and the criterion of care.
– Decision makers tend to feel safe and comfortable when they use utilitarianism, in
which decisions are made solely on the basis of their outcomes and consequences. This
view dominates business decision-making because it focuses on efficiency, productivity,
and profits. It is easy to justify decisions based on this criterion. Increased concern in
society about individual rights and social justice increase the need for organizations to
develop ethical standards based on nonutilitarian criteria.
– The rights criterion in decision making focuses on respecting and protecting the basic
rights of individuals in privacy, free speech, and due process. This criterion protects
whistle-blowers when they report unethical practices by their organizations.
– The criterion of justice deals with an equitable distribution of benefits and costs by
protecting the interests of the underrepresented and less powerful. Unions often focus on
the justice criterion in demanding concessions from organizations.
– The criterion of care demands morally correct actions by suggesting that individuals
focus on the needs, desires, and well-being of others. This criterion is also closely related
to being socially responsible in all actions.
– Organizations consider the impact of their decisions on society by consciously or
inadvertently falling back on these four ethical criteria in justifying the decisions they
make. Not everyone agrees that organizations should assume social responsibility.
However, increasingly the public and customers want businesses to give back to society
in visible ways.