Chapter 1: The Nature of Moral Problems of Management (p.1-23)
By: Daniel Grouzman
Step 1: Understand the Different Standards:
• The problem is that our moral standards of behaviors are subjective. They are personal
• The first step is to understand that moral standards are not an adequate framework for
decision because they are variable as well as personal.
• Moral standards differ between people, cultures, religions, e.t.c...
• This list of moral standards includes: personal goals, personal norms, personal beliefs
and personal values.
• These norms, goals, beliefs and values will vary depending upon cultural and religious
traditions of that person.
• Clearly, some people will benefit and some people will be harmed.
• How would u attempt to bridge these differences in moral standards? You have to work
through each of the next six stages ….
Step 2: Recognize the Moral Impacts
• In this step you have to identify who is going to be benefited and who is going to be
harmed and who is going to freely exercise their rights and whose rights will be denied.
• Make a stakeholder table and power/interest grid to ease this process
Step 3: State the Moral Problem
• If you listed all harms and benefits , then clearly you have a moral problem
• Therefore a compromise that meets the test of economic benefits, legal requirements ,
and ethical duties is possible. That is why you want to define and state the moral
problem as clearly as you can.
• You have to do this in a form of a question so it is less threatening and far more
• State the complete moral problem in question form
Step 4: Determine the Economic Outcomes
• Economic analysis refers to the net balance of benefits over costs for the full society.
• This concept is known as Pareto Optimality( allocative efficiency )
• This can be expressed as the greatest possible economic benefit at the least possible
• This theory can be used as long as: all markets must be competitive , all customers and
all suppliers must be informed and all costs must be included.
• Economic outcomes focus upon a balance between benefits and harms.
Step 5: Consider the Legal Requirements
• Legal requirements refer to the laws adopted by members of society to regulate the
behaviors of members of society • Legal requirements focus on a balance between an increase in rights for some and a
decrease in rights for others.
• We cannot solve a moral problem legally; to reach a truly equitable balance between
benefits for some and harms for others or between rights recognized for some and rights
denied for others, we must examine the ethical duties.
Step 6: Evaluate the Ethical Duties
• To evaluate the ethical duties we need to examine each theory and see if the ethical
duties have been breached.
• 1. Long –