BUSINESS ETHICS

UNIT 1

Meaning of Ethics
The term ‘ethics’ defines the standards that bear on right and wrong issues of society. Business
ethics is thus a set of professional standards, which emphasize principles of honesty and duty to
the business and the general public. The other significant principles included in business ethics
are:

Fairness
Integrity
Commitment to agreements
Broad-mindedness
Considerateness
Importance given to human esteem and self-respect
Responsible citizenship
Attempt to excel
Accountability

These principles, if strictly pursued, lead to a decent business environment and create healthy
relationships in the organization. However, deviations from these principles can occur due to the
following factors:
Ignorance and indifference to issues
Selfishness
Imperfect reasoning

LEVELS OF BUSINESS ETHICS

The ethical standards of an organization have a major influence on how it conducts its
business. Business ethics are defined by the behavior standards of management and personnel,
and the way in which business is carried out at both a strategic and operational level. A
positive approach to maintaining ethical standards can lead to competitive market advantage
and an enhanced reputation. Ethical standards are classified at three levels

.Macro Level
At a macro level, sometimes called the systemic level, ethics are defined and influenced by the
wider operating environment in which the company exists. Factors such as political pressures,
economic conditions, societal attitudes to certain businesses, and even business regulation can
influence a company's operating standards and policies. Business owners and managers must
be aware of how these pressures affect operations and relationships, and how they may impact
on markets locally, nationally and internationally.
Company Level
At a company or corporate level, ethical standards are embedded in the policies and procedures
of the organization, and form an important foundation on which business strategy is built.
These policies derive from the influences felt at macro level and therefore help a business to
respond to changing pressures in the most effective way. There can be a gap between the
company policy on ethical standards and the conduct of those in charge of running the
business, especially if they are not the direct owners, which can present an ethical challenge for
some employees.
Individual Level
Since businesses are run by people, the ethical standards of individuals in the business are an
important consideration. Individuals may well have a very different set of ethical standards
from their employer and this can lead to tensions. Factors such as peer pressure, personal
financial position, and socio-economic status all may influence individual ethical standards.
Managers and business owners should be aware of this to manage potential conflicts.
Integrated Approach
Ethical standards flow through the entire structure of a business organization, shaping how it
plans its strategy, deals with customers, and manages its workforce. The standards have a reach
far beyond day-to-day operations, and should be considered in all aspects of a business, from
the boardroom to the shop floor and across all functional areas. Supporting this effort,
businesses that genuinely understand the value and importance of ethics have appropriate
metrics in place to measure achievement and identify problems before they become major
issues.

APPROACHES TO ETHICAL DECISION-MAKING

Philosophers have studied and written about ethics for thousands of years. The moral
philosophies or ethical "theories" that have been developed form the foundation for ethics in
business. Table 1 shows some of the major ethical philosophies that are applied to business
ethics. Each of the ethical philosophies is briefly considered in this section.

TELEOLOGY.
Teleological theories of ethics focus on the consequences caused by an action and are often
referred to as "consequentalist" theories. By far the most common teleological theories are
egoism and utilitarianism.
EGOISM.
Egoism defines right and wrong in terms of the consequences to one's self. Egoism is defined by
self-interest. An egoist would weigh an ethical dilemma or issue in terms of how different
courses of action would affect his or her physical, mental, or emotional well being. Thus, an
egoist, when faced with a business decision, would tend to choose the course of action that he or
she believes would best serve self-interest.
Although it seems likely that egoism would potentially lead to unethical and/or illegal behavior,
this philosophy of ethics is, to some degree, at the heart of a free-market economy. Since the
time of political economist Adam Smith, advocates of a free market unencumbered by
governmental regulation have argued that individuals, each pursuing their own self-interest,
would actually benefit society at large.
This point of view is notably espoused by the famous economist Milton Friedman, who
suggested that the only moral obligation of business is to make a profit and obey the law.
However, it should be noted that Smith, Friedman, and most others who advocate unregulated
commerce, acknowledge that some restraints on individuals' selfish impulses are required.

