BES Flashcards
hedonism
plessure the main thing
ascetism
atsisakymas plessure
contractarianism
tobulas pasaulis bet visi turi laikyti taisykliu
altruism
nesavanaudis
managerial interity
virtious ethics but in businesses world: wisdom, kindness, honstly
virtue ethics
amzinosios vertybes
kantianism
elgtis su kitais taip kaip nori kad su tavim elgtusi, kentetis visus
negative utilitarianism
to reduce pain
utilitarianism
greatest amount of good for the greatest amount of people
Ethical absolutism
The are eternal, universally applicable moral principles.
Ethical absolutism is the concept that ethical rules are the same everywhere. As an example of ethical absolutism, consider that the United Nations unanimously passed the Universal Declaration of Human Rights, from which some of those rights are: Everyone has the right to life, liberty, and security of person.
Ethical relativism
Morality is context-dependent and subjective.
person believes that abortion is morally wrong
Descriptive relativism
does NOT accept that different sets of beliefs can be equally right, but accepts that various cultures have different ethics (critical perspective, but avoiding “cultural supremacy / colonialism / imperialism”).
NEPRIPAŽĮSTA, kad skirtingi įsitikinimai gali būti teisingi, bet SUTINKA kad įvairios kultūros turi skirtingą etiką
Ethical pluralism
Middle ground between ethical absolutism and relativism.
Cognitivism
Objective moral truths which can be known.
Mary is a good person, or that stealing and lying are always wrong.
Non-cognitivism
Objective assessment of moral belief is not possible, as everything is subjective.
disagree with someone saying, “‘Eating meat is wrong’
Natural rights
Certain basic, important, unalienable entitlements that should be protected in every single action.
- Based on consensus about nature of human dignity.
- Strongly based on Western view of morality.
- Example: Universal Declaration of Human rights (1948).
Theories of justice
The simultaneously fair treatment of individuals in a given situation, with the result that everybody gets what they deserve
gets what they deserve
who represents Theory of Justice
John Rawls’s
Egoism theories
An action is morally right if the decision-maker freely decides to pursue their (short-term) desires or their (long-term) interests.
who represents EGOISM
Adam Smith – pursuit of individual interest morally acceptable through market’s “invisible hand” that benefits everybody.
Enlightened egoism
conviction that persons who act to further the interests of others, ultimately serve their own self-interest.
Feminist ethics (ethics of care)
Prioritizes empathy, harmonious and healthy social relationships, care for one another, and avoidance of harm, above abstract principles.
Cooperation, compromise
ethics of right
winning and competition
Consequentialism
Assessing moral right or wrong in terms of the consequences of actions (consequences are what counts, no matter the principles)
According to utilitarianism, an action is morally right if it results in the greatest amount of good for the greatest amount of people affected by the action:
- Purpose of morality is to make the world a better place.
- Based on consequentialism.
- Emphasis on the overall good, so as to bring the
biggest amount of benefit to all people. - Bringing scientific certainty to ethics.
Jeremy Bentham
Believed that we should try to increase the
overall amount of pleasure in the world.
George E. Moore
Suggested that we should strive to maximize ideal values such as freedom, knowledge, justice, and beauty.
John Stuart Mill
Believed that happiness, not pleasure, should be the standard of utility.
Kenneth Arrow
Argued that what has intrinsic value is preference satisfaction.
Act utilitaniarism
looks to single actions and bases the moral judgement on the amount of pleasure and the amount of pain this single action causes.
Rule utilitaniarism
looks at classes of actions, and asks whether the underlying principles of an action produce more pleasure than pain for society in the long run.
Immanuel Kant
- Principle 1 (Consistency): An action can only be regarded as right is the rule guiding that behaviour should be followed consistently by everyone in all cases, without contradiction.
- Principle 2 (Human Dignity-Respect): We should always act so that we treat other humans always as an end and never as a means only.
- Principle 3 (Universality): Our actions must be acceptable to every rational human being, not because they have been told to accept them, but because they are rationally acceptable [thus overcoming the subjectivity risk of utilitarianism]“ -> New York Times Test”
1 principas (nuoseklumas): veiksmas gali būti laikomas tik teisingu, tai yra taisyklė, pagal kurią visi turi nuosekliai laikytis elgesio visais atvejais, be prieštaravimų.
2 principas (žmogaus orumas – pagarba): Mes visada turėtume elgtis taip, kad su kitais žmonėmis visada elgtumėmės kaip į tikslą, o ne tik kaip į priemonę.
3 principas (universalumas): mūsų veiksmai turi būti priimtini kiekvienam racionaliam žmogui ne todėl, kad jiems buvo liepta juos priimti, o todėl, kad jie yra racionaliai priimtini [taip įveikiama utilitarizmo subjektyvumo rizika]“ -> New York Times Test“
“Act the way you want others to act”
Utilitarianism VS Kantianism
Utilitarianism
* market conform
* rules have to be observed
* duty of making profit
* profit prior to moral
Kantianism
*companies have social duties
* voluntary limits
* moral prior to profit
Discourse ethics
aims to solve ethical conflicts by providing a process of norm generation through rational reflection on the real-life experiences of all relevant participants.
