08990402 – Business Ethics & Corporate Governance CH 1 Understanding Ethics

Question: Classify Consequentialist and Non-Consequentialist theories of Traditional

Ethics.

Answer:

Traditional ethical theories are broadly classified into two categories: Consequentialist and
Non-Consequentialist theories. These theories help in evaluating moral behaviour and
decision-making, especially in a business context. Here's how they are classified:

1. Consequentialist Theories: These ethical theories judge whether an action is right or

wrong based on the consequences it produces. The focus is on outcomes—if the result is
good, the action is considered ethical.

Main types:
A) Utilitarianism: This theory promotes actions that maximize overall happiness or welfare.
In the Indian context, companies like Tata Group often follow a utilitarian approach by
emphasizing corporate social responsibility (CSR) to uplift communities.
B) Egoism: This theory holds that actions are ethical if they benefit the individual. In India,
some start-up founders might justify decisions based on self-interest, especially in competitive
markets.

2. Non-Consequentialist Theories: These theories determine the morality of an action based

on rules, duties, or inherent moral principles, regardless of the outcome.

Main types:
A) Deontological Ethics: Associated with Immanuel Kant, this theory says actions are right if
they follow universal moral laws. In India, following government regulations strictly, even
when not profitable, reflects a deontological approach.
B) Rights Theory: Focuses on respecting the rights of individuals. For example, Indian
businesses respecting consumer rights under the Consumer Protection Act is an application of
this theory.
C) Virtue Ethics: This theory emphasizes moral character and virtues like honesty,
compassion, and integrity. In Indian tradition, this aligns with teachings of the Bhagavad Gita,
where duties (dharma) and righteous conduct are emphasized.

Conclusion: While Consequentialist theories emphasize the end result, Non-Consequentialist

theories focus on the intention and the act itself. In India's diverse business environment, a
balance of both approaches is often necessary to ensure ethical, legal, and culturally sensitive
practices.

Question: Differentiate between Teleological Ethics, Deontological Ethics, and Virtue

Ethics with suitable examples. How do these normative ethical theories influence moral
decision-making?

Answer:

Normative ethical theories help individuals and organizations decide what is morally right or
wrong. The three major types—Teleological Ethics, Deontological Ethics, and Virtue Ethics—
differ in how they evaluate the morality of actions.
08990402 – Business Ethics & Corporate Governance CH 1 Understanding Ethics

1. Teleological Ethics (Consequentialism) Teleological ethics judges the morality of an

action based on its consequences. The most well-known form is Utilitarianism, which
promotes actions that maximize overall happiness or benefit.

Key Focus: Outcomes or consequences

Ex. An Indian pharmaceutical company reduces the price of a life-saving drug to make it
affordable for poor patients, even though it lowers profits. The action is considered ethical
because it benefits the larger society.

Impact on Decision-Making: Managers using teleological ethics weigh the pros and cons of
a decision based on its impact on stakeholders (e.g., customers, employees, society).

2. Deontological Ethics Deontological ethics focuses on following moral duties, rules, or

obligations, regardless of the outcomes. Right actions are determined by principles, not by
results.

Key Focus: Moral rules and duties

Ex. A compliance officer in an Indian bank refuses to hide a financial irregularity, even though
exposing it may hurt the bank’s reputation. The act is ethical because it follows the duty of
honesty and legal compliance.

Impact on Decision-Making: Managers guided by deontology stick to ethical codes, company

policies, and legal frameworks while making decisions, even under pressure.

3. Virtue Ethics Virtue ethics emphasizes the moral character of the individual performing
the action, rather than rules or consequences. It is about cultivating virtues such as honesty,
empathy, courage, and integrity.

Key Focus: Character and moral values

Ex. A family-run business in India treats employees like family and practices transparency, not
because of profit or rules, but due to the owners' personal values of fairness and loyalty.

Impact on Decision-Making: Managers following virtue ethics focus on being good

individuals and leading by example, often influencing the culture and values of the entire
organization.

