What’s the Difference Between Traditional Ethicality and Bounded Ethicality?

In general, ethicality is similar to morality. Morality is a broader concept that seeks to explain moral acts, while ethicality is associated with being ethical. To have a more comprehensive view of what is ethical, read this article to the end.

What Is Ethicality?

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The concept of ethical behavior refers to individuals’ education concerning values. It’s about choosing how to behave based on a moral compass and a situation valuation. In essence, people have different opinions about ethicality, what it means, and what actions they should take when complying with the principles of ethicality.

By extension, religions have initially tried to address ethical questions in general. Christianity, Islam, Buddhism, and Hinduism, among other religions, try to define ethicality, but only from a religious perspective.

A more contemporary humanistic approach is emerging to determining ethicality, thus having a wide range of rules and thought processes. Either way, a common thread referred to as the golden rule cuts across religions and philosophies with the slogan “treat others as you would want them to treat you” and being friendly to fellow human beings. Overall, ethicality is all about being considerate of others.

Traditional Ethicality And Bounded Ethicality Explained

Bounded Ethicality

Bounded ethicality occurs when people’s ability to make ethical decisions is limited in some form. Internal and external pressures are some of the contributing factors. Like being rational, most people are partially moral because their ability is limited.

In addition, outside pressures and being cautious of what others say and think can make it challenging to perform specific actions, even when we know it is the right thing to do. People are limited by the tendency to conform to society’s worldview in what is referred to as motivated reasoning. In addition, internal biases often cause people to subconsciously favor themselves at the expense of others if they can benefit from behaving unethically.

This is why people are less likely to do the right thing when ethical actions are associated with difficulty. All this shows that people’s ethical behaviors are bounded or limited.

Traditional Ethicality

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Traditional ethical thinking assumes the “sacred canopy,” a phrase that a renowned author coined. In his book, the author asserts that the worldview of certain people, like a nation or culture, is shaped by common assumptions that give meaning to life. However, some believe that a higher power is the ultimate justification for ethical norms.

As such, a supreme being is the creator of the universe and everything in it, meaning there is a purpose for his creation. In that respect, every human has an essence that defines their purpose in the scheme of things.

The ultimate standard of human behavior is to fulfill a divine purpose. And by doing so, everyone can realize their full potential and become their best version. Habits that foster divine purpose are called virtues, while vices are habits that frustrate the divine plans for humanity.

Overall, traditional ethicality is used in the modern world so that people can become the finest versions of themselves and live quality lives. For more emphasis, traditional ethics entails a series of prohibited activities. “Thou shall not” as well as virtues that aid a person in living the best life possible.

Ethicality And Enlightened Self-Interest

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Enlightened self-interest theory asserts that people benefit themselves when they behave ethically. This school of thought borrows from karma- “what goes around comes around.” In other words, if you are always helping other people, there are high chances that the universe will work in your favor, as people will also help you, and you will become more successful.

All this shows no difference between what people want for themselves and others. To that end, being kind to others is a form of creating a better environment for oneself.

Examples Of Individual And Organizational Ethicality

Individuals can perform simple acts of kindness to avoid hurting those around them. On the other hand, organizations can do the same by making decisions based on ethical principles. Individuals’ simple acts of kindness include helping the homeless, but on the flip side, individuals can choose to steal from others to enrich themselves.

On the other hand, companies can choose between creating safe products or products that harm humanity. Also, they can choose to pay their employees or deny them their wages, work diligently with investors or defraud them. As a result, businesses and individuals can make ethical choices to contribute to the welfare of humanity by understanding what is ethical.

Investing Ethically Is Enlightened Self-Interest

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Socially responsible investors tend to invest in ethical companies rather than those undertaking obnoxious activities. In this case, ethical companies treat investors, employees, and customers with the utmost respect. Financial companies can either invest in companies that behave ethically or finance unethical companies.

Investors can partner with unethical or ethical firms, but the latter is critical to helping them build a lasting portfolio. Although some believe that ethics have a bound scope, others contend that people’s self-interest should guide ethicality. No matter what the case is, it doesn’t matter.

These beliefs extend into the modern world. As with most things in life, the idea hinges on whether we believe in karma and the famous statement that what goes around comes around. As more and more investors choose to invest in ethical companies, there is excellent potential for shifting how companies behave today moving forward.

Even though managers may try to alter their company’s behavior, investors can vote to push companies in a socially responsible direction. The reason is that companies exist for the sole benefit of their investors. Thus, investors have the upper hand in transforming the planet into a better place if they know what is ethical.

Understand What Is Ethical To Invest Wisely

Undoubtedly, ethical investing is rapidly increasing as more investors seek to promote socially responsible companies. In essence, human activities have affected the community and the environment, and it is only prudent to change these practices for a better and safer planet. Only through ethical investment and practicing ethicality can the world become a much better place.

In summary, if people adhere to ethical investment practices, the world is bound to benefit. But before investing, you should understand what is ethical first.