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📰Business and Economics Reporting

Business Ethics Frameworks

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Why This Matters

When you're covering corporate scandals, executive compensation debates, or environmental controversies, you're not just reporting facts—you're analyzing how different people justify their decisions. Business ethics frameworks give you the vocabulary and conceptual tools to understand why a CEO defends layoffs as "necessary for shareholder value" while union leaders call the same decision "morally bankrupt." These frameworks show up constantly in earnings calls, regulatory hearings, and corporate press releases, often without being named explicitly.

As a business journalist, you're being tested on your ability to identify the ethical reasoning behind corporate actions, critique that reasoning fairly, and explain competing perspectives to your audience. The frameworks below fall into distinct categories: consequence-focused, rule-focused, character-focused, and relationship-focused approaches. Don't just memorize definitions—know which framework applies when a source makes a particular argument, and understand how to probe the assumptions behind their ethical stance.


Consequence-Based Frameworks

These frameworks judge actions by their outcomes. The central question isn't "Was this the right thing to do?" but rather "Did this produce good results?" When sources defend decisions by pointing to data, projections, or aggregate benefits, they're typically reasoning from this tradition.

Utilitarianism

  • Maximizes overall happiness or utility—decisions are ethical if they produce the greatest good for the greatest number of people
  • Outcome-focused analysis requires calculating and comparing the total benefits and harms of available options
  • Common in cost-benefit arguments used by executives justifying restructuring, regulators weighing policy trade-offs, and economists analyzing market interventions

Ethical Egoism

  • Self-interest as the primary driver—argues that individuals acting in their own interest ultimately benefit society through market mechanisms
  • Contrasts sharply with altruistic theories by suggesting personal gain creates positive externalities for others
  • Underpins free-market ideology and appears in defenses of executive compensation, competitive business practices, and deregulation arguments

Compare: Utilitarianism vs. Ethical Egoism—both focus on outcomes, but utilitarianism aggregates everyone's welfare while ethical egoism prioritizes the individual actor's benefit. When a CEO claims layoffs "help everyone in the long run," probe whether they mean society broadly (utilitarian) or shareholders specifically (closer to egoism).


Rule-Based Frameworks

These frameworks focus on duties, rights, and principles rather than outcomes. An action can be wrong even if it produces good results—because it violates a fundamental rule or right. Listen for this reasoning when sources invoke "principles," "obligations," or "inalienable rights."

Deontological Ethics

  • Actions are inherently right or wrong—regardless of consequences, some things simply shouldn't be done
  • Associated with Immanuel Kant, who argued we should act only according to principles we'd want everyone to follow universally
  • Appears in whistleblower justifications and arguments against corporate practices that "cross a line," even when profitable

Rights-Based Ethics

  • Individual rights are inalienable—certain freedoms and protections cannot be traded away for collective benefit
  • Influences legal frameworks including labor law, privacy regulations, and human rights due diligence requirements
  • Central to debates over worker surveillance, data collection, and supply chain accountability in global operations

Justice Theory

  • Fairness and equitable distribution of resources, opportunities, and burdens across society
  • John Rawls's "veil of ignorance" test asks whether you'd accept an arrangement if you didn't know your position in it
  • Frames coverage of income inequality, tax policy, discriminatory lending, and access to economic opportunity

Compare: Deontological Ethics vs. Rights-Based Ethics—both emphasize rules over outcomes, but deontology focuses on universal duties (what we must do) while rights-based ethics focuses on protections (what cannot be done to us). In an FRQ on corporate surveillance, deontology asks "Is monitoring employees ever universally justifiable?" while rights-based ethics asks "Does monitoring violate workers' fundamental privacy rights?"


Character and Relationship Frameworks

These frameworks shift focus from actions to actors—asking what kind of person or organization is making decisions, and how relationships shape ethical obligations. These perspectives often emerge in profiles, feature stories, and coverage of corporate culture.

Virtue Ethics

  • Character over conduct—emphasizes cultivating traits like honesty, courage, and integrity rather than following specific rules
  • Rooted in Aristotelian philosophy, viewing ethics as a practice of moral development over time
  • Useful for analyzing leadership and corporate culture stories where individual character shapes organizational behavior

Care Ethics

  • Relationships and empathy matter—challenges abstract principles by prioritizing human connections and context
  • Emerged from feminist philosophy as a critique of ethics frameworks that ignore interdependence and vulnerability
  • Relevant to coverage of family leave policies, workplace culture, and companies navigating employee hardship

Compare: Virtue Ethics vs. Care Ethics—both focus on the moral agent rather than isolated actions, but virtue ethics emphasizes individual character development while care ethics emphasizes relational responsibility. A CEO who personally mentors employees demonstrates virtue; a company that restructures to protect vulnerable workers demonstrates care.


Stakeholder and Social Frameworks

These frameworks address the question of to whom businesses owe ethical obligations. They're particularly relevant for corporate governance stories and debates about the purpose of business itself.

Social Contract Theory

  • Obligations arise from implicit agreements—individuals and institutions gain legitimacy by participating in mutually beneficial social arrangements
  • Key thinkers include Hobbes, Locke, and Rousseau, each with different views on what the contract requires
  • Underpins arguments about corporate "license to operate," regulatory legitimacy, and the responsibilities that come with market participation

Stakeholder Theory

  • Obligations extend beyond shareholders—businesses must consider employees, customers, suppliers, communities, and the environment
  • Directly challenges shareholder primacy doctrine that dominated 20th-century corporate governance
  • Central to ESG debates and the Business Roundtable's 2019 statement redefining corporate purpose

Corporate Social Responsibility (CSR)

  • Positive contributions to society and environment—practices that go beyond legal compliance and profit maximization
  • Includes sustainable development, community engagement, philanthropy, and ethical supply chain management
  • Creates reputational benefits but faces criticism as "greenwashing" when disconnected from core business practices

Compare: Stakeholder Theory vs. CSR—stakeholder theory is a philosophical framework about who matters, while CSR describes what companies do to fulfill broader obligations. A company can claim CSR initiatives (donating to charity) without genuinely practicing stakeholder theory (ignoring worker concerns). Strong business reporting distinguishes between the two.


Quick Reference Table

Framework CategoryBest ExamplesKey Question Asked
Consequence-focusedUtilitarianism, Ethical Egoism"What outcome does this produce?"
Rule-focusedDeontological Ethics, Rights-Based Ethics"Does this violate a fundamental principle?"
Fairness-focusedJustice Theory"Is this distributed equitably?"
Character-focusedVirtue Ethics"What does this say about the actor?"
Relationship-focusedCare Ethics"How does this affect human connections?"
Obligation-focusedSocial Contract Theory, Stakeholder Theory"To whom are obligations owed?"
Practice-focusedCorporate Social Responsibility"What actions demonstrate responsibility?"

Self-Check Questions

  1. A pharmaceutical company defends raising drug prices by arguing the revenue funds research that will save more lives in the future. Which framework are they invoking, and what counter-framework might critics use?

  2. Compare and contrast how Stakeholder Theory and Shareholder Primacy (a form of ethical egoism applied to corporations) would evaluate a decision to close a profitable factory in a small town.

  3. Which two frameworks both emphasize rules over outcomes, and how do they differ in what they prioritize?

  4. A journalist is profiling a CEO known for personal integrity who nonetheless presides over a company with exploitative labor practices. Which framework best captures this tension, and why?

  5. If a source argues that a company's environmental violations are acceptable because "everyone in the industry does it," which framework's assumptions are they implicitly rejecting, and which might they be (poorly) invoking?