Normative Ethical Theories

Institutions are managed and run by human actors who are limited by their level of moral development, bounded rationality and difficulty in exercising self-control. Organisation meta norms can in turn influence behaviour of employees and managers. Consequentialist and non-consequentialist normative ethical theories can influence meta norms of organisations. The actions of organisation also affect many stakeholders who often have conflicting property rights interests. Consequently, governance of any institution need to be determined by a set of rules that can be used to mitigate conflicts of property rights interest for the mutual gain of stakeholders involved. These rules are in turn influenced by the relevant normative ethical theories.