Different parties in a conflict should
sit together and engage in a discourse about the settlement of the conflict, and ultimately provide a situation that is acceptable to all.
Ultimate goal of ethical issues in business should
be the peaceful settlement of conflicts.
Jürgen Habermas
discourse ethics
Ideal discourse criteria of HABERMAS
- All must have equal rights to use speech acts in such a way that discourse could be permanently open to questions and answers.
- All must have equal chances to present interpretations, explanations and corrections.
- All express equally their attitudes, feelings and wishes, and also are honest to each other.
- Participants have equal chances to order and resist
orders, to promise and refuse, to be accountable for one’s
conduct and to demand accountability from others.
Postmodern ethics
is an approach that locates morality beyond the sphere of rationality in an emotional “moral impulse” towards others.
Examples of trends related to postmodern ethics:
- Holistic approach (focus on whole body health … physical, emotional, social & spiritual wellbeing).
- Examples rather than principles.
- “Think local, act local” (deciding one thing after another).
What is capitalism?
Economic system combining the private ownership of productive enterprises with competition between them in the pursuit of profit.
Ekonominė sistema, jungianti privačią gamybinių įmonių nuosavybę su konkurencija tarp jų siekiant pelno.
Locke is a
Father of liberalism
liberalism
moral philosophy based on the rights of the individual, liberty, consent of the governed, political equality and equality before the law.
moralės filosofija, pagrįsta asmens teisėmis, laisve, valdomo sutikimu, politine lygybe ir lygybe prieš įstatymą.
Locke ideas
- Humans have “Natural Rights“
- Liberty and Private Property
- “Laissez faire” advocate
“Laissez faire” advocate
economic success is inhibited when governments are involved in business and markets.
Locke influence
- UN Declaration on Human Rights
- US Constitution (“life, liberty, and the pursuit of happiness”)
LOCKE citata
“All mankind… being all equal and independent, no one ought to harm another in his life, health, liberty or possessions”.
„Visa žmonija… būdama lygi ir nepriklausoma, niekas neturi kenkti kito gyvybei, sveikatai, laisvei ar nuosavybei“.
Smith is a
Father of classical economics
Smith ideas
- Capitalism is reason for economic power
- Against mercantilism (protectionist economic nationalism)
- Capitalism is ethical
- Most often misinterpreted philosopher (Smith was against limited liability and flat taxation)
SMITH influence
Libertarian movements
Libertarian seeks
Libertarians seek to maximize autonomy and political freedom, and minimize the state’s encroachment on and violations of individual liberties
Libertarian siekia maksimaliai padidinti autonomiją ir politinę laisvę bei kuo labiau sumažinti valstybės kėsinimąsi į asmens laisves ir jų pažeidimus
SMITH citata
No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable
negali klesteti visuome jei ji yra neturtinga
Marx is a
Father of socialism
MARX ideas
- Capitalism continues feudal exploitative order
- Feudalism (aristocracy vs. serfs) -> aristocracy owns the land - this way they exploit serfs
- Capitalism (capitalists vs. workers) -> capitalists own the capital - this way they exploit workers
MARX citata
In bourgeois society capital is independent and has individuality, while the living person is dependent and has no individuality.
kapitalas yra nepriklausomas ir turi individualumą,
o gyvas žmogus yra priklausomas ir neturi individualumo.
MARX influence
*Most of the socialist/communist ideologies existing claim to apply the works of Marx.
*Significant impact on the intellectual discussion on capitalism shortcomings.
Spencer is a
Father of social darwinism
SPENCER ideas
- Applied the work of Darwin - “survival of the fittest” idea on society development.
*Free competition ensures efficiency.
*Strong “laissez faire” advocate.
spencer influence
One of most controversial and discussed thinkers of Victorian age .
SPENCER citata
A nation which fosters its good-for- nothings will end becoming a good- for-nothing nation
Weber is a
Father of modern sociology
kunigas weber ideas
- Capitalism = secular version of Protestantism.
- Provides link of Luther, Calvin and Capitalism.
- Principle of predestination.
!!! hard work as a measure of goodness.
webers influence
- Basis for “methodological individualism” and “McDonaldization”
webers Citata
Only by strict specialisation can the scientific worker become fully conscious, for once and perhaps never again in his lifetime, that he has achieved something that will endure
Work hard in your calling.
Tik griežtai specializuojasi, mokslo darbuotojas vieną kartą ir galbūt niekada gyvenime gali visiškai suvokti, kad pasiekė tai, kas išliks.
Keynes (Keinesianism) Idea
The government should use fiscal and monetary policies to aim to mitigate the adverse effects of economic recessions, depressions and booms (counter-cyclical measures)
Keyne’s Influence:
Provided basis to all modern Keynesian schools of thought.
Erhard represents
Social market economy
vokietis erhard ideas
- Economic ordoliberalism theory. _> government uztikrina kad free market duotu profit
- German & Austrian economic system -> post-war “miracle”
- First proposal of a “Third Way” – capitalism with a social touch.
- Management and labour are social partners
- Co-determination – workers & managers joint decision-making.
ordoliberalism
pabrėžiantis būtinybę vyriausybei užtikrinti, kad laisvoji rinka duotų rezultatus, artimus jos teoriniam potencialui, bet ne propaguoja gerovės valstybę.
