Ethical Theories and Ethical Decision-Making: Utilitarianism, Deontology, Virtue Ethics and Frameworks (Basics) Questions

Question 1

Define utilitarianism.

Accepted Answer

Utilitarianism is a **consequence-based** theory which says an action is ethical if it produces the **greatest overall good** for the greatest number (concept).

Question 2

What is deontology? (One line.)

Accepted Answer

Deontology is a **duty/rights-based** approach where actions are judged by rules and duties, not only by outcomes (concept).

Question 3

Virtue ethics focuses on character rather than consequences. (True/False)

Accepted Answer

True. **Virtue ethics** evaluates decisions based on the virtues/character of the decision-maker (concept).

Question 4

State any one limitation of utilitarianism.

Accepted Answer

A limitation is that it may justify harming a **minority** if it increases overall benefit for the majority (concept).

Question 5

Write any one example of a virtue in business.

Accepted Answer

**Integrity** (honesty and consistency in actions) is a key virtue in business (any one virtue like fairness/courage is acceptable) (concept).

Question 6

Transparency test is an ethical test used in decision-making. (True/False)

Accepted Answer

True. The **transparency test** asks if you can justify the decision openly under public scrutiny (concept).

Question 7

Differentiate utilitarianism and deontology (any three points) using a table.

Accepted Answer

Differences (exam-style):

| Basis | **Utilitarianism** | **Deontology** |
|---|---|---|
| Focus | **consequences/outcomes** | **duties/rights/rules** |
| Key question | "Which option gives max overall good?" | "Is it right / is it my duty?" |
| Risk/limit | may harm minority rights | may be rigid when duties conflict |

Any three differences are sufficient.

Question 8

Explain virtue ethics and write any three business virtues (exam points).

Accepted Answer

**Virtue ethics** focuses on the character of the decision-maker; an action is ethical if it reflects good **virtues** (concept).

Any three business virtues:
- **Integrity**
- **Fairness**
- **Courage** (to speak up)
- **Prudence** (practical wisdom)

Write any three with one-line meaning.

Question 9

List the steps in ethical decision-making and draw a simple flowchart (any six steps).

Accepted Answer

Steps (any six):
- identify issue and facts
- identify **stakeholders**
- list alternatives
- check legality (minimum)
- apply ethical tests (rights/fairness/harm/transparency)
- evaluate consequences
- decide and document reasons
- review outcomes (concept)

Flowchart:

```text
Issue/Facts -> Stakeholders -> Options -> Tests/Consequences -> Decision -> Review
```

Question 10

Explain any three ethical tests used to evaluate decisions (use a table).

Accepted Answer

Any three ethical tests (concept):

| Test | What it checks |
|---|---|
| **Rights test** | respects privacy/safety/consent |
| **Fairness test** | treats stakeholders justly |
| **Harm test** | minimizes avoidable harm |
| **Transparency test** | can be justified publicly |

Write any three with one-line explanation.

Question 11

Why are ethical theories needed in business? Write any three reasons (exam points).

Accepted Answer

Ethical theories are needed because (any three):

- laws don’t cover all **grey areas**; ethics guides beyond compliance (concept)
- decisions affect multiple **stakeholders**, so we need a structured way to balance impacts (concept)
- they bring **consistency** and reduce arbitrary/self-interested decisions (overview)
- they help justify decisions with transparency and documentation (supports governance) (concept)

Write any three points.

Question 12

Explain stakeholder analysis in ethical decision-making (any three steps) with a small table.

Accepted Answer

Stakeholder analysis identifies who is affected and how (concept).

Steps (any three):
- list stakeholders (customers, employees, suppliers, shareholders, society)
- identify impacts/risks/benefits for each
- prioritize based on power, legitimacy and urgency (overview)
- choose an option that reduces harm and is fair (concept)

Mini table:

| Stakeholder | Possible impact (concept) |
|---|---|
| **Customers** | safety, privacy, product quality |
| **Employees** | targets, stress, job security |
| **Society** | environmental/social impact |

Write any three steps and 1–2 examples.

Question 13

Explain utilitarianism, deontology and virtue ethics with a comparison table (exam-style).

Accepted Answer

### Meaning (brief)
- **Utilitarianism**: ethics based on **consequences** (maximize overall good) (concept)
- **Deontology**: ethics based on **duties/rights** (follow what is right) (concept)
- **Virtue ethics**: ethics based on **character/virtues** (integrity, fairness) (concept)

### Comparison table

| Basis | **Utilitarianism** | **Deontology** | **Virtue ethics** |
|---|---|---|---|
| Focus | outcomes | duties/rights | character |
| Key question | greatest overall good? | is it right/duty? | what would a virtuous person do? |
| Strength | practical trade-offs | protects rights | builds culture |
| Limitation | may harm minority | can be rigid | less specific |

Conclusion: Using multiple lenses improves ethical reasoning and justification (concept).

Question 14

Apply ethical theories to a case: A firm can either delay a product launch to fix a minor safety risk or launch now to meet targets. Explain what each theory suggests (use a table).

Accepted Answer

### Case analysis (concept)
Stakeholders include customers (safety), employees (targets), and the firm (reputation).

| Theory | Likely reasoning | Suggested action (concept) |
|---|---|---|
| **Utilitarianism** | compare total harms vs benefits (injury risk vs target benefit) | fix risk if overall harm reduction is greater |
| **Deontology** | duty to protect **safety** and avoid negligence | delay and fix (respect rights) |
| **Virtue ethics** | integrity/responsibility; act as a trustworthy firm | delay and fix transparently |

Conclusion: Even if targets matter, safety and trust typically outweigh short-term gains (concept).

Question 15

Explain the ethical decision-making process and show how ethical tests improve corporate governance (exam-style) with a flowchart.

Accepted Answer

### Ethical decision-making process (concept)
Ethical decision-making provides a structured method to make decisions that are fair, accountable and stakeholder-oriented.

Steps (brief): define issue & facts → stakeholders → options → apply tests (rights/fairness/harm/transparency) → evaluate consequences → decide → document → review.

Flowchart:

```text
Issue/Facts -> Stakeholders -> Options -> Tests + Consequences -> Decision/Document -> Implement -> Review
```

### Link to corporate governance (concept)
Ethical tests support **transparency**, **accountability**, and **fairness** by requiring reasons, documentation, and stakeholder impact analysis—reducing arbitrary or self-interested decisions.

Basis	Utilitarianism	Deontology
Focus	consequences/outcomes	duties/rights/rules
Key question	"Which option gives max overall good?"	"Is it right / is it my duty?"
Risk/limit	may harm minority rights	may be rigid when duties conflict

Ethical Theories and Ethical Decision-Making: Utilitarianism, Deontology, Virtue Ethics and Frameworks (Basics)

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