Through his observation of human behavior, psychologist Lawrence Kohlberg developed a model of moral development. Describe the stages of moral development that were studied and developed by Kohlberg and the relevance of this model for ethical business behavior

Answer 1

Kohlberg's first stage of moral development is the preconventional level. At this level a person would be acting out of fear of punishment or pleasure of reward. In the business setting, people would act ethically only out of fear that they would get caught and punished if they did not act ethically. The ramification of this stage of moral development in the adult businessperson is that if there was no realistic fear of being caught, unethical behavior might become common. The person at this stage does not understand why their behavior is immoral or moral.
Kohlberg's second stage of moral development is the conventional level. People at this level conform their behavior to the expectations of the groups to which they belong. The implication of this stage in the business arena is that if the group deems the action to be ethical, then the individual in this stage will follow the group without an independent evaluation of the situation. The example of Nazi Germany directly prior to and during WWII is a chilling one. This is especially true since Kohlberg believes that most adults operate at this level.
Kohlberg's third stage of moral development is the postconventional level. At this level the individual understands the reasoning behind a particular moral principle. There is a voluntary acceptance of the principles; moral principles are not external to the individual. The implications of this in business are that the individual would make independent judgments of particular ethical dilemmas. Corporate decisions would not necessarily be followed simply out of a sense of loyalty or group expectation.