Erhards influence
European Union Constitution (2003-2006) – finally not approved.
vokietis erhards citata
The market is better than the state.
“The unions are now an integral part of a democratic liberal order, they are the bearers of democratic responsibility.”
„Sąjungos dabar yra neatsiejama demokratinės liberalios santvarkos dalis, jos yra demokratinės atsakomybės nešėjos“.
Welfare state
principle of equality – e.g., every unemployed receives money.
Social market economy:
principles of equity and subsidiarity – e.g., only people with no savings or family support have the right to request financial support.
Justice
ensuring that what is done to people is what ought to be done to them
Procedural
emphasis on the resource allocation process.
Corrective
emphasis on repairing harm.
Retributive
emphasis on punishment of wrongs.
Distributive
emphasis on resource allocation results.
Social
emphasis on social roles of citizens.
forms of justice
- Procedural – emphasis on the resource allocation process.
- Corrective – emphasis on repairing harm.
- Retributive – emphasis on punishment of wrongs.
- Distributive – emphasis on resource allocation results.
- Social – emphasis on social roles of citizens.
Need Theory
strongly egalitarian.
Priority: ensuring a minimum of quality of people’s lives.
Merit Theory
opposed to egalitarianism.
Priority: ensuring that distribution depends on contribution.
Criticism: capitalism does not always reward merit.
Need vs. Merit Theory
NEED: ensuring a minimum of quality of people’s lives.
MERIT: ensuring that distribution depends on contribution.
RAWLS is a
Egalitarian liberalism
RAWLS IDEAS
- Each person has an equal claim to a fully adequate scheme of basic rights and liberties, and to equal opportunities.
- Social inequalities should be organized so as to benefit everybody, and especially to advantage the worst-off.
Rawls’s influence:
- Intellectual debate on the question of distribution of wealth.
- Policy of Obama administration (US, Jan 2009 – Jan 2017).
rawlls citata
If you want to understand President Obama’s soul, read his books. But if you want to understand his beliefs, read John Rawls.
who is egoism
smith, friedman
conswquentialists
who is utilitarianism
bentham and mill
conswquentialists
who is ethics of duties
kant
non-conswquentialists
who is right and justice
LOCKE and RAWLS
non-conswquentialists
NOZICK represents
Libertarianism
NOZICK ideas
A distribution of goods is just, so long as the distribution was brought about by free exchanges by consenting adults, even if large inequalities emerge from the process.
nozick influence
- Libertarian movement & anarcho-capitalism.
- “Tea Party” movement (US).
nozcik citata
Nozick, more than anyone else, embodied the new libertarian zeitgeist which, after generations of statist welfarism from Roosevelt’s New Deal to Kennedy, Johnson and Carter, ushered in the era of Reagan and Bush, père et fils
Nozickas, labiau nei bet kas kitas, įkūnijo naująjį libertarinį zentavimą, kuris po kelių kartų etatinio gerovės nuo Roosevelto Naujojo susitarimo iki Kennedy, Johnsono ir Carterio pradėjo Reagano ir Busho erą
Libertarianism supports
negative rights
negative rights
he kind of rights which impose on others a negative duty, a duty not to do anything, a duty of non-interference
If I have a right oof this sort, all you have to do to respect that right is refrain from blocking me
Negative rights are sometimes called LIBERTIES
right to privacy, the right not to be killed, or the right to do what one wants with one’s property
Positive rights
The kind of rights which impose on others a positive duty, a duty to provide or act in a certain way.
If I have a right of this sort, you respect it by complying
Positive rights are also sometimes called ENTITLEMENTS.
right to an education, the right to food, the right to medical care, the right to housing, or the right to a job
ENTITLEMENTS
positive rights
type of capitalism in UK, USA, CANADA, AUSTRALIA
MARKET BASED CAPITALISM
type of capitalism in GERMANY, FRANCE, NORWAY, IRELAND, BELGIUM, AUSTRIA, SWITZERLAND, NETHERLAND
CONTINENTAL EUROPEAN SYSTEM
type of capitalism in denmark, finland, sweden
SOCIAL DEMOCRATIC SYSTEM
type of capitalism in GREECE, ITALY, LITHUANIA, PORTUGAL, SPAIN
MEDITERRANEAN CAPITALISM
type of capitalism in JAPAN, SOUTH KOREA
ASIAN CAPITALISM
Index of Economic Freedom inspired by
Adam Smith’s “laissez-faire”
Adam Smith’s “laissez-faire” methodology
- Rule of law (property rights, judicial effectiveness, govt. integrity).
- Government size (tax burden, govt. spending, fiscal health).
- Regulatory efficiency (business, labour & monetary freedom).
- Market openness (trade, investment &financial freedom.
Only seven “fully free”
countries: Singapore, Switzerland, Ireland, New Zealand, Luxembourg, Taiwan, Estonia.
merit in LT
NUOPELNAS
Which does not believe in cost benefit analysis?
KANTIANISM
What best characterises Jeremy Bentham’s moral theory?
