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Ethical Theories

Why Study Ethical Theories?

Ethical theories are the foundations of moral reasoning and ethical decision-making. When theories are incorporated into a formal decision-making process, we have a structured approach to think about what is right, what matters most, and how to justify our decisions when values come into conflict. In business, where choices often affect many people from different stakeholder groups, applying a process with these theories can help us act with clarity, confidence, and responsibility.

The Five Ethical Theories You’ll Explore

1. Utilitarianism: Focuses on consequences and maximizing happiness.
2. Ethics of Caring: Emphasizes empathy, relationships, and the needs of others.
3. Justice: Prioritizes fairness, equality, and the distribution of benefits and burdens.
4. Virtue Ethics: Concentrates on character and moral development over time.
5. Universal Rules: Stresses duty, moral rules, and consistent application of principle.

The Role of Theories in Ethical Decision Making

Ethical theories are frameworks for:

  • Understanding moral principles
  • Predicting outcomes or consequences
  • Evaluating the fairness or duty behind actions
  • Considering human relationships and care
  • Making justifiable, repeatable decisions

🧰 Think of ethical theories as tools in a toolkit; you may not use the same one every time, but each offers a unique lens for analyzing complex problems.

Tips for Learning Ethical Theories

  • Don’t try to “pick a favourite.” Each theory has strengths and blind spots.

  • Think critically: how does each theory handle real dilemmas?

  • Use examples to make abstract ideas practical.

  • Reflect on which theories align with your own values and which challenge them.

Putting Theory into Practice

In this course, you will learn about ethical theories as tools for thinking about right and wrong in business. Understanding the theories is important, but you will learn them best by seeing how they apply in real situations. Throughout this module, you will use the simulated TechSolutions case to practice applying theories to the dilemmas the company is facing. This will help you move beyond abstract ideas and experience how ethical reasoning can guide real business decisions.

What is TechSolutions?

TechSolutions is a mid-sized Canadian technology company that provides digital services to clients across North America. The company has built its reputation on offering innovative solutions in areas like software development, customer support, and AI-driven products. Over the years, TechSolutions has grown steadily, but with growth has come new pressure: financial constraints, workforce challenges, and questions about the company’s responsibility to its employees, customers, and communities.

The TechSolutions case places you in the middle of some of these dilemmas. As you learn about each ethical theory, you will return to TechSolutions and practice analyzing their decisions and challenges from that perspective. This exercise will help you see that ethical theories are not simply academic; they are tools for interpreting complex business situations and guiding responsible action.

Why are we doing this?

By working with the simulated TechSolutions case as you study ethical theories, you will:

  • Gain practice applying abstract concepts to real organizational dilemmas.
  • See how different ethical theories may lead to very different conclusions.
  • Build the skills to evaluate and compare these perspectives when making business decisions.

As you move forward, keep TechSolutions in mind. The questions they face mirror the types of ethical challenges you will encounter in your careers, where clear answers are rarely obvious and multiple perspectives must be considered.

What You’ll Learn in This Section

  • How each theory defines right and wrong

  • The core values and assumptions behind each theory

  • Real-world examples of how each theory applies in business

  • Points of conflict or overlap between the theories

  • How to begin applying theory to practical decision-making

Tips for Engaging with This Content

Learning Strategy

  • Don’t rush to “choose” one theory; treat each as a valuable lens.
  • Take note of where your personal values align or clash with each theory.
  • Use the examples to imagine how different theories might lead to different decisions in the same situation.
  • Keep an open mind. Ethical reasoning often involves complexity and competing priorities.

Next Step

Begin with: Utilitarianism →
Start your journey into ethical theories with one of the most influential approaches, where the greatest good for the greatest number is the guiding principle.

License

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Acting Responsibly: Ethical Decision-Making in Business Copyright © 2025 by Sobey School of Business, Saint Mary's University is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

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