Business ethics

Question 1

Introduction

Answer 1

economic problems with bad consequences mean we need more ethical business
religious scripture there is condemnation of lending money with high interest.
History = dishonest businessmen and equal efforts to stop them

Question 2

Development in Britain

Answer 2

Industrial revolution = bad conditions/no rights

Over 200 years trade unions and parliament tried to improve conditions

Question 3

Different worker acts

Answer 3

1970 there was an equal pay act for gender equality. unfair dismissal for pregnancy, people of colour etc.
dockers
1889, no guarantee of work and low pay if they had. poor and hungry, they went on strike, and a trade union was created.

Question 4

Pope Leo XI

Answer 4

published a letter and followed by every Pope since: NML - workers should be treated with dignity and justice

Question 5

Corporate social Responsibility

Answer 5

• no man or corporation is an island. we are always in a wider community, and have responsibilities to government too
• idea that companies have ethical duties to all the people in this wider community made of stakeholders
• workplace = major part of life - identity

Question 6

Cardinal Nichols 7 principles

Answer 6

1) Human dignity
2) Common good
3) Solidarity
4) Subsidiarity
5) Fraternity
6) Temple
7) Reciprocity
8 Sustainability

Question 7

Human dignity

Answer 7

Man made image of God
Secularly we have value as human
invokes Kant’s second form of the categorical imperative

-William Temple also argued that good work is for the sake of people and always personal

Question 8

Common Good

Answer 8

set of social conditions that allow people to develop.’

a state of affairs in which everyone can flourish best.

Question 9

Solidarity

Answer 9

people are inter-dependent, need each other and are responsible for each other

Question 10

Subsidiarity

Answer 10

decisions should be made at the lowest level compatible with efficiency. nationally, locally or internationally? a village getting a new bench should be their discussion, not a government one.

Question 11

Fraternity

Answer 11

everyone should treat everyone as brothers. fellowship is social glue
Temple, deeper than liking someone.

Question 12

Reciprocity

Answer 12

giving everyone what is due to them and being willing to do more than just justice but charity

Question 13

Sustainability

Answer 13

we are all responsible for maintaining the earth and its resources for future generations

Question 14

Criticisms of Cardinal Nichols

Answer 14

business is a harsh environment that has no place for sentimentality

• is business not better and more effective if it is ethical? we trust honest people and give business to businesses who treat us well. it is a two-way system.

Question 15

Utilitarian approach to CSR

Answer 15

Support free market economics without state intervention

• left alone to lead to the greatest good
• depends on what view as good but if good of the persons then good of every stakeholder is the best approach

Question 16

Critics on Utilitarian approach to CSR

Answer 16

rejects natural human rights, it leads to problems
should 500 children work in awful conditions so that 100,000 or more people get their product which makes them happy?

-mill’s levels of pleasure may come into play here and say that the suffering of the 500 children workers would outweigh the happiness of the 100,000

Question 17

Kant approach to CSR

Answer 17

duty for duty’s sake. a shopkeeper is honest because it is the right thing to be

Question 18

Critics on Kants’ approach to CSR

Answer 18

outcomes matter, and if a shop is not successful then the owner is not serving everyone. but duty is close to responsibility

-the second categorical imperative is also important. act for the good of persons and do not use them as means to ends. prioritising good of persons means many ethical problems are solved.

Question 19

Whistleblowing

Answer 19

seeing and reporting something like bribery is whistle blowing
-often don’t whistle-blow due to fear/repercussions/ ‘its not my place’

Question 20

Is loyalty a virtue

Answer 20

companies in general seek loyalty to make the business the best it could be, but when it comes to whistle blowing it seems that loyalty is then misplaced, or could stop an employee from acting.

Question 21

contract between employer/employee

Answer 21

responsible to employer? Community?

-difficulty comes through contractual obligation to our employer. beyond the words of a contract there is a requirement to act truthfully. this contract is not with your boss. the difficulty is then that if our boss is the one who is acting dishonestly, we have to question where our loyalties lie.

Question 22

Kant on whistleblowing

Answer 22

our duty includes loyalty. but are we willing to universalise corruption, or covering it up?
against this, thought must be given to consequences. a dutiful employee must prevent wrongdoing.
there is also an issue of right and wrong duties. which duty do you follow, to your employer or to the world? nazis were loyal to nazism, but it wasn’t right.

Question 23

Utilitarianism on whistleblowing

Answer 23

is the greater good served by allowing corruption? cover up could lead to more damage.

Question 24

good ethics is good business

Answer 24

a dishonest business is not a successful one. the example of sports organisations: no one would pay to watch sport if they knew it was all set up and fixed. the organisations have a duty to be honest to all their stakeholders. major sports generate major revenue. to be dishonest is to lose this important stream of income to many people.

there is also problems with people losing homes, and even lives, in the process of building stadiums for events like the football world cup and the olympics. these issues also apply in other types of business. if banks are corrupt this affects everyone with a bank account. people trust banks to use their money so if confidence goes down the results are massive on the economy as a whole.

Question 25

Ethical businesses

Answer 25

attract more customers and employees. it also prevents forced government action. markets can incentivise ethical behaviour by allowing a place only for companies who act in this way.

Question 26

window dressing

Answer 26

milton friedman argued against this idea of businesses having to be ethical. he claims businesses only act in an ethical manner to attract business. companies like Macdonalds sell products like salads to be pro-health but the truth is the salads are worse for you than multiple burgers. friedman claims it is public relations stuff to make businesses attractive while they continue to run regularly.

Question 27

globalisation

Answer 27

growth of modern communication, movement of people, trade etc and the phenomenon of economic and cultural movements across nations. companies becoming worldwide. and the issues that come with it.

Question 28

pope st john XXIII

Answer 28

utlines the issues with relations between developed and developing countries.:

• neo-colonialism is the problem. even wealthy countries are not blind to the poverty in other countries. lasting peace will not happen if this kind of ‘economic and social imbalance’ exists.
• economically developed countries must resist neo-colonialism and that it would have a ‘harmful impact international relations and constitute a menace to world peace’ if it occurs.

Question 29

neo-colonialism

Answer 29

nation dominating another through providing aid and turning them into clients while doing so. they use resources from other countries. global companies’ reach is often wider than some entire countries’ reach

-moral question is whether they use these resources for the good of the company or for the nation involved. are they giving back in the same way they are taking?

Question 30

Kant - Globalization

Answer 30

exploiting natural resources or peoples for cheap labour, then a companies is acting for its own good and using people as a means to an end: this is not a good thing. no one could universalise exploitation as it has no good will and its not dutiful.

Question 31

Utilitarianism globalization

Answer 31

utilitarianism: lack of protection for the exploited due to lack of natural rights. the suffering of a few workers in a far country for the benefit of millions is accepted.

peter singer would argue that a poor person in a poor country is as capable of suffering as anyone else, so they should be treated the same as any worker in england