UTILITARIANISM.
In the utilitarian approach to ethical reasoning, one emphasizes the utility, or the overall amount
of good, that might be produced by an action or a decision. For example, companies decide to
move their production facilities from one country to another. How much good is expected from
the move? How much harm? If the good appears to outweigh the harm, the decision to move
may be deemed an ethical one, by the utilitarian yardstick.
This approach also encompasses what has been referred to as cost-benefit analysis. In this, the
costs and benefits of a decision, a policy, or an action are compared. Sometimes these can be
measured in economic, social, human, or even emotional terms. When all the costs are added and
compared with the results, if the benefits outweigh the costs, then the action may be considered
ethical.
One fair criticism of this approach is that it is difficult to accurately measure costs and benefits.
Another criticism is that the rights of those in the minority may be overlooked.
Utilitarianism is like egoism in that it advocates judging actions by their consequences, but
unlike egoism utilitarianism focuses on determining the course of action that will produce the
greatest good for the greatest number of people. Thus, it is the ends that determine the morality
of an action and not the action itself (or the intent of the actor).
Utilitarianism is probably the dominant moral philosophy in business ethics. Utilitarianism is
attractive to many business people, since the philosophy acknowledges that many actions result
in good consequences for some, but bad consequences for others. This is certainly true of many
decisions in business.

DEONTOLOGY.
Deontological theories of ethics focus on (1) the rights of all individuals and (2) the intentions of
the person(s) performing an action. Deontological theories differ substantially from utilitarian
views on ethics and would not allow, for example, the harming of some individuals in order to
help others. To the deontologist, each person must be treated with the same level of respect and
no one should be treated as a means to an end.
Deontology proposes that the principles of ethics are permanent and unchanging—and that
adherence to these principles is at the heart of ethical behavior. Many deontologists believe that
the rights of individuals are grounded in "natural law." Deontology is most closely associated
with the German philosopher Immanuel Kant.

JUSTICE.
Justice-based theories of ethics concern the perceived fairness of actions. A just (ethical) action
is one that treats all fairly and consistently in accord with ethical or legal standards. Justice
theories of ethics are closely associated with the philosopher John Rawls.
To determine the fairness of an action, one often appeals to distributive, procedural, and/or
interactional rules. Distributive fairness is based on the outcomes received by individuals and
their perceptions of these outcomes. Procedural fairness is based on the processes (policies,
procedures, rules) employed to reach decisions. Individuals evaluate the fairness of these
processes in addition to (or instead of) the outcomes received.
Finally, interactional fairness relates to the personal treatment one receives in the administration
of a decision-making process. Interpersonal fairness has to do with the respect and consideration
shown in the administration of decisions. Informational fairness has to do with the explanations
and accounts provided for the decisions made.
The study of organizational justice has become a major field within organizational behavior. To
date, however, there has not been a complete integration between justice perceptions and ethical
theory.

RELATIVISM.
Teleological, utilitarian, and justice theories of ethics are all "universal" theories, in that they
purport to advance principles of morality that are permanent and relatively enduring. Relativism
states that there are no universal principles of ethics and that right and wrong must be determined
by each individual or group.
The relativist believes that standards of right and wrong change over time and are different
across cultures—and does not accept that some ethical standards or values are superior to others.
The concept of relativism can probably be summarized as "What's right for one may not be right
for another," or "When in Rome, do as the Romans do."

INDIVIDUAL ETHICAL DECISION-MAKING

There are many approaches to the individual ethical decision-making process in business.
However, one of the more common was developed by James Rest and has been called the four-
step or four-stage model of individual ethical decision-making. Numerous scholars have applied
this theory in the business context. The four steps include: ethical issue recognition, ethical
(moral) judgment, ethical (moral) intent, and ethical (moral) behavior.
ETHICAL ISSUE RECOGNITION.
Before a person can apply any standards of ethical philosophy to an issue, he or she must first
comprehend that the issue has an ethical component. This means that the ethical decision-making
process must be "triggered" or set in motion by the awareness of an ethical dilemma. Some
individuals are likely to be more sensitive to potential ethical problems than others. Numerous
factors can affect whether someone recognizes an ethical issue; some of these factors are
discussed in the next section.

ETHICAL (MORAL) JUDGMENT.

If an individual is confronted with a situation or issue that he or she recognizes as having an
ethical component or posing an ethical dilemma, the individual will probably form some overall
impression or judgment about the rightness or wrongness of the issue. The individual may reach
this judgment in a variety of ways, as noted in the earlier section on ethical philosophy.

ETHICAL (MORAL) INTENT.

Once an individual reaches an ethical judgment about a situation or issue, the next stage in the
decision-making process is to form a behavioral intent. That is, the individual decides what he or
she will do (or not do) in regard to the perceived ethical dilemma.
According to research, ethical judgments are a strong predictor of behavioral intent. However,
individuals do not always form intentions to behave that are in accord with their judgments, as
various situational factors may act to influence the individual otherwise.

