Business Ethics Flashcards
What is Corporate Social Responsibility
the IDEA that a BUSINESS or ORGANISATION has ETHICAL RESPONSIBILITIES to the WIDER COMMUNITY and ENVIRONMENT
What is the KANTIAN view of CORPORATE SOCIAL RESPONSIBILITY - DUTY and UNIVERSAL LAW.
- DUTY to STAKEHOLDERS (employees, suppliers, customers etc ).
- DUTY to CONSUMERS - Giving Back to the Community - loyalty card schemes, sponsoring charitable events
- UNVERSAL LAW - can’t really work in business when profits are at stake
What is the KANTIAN view of CORPORATE SOCIAL RESPONSIBILITY -
PEOPLE AS ENDS NOT MEANS
PAENM : you’re USING your CUSTOMERS for PROFIT.
USING your FACTORY WORKERS to PRODUCE Goods at LOWEST PRICE POSSIBLE.
EVERYONE from Production to SALES is being USED as the MEANS to make PROFIT (end?).
What did FREIDMAN say about CSR
as INDVIDUALS MAY CHOOSE their OWN TIME to TAKE SOICAL RESPONSIBILITY, as EMPLOYEES they SERVE the COMPANY, the COMPANY CANNOT HAVE RESPONSIBILITY
What did FRIEDMAN claim about SOCIAL RESPONSIBILITY?
SOCIAL RESPONSIBILITY of BUSINESS is to INCREASE PROFITS. He claimed that SOCIAL RESPONSBILITY in Business was a DELUSION ; for him the ONLY RESPONSBILITY for CORPORATION was To their STAKEHOLDERS
What is Whistle Blowing?
when an EMPLOYEE DISCLOSES WRONGDOING To the EMPLOYER or PUBLIC
What are 3 other Characteristics of WHISTLE BLOWING?
- ISN’T generally About a PERSONAL COMPLAINT or grievance AGAINGST EMPLOYER
- REPORTING something that’s AFFECTING, or threatens to AFFECT, others
- May be Perceived as an INDIVIDUAL MORAL CHOICE, BUT in SOME cases Employees would HAVE a LEGAL RESPONSIBILITY to REPORT unethical behaviour BECAUSE of the LIKELIHOOD of this BEHAVIOUR BEING CRIMINAL
What is Private WHISTLEBLOWING
Whistleblower RAISES CONCERNS INTERNALLY within the company.
E.g. a Black Teacher gets a punishment but a White Teacher for the Same Event
a Concerned Colleague uses the college whistleblