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Application of Ethical Theories

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Application of Ethical Theories
The role of ethical theories in ethical reasoning and behavior within organizations - Research proposal
Sigalit Pasternak, Phd student
The Faculty of Management
Tel Aviv University
Supervisor: Dr. Ishak Saporta

Introduction
Business ethics is a specialized branch of ethics focusing on how moral standards apply to business organizations and behavior (Velasques, 1998). As such, it cannot be understood separately from the general ideas of ethics, and the general ethical theories apply to business ethics as well (Hunt & Vitell, 1986; Fritzsche & Becker, 1984;
Schumann, 2001; Lahdesnati, 2005). Normative ethical theory offers different moral theories, each prescribing a set of moral rules that individuals can apply in the process of deciding whether an action is morally right or wrong in various situations (Ferrell
& Gresham, 1985; Weber, 1990; Alder, Schminke, Noel, & Kuenzi, 2008). Research on the role of ethical theories in business usually focuses on the application of ethical guidelines in human resources practices (Shultz & Brender-Ilan, 2004; Schumann,
2001), corporate social responsibility policies (Frederiksen, 2010), and the assessment of managers’ ethical evaluations (Reidenbach & Robin, 1990). Most studies aim to identify basic ethical rules that individuals can follow in business or to prescribe frameworks of moral principles to apply in decision making. These moral principles are derived from various traditional ethical theories.
The role of ethical theories is less dominant in the field of ethical decision making.
Only a few ethical decision-making models rely directly on ethical theories. One example is Hunt and Vitell's (1986) ethical decision making model according to which the evaluation phase of a decision-making process is carried out through a combination of utilitarian and deontological assessments. Some ethical decisionmaking models keep ethical theories in the background, implying that the theories are reflected in the process (e.g., Trevino,



References: Airaksinen, T. 1987. Berkeley and the Justification of Beliefs. Philosophy and Phenomenological Research, 48(2): 235-256. Brandt, R.B. 1979. A Theory of the Good and the Right. New York: Oxford Univ. Bentham, J.1789. An Introduction to the Principles of Moral and Legislation. New York: Hafner, 1948. Bowie, N.E. 2002.A Kantian Approach to business Ethics. in Frederick, R.E. A Companion to Business Ethics, Blackwell, UK. Chun, R. 2005. Ethical Character and Virtue of Organizations: An Empirical Assessment and Strategic Implications Collins, H., and Wray-Bliss, E. 2005. Discriminating Ethics. Human Relations, 58:799-824. Conroy, S.J., Emerson, T.L.N., & Pons, F. 2010. Ethical Attitudes of Accounting Practitioners: Are Rank and Ethical Attitudes Related? Journal of Business Ethics Dillard, J.F., and Ferris, K.R. 1989. Individual Behavior in Professional Accounting Firms: A Review and Synthesis Dillon, R.S. 1992. Care and Respect. In E. Browning Cole, & S. Coultrap-MCQuin (Eds), Explorations in Feminist Ethics: Theory and Practice (pp.69-81).Bloomington, Duska, R. 2002. The Ethics of Reward Systems in the Financial Services Industry. Dutton, J.E. and Dukerich, J.M. 1991. Keeping an Eye on the Mirror: Image and Identity in Organizational Adaptation Ferrell, O.C. and Fraedrich, J. 1991.Business Ethics: Ethical Decision Making and Cases Ferrell, O.C., and Gresham, L.G. 1985.A Contingent Framework for Understanding Ethical Decision Making in Marketing

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