IT IS A VERSION OF UTILITARIANISM
LEGAL FRAMEWORK MORE IMPORTANT IN US VS EUR
false
Which of the following is NOT a limitation of utilitarianism
EMPHASIS ON OVERALL GOOD
Egoism proposes
FREE DECISION-MAKING IS MORALLY RIGHT
John Stuart Mill is a representative of
ETHICS OF WELFARE
What is the general approach to address ethical issues in public sector organisations
FORMAL, BUREAUCRATIC POLICIES
What does virtue ethics propose
INTEGRITY OF PERSON DETERMINES MORALITY
Rawls theury of justice
Inequalities are ok if they benefit all
Which of the following sentences does NOT express a recommendation made by Thomas Donaldson
PUT WESTERN VALUES ABOVE LOCAL TRADITION
Triple bottom line
ECONOMIC, SOCIAL AND ENVIRONMENTAL SUSTAINABILITY
NOT related to Max Weber’s ideas?
INEQUALITIES ARE OK IF IT BENEFITS THE POOR (RAWLS’)
Which of the following philosophers is considered the father of social Darwinism?
SPENCER
Which is the type of capitalism closest to proposals of Adam Smith?
PURE CAPITALISM
What do John Rawls and John Locke have in common?
BOTH FOCUS ON ‘RIGHTS AND JUSTICE’
Who was a key source of inspiration for US president Obama’s economic policies?
RAWLS
NOT related to Ludwig Erhard’s ideas?
MARKET SOCIALISM (erhard was social market economy)
Throwing a fat man over a bridge to block a train that runs towards children
CONSEQUENTELISM
Put in order from purely liberal to more egalitarianism
RAWLS
ERHARd
SEN
SMITH
SMITH, ERHARD, RAWLS, SEN
The right to own private property is more important than social equality according to
NOZICK
The right to own private property is more important than social equality according to
NOZICK
KAYNES WAS FATHER OF
welfare state
What do John Rawls and Amartya Sen have in common
THEIR CONCERN FOR SOCIAL INEQUALITIES
The ‘capabilities approach’
FOCUSES ON FOSTERING POSITIVE RIGHTS
Choose the correct order of philosophers, from more to less egalitarianist
RAWLS
NOZICK
MARX
SEN
MARX, SEN, RAWLS, NOZICK
Breaking the principle of not accepting child labour, can be consistent with
UTILITARIANISM
According to the democracy index, among all countries, a ‘full democracy’
IS THE LEAST COMMON TYPE OF REGIME
Mediterranean capitalism
LIMITED WELFARE STATE, REGULATED LABOUR MARKET, INCLUDES LITHUANIA
The concept of ‘ethics of care’ refers to
FEMINIST ETHICS
Libertarianism supports
SUPPORTS NEGATIVE RIGHTS
friedman sukure
father of Shareholder approach to CSR
friedman Ideas:
Close to “Laissez faire“ and libertarianism
Close link between money supply and inflation
friedman influence
- Nobel Price Winner in Economics (1976)
- Influenced Ronald Reagan, Margaret Thatcher, Goverments of Chile, Estonia, Iceland, CATO Institute (libertarian think-tank)
friedman citata
There is one and only one social responsibility of business – to use its resources and engage in actitities designed to increase its profits … in open and free competition without deception or fraud
Business reasons for social responsibility (“enlightened self-interest”)
- Extra and/or more satisfied customers
- Employees may be more attracted and/or committed
(“employer branding” & “employee engagement” policies) - Reduce risk, prevent litigation, and improve corporate
image/reputation - Long-term investment that benefits the corporation
Moral reasons for business social resposibility
- All corporate activities have social impacts of one sort or another, and may cause social problems
- Because they are powerful, corporations should use their power and resources responsibly (sustainability issues)
- Corporations rely on the contribution of a wide set of stakeholders in the society rather than just shareholders
CSR approach
encompasses the economic, legal, ethical, and philanthropic expectations placed on organizations by society at a given point in time.
CSR pyramid levels
ECONOMIC -> required by society
LEGAL -> required by society
ETHICAL -> expected by society
PHILANTROPIC RESPONSIBILITIES -> desired by society
Economic responsibilities.
Base of the pyramid; understood as the production of goods and services that consumers need and want.
As a compensation for the delivery of these goods and services, the company must obtain an acceptable profit.
Legal responsibilities.
Compliance with the law and any type of (public and/or private) regulations, in accordance with the basic rules by which the business must operate.
Ethical responsibilities.
Obligation to do what is right, fair and reasonable, and to avoid - or at least minimize - damage to the diverse stakeholders to whom the company relates.
Philanthropic responsibilities.
