Ethical theory may be classified in to the following four types.

1) Telco logical Theory

2) Deon to logical Theory
3) Hybrid Theory
4) Concept of Virtue

1) Teleological Theory

The word teleological is derived from the Greek word “telos” means end. Teleological ethics
focuses on the end results and then relating the end result to the process of achieving the
autonomy of the individual. In theological theory actions are justified on technological theories
by virtue of the end they achieve rather than feature of the actions themselves. Teleological
have two aspects:

1) Ethical egoism
2) Utilitarianism principle

1) Ethical egoism: It is normative theory about what we ought to do, how we ought to act.
Ethical egoism may be individual ethical egoism or universal ethical egoism.
2) Utilitarianism is the ethical theory which finds the basis of moral distinctions in the utility
of actions i.e., their fitness to produce happiness. Utility means usefulness – the
usefulness of actions which determines their moral character rather than anything in the
nature of the action itself. Utilitarianism is a powerful and widely accepted ethical theory
that has specific relevance to problems in business. It fits easily with the concept of value
in economics and the use of cost benefit analysis.

Classical and Traditional Utilitarianism:

Classical Utilitarianism: In classical utilitarianism, pleasure is taken to be ultimately the only

good and evil is opposite of pleasure or pain. Goodness here is human well being whatever
makes human beings generally better off or provides some benefit is good. Whatever makes
them worse off or harm them is evil.

Traditional Utilitarianism: Jeremy Bentham and John Stuart Mill have created this concept.
According to them utilitarianism was not an ivory tower philosophy but a powerful instrument
for social, political, economic & legal change.

Jeremy Bentham version of Utilitarianism:

The principle of utility means that principle which approves or disapproves of every action
whatsoever;

i) According to the tendency which it appears to have argument.

ii) Diminish the happiness of the party work interest is in question.
iii) What is the something in other words to promote or to oppose that happiness.

The principle required that the consequence can be measured in some way so that the pleasure
and pain of different individuals can be added together & the results of different courses of
action can be compared.

Criticism:

Critics said that “ Utilitarianism” is a pig “philosophy” and fit only for swine. As per the critics
it would be better to live the life of the satisfied pig than that of a dissatisfied human beings.
John Stuart Mill’s version of Utilitarianism considering criticism of Bentham’s theory John
Stuart attempted to develop a more defensible version of the utilitarian position.

The creed which accepts as the foundation of morals, utility, or the greatest happiness principle,
holds that actions are right in proportion as they tend to promote happiness, wrong as they tend
to produce the reverse of happiness (Happiness is intended pleasure, absence of pain;
unhappiness is pain and the privation of pleasure)

It is better to be a human being dissatisfied than a pig dissatisfied. Better to be Socrates

dissatisfied than a fool satisfied. And if the fool or the pig are of a different opinion, it is
because they know only, their side of the question.

Normative Ethics in Management

Ethics relate to study of morality. But ethics are not only one to study morality, social sciences
like anthropology, sociology and psychology also study morality. These social sciences engage
in a descriptive study of ethics. A descriptive study attempts to describe or explain the world
without reaching any conclusion about whether the world is as it should be.

Normative Study: Normative study is an investigation that attempts to reach normative

(describing or setting std or rules of behavior) conclusions about what things are good or bad or
what actions are right or wrong. Thus, normative study aims to discover what should be?

Ethical Theories:

In ethical theory, important division is made between the claim that it is possible to known
moral right from wrong and the denial of that claim. The claim and counter claim about that we
can and con not know, the position which declares we can know is called “cognitivism” and
vice-versa it is “non cognitivism”