Ethical theories give structured ways to judge what is right or wrong. In business, they help managers handle ethical dilemmas (profit vs safety, privacy vs personalization, targets vs truthful reporting) and justify decisions transparently.
This topic is commonly asked as:
You should be able to:
Ethical theories are needed because:
Utilitarianism judges actions by their outcomes. The ethical choice is the one that creates the greatest good for the greatest number (concept).
Deontology judges actions by whether they follow duties, rules, and rights, regardless of outcomes (concept). Some actions are wrong even if they produce good results (e.g., lying).
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Business ethics refers to implementing appropriate business policies and practices with regard to arguably controversial subjects. Some issues that come up in a discussion of ethics include corporate governance, insider trading, bribery, discrimination, social responsibility, and fiduciary responsibilities.
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Ethical theories give structured ways to judge what is right or wrong. In business, they help managers handle ethical dilemmas (profit vs safety, privacy vs personalization, targets vs truthful reporting) and justify decisions transparently.
This topic is commonly asked as:
You should be able to:
Ethical theories are needed because:
Utilitarianism judges actions by their outcomes. The ethical choice is the one that creates the greatest good for the greatest number (concept).
Deontology judges actions by whether they follow duties, rules, and rights, regardless of outcomes (concept). Some actions are wrong even if they produce good results (e.g., lying).
Virtue ethics focuses on the character of the decision-maker rather than only rules or outcomes. Ethical action is what a person with good virtues would do (concept).
Exam tip: Write 3–4 rows and give one line of explanation.
Issue/Facts -> Stakeholders -> Options -> (Law + Ethics Tests + Consequences) -> Decision -> Implement -> Review
Use these quick tests (you can write any 4–6):
Exam tip: mention 2–3 lines under each test.
A company discovers a safety defect in a product. Fixing it immediately will be costly and may delay shipments.
Conclusion: different theories may use different reasoning but often converge on ethical action.
From this topic
Differences (exam-style):
Any three differences are sufficient.
Virtue ethics focuses on the character of the decision-maker; an action is ethical if it reflects good virtues (concept).
Any three business virtues:
Write any three with one-line meaning.
Conclusion: Using multiple lenses improves ethical reasoning and justification (concept).