Applied ethics- BUSINESS ETHICS

Question 1

Define whistleblow

Answer 1

A person who exposes secretive information or activity that is deemed illegal, unethical, or not correct within business

Question 2

Define globalisation

Answer 2

the process by which businesses or other organisations develop international influence or start operating on an international scale

Question 3

Define commerce

Answer 3

the activity of buying or selling, especially on a large scale

Question 4

Example of an ethical business

Answer 4

Starbucks- 100% sustainably sourced coffee, CAFE looks for quality, economic transparency, social responsibility, and environmental leadership

Question 5

Example of an unethical business

Answer 5

Amazon- bad record on workers rights and poor treatment of employees, tax avoidance

Question 6

What did Friedman argue about CSR?

Answer 6

‘The purpose of business is to make me money’

Question 7

What did Maxwell argue about CSR?

Answer 7

‘There’s no such thing as business ethics’

Question 8

Example of a company who values CSR

Answer 8

the Body shop (fronted by Anita Roddick) animal rights and fair trade

Question 9

What did Baggini argue about CSR?

Answer 9

Companies do it for good business in response to customer concerns about the sourcing of the product

Question 10

List people who the business may have a duty to

Answer 10

customers
shareholders
government 
employees
suppliers 
management 
local community

Question 11

Give 3 reason why an individual should whistleblow

Answer 11

Prevent ignorant judicial system and consumer
Increased accountability
Incentive for businesses to be ethical

Question 12

Give 2 reasons why someone should not whistleblow

Answer 12

Benefits rival business

John Locke’s property rights- a company has a moral right to anything it has developed, researched or paid for

Question 13

Explain British workers for British jobs

Answer 13

Production has moved to other parts of the world and is now imported
Immigrants often offer cheaper labour

Question 14

what’s GEIGB?

Answer 14

Good ethics is good business

Question 15

Why might good ethics be better for business?

Answer 15

1. A better IMAGE is given to the consumer, increasing profit
2. New sources of finance from ethical INVESTORS
3. Improved brand awareness and RECOGNITION
4. Attract higher qualified EMPLOYEES and increase employee motivation

Question 16

Why might good ethics not be better for business?

Answer 16

Fair trade costs more

Pay for training on ethical policy

Question 17

Give some criticisms of GEIGB

Answer 17

Unethical businesses can still be successful
Brands cannot be ethical if its damaging to their business (eg cigarette brands discouraging smoking)
Baggini- Might not tackle the most important issues, and instead what customers deems the most important

Question 18

Name some issues surrounding globalisation

Answer 18

Sweatshops 
Child Labour 
Poor health and safety 
No breaks in order to boost production 
Abuse to workers

Question 19

Case study linked to business- consumer relationships

Answer 19

Ford- allowed customers to use dangerous cars to maximise profit
$137 million to recall, but estimated only $49.5 million in law suits

Question 20

Case study linked to the environment

Answer 20

Erin Brockovich
PG & E poisoning/ contaminating the town of Hinkley’s water source
Settled for $333 million

Question 21

Case study linked to globalisation

Answer 21

Nike- sweatshops, child labour allegations

2011, Nike stated 2/3 of its factories producing Converse didn’t meet company standard

Question 22

Case study linked to whistleblowing

Answer 22

Sam Provance
Intelligence officer whistle blew on human rights violations eg sexual abuse and torture
Honourably discharged in 2006

Question 23

Strengths of Kantian ethics when applied to business ethics

Answer 23

Kant stresses the importance of duty. It encourages businesses to be open and honest, reject greed as it is irrational
Categorical imperatives- presents workers from being treated as a means to an end (eg in Ford or Brockovich)
Kant gave an example of a shopkeeper who didn’t overcharge his customers at it was his duty- place people before profit

Question 24

Weaknesses of Kantian ethics when applied to business ethics

Answer 24

Conflicting duties and responsibility
Maxims can be manipulated to allow almost anything
Impractical and unrealistic- damaging to profit which is arguably the purpose of business.