ETHICAL (MORAL) BEHAVIOR.

The final stage in the four-step model of ethical decision-making is to engage in some behavior
in regard to the ethical dilemma. Research shows that behavioral intentions are the strongest
predictor of actual behavior in general, and ethical behavior in particular. However, individuals
do now always behave consistent with either their judgments or intentions in regard to ethical
issues. This is particularly a problem in the business context, as peer group members,
supervisors, and organizational culture may influence individuals to act in ways that are
inconsistent with their own moral judgments and behavioral intentions.
Some specific factors that influence the individual ethical decision-making process, as outlined
above, are presented in the final section of this essay.

FACTORS AFFECTING ETHICAL DECISION-MAKING

In general, there are three types of influences on ethical decision-making in business: (1)
individual difference factors, (2) situational (organizational) factors, and (3) issue-related factors.

INDIVIDUAL DIFFERENCE FACTORS.

Individual difference factors are personal factors about an individual that may influence their
sensitivity to ethical issues, their judgment about such issues, and their related behavior.
Research has identified many personal characteristics that impact ethical decision-making. The
individual difference factor that has received the most research support is "cognitive moral
development."
This framework, developed by Lawrence Kohlberg in the 1960s and extended by Kohlberg and
other researchers in the subsequent years, helps to explain why different people make different
evaluations when confronted with the same ethical issue. It posits that an individual's level of
"moral development" affects their ethical issue recognition, judgment, behavioral intentions, and
behavior.
According to the theory, individuals' level of moral development passes through stages as they
mature. Theoretically, there are three major levels of development. The lowest level of moral
development is termed the "pre-conventional" level. At the two stages of this level, the
individual typically will evaluate ethical issues in light of a desire to avoid punishment and/or
seek personal reward. The pre-conventional level of moral development is usually associated
with small children or adolescents.
The middle level of development is called the "conventional" level. At the stages of the
conventional level, the individual assesses ethical issues on the basis of the fairness to others and
a desire to conform to societal rules and expectations. Thus, the individual looks outside him or
herself to determine right and wrong. According to Kohlberg, most adults operate at the
conventional level of moral reasoning.
The highest stage of moral development is the "principled" level. The principled level, the
individual is likely to apply principles (which may be utilitarian, deontological, or justice) to
ethical issues in an attempt to resolve them. According to Kohlberg, a principled person looks
inside him or herself and is less likely to be influenced by situational (organizational)
expectations.
The cognitive moral development framework is relevant to business ethics because it offers a
powerful explanation of individual differences in ethical reasoning. Individuals at different levels
of moral development are likely to think differently about ethical issues and resolve them
differently.

SITUATIONAL (ORGANIZATIONAL) FACTORS

Individuals' ethical issue recognition, judgment, and behavior are affected by contextual factors.
In the business ethics context, the organizational factors that affect ethical decision-making
include the work group, the supervisor, organizational policies and procedures, organizational
codes of conduct, and the overall organizational culture. Each of these factors, individually and
collectively, can cause individuals to reach different conclusions about ethical issues than they
would have on their own. This section looks at one of these organizational factors, codes of
conduct, in more detail.
Codes of conduct are formal policies, procedures, and enforcement mechanisms that spell out the
moral and ethical expectations of the organization. A key part of organizational codes of conduct
are written ethics codes. Ethics codes are statements of the norms and beliefs of an organization.
These norms and beliefs are generally proposed, discussed, and defined by the senior executives
in the firm. Whatever process is used for their determination, the norms and beliefs are then
disseminated throughout the firm.
An example of a code item would be, "Employees of this company will not accept personal gifts
with a monetary value over $25 in total from any business friend or associate, and they are
expected to pay their full share of the costs for meals or other entertainment (concerts, the
theater, sporting events, etc.) that have a value above $25 per person." Hosmer points out that the
norms in an ethical code are generally expressed as a series of negative statements, for it is easier
to list the things a person should not do than to be precise about the things a person should.
Almost all large companies and many small companies have ethics codes. However, in and of
themselves ethics codes are unlikely to influence individuals to be more ethical in the conduct of
business. To be effective, ethics codes must be part of a value system that permeates the culture
of the organization. Executives must display genuine commitment to the ideals expressed in the
written code—if their behavior is inconsistent with the formal code, the code's effectiveness will
be reduced considerably.
At a minimum, the code of conduct must be specific to the ethical issues confronted in the
particular industry or company. It should be the subject of ethics training that focuses on actual
dilemmas likely to be faced by employees in the organization. The conduct code must contain
communication mechanisms for the dissemination of the organizational ethical standards and for
the reporting of perceived wrongdoing within the organization by employees.
Organizations must also ensure that perceived ethical violations are adequately investigated and
that wrongdoing is punished. Research suggests that unless ethical behavior is rewarded and
unethical behavior punished, that written codes of conduct are unlikely to be effective.

ISSUE-RELATED FACTORS.
Conceptual research by Thomas Jones in the 1990s and subsequent empirical studies suggest that
ethical issues in business must have a certain level of "moral intensity" before they will trigger
ethical decision-making processes. Thus, individual and situational factors are unlikely to
influence decision-making for issues considered by the individual to be minor.
Certain characteristics of issues determine their moral intensity. In general, the research suggests
that issues with more serious consequences are more likely to reach the threshold level of
intensity. Likewise, issues that are deemed by a societal consensus to be ethical or unethical are
more likely to trigger ethical decision-making processes.
In summary, business ethics is an exceedingly complicated area, one that has contemporary
significance for all business practitioners. There are, however, guidelines in place for effective
ethical decision making. These all have their positive and negative sides, but taken together, they
may assist the businessperson to steer toward the most ethical decision possible under a
particular set of circumstances.
MYTHS ABOUT BUSINESS ETHICS
Business ethics in the workplace is about prioritizing moral values for the workplace and
ensuring behaviors are aligned with those values — it’s values management. Yet, myths abound
about business ethics. Some of these myths arise from general confusion about the notion of
ethics. Other myths arise from narrow or simplistic views of ethical dilemmas.

1. Myth: Business ethics is more a matter of religion than management.

Diane Kirrane, in “Managing Values: A Systematic Approach to Business Ethics,”(Training and
Development Journal, November 1990), asserts that “altering people’s values or souls isn’t the
aim of an organizational ethics program — managing values and conflict among them is …”

2. Myth: Our employees are ethical so we don’t need attention to business ethics.
Most of the ethical dilemmas faced by managers in the workplace are highly complex. Wallace
explains that one knows when they have a significant ethical conflict when there is presence of a)
significant value conflicts among differing interests, b) real alternatives that are equality
justifiable, and c) significant consequences on “stakeholders” in the situation. Kirrane mentions
that when the topic of business ethics comes up, people are quick to speak of the Golden Rule,
honesty and courtesy. But when presented with complex ethical dilemmas, most people realize
there’s a wide “gray area” when trying to apply ethical principles.

3. Myth: Business ethics is a discipline best led by philosophers, academics and theologians.
Lack of involvement of leaders and managers in business ethics literature and discussions has led
many to believe that business ethics is a fad or movement, having little to do with the day-to-day
realities of running an organization. They believe business ethics is primarily a complex
philosophical debate or a religion. However, business ethics is a management discipline with a
programmatic approach that includes several practical tools. Ethics management programs have
practical applications in other areas of management areas, as well. (These applications are listed
later on in this document.)
4. Myth: Business ethics is superfluous — it only asserts the obvious: “do good!”
Many people react that codes of ethics, or lists of ethical values to which the organization
aspires, are rather superfluous because they represent values to which everyone should naturally
aspire. However, the value of a codes of ethics to an organization is its priority and focus
regarding certain ethical values in that workplace. For example, it’s obvious that all people
should be honest. However, if an organization is struggling around continuing occasions of
deceit in the workplace, a priority on honesty is very timely — and honesty should be listed in
that organization’s code of ethics. Note that a code of ethics is an organic instrument that
changes with the needs of society and the organization.

5. Myth: Business ethics is a matter of the good guys preaching to the bad guys.
Some writers do seem to claim a moral high ground while lamenting the poor condition of
business and its leaders. However, those people well versed in managing organizations realize
that good people can take bad actions, particularly when stressed or confused. (Stress and
confusion are not excuses for unethical actions — they are reasons.) Managing ethics in the
workplace includes all of us working together to help each other remain ethical and to work
through confusing and stressful ethical dilemmas.

