Buisness Ethics Flashcards
What is Corporate Social Responsibility?
the heart of business should be accountable for their actions and they are responsible towards their employees,community and environment
What does Milton Friedman say about buisness?
-Business should have responsibility is a mistake because this would lead to Socialism rather than capitalism
-A business is not a person and cannot have responsibilities this suggest business should have ethical responsibility and it’s core purpose is to make money. -Friedman argues that’s pursuits of money is not immoral
Kantian view on Corporate social responsibility?
- Kantian says an action is only good if it comes from goodwill and not anything else so companies that sponsor charitable events so they can promote their reputations would not be considered ethical
- Furthermore reason for them caring about pollution or noise or the safety of their workers is primarily concern for their own reputation so that they make profit Kant would not think this is good
Utilitarian view of Corporate social responsibility?
- Utilitarian would needs to weigh up the potential pleasure and pain that CSR might generate
- Utilitarian would probably decide that it was in a business best interest to act responsibly as in most cases it would be more likely to produce pleasure for the maximum number of people
What is Whistle blowing?
-Someone who risks their livelihood to tell the truth about companies and make their businesses accountable to their actions
-Whistle blowers are not protected by the law they are treated as witnesses to crime or can choose to give information anonymously
Case for Whistle blowing?
Case Edward Snowden
Kant Ethics on Whistle blowing?
- Kantian says issues surrounding whistle blowing could present difficulties
- On the other hand there is a duty to tell the truth and to be honest and fair in dealing with customer
- On the other hand there is a duty of loyalty and promise keeping to the shareholders and the company
Utilitarianism on Whistle blowing?
- Utilitarian would weigh up whether whistle blowing was likely to maximise pleasure or not
- Perhaps the long term for the larger number of people whistle blowing would be a good idea because company need a wake up call about its ethics or safety measure
- Whistle blowing might bring about the end of company causing job losses and financial losses for shareholders although benefits companies might learn a lesson from this
- Act utilitarians would consider each situation on its own where rule utilitarians would think about whether whistle blowing in general was a good idea
What is Good ethic is good business?
- ‘GEIGB’ is a slogan that claims doing the right thing will make a business more attractive and increase its profits because customers will like and trust it
- Good ethics can be difficult for business because sometimes an action that benefits a group of people can have a completely opposite effect on others e.g. making milk lower price for customers can be good but harmful for dairy farmers
What is Kantian view of GEIGB?
- Kantian approach to GEIGB would say that business like individuals should do the right thing just because it’s the right thing and concerns and competition and profit is irrelevant
- However it’s difficult as companies to survive in a competitive,capitalist market trying not to treat people as a mean to an end is a difficult principle to apply in business because employees and suppliers and customers are used as part to make profit
Why is Utilitarianism view of GEIGB?
- Utilitarian approach to ‘GEIGB’ might be easier to fit than a Kantian approach
- Andrew Crane and Dark Mattern argue in their book Business ethics European perspective there are close links between utilitarian approach of economics as decison are based on whichever outcome is likely to produce beneficial results
What is Globalisation?
-is the integration of industries, economies, markets, cultures and policymaking around the world
-Increased in communication and transport,people no longer need to do business entirely within their own geographical region.Companies might have producers in one country and customers in another
Globalisation is good?
- Give jobs to poorer communities
- Train local people to have new skills
- Consumers are happy with cheap clothing
- Consumers can buy the product they enjoy all year round
Globalisation creates issues?
- Global companies taking trade from smaller business
- Keep poor communities poor and big communities rich
- Takes jobs away from countries with stripped to human right act
- indigenous cultures are affected
- Deforestation and pollution
- Child labour
Case for Globalisation?
Case Rana Plaza-
*On 24th of April 1013 a poorly made Bangladeshi factory collapsed .
* The factory supply’s Primark and other companies with low cost clothing.
* Over 1100 peeople died in the building.More than 2500 were injured
* Workers were ordered to return to work and some were threatened with being docked a months wages
* After the investigation it was found that the factory floors had been built without any permit and without heavy machinery