Question 25

How could you summarise Kantian ethics to apply to business?

Answer 25

acts should be universal People should not be used We have a duty (CSR)

Question 26

Name the seven Catholic principles for good business

Answer 26

1. Human dignity 2. The common good 3. Solidarity 4. Subsidiarity 5. Fraternity 6. Reciprocity 7. Sustainability

Question 27

What is meant by the principle of human dignity?

Answer 27

We are all made in God's image Cardinal- 'each person can never be merely an instrument valued just fro their usefulness' Kant- Second categorical imperative Temple- good is always personal

Question 28

What is meant by the principle of the common good?

Answer 28

Nichols- 'the set of social conditions which allow people to more easily develop, individually and communally' Challenges of moving beyond profit as an end to the actual good of persons

Question 29

What is meant by the principle of solidarity?

Answer 29

Concern of John Paul II- all live together, dependant on each other Nichols- 'being in touch with the needs to communities, striving for the common good particularly by looking for ways of helping underprivileged communities'

Question 30

What is meant by the principle subsidiarity?

Answer 30

decisions should be made at the lowest level of compatible with efficiency (decisions made on an local, national or intern national level for example)

Question 31

What is meant by the principle fraternity?

Answer 31

Nichols- entails fellowship towards those of different cultures Central to building relationships and values such as trust

Question 32

What is meant by the principle reciprocity?

Answer 32

the Cardinal- 'Catholic Social Teaching identifies two levels of reciprocity. The lowest is at the level of justice [...] But it also extends to what we call 'fraternity' or 'gratuity', something that goes beyond duty

Question 33

What is meant by the principle sustainability?

Answer 33

Duty to further generations and the environment

Question 34

Who is Vincent Nichols?

Answer 34

Archbishop of Westminster in 2009 A Cardinal in 2014 Driving force behind the organisation Blueprint for Business (involving both religious and non-religious people)

Question 35

What did Robert Solomon say about business ethics?

Answer 35

Professor of Philosophy... The purpose of business is to provide the 'things that make ordinary life easier'. Business is not an isolated game, which the public may play if it will, and the punt is not just to win, for the impact on the non-players is typically greater than the reward for the participants 'Then, as every smart entrepreneur knows well enough, the profits will come as a consequence'

Question 36

Describe how you would generally apply Utilitarianism to business ethics

Answer 36

Happiness of the majority needs to be considered, not just the shareholders Therefore will protect workers' rights, ensure fair pay, safe working distances etc. For Singer- animals also need great consideration

Question 37

How would a utilitarian respond to globalisation?

Answer 37

Either... It spreads pleasure and therefore maximises happiness (also helps developing economies) Or... Sweatshops and poor treatment of workers means it spreads pain and should therefore be avoided (also deforestation and the environment)

Question 38

List 5 strengths of utilitarianism in application to business ethics

Answer 38

1. It maximises UTILITY for everyone. Shareholders make a profit which is the purpose of business, and workers are treated fairly 2. It is a COMMON SENSE approach in business 3. FLEXIBLE, allowing for GOOD BUSINESS decisions 4. Businesses must follow RULES and laws in rule utilitarianism, placing further PROTECTion on workers 5. Consumerism maximises PLEASURE, and globalisation spreads capitalism and thus allows humans to FLOURISH

Question 39

List 5 weaknesses of utilitarianism in application to business ethics

Answer 39

1. It is TOO FLEXIBLE and means business are not held to account. Anything can be justified, especially if more consumers than employees 2. It allows the majority to EXPLOIT MINORITY 3. Teleological- based on CONSEQUENCE which is UNPREDICTABLE 4. The goal of business is to maximise PROFIT, and Mill would argue that money is a LOWER pleasure 5. The hedonic calculus is too long and complex to use in the real world- IMPRACTICAL