6. Myth: Business ethics in the new policeperson on the block.

Many believe business ethics is a recent phenomenon because of increased attention to the topic
in popular and management literature. However, business ethics was written about even 2,000
years ago — at least since Cicero wrote about the topic in his On Duties. Business ethics has
gotten more attention recently because of the social responsibility movement that started in the
1960s.

7. Myth: Ethics can’t be managed.

Actually, ethics is always “managed” — but, too often, indirectly. For example, the behavior of
the organization’s founder or current leader is a strong moral influence, or directive if you will,
on behavior or employees in the workplace. Strategic priorities (profit maximization, expanding
marketshare, cutting costs, etc.) can be very strong influences on morality. Laws, regulations and
rules directly influence behaviors to be more ethical, usually in a manner that improves the
general good and/or minimizes harm to the community. Some are still skeptical about business
ethics, believing you can’t manage values in an organization. Donaldson and Davis
(Management Decision, V28, N6) note that management, after all, is a value system. Skeptics
might consider the tremendous influence of several “codes of ethics,” such as the “10
Commandments” in Christian religions or the U.S. Constitution. Codes can be very powerful in
smaller “organizations” as well.

8. Myth: Business ethics and social responsibility are the same thing.
The social responsibility movement is one aspect of the overall discipline of business ethics.
Madsen and Shafritz refine the definition of business ethics to be: 1) an application of ethics to
the corporate community, 2) a way to determine responsibility in business dealings, 3) the
identification of important business and social issues, and 4) a critique of business. Items 3 and 4
are often matters of social responsibility. (There has been a great deal of public discussion and
writing about items 3 and 4. However, there needs to be more written about items 1 and 2, about
how business ethics can be managed.) Writings about social responsibility often do not address
practical matters of managing ethics in the workplace, e.g., developing codes, updating polices
and procedures, approaches to resolving ethical dilemmas, etc.

9. Myth: Our organization is not in trouble with the law, so we’re ethical.
One can often be unethical, yet operate within the limits of the law, e.g., withhold information
from superiors, fudge on budgets, constantly complain about others, etc. However, breaking the
law often starts with unethical behavior that has gone unnoticed. The “boil the frog” phenomena
is a useful parable here: If you put a frog in hot water, it immediately jumps out. If you put a frog
in cool water and slowly heat up the water, you can eventually boil the frog. The frog doesn’t
seem to notice the adverse change in its environment.

10. Myth: Managing ethics in the workplace has little practical relevance.
Managing ethics in the workplace involves identifying and prioritizing values to guide behaviors
in the organization, and establishing associated policies and procedures to ensure those behaviors
are conducted. One might call this “values management.” Values management is also highly
important in other management practices, e.g., managing diversity, Total Quality Management
and strategic planning.

Principles of Business Ethics

Now that we know what is meant by business ethics, we must identify and understand the 12
pillars or principles of ethics for business executives:
1. Honest: Businesses must show honesty in all their communications and conducts.
Abraham Lincoln has drawn a comparison between character and reputation as a tree and
its shadow. To build a reputation, one must have character and honesty at the forefront of
it. Honesty has to be accompanied with forthrightness and candidness.
2. Integrity: You demonstrate integrity when your thoughts, words and actions are in line
with each other. Ethical executives earn trust by having the integrity of character.
Integrity often requires walking the extra mile with moral courage and inner strength to
do the right thing even if it costs some personal losses.
3. Keeping Promises: An executive who makes all efforts to fulfil the spirit of their
commitments and promises earns trust and respect. They do not manipulate agreements
or misinterpret them to avoid compliance with the commitment.
4. Loyalty: Executives must be loyal with their organizations as well as people or other
organizations they work with. They must strive to protect the lawful interests of their
companies and colleagues. They need to safeguard information learned in confidence and
not use it for personal gains.
5. Fairness: Fairness means not to exercise power arbitrarily to gain or maintain any
advantage. This also means to not take undue advantage of another person’s mistakes or
difficulties.
6. Caring: A genuine compassion should be shown towards other’s well being. An ethical
business person would meet his/her business objectives without causing harm to others
and considering their good.
7. Respect For Others: Every person with whom a business executive interacts with must
be treated with respect, autonomy and dignity.
8. Law-abiding: All laws, rules and regulations related to one’s business activities must be
followed.
9. Commitment to Excellence: Excellence in their job is key to an organization's success.
Ethical executives must be well-informed and constantly work towards improving their
proficiency in diverse areas.
10. Leadership: An ethical role model would strive to be a role model for his or her
subordinates or employees. They promote ethical decision making principled reasoning.
11. Reputation and Morale: Reputation of a company and the pride and morale of their
employees is of the utmost importance to an ethical businessman. They are constantly
trying to build the reputation and morale of their business and people with their
affirmative words and actions.
12. Accountability: A business person must own the outcome of their decisions and
accountability of the ethical quality of decisions they make.
Importance of Business Ethics

The importance of business ethics is apparent in business operations. Business ethics guide an
organisation in these operations and keep them in line with laws and regulations. This guidance
helps the business maintain a positive public image and reputation of respectability.

