3 Ethical Theories
• Theories are frameworks that allow researchers to predict or explain some phenomena.
Cognitive Moral Development
• Six stages of moral reasoning
1. Authority/fear of punishment stage whereby the person defines right or wrong
based on the obedience to rules from those in power.
2. Self-interest stage where the person chooses the action that satisfies the person’s
self-interest the most.
6. Universal ethical principles stage is when the decision-maker determines whether
an action is right based on universal ethical principles that everyone should follow.
• The six stages can be conveniently collapsed into three levels:
1. Pre-conventional level (stages 1 and 2): decisions are typically driven internally
by either reward or punishment.
• Understanding the cognitive moral development level can be useful on many levels
including:
o Companies can gauge the level of cognitive moral development prior to hiring.
o Cognitive moral development of existing employees can be assessed.
o Companies can also provide very explicit training by having employees consider actual
ethical dilemmas and assess how employees react to these dilemmas.
Ethical Theories
• Ethical theory refers to concerns regarding acceptable ways to solve ethical dilemmas.
• Some criticisms of Utilitarian ethics:
o First, many argue that it is not always possible to precisely measure gains and
losses.
o Second, in the calculation of gains and losses, the needs of minorities are typically
ignored.
o Finally, the most serious criticism is that the rights of people are ignored.
• Kantian ethics is about following universal norms that prescribe what people ought to do,
how they should behave, and what is right or wrong.
o First, by forcing decision-makers to only consider universal rules, Kantian ethics
fosters universal decisions that are not guided by specific situations.
o Second, unlike utilitarian ethics, Kantian ethics emphasize treating human beings
with dignity and respect.
o Finally, Kantian ethics focus on principles rather than consequences of actions.
• Criticisms of Kantian ethics:
• Both utilitarian and Kantian ethics place the emphasis on the behavior and whether
characteristics or consequences of the behavior make the behavior ethical. Virtue ethics
emphasizes the decisions made by individuals of good moral character and integrity:
o This approach is concerned with the cultivation of virtue, one of the highest forms
that a human being can attain. Virtue indicates achievement of both moral and
Moral Philosophies: Idealism and Relativism
• Moral philosophies refer to the preferred way for individuals to approach ethical decision-
making.
Institutional Anomie Theory
• The above approaches and theories focused on frameworks and factors that help explain
why individuals cognitively decide to make ethical or unethical choices. However, the
ethics field also includes theories that explain the environment that induces individuals to
behave unethically.
• More recent extensions of IAT have proposed that this between societal goals and the
means to achieve those are not as critical. What is more important is the predominance of
the market.