Corporate actions that respond to social expectations of good corporate citizenship, including the active involvement of businesses in activities or programmes that promote social welfare and improve the quality of life of the population.
donating money
Economic responsibility in eu and us
Europe – Focused on responsibility to stakeholders
US – Focused on responsibility to shareholders
Legal responsibility in eu and us
Europe – State accepted as prominent power in enforcing rules of the game rather than as US view of State as interfering in such rules
Valstybė pripažinta svarbia galia įgyvendinant žaidimo taisykles, o ne kaip JAV požiūrį į valstybę kaip kišimąsi į tokias taisykles
Ethical responsibility in us and eu
Europe – greater mistrust of modern corporations than US
Philanthropic responsibility in eu and us
Europe - mostly implemented compulsorily via legal framework
US – mostly implemented via voluntary acts of successful companies
Corporate Social Responsivenes
– capacity of a corpotation to respond to social pressures
traditional CSR focus
RISK
traditional CSR driver
IMAGE, BRAND, PUBLIC ACCEPTANCE
traditional CSR responsiveness
reaction, defence
traditional CSR motto
CSR is bolt on
pasieks profita tada susimastys apie values
traditional CSR relation to the bottom line
no direct contribution: CSR is value distribution
Contemporary CSR focus
reward
Contemporary CSR driver
performance, markets, products
Contemporary CSR relation to the bottom line
integral goal: csr is value creation
Contemporary CSR responsivness
accommodation, pro-action
Contemporary CSR motto
CSR is built in
Three areas of Corporate Social Performance (CSP)
Social policies
Explicit corporate social policies stating the company’s values, beliefs, and goals with regard to its social environment – often included in mission statements or in other corporate policies (e.g., environmental sustainability goals)
Three areas of Corporate Social Performance (CSP)
Social programmes
Specific social projects or activities, measures and instruments implemented to achieve social policies (e.g., environmental management programmes)
Three areas of Corporate Social Performance (CSP)
Social impacts
Proof of specific changes achieved through social
programmes implemented in a given period of tim
freeman sukure
father of Stakeholder approach to CSR
freeman ideas
- Observed that traditional models suggest that shareholders
are the core stakeholders - Proposed that other parties must be also involved - such as competitors, employees, customers, suppliers, trade unions, government, civil society, etc.
freeman Assessments of how the corporation “affects” stakeholders
Principle of corporate rights
Principle of corporate effect
Principle of corporate rights
the corporation has the obligation not to violate the rights of others
Principle of corporate effect
Companies are responsible for the effects of their actions on others
Freeman citata
A stakeholder in an organization is (by definition) any group or individual who can affect or is affected by the achievement of the organization’s objectives.
Quality of corporate transparency
disclosure, clarity, accuracy.
Corporate citizenship
how a company exercises its rights, obligations, privileges, and overall corporate responsibility within our local and global environments.
Reducing carbon footprints.
Diversity, equity and inclusion.
Charitable global giving.
Corporate transparency
CSP should be made more visible to stakeholders -> transparency of CSP policies, programmes & impacts
Quality of corporate transparency: disclosure, clarity, accuracy.
Make Salaries Public. …
Follow Up on Promises. …
Bring Your Whole Self To Work.
Corporate accountability
Issue of whether a coporation is answerable in some way for the consequences of its actions – and if so, to whom.
Social rights
freedoms to participate in society through entitlements towards third parties (positive rights)
Civil rights
freedoms from abuses and interference by third parties – most notably the government (negative rights)
teisė balsuoti, teisė į teisingą bylos nagrinėjimą, teisė į valstybės paslaugas, teisė
Political rights
freedom to participate in society governance process (e.g., to vote or hold office)
Rights in liberal citizenship are being increasingly influenced by corporations
Social rights
Civil rights
Political rights
THREE VIEWS OF CORPORATE CITIZENSHIP
Limited View
Equivalent view
Extended view
Limited view focuses on and motivates
corporate philanthropy
motivation: Primarily philanthropic; also economic where citizenship is ‘strategic’
Equivalent view focuses on and motivates
All areas of CSR
motivation: Mixed - economic, legal, ethical, philanthropic
Extended view focus and motivates
Citizenship: social, political and civil rights
motivation: political
Sustainability
Sustainability is the destination, an end-state, and sustainable development is a means of getting there
Triple bottom line
social, environmental, economic
First –
Leave everything in the pristine state, or return in to its pristine state
Second
not to overwhelm the carrying capacity of the system
Third –
Sustainability will take care of itself as economic growth proceeds (Simon Kuznet)
Fourth
Polluter and victim can arrive at an efficient solution by themselves (Coase theorem)
Fifth
Let the markets take care of it (e.g., carbon-trade)
Sixth
– Internalize the externalities (e.g., taxation, consumer pressure)
Seventh
Let the national economic accounting system reflect defensive expenditures (e.g., pollution-treatment or fire-fighting expenses increase GDP)
Eight
Reinvest rents from nonrenewable resources (Hartwick rule) into sustainable projects & policies (e.g., Norway’s approach)
Ninth
Leave future generations the options of the capacity to be as well off as we are (Robert Solow)
Life-cycle sustainability assessment
Evaluation of all environmental, social and economic negative impacts and benefits in decision-making processes towards more sustainable products throughout their life cycle
Visų neigiamų aplinkos, socialinių ir ekonominių poveikių ir naudos vertinimas priimant sprendimus siekiant tvaresnių produktų per visą jų gyvavimo ciklą
A product life-cycle approach to sustainability
measures a company’s total environmental impact – from raw materials, to production, distribution, consumer use, and disposal of the product by the consumer
How often do you need to reuse an organic cotton bag to have the same cumulative environmental impact (water use, energy use, etc.) as a classic plastic bag?
20 000 times
Stiglitz
has been suggested to replace, or supplement GDP to GPI consistent wth “triple bottom lin” considerations”.
