Applied ethics- BUSINESS ETHICS Flashcards
Define whistleblow
A person who exposes secretive information or activity that is deemed illegal, unethical, or not correct within business
Define globalisation
the process by which businesses or other organisations develop international influence or start operating on an international scale
Define commerce
the activity of buying or selling, especially on a large scale
Example of an ethical business
Starbucks- 100% sustainably sourced coffee, CAFE looks for quality, economic transparency, social responsibility, and environmental leadership
Example of an unethical business
Amazon- bad record on workers rights and poor treatment of employees, tax avoidance
What did Friedman argue about CSR?
‘The purpose of business is to make me money’
What did Maxwell argue about CSR?
‘There’s no such thing as business ethics’
Example of a company who values CSR
the Body shop (fronted by Anita Roddick) animal rights and fair trade
What did Baggini argue about CSR?
Companies do it for good business in response to customer concerns about the sourcing of the product
List people who the business may have a duty to
customers shareholders government employees suppliers management local community
Give 3 reason why an individual should whistleblow
Prevent ignorant judicial system and consumer
Increased accountability
Incentive for businesses to be ethical
Give 2 reasons why someone should not whistleblow
Benefits rival business
John Locke’s property rights- a company has a moral right to anything it has developed, researched or paid for
Explain British workers for British jobs
Production has moved to other parts of the world and is now imported
Immigrants often offer cheaper labour
what’s GEIGB?
Good ethics is good business
Why might good ethics be better for business?
- A better IMAGE is given to the consumer, increasing profit
- New sources of finance from ethical INVESTORS
- Improved brand awareness and RECOGNITION
- Attract higher qualified EMPLOYEES and increase employee motivation
Why might good ethics not be better for business?
Fair trade costs more
Pay for training on ethical policy
Give some criticisms of GEIGB
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
Name some issues surrounding globalisation
Sweatshops Child Labour Poor health and safety No breaks in order to boost production Abuse to workers
Case study linked to business- consumer relationships
Ford- allowed customers to use dangerous cars to maximise profit
$137 million to recall, but estimated only $49.5 million in law suits
Case study linked to the environment
Erin Brockovich
PG & E poisoning/ contaminating the town of Hinkley’s water source
Settled for $333 million
Case study linked to globalisation
Nike- sweatshops, child labour allegations
2011, Nike stated 2/3 of its factories producing Converse didn’t meet company standard
Case study linked to whistleblowing
Sam Provance
Intelligence officer whistle blew on human rights violations eg sexual abuse and torture
Honourably discharged in 2006
Strengths of Kantian ethics when applied to business ethics
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
Weaknesses of Kantian ethics when applied to business ethics
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.
How could you summarise Kantian ethics to apply to business?
acts should be universal
People should not be used
We have a duty (CSR)
Name the seven Catholic principles for good business
- Human dignity
- The common good
- Solidarity
- Subsidiarity
- Fraternity
- Reciprocity
- Sustainability
What is meant by the principle of human dignity?
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
What is meant by the principle of the common good?
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
What is meant by the principle of solidarity?
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’
What is meant by the principle subsidiarity?
decisions should be made at the lowest level of compatible with efficiency
(decisions made on an local, national or intern national level for example)
What is meant by the principle fraternity?
Nichols- entails fellowship towards those of different cultures
Central to building relationships and values such as trust
What is meant by the principle reciprocity?
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
What is meant by the principle sustainability?
Duty to further generations and the environment
Who is Vincent Nichols?
Archbishop of Westminster in 2009
A Cardinal in 2014
Driving force behind the organisation Blueprint for Business (involving both religious and non-religious people)
What did Robert Solomon say about business ethics?
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’
Describe how you would generally apply Utilitarianism to business ethics
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
How would a utilitarian respond to globalisation?
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)
List 5 strengths of utilitarianism in application to business ethics
- It maximises UTILITY for everyone. Shareholders make a profit which is the purpose of business, and workers are treated fairly
- It is a COMMON SENSE approach in business
- FLEXIBLE, allowing for GOOD BUSINESS decisions
- Businesses must follow RULES and laws in rule utilitarianism, placing further PROTECTion on workers
- Consumerism maximises PLEASURE, and globalisation spreads capitalism and thus allows humans to FLOURISH
List 5 weaknesses of utilitarianism in application to business ethics
- It is TOO FLEXIBLE and means business are not held to account. Anything can be justified, especially if more consumers than employees
- It allows the majority to EXPLOIT MINORITY
- Teleological- based on CONSEQUENCE which is UNPREDICTABLE
- The goal of business is to maximise PROFIT, and Mill would argue that money is a LOWER pleasure
- The hedonic calculus is too long and complex to use in the real world- IMPRACTICAL