Businesses with great employee welfare attract the best talent. Business ethics lay the
foundation for proper employee care. In addition, providing great welfare for employees
improves employee productivity and encourages them to stay loyal to a business's vision in the
long term.

Business ethics are also important in building relationships between a business and
its customers. A business with a defined and transparent operational system that treats its
customers well usually develops a long-standing relationship with customers. This makes it
easier for customers to trust the business and its products or services.

Business ethics also help to maintain a business's reputation among investors, who look for
transparency in a company's dealings. In other words, they like to know exactly what their
money is being used for.

Unethical Problems in a Business

Managerial misbehaviour: Managerial misbehaviour includes illegal and unethical practices
involved in the management of an organization.

Moral mazes: It is a part of business ethics which deals with the ‘mora mazes of management’. It
includes ethical problems, such as conflicts of interest, misconduct of contracts and agreements
and the illegal use of resources. After the birth of the social responsibility movement in 1960,
business ethics has become a management discipline. This movement helped solve various social
problems, such as poverty, crime and illiteracy by using the finance of business class people.

To develop better relationships among people within an organization, the field of human
resources emerged recently. As the complexity in the field of commerce has been increasing day
by day, so has the need to simplify trade in an organization. The process of simplifying the
commerce within an organization ensures better trading between the partners. With the growing
need of simplifying trade, the discipline of business ethics emerged. Business ethics is managed
by following the ethical code and the code of conduct as set by an organization

Kohlberg Theory of Moral Development

Kohlberg Theory of Moral Development is one of the most important theories in the field of
human psychology. Lawrence Kohlberg (1927-1983) was an American psychologist best known
for his theory of Stages of moral development. He has based his theory of moral development on
the findings of his studies conducted on hundreds of children from a different culture.
Morality can be developed either negatively or Positively, depending on how an individual
accomplishes the task before him during each stage of moral development across his life span.

Some important concepts of Kohlberg moral development Theory

1. Moral Realism: Rules are fixed and rigid we cannot break the rules. if we break the rules we
get punishment.
Example: If you break the traffic signal rules you get punishment

2. Moral Cooperation: If your intention is right you can break the rules

Example: If you break the traffic signal rules by allowing the ambulance to pass through

3. Moral Dilemma: Confusion between the right and wrong

Example: You have an SSC, Bank and Teaching Exam on the same day you might have
confused to choose the right one

4. Moral Reasoning: It is a thinking process involved in the judgement of question of right

and wrong

Example: Vote for the right Politician is moral reasoning

Kohlberg Theory of Moral Development: Level and Stages

There are 3 level and 6 Stages of Kohlberg’s Moral Development Theory these are-

Level-1 : Pre-conventional Morality / Pre-morality( Before age 9 years)

Stage-I: Obedience and punishment

Stage-II: Individualism and exchange/TIT for TAT

Level-2: Conventional Morality

Stage-III: Interpersonal Relationship/ Good Boy-Nice Girl Orientation (Early Adolescence)

Stage-IV: Law and Order Orientation

Level-3: Post-Conventional Morality (Late Adolescence/Adulthood)

Stage-V: Social Contract/ Individual Right

Stage-VI: Universal Ethical principle

Level-1 : Pre-conventional Morality / Pre-morality

The first level of morality, pre-conventional morality (most nine-years-old and younger, some
over nine). At this stage, we do not have a personal code of morality. Instead, our moral code is
shaped by the standards of adults and the consequences of following or breaking their rules.

At this level, authority is outside the individual and reasoning is based on the physical
consequences of the action.

It can be further divided into two stages: obedience and punishment and Individualism and
exchange

Stage-I: Obedience and punishment

This stage includes the use of punishment so that the children refrains from doing the action and
continues to obey the rules.

Example: A fourth-grade child refrains from running in the hallway (Corridor) to avoid the
consequences involved in breaking the school rules.