HDI (human development index) mean
The HDI was created to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone.
HDI buvo sukurta siekiant pabrėžti, kad žmonės ir jų galimybės turi būti galutinis kriterijus vertinant šalies raidą, o ne vien ekonomikos augimą.
HDI measures
- a long and healthy life (life expectancy at birth)
- knowledge(years of schooling - achieved & expected)
- a decent standard of living (GNP per capita)
IHDI reflects
The IHDI reflects the level of human development when inequality is accounted for.
In relatively egalitarian countries
IHDI>HDI
gain in human development
In relatively inegalitarian countries
IHDI<HDI
loss in human development
Under perfect equality
the HDI and IHDI are equal; the greater the difference between the two, the greater the inequality.
Esant tobulai lygybei, HDI ir IHDI yra lygūs; kuo didesnis skirtumas tarp dviejų, tuo didesnė nelygybė.
Global Footprint Network
to measure human demand on natural capital (i.e. the quantity of nature it takes to support people or an economy).
dirbamos žemės, ganyklos, žvejybos plotai, užstatyta žemė, miško plotas ir anglies poreikis žemėje.
Global Footprint Network
It tracks this demand through an ecological accounting system.
footprint
In short, it is a measure of human impact on the environment
Human demand on the biosphere
ecological deficit
Earth Overshoot Day
Calculated illustrative calendar date on which humanity’s resource consumption for the year exceeds Earth’s capacity to regenerate those resources that year.
Apskaičiuota iliustracinė kalendorinė data, kai žmonijos išteklių suvartojimas per metus viršija Žemės pajėgumą atkurti tuos išteklius tais metais.
Overshoot represents the
The term “overshoot” represents the level by which human population’s demand overshoots the sustainable amount of biological resources regenerated on Earth.
Sąvoka „ overshoot“ reiškia lygį, kuriuo žmonių populiacijos paklausa viršija tvarų Žemėje atsinaujinančių biologinių išteklių kiekį.
The Happy Planet Index (HPI)
is an index of human well- being and environmental impact that was introduced by the New Economics Foundation in 2006
yra žmonių gerovės ir poveikio aplinkai indeksas, kurį 2006 m. pristatė Naujosios ekonomikos fondas
Each country’s HPI value is a function of its:
- average subjective life satisfaction (experienced wellbeing)
- life expectancy at birth
- ecological footprint per capita
The UN Global Compact is
“the world’s largest corporate sustainability initiative”.
UN Global Compact Mission:
“A call to companies to align strategies and operations with universal principles on human rights, labour, environment and anti-corruption, and take actions that advance societal goals.”
“The multi-year strategy of the UN Global Compact if to drive business awareness and action in support of achieving the Sustainable Development Goals by 2030”.
United Nations Global Compact
labour
Labour
3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
- Elimination of all forms of forced and compulsory labour.
- Effective abolition of child labour.
- Elimination of discrimination in respect of employment and occupation.
//// - Įmonės turėtų remti asociacijų laisvę ir veiksmingą teisės į kolektyvines derybas pripažinimą.
- Visų formų priverstinio ir privalomojo darbo panaikinimas.
- Veiksmingas vaikų darbo panaikinimas.
- Diskriminacijos darbo ir profesijos atžvilgiu panaikinimas.
The Gig Economy
Individuals being hired for a specific task, rather than being employed longer term (with the associated benefits) for exactly the same task
“Human Resource Management” (HRM) vs. “Personnel mgmt.”
Humans treated as important and costly resource (moral hazard?)
Are employees subject to a strict managerial rationale of minimizing costs and maximizing the efficiency of the human “resource”?