Summary Table:

Theory Focus Basis of Morality Example (India Context)

Teleological Reducing prices to help
Consequences Results/outcomes
Ethics the poor
Deontological Universal moral Following law despite
Duties & Rules
Ethics principles consequences
Character & Being a morally good Honest and caring
Virtue Ethics
Virtues person leadership
08990402 – Business Ethics & Corporate Governance CH 1 Understanding Ethics

Conclusion: These normative ethical theories guide moral decision-making in different ways.
Business leaders in India often face complex ethical challenges where they must balance the
outcomes (teleology), follow rules (deontology), and remain true to their character (virtue
ethics). A combination of all three can help in making responsible and sustainable decisions.

Question: Critically examine the differences between Kohlberg’s Model of Moral

Development and Gilligan’s Ethics of Care. How do these models influence perspectives
on law and morality in modern society?

Answer:

Kohlberg’s Model of Moral Development and Gilligan’s Ethics of Care are two influential
psychological theories that explain how individuals develop moral reasoning. While both
explore morality, they differ in their approach, focus, and interpretation of ethical behaviour.

I. Kohlberg’s Model of Moral Development Lawrence Kohlberg proposed a six-stage

model grouped into three levels, emphasizing justice, rights, and logical reasoning as the basis
of moral development.

The Three Levels:

1. Pre-conventional: Obedience and punishment orientation (self-interest driven)
2. Conventional: Conformity to social rules and laws
3. Post-conventional: Abstract principles of justice, rights, and equality

Key Features:
 Focuses on rationality, justice, and fairness
 Universal and hierarchical; people progress through the stages
 Emphasizes rule-based and law-abiding morality

Criticism:
 Based on studies conducted primarily on boys
 Overemphasis on logic and justice; underplays emotion and care

Ex. A bureaucrat following anti-corruption laws despite political pressure reflects post-
conventional reasoning based on justice and integrity.

II. Gilligan’s Ethics of Care Carol Gilligan criticized Kohlberg’s model for ignoring the
moral experiences of women. She proposed the Ethics of Care, which emphasizes relationships,
empathy, compassion, and context in moral decision-making.

Key Features:
 Focuses on care, responsibility, and interpersonal relationships
 Sees moral development as non-hierarchical
 Highlights emotional intelligence, especially in real-life dilemmas

Stages:
1. Self-interest
2. Care for others
08990402 – Business Ethics & Corporate Governance CH 1 Understanding Ethics

3. Balanced care for self and others

Criticism:
 Considered more qualitative and less structured
 Sometimes seen as gender-specific rather than universal

Ex. A female manager in a family business prioritizing the wellbeing of employees over layoffs
during a financial crisis reflects care-based morality.

Key Differences:
Aspect Kohlberg’s Model Gilligan’s Ethics of Care
Care, relationships,
Moral Focus Justice, fairness, rights
responsibility
Gender Male-oriented (original research on Developed from female
Perspective boys) perspectives
Logical, rule-based, abstract Empathetic, contextual,
Approach
reasoning relationship-based
Development Hierarchical stages Contextual and fluid
Ethical Lens Rights and law Human needs and emotions

IV. Influence on Law and Morality in Modern Society

1. Legal Perspectives: Kohlberg’s model aligns with Western legal systems that prioritize
fairness, equality, and the rule of law. In India, our constitutional values—like justice,
equality, and non-discrimination—echo Kohlberg’s post-conventional level. Gilligan’s
approach has influenced fields like family law, labor law, and restorative justice, which
consider the emotional and relational aspects of conflicts.
2. Moral Perspectives: Kohlberg promotes objectivity in moral reasoning, vital for judges,
bureaucrats, and policy-makers. On the other hand, Gilligan promotes compassion, which
is important in healthcare, education, and CSR decision-making.
3. Workplace Ethics: In Indian organizations, leaders often use a mix of both—rational
policies (Kohlberg) and emotional intelligence and empathy (Gilligan)—to handle
dilemmas involving layoffs, diversity, and stakeholder conflicts.

Conclusion: Both Kohlberg’s and Gilligan’s theories contribute significantly to understanding

moral development. Kohlberg emphasizes justice and universal principles, while Gilligan
highlights care and context. In modern society, especially in culturally diverse countries like
India, a balanced integration of both models is essential to develop laws and moral systems that
are not only just but also compassionate and inclusive.