Stage-II: Individualism and exchange/TIT for TAT

In this stage, the person is said to judge the morality of an action based on how it satisfies the
individual need of the doer.

Example: Elementary school children think, if you break my pencil I will your (Tit for Tat)

Or Sharing tiffin (Individualism and Exchange)

Level-2: Conventional Morality

The second level of morality involves stage III and IV of moral development. At the
conventional level, we begin to internalize the moral standard of value adult role models

Conventional morality includes the society and societal roles in judging the morality of an action
Stage-III: Interpersonal Relationship/ Good Boy-Nice Girl Orientation

In this stage, a person judges an action based on the societal roles and social expectation before
him

For example, A child gives away her lunch to a street peasant because she thinks doing so means
being nice or good

Stage-IV: Law and Order Orientation

This stage includes respecting the authorities and following the rules, as well as doing a person’s
duty. The society is the main consideration of a person at this stage.

Example: Wear a mask and frequently hand sanitization to avoid spreading coronavirus

Or A policeman refuses the money offered to him under the table and arrest the offender because
he believes this is his duty as an officer of maintaining peace and order in the society

Level-3: Post-Conventional Morality ( Late Adolescence/Adulthood)

The post-conventional morality includes stage 5 and 6. This is mainly concerned with the
universal principles that relate to the action done. Individual judgement is based on self-chosen
principle and moral reasoning is based on individual rights and justice.

Stage-V: Social Contract & Individual Right

In this stage, the person is looking at various opinions and values of different people before
coming up with the decision on the morality of an action. In other sense, once people reach at
stage five, they normally believe that society is a “contract” that they enter in order to benefit
everyone, while also recognizing that different society has their different values. All people work
together for the betterment of society and change the unfair laws exist in Society.

Example: Democratic govt is theoretically based on stage five reasoning

Or It cannot be right that huge corporation sometimes pay no taxes; that law needs to be changed
so that the burden of taxes falls more equally on everyone shoulder

Stage-VI: Universal Ethical principles

The final stage or highest stage of moral reasoning is based on when a person considers
universally accepted ethical principles. This judgement may become innate and may even violate
the laws and rules as the person becomes attached to his principle of justice. In other sense, A
person take risk of their own life for save others life.
Example: Army officer drag their life into an extreme risk to save others

Or In Madhya Pradesh, A police constable save 400 school children, A bomb was found in
school at that time there was no bomb disposal squad at hand so, He ran for 1km with 10 kg
bomb in his arms to save the children present in school

In Conclusion, Morality can be developed either negatively or positively depending on how

people accomplish the task. Parents, School and society play a crucial role to develop the
morality of children

“Being a good person is important in life, when you give good out into the world you will
receive it back”

CAROL GILLIGAN THEORY OF MORAL DEVELOPMENT

Gilligan is a pioneer in the field of gender difference psychology, which argues that the sexes
tend to think differently, particularly when it comes to moral problems. Gilligan argues that these
differences are likely a product of social influences and gender conditioning and emphasizes that
women's ways of thinking are often undervalued compared to men. Gilligan's emphasis on
gender difference, however, has been criticized by some feminists, who argue that focusing on
differences between men and women can serve as a justification for ongoing inequality.

Her best-known contribution to psychology is her adaptation of Lawrence Kohlberg's theory of

moral development. Kohlberg’s theory demonstrates that children progress through several
stages of moral reasoning, though not everyone reaches the highest levels of moral reasoning,
where justice and individual rights are guiding principles in a person’s life. Kohlberg found that
more men reached this stage of moral reasoning than women and that men tended to be heavily
focused on justice. Gilligan criticized this theory, arguing that it was biased in favor of men. In
her own research, Gilligan found that women placed a stronger emphasis on caring in moral
decision making. Kohlberg's theory emphasizing justice does not allow for the role of caring in
moral decision making, and this is why women often fail to reach Kohlberg's “higher” stages of
moral reasoning.

Gilligan’s work on moral development outlines how a woman’s morality is influenced by

relationships and how women form their moral and ethical foundation based on how their
decisions will affect others. She believes that women tend to develop morality in stages. These
stages follow Kohlberg's moral stages of preconventional, conventional, and postconventional,
but are based upon research with women.
Gilligan's reply was to assert that women were not inferior in their personal or moral
development, but that they were different. They developed in a way that focused on connections

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MBA and Beyond O

among people (rather than separation) and with an ethic of care for those people (rather than an
ethic of justice). Gilligan lays out in this groundbreaking book this alternative theory.