Modern slavery
People who are forced to work through threat, owned or controlled by an employer particularly through mental or physical abuses
People who are de-humanized and treated as a resource, physically constrained or their movement being controlled
Rights of employees as stakeholders of the firm
Right to participation and association
Right to privacy
Right to due process
Right to healthy and safe working conditions
Right to fair wages
Right to work
Right to freedom of conscience and speech
Four types of employee privacy
Physical privacy
Social privacy
Informational privacy
Psychological privacy –
Physical privacy
physical inaccessibility to others and the right to “one’s own space” (e.g., dilemma of surveillance cameras)
Social privacy
– freedom to behave in our private life in whichever way we choose (e.g., dilemma of “immoral” behaviour in private life)
Informational privacy –
determining how, when, and to what extent private data about us are released to others (e.g., dilemma of security investigations)
Psychological privacy
not being compelled to share private thoughts and feelings (e.g., dilemma of forcing employees to look happy and smile to customers)
European Union Regulations
Most advanced and sophisticated regulations on privacy at workplace
European Convention on Human Rights -
guarantees every person the right to private and family life, home and correspondence
garantuoja kiekvienam asmeniui teisę į privatų ir šeimos gyvenimą, būstą ir susirašinėjimą
European Court of Human Rights
decided that protection of private life includes workplace
General Data Protection Regulation (GDPR)
Companies can be pursued with heavy fines – as much as 4% of annual turnover for global companies – for incidents such as data breaches
Data Protection Directive (DPD)
- Right to be forgotten
- Easier access to own personal data
- A right to transfer personal data
- Businesses as to inform individuals about data breaches
- Consent of individuals must be given by a statement or by a clear affirmative action
Employee hiring processes must
strictly abide to the law and comply with high ethical standards
Promotions – potential discrimination issues
- Seniority
- Inbreeding
- Nepotism
nepotism
seimyniskumas
Financial participation
allows employee share in the ownership or income of the corporation
Operational participation
Information – receiving information about crucial decisions
Consultation – express views on potential decisions
Delegation – control over a range of decisions
Co-determination – full right to determine major decisions
Right to association –
to join together for collective defense of worker’s interests (e.g., through trade unions)
(HSE) regulations
Substantial amount of health, safety and environmental – compulsory compliance
sveikatos saugos laykymasis
Ethical issues in the context of:
- Excessive working hours – damage of employee’s overall state of physical and mental health
presenteeism
“Presenteeism” -
being at work when employee should be at home due to illness or because working time is over
Flexible working patterns
“non-standard” work relationships:
part-time work, temporary work, self-employment, remote work
worse pay & conditions, higher insecurity, exclusion from
benefits & training
“Everyone who works has the right to just and favorable remuneration ensuring for themselves and their family an existence worthy of human dignity, and supplemented, if necessary, by other means of social protection”
UN Declaration of Human Rights
Everyone has the right to work, to free choice of employment, to just and favourable conditions of work, and to protection against unemploymen
UN Declaration of Human Rights
The right to work in a business context
cannot mean that every individual has a right to be employed
The right to work should result in every individual
facing the same equal conditions in exerting this right
Diversity management
prominent feature of contemporary (HR) management approaches, closely related to fighting discrimination at work
Everyone, without any discrimination, has the right to equal pay for equal work
UN Declaration of Human Rights
Affirmative action,
which can include (depending of the specific form of action taken) positive discrimination, reverse discrimination, or employment equity, implies specific preference given to groups considered by some to be victims of social discrimination.
ypatingą pirmenybę grupėms, kurias kai kurie laiko socialinės diskriminacijos aukomis.
Negative rights
strict equality, non-discrimination & literal equality of opportunity, “weak” affitmative action
positive rights
(equity, positive discrimination & fair/real equality of opportunity, “strong” affirmative action)
Employers rights
e.g., employers – right to choose who works for them and “fit” with current workforce)
Affirmative action policies
increasingly popular as part of CSR in the HRM domain (“equal opportunity employer”, “affirmative action employer”, etc.)
Passive non-discrimination
– willingness in hiring, promotion, and pay decisions to treat races, sexes etc. alike.
noras priimti į darbą, paaukštinti pareigas ir priimti sprendimus dėl atlyginimo vienodai traktuojant rases, lytis ir pan.
weak affirmative action
Pure affirmative action
It simply involves making an effort to ensure that minority candidates are considered.
Pure affirmative action
concerted effort to enlarge the pool of applicants so that no one is excluded because of past or present discrimination.
“Strong” affirmative action
Preferential hiring
Positive discrimination
Preferential hiring
– systematically favouring minorities, women, etc. in decisions of enlarging labour pool.
Positive discrimination
specifying numbers (quotas) or proportions of minority, women, etc. group members that must be hired.
Relativism vs. absolutism regarding international HRM (IHRM) -
Absolutism in IHRM: always same ethical principles applicable everywhere
Relativism in IHRM: always different ethical principles, depending on historical, social, cultural etc. context
Absolutism in IHRM:
always same ethical principles applicable everywhere
Relativism in IHRM:
always different ethical principles, depending on historical, social, cultural etc. context
IHRM
international human resource manager
Universal respect for “Core Human Values” (Human Rights)
Respect for local traditions & consideration of the context
DONALDSON
Diversity management:
set of activities involved in integrating “non-traditional” employees (e.g., women, minorities, etc.) into the workforce and using their diversity to the firm’s competitive advantage.
Diversity itself can have a
positive, negative, or neutral effect on firm performance. Active diversity management should aim at optimizing the diversity-performance link.
Diversity management actions & programmes are closely related
(or even be part of) CSR policies
Potential benefits of diversity management programmes
Greater creativity, considering new ways and less obvious alternatives.
Better problem solving, moving from group-thinking to *out-of-the-box” thinking.
Greater system flexibility, thanks to more openness to new ideas and greater tolerance and acceptance of changes.
Better information input and management of knowledge, due to the broader variety of sources and experiential backgrounds.
Better marketing strategies, especially in target markets which are increasingly multicultural and multi-ethnic.
Challenges in managing diversity
- Focus on diversity (openness to difference, but stereotyping risk) vs. focus on inclusiveness (integration of
“the others”, but brainwashing risk). - Resistance to change from dominant groups (traditionally
“white males”). - Overcoming segmented (e.g., sex or race-based) communication networks.
- Resentment due to perceived favouritism towards non-traditional’ employees.
- Overcoming the “glass ceiling” when making promotion decisions.
Usual targets for diversity management programmes
- Ethnic, cultural, and/or religious minorities
- Women
- People with disabilities
- Homosexuals–and more recently the broader
LGTBIQ+ community - Older workers
Whistleblower
An employee or ex-employee of an organization who, in good faith, discloses information about serious malpractice by that organization.
