Making moral decisions in the workplace can be complex and challenging. Having a framework of ethical perspectives to draw upon can help guide us to make principled and defensible choices. Utilitarianism, deontology, and virtue ethics are three major ethical theories that can inform moral reasoning. By understanding the key tenets of these perspectives, we can apply them to real-world situations to help determine the most ethical course of action.
Utilitarianism
Utilitarianism is a consequentialist ethical theory that judges the morality of an action based on its outcomes or consequences. It states that the most ethical choice is the one that produces the greatest good for the greatest number of people.
A utilitarian approach focuses on maximising overall welfare, happiness or well-being (often equated with minimising pain and suffering). It is less concerned with how this is achieved and more with the results. In a business context, utilitarianism would consider the impacts of a decision on all stakeholders, aiming to generate the most positive value overall.
For example, consider a company facing pressure to downsize its workforce to cut costs. A utilitarian view would weigh up the relative benefits and harms of redundancies on employees, their families, the local community, shareholders, customers and the long-term viability of the business. The most ethical option under utilitarianism would be the one that produces the most good and least suffering for the greatest number.
However, critics argue utilitarianism can lead to decisions that ignore individual rights as long as the overall consequences are positive. It may justify harming a minority for the benefit of a majority. Utilitarianism also faces challenges in measuring and comparing different people’s happiness.
Deontology
In contrast to utilitarianism, deontological ethics judges the morality of actions based on duty and adherence to rules, not consequences. Deontology states that inviolable moral rules must not be broken, even if doing so would produce a good outcome.
Deontological thinking is based on the work of Immanuel Kant, who argued that moral rules are universal and must be followed out of duty, regardless of results. Kant proposed the “categorical imperative” as a test of whether an action is ethical: “Act only in accordance with that maxim through which you can at the same time will that it become a universal law.”
Under this view, certain actions (like lying) are always morally wrong, irrespective of context or outcomes. In business, deontology would require adhering to moral rules like honesty, fairness, and avoiding harm, even when doing so imposes costs. An example would be keeping a promise to a supplier to pay on time, even if reneging on that commitment may be financially advantageous.
A key strength of deontology is that it preserves individual rights and duties. However, it can sometimes lead to perverse outcomes if followed rigidly. An oft-cited example is that deontology would deem it unethical to lie to a murderer about the location of their intended victim.
Virtue Ethics
Virtue ethics focuses on moral character rather than the rightness or wrongness of specific actions. It considers virtues an ethical person should embody, such as honesty, courage, compassion, temperance, and justice.
Virtue ethics asks, “What kind of person should I be?” rather than “What should I do?”. It guides us to act as a moral exemplar and to cultivate virtuous character traits through practice. In a workplace context, it would have us consider what a wise, fair and caring manager or colleague would do in a given situation.
For instance, a manager taking a virtue ethics approach to a difficult conversation with an underperforming team member would focus on embodying empathy, respect, tact and integrity. They would strive to be caring, honest, courageous in raising concerns sensitively, and fair-minded in considering the employee’s perspective with an open mind.
A strength of virtue ethics is its emphasis on moral education and development. Critics, however, contend it offers less concrete guidance than action-based theories. There can also be disagreement on what the key virtues are.
Applying Ethical Perspectives in Practice
While these three ethical frameworks offer different perspectives, each can help us navigate moral quandaries. The utilitarian focus on outcomes pushes us to consider the impacts of our choices on all affected parties. Deontology creates hard lines that limit the means to achieve even noble ends. Virtue ethics inspires us to develop our character and act with integrity.
Often, a combination of all three can be useful. We might start by asking what maximises good consequences, but temper that by ruling out deceptive means to get there and ultimately reflect on what course of action best expresses the virtues we aspire to embody.
Understanding these perspectives equips us with mental models to analyse and discuss moral issues more rigorously. In my organisation, I strive to apply them when faced with difficult decisions. I consider the impacts on stakeholders, the relevant moral duties and principles at stake, and what “the wise and good person” would do. Discussing decisions through these lenses with colleagues promotes a more thoughtful, consistent approach to workplace ethics.
In summary, utilitarianism, deontology, and virtue ethics offer complementary tools for moral reasoning that can be applied in a business context. By understanding their key ideas and consciously referring to them in decision-making, we can make more ethically informed choices in our work.
Frequently Asked Questions
1. What are the main ethical theories or perspectives used in business decision-making?
The three ethical frameworks used to guide moral reasoning in business are Utilitarianism, Deontology, and Virtue Ethics. Utilitarianism judges the morality of an action based on its consequences, with the most ethical choice being the one that produces the greatest good for the greatest number. Deontology focuses on the rightness or wrongness of actions rather than their consequences and considers certain actions inherently right or wrong based on a set of moral rules. Virtue Ethics emphasises moral character rather than rules or consequences, considering what virtues an ethical person should embody, such as honesty, courage, compassion, and integrity.
2. How can different ethical perspectives influence decision-making in the workplace?
Understanding different ethical frameworks equips professionals with mental models to rigorously analyse moral dilemmas. For example, a utilitarian approach would consider the impacts of a decision on all stakeholders, aiming to generate the most overall welfare. Deontology would prohibit certain actions based on moral duties, even if the consequences are positive. Virtue ethics focuses on exemplifying moral virtues like empathy and integrity in one’s conduct and choices. Consciously referring to these perspectives promotes more principled, consistent ethical reasoning.
3. What are some examples of how ethical theories apply to real business situations?
Examples of ethical theories applied to real business situations include utilitarianism, where, when considering layoffs, a utilitarian view weighs the harms and benefits to employees, their families, the community, shareholders, customers, and the business’s long-term viability to maximise overall welfare. Deontology involves keeping promises to pay suppliers on time, even if reneging would be financially advantageous, as certain duties should not be violated based on consequences alone. Virtue Ethics is illustrated by a manager embodying empathy, honesty, and fairness when having a difficult performance conversation with an employee, focusing on being an ethical role model.
4. Why is it important for HR professionals to consider ethics in their work?
HR professionals must consider ethics in their work because they uniquely influence an organisation’s workforce practices and strategy. By embedding ethics into their decision-making, they can promote cultures of trust, transparency, and integrity, ensure fair, respectful treatment of employees, navigate difficult trade-offs in a principled way, uphold the profession’s standards of ethics and integrity, and help leaders make responsible choices that create value for staff, the business, and society.
5. What decision-making approaches can HR use to identify solutions to ethical issues?
HR practitioners can draw upon various decision-making frameworks to analyse problems through an ethical lens, including consequence-based frameworks like utilitarianism, which focuses on outcomes; duty-based frameworks like deontology, which focus on moral rules and obligations; and virtue-based frameworks, which focus on moral character. The best practice is considering multiple ethical perspectives to get a fuller picture. Other useful tools include casuistry (case-based reasoning), moral rights, justice, and the common good approach. Recognising and resolving ethical dilemmas is a core skill for HR to navigate the complexities of the modern workplace, enabling professionals to make fair, responsible, and legally compliant decisions.
