Ethics, Ethical Theories and Ethical Decision Making
This domain tests whether you can apply a named ethical theory to a business dilemma, rather than simply asserting that something is wrong. Expect questions that ask you to reason, not to moralise.
The main theories
- Consequentialism: utilitarianism (Bentham, Mill) judges acts by overall welfare. It is practical but can justify sacrificing a minority and struggles with rights and distribution.
- Deontology: Kant's categorical imperative - universalisability and treating persons as ends, never merely as means. Ross's prima facie duties add nuance.
- Virtue ethics: Aristotle's focus on character and flourishing - what would a person of integrity, courage and honesty do here?
- Ethics of care (Gilligan, Noddings): relationships, dependence and context.
- Justice and fairness (Rawls): would you accept the rule from behind a veil of ignorance?
Moral development and decision making
Kohlberg's pre-conventional, conventional and post-conventional levels describe reasoning maturity. Rest's four components - moral sensitivity, moral judgement, moral motivation and moral character - explain why good reasoning still produces bad conduct. A workable process: establish facts, identify stakeholders, apply more than one theory, generate options, test them (legality, publicity, golden rule, mirror test), decide, act and review. Watch for self-serving bias, framing, groupthink and the rationalisation that everyone does it.
Worked example
A CFO is asked to keep the books open to book next quarter's orders. The utilitarian case for a short-term share price gain collapses once customer and investor harm is counted; deontology finds the misstatement cannot be universalised and treats investors as means; virtue ethics asks what an honest CFO does. The answer: refuse, escalate to the audit committee, and document the refusal.
Traps that cost marks
Equating legal with ethical. Using utilitarianism without counting harms to minorities. Answering with moral relativism. Leaving out the implementation step - escalation, disclosure, action.