Though the names of the stages are the same, the stages differ in this method. The moral dare
based on pro-social behaviors such as Altruism, caring and helping and the traits such as
honesty, fairness and respect.

Pre-conventional Level

• A person in this stage cares for oneself to ensure survival.

•Though the person’s attitude is selfish, this is the transition phase, where the person finds the
connection between oneself and othersevelopment in Gilligan’s theory

Conventional Level

In this stage, the person feels responsible and shows care towards other people.
Carol Gilligan believes that this moral thinking can be identified in the role of a mother and a
wife. This sometimes leads to the ignorance of the self.

Post-conventional Level

This is the stage, where the principle of care for self as well as others, is accepted.
However, a section of people may never reach this level.

According to the Carol Gilligan’s theory of moral development, changes occur due to the change
of self rather than the critical thinking. It was stated that the post-conventional level of Kohlberg
is not attained by women. But Carol Gilligan researched and found that the post-conventional
level of thinking is not being easy for women to go through because they care for the
relationships.

Levels of Thinking

Carol Gilligan states that the post-conventional level of moral thinking can be dealt based on the
two types of thinking. Gilligan’s theory is based on the two main ideas, the care-based morality
(usually found in women) and the justice-based morality (usually found in men).

Care-based Morality

Care-based morality is the kind of thinking found in women. This is based on the following
principles.

•More emphasis is given to inter-connected relationships and universality.

•Acting justly focuses on avoidance of violence.

•Women with this are usually interested in helping others.

•More common in girls because of their connections to their mothers.

•Because girls remain connected to their mothers, they are less inclined to worry about issues of
fairness.

Justice-based Morality

Justice-based morality is the kind of thinking found in men. This is based on the following
principles.

•They view the world as being composed of autonomous individuals who interact with one
another.

•Acting justly means avoiding inequality.

•Individuals with this are usually interested in protecting individuality.

•Thought to be more common among boys because of their need to differentiate between
themselves and their mothers.

•Because they are separated from their mothers, boys become more concerned with the concept
of inequality. The Carol Gilligan’s theory can be better understood if explained with an example.

Example of Gilligan’s Theory

In order to understand Gilligan’s theory, a popular example is usually considered. A group of

moles give shelter to a porcupine. But they are being continuously stabbed by the porcupine’s
quills. Now, what should they do?

The Pre-conventional level of thinking states that to think for the good of oneself, either the
moles or the porcupine only can live there. The other has to leave the place.

According to the Conventional level of thinking, which brings a transition, from self to the good
of others and which might even lead to sacrifice, either the moles or the porcupine has to
sacrifice and again this leads to a stage where only moles or the porcupine can live in the burrow

According to the Post-conventional level of thinking, which states that the good of both the
parties has to be considered, both the moles and the porcupine come to an agreement that both
will have separate places in the same burrow, where they limit to behave themselves and will not
cause any trouble to other. This helps both of them to live in the same place with peace.

The researchers found that the solution to this scenario is different with different individuals;
gender also plays an important role. The thinkers were observed viewing the problem in two
different perspectives, the care-based and the justice-based.

In a Justice-based perspective, the solution to the problem is viewed as a conflict between two
individual groups. Only one of them can have the property. Either moles or the porcupine will
get the place in the burrow. Hence the solution to the dilemma, is not a resolution of the conflict,
it is a verdict.

In a Care-based perspective, the approach differs. The problem is viewed as a difficult situation
faced by both the parties together, rather than a fight between both of them. Hence the solution is
sought in a way around the problem or to remove the problem completely. The solution may
sound compromising but not damaging. The relationship will still be the same, after the
resolution.

Researchers found that Justice-based perspective is pre-dominant among males while Care-based
prospective is among females.

Consensus and Controversy

The moral judgment may lead to conflicts if they are not delivered properly without hurting the
feelings of the persons involved. There are two stages after the judgement. The stages are
described below −

Consensus

This is that state where people come into agreement with the judgement given by getting
convinced with the moral reasons. This will leave the persons with a feel that justice has been
done, the verdict may favor any party.

Controversy

This is that state where the persons involved in an issue are not satisfied by the verdict and might
feel that it was decided on partial interests. This will leave the people with a sense of
dissatisfaction that justice was not done, which might lead to another conflict