Organizacijos darbuotojas arba buvęs darbuotojas, kuris sąžiningai atskleidžia informaciją apie rimtą tos organizacijos pažeidimą.
Criteria for whistleblowing
- Information must be released by a stakeholder within the organization, usually an employee or former employee.
- Information that is released must not have already been made public.
- Information that is released must be of substantial importance and be about the misconduct of the company or its members.
- Information must be released to parties that fall outside the whistleblower’s normal chain of command.
- Information must be released voluntarily in an effort to correct wrongdoing, rather than for revenge purposes.
Informaciją turi paskelbti organizacijos suinteresuotoji šalis, dažniausiai darbuotojas arba buvęs darbuotojas.
Paskelbta informacija dar neturi būti paviešinta.
Skelbiama informacija turi būti labai svarbi ir susijusi su
bendrovės ar jos narių netinkamu elgesiu.
Informacija turi būti perduota šalims, kurios nepatenka į įprastą informatoriaus pavaldumo grandinę.
Informacija turi būti skelbiama savanoriškai, siekiant ištaisyti pažeidimus, o ne keršto tikslais.
An employee who acts in good faith and the “public interest” in the disclosure of wrongdoings outweighs the interests of the employer.
European Court of Human Rights
EU Whistleblower Directive
Creation of channels of reporting within companies/administrations
Hierarchy of reporting channels
Large number of profiles protected by the new rules
A wide scope of application
Support and protection measures for whistleblowers
Feedback obligations for authorities and companies
Whistleblowing advantages/pros
- Short- and fixed-term contracts
- Gagging (confidentiality) clauses in work contracts
- Duty of fidelity -> ištikimybė
- Negative view of whistleblowers
- Disastrous personal consequences
Whistleblowing disadvantages/cons
- Freedom of expression clauses in human rights regulations
- Legal duties
- Corporate codes expressly demanding this
- Changing view of whistleblowers as a corporate safety net
Right to privacy, prekybinis
Promotion of materialism
Creation of artificial wants
Perpetuating dissatisfaction
Reinforcing stereotypes
Materializmo propagavimas
Dirbtinių norų kūrimas
Įamžinantis nepasitenkinimą
Stereotipų stiprinimas
Right to fair prices
Excessive pricing
Price fixing
Predatory pricing
Deceptive pricing
Per didelė kainodara
Kainos fiksavimas
Agresyvi kainodara
Apgaulinga kainodara
Right to make a free choice
Slotting fees
Right to engage in markets
Teisė dalyvauti rinkose
Buyer-seller relationships
Gifts and bribes
Right to honest and fair communications
deception
Misleading claims
Intrusiveness
apgaulė
Klaidinantys teiginiai
Įkyrumas
Right to basic freedoms and amenities
Consumer exclusion
Right to be free from discrimination
Targeting vulnerable consumers
Nukreipimas į pažeidžiamus vartotojus
Right to privacy
Privacy issues
Right to safe and efficacious products
Product safety
Fitness for purpose
Two ethical limitations based on fairness
- Individual transactions will be unfair to certain consumers
- Without consumer sovereignty, the economic system is inefficient
Du etiniai apribojimai, pagrįsti sąžiningumu
* Atskiri sandoriai bus nesąžiningi tam tikrų vartotojų atžvilgiu
* Be vartotojų suvereniteto ekonominė sistema yra neefektyvi
Consumer sovereignty assessment
- Consumer capability – degree of freedom from limitations in rational decision-making (e.g., from vulnerability or coercion)
- Information – availability and quality of relevant data pertaining to a purchase decision
- Choice – extent of the opportunity available to freely switch to another supplier
Information
Availability and quality of relevant data
Quantity, comparability and complexity of information; degree of bias or deception
consumer capability definition
Freedom from limitations in rational decision-making
Vulnerability factors, e.g. age, education, health
Pažeidžiamumo veiksniai, pvz. amžius, išsilavinimas, sveikata
Choice
Opportunity for switching
Number of competitors and level of competition; switching costs
in the HPI (happy planet index)
Ecological footprint is included
in the HPI (happy planet index)
Ecological footprint is included
the stakeholder approach to csr
freeman
Which of the following are social responsibilities according to Carrol’s SR pyramid?
economical
legal
ethical
philantripic
Which of the following indicators does not include income/social inequalities?
GPI
HDI
HPI
IHDI
Human Development Index (HDI)
Whistleblowing in the field of business ethics is defined as:
calling attention to wrongdoing that is occurring within an organization
What are the three components of consumer sovereignty asessment?:
Consumer capability, information, choice
affirmative action
siekiama padidinti tam tikrų grupių atstovavimą dėl jų lyties, rasės, seksualumo,
Diversity management
Can help fight work discrimination
Life-cycle sustainability assessment refers to:
the evaluation of all environmental, social and economic negative impacts and benefits in decision-making processes towards more sustainable products throughout their life cycle.
The calculation of Gross Domestic Product (GDP):
economic growth
Employee diversity:
Can be related to CSR policies
what are the types of emploees privacy
Physical, social, informational, psychological
Affirmative action:
May Include preferential hiring
