Question

Distinguish between the bases for making ethical judgments under each of the ethical reasoning methods discussed in chapter 1. The ethical reasoning methods are: Teleology, Deontology, Justice, Virtue Ethics

Answer 1

Motives that stand behind human behaviour have been an important question for investigation in various social disciplines. Economics is one of the sciences where complicated theories are substantiated on the basic assumptions considering human behaviour that are taken for granted and not questioned. Moreover, economic science tries to help solving practical problems. The development of practical problems does not consider boundaries betweendifferent branches of science. Particularly affected are those branches that study human behaviour and that have been reduced to theoretical concepts for theoretical reasons (for the sake of simplifying) and that foresee the removal of values and moral standards – something that has been previously applied towards economics. Economics is a regulatory science with assumptions and forecasts on micro and macro phenomena, based on a notion that human beings are completely rational.

In this article authors are analysing three major groups of theories on ethics from the viewpoint of ability to

explain reasoning behind human behaviour. Teleological theories and utilitarianism for a long time have served as a

basis for assumptions on economic choices that individuals are making in everyday lives. Deontological ethics and

Kantian imperatives are stressing universal moral principles that should be implemented by individuals, whereas

Virtue ethics developed by Aristotle puts individuals in complicated net of embedded relationships that is the only path to achieve real happiness and satisfaction. In the discussion part of the article authors are providing summary of the key elements from all three main theoretical branches of ethics in connection to the concepts of economic rationality. Then new model on the reasons behind human behaviour is proposed that takes into account both economic and moral motives.

--->> Ethical theories are usually divided into the three big groups. Very widespread is the division into teleological, deontological and virtue ethics theories:-

•eleological ethics theories are based on an assumption that a decision behind certain conduct has to be based on an assessment of a respective outcome. The name itself “teleology” has originated from a Greek name “telos” which means “an end”. Thus, an action itself cannot be good or bad; however, an outcome or an impact of this action upon involved parties can be either positive or negative. Utilitarianism is a classical teleological theory that is widely applied in economics when explaining rational decision making.

In difference to afore described Teleological theories, Deontological theories stress the presence of universal ethical principles that need to be followed irrespective of the outcome. The name “deontology” has been derived from the Greek origin name “deon” -meaning “duty”. The founder of classical Deontological theories is Immanuel Kant, the 18th-century German philosopher from Prussia. Deontological theories stress the importance of motives behind a conduct next to an outcome. Consequently, ethical behaviour is driven by a duty and not a remuneration.

On the other hand, a number of Deontological theories’ researchers believe that categorical imperatives are based on the choice of rational humans, though this rationality differs from Utilitarianism rationality. The basic principle of Deontological theory - behaving in a way that we want everyone to follow - is rational for it would promote the entire society’s welfare.

he semblant contradiction between Deontological ethics and Economics theory arises if we analyse each individual’s decision making motives. However, on a macro level of analysis, we can conclude that key economic activity principles are based on the society’s compliance with norms (both formal and informal) next to adoption of certain rights and institutions (such as private property rights, contractual rights, social guarantees and others). The influence of rights and regulations upon the individual, corporate and the country’s economic conduct is widely recognized. Such deontological concepts as rights, duties, equality and norms have been widely analysed in political economics, institutional economics, socio-economics and ecological economics. It is mostly accepted that rights and regulations influence economical behaviour by restricting individual choice. Such restriction is required to ensure the freedom of other participants of economical relationship. Often it is analysed in the context of the free trade - anti-dumping law and monopoly restrictive trade practices – these are examples of deontology ethics, universal morality norms that are promoted by the law.

Another interesting group of ethical theories are the so-called Virtue Ethics. These theories originated in Ancient Greece and have been associated with Aristotle. In this case, moral conduct is not determined by universal conduct code or an outcome of a specific action (as per the afore described Teleological and Deontological theories) but by specific personal traits that guarantee the right choice in front of moral dilemmas. Happiness is also covered in ethical concepts for certain personal traits ensure a good, ethical and, consequently, a happy life. Yet, the Ancient Greek word (eudemonia) which is usually translated as “happiness” does not mean happiness in a hedonic meaning but an honest ethos based life that can be the only way to lead a fulfilled and meaningful life.

Thus, the object of Virtue ethics’ analysis is not an ethical conduct but personal traits that ensure taking ethically correct decisions. In this case, a personal trait exhibited as a habit is considered to be a virtue. widely recognised as a researcher of Virtue ethics and its relationship with economic theories, has come up with the following definition: “A virtue can be thought of as a habit or character trait that is part of one’s identity and that affects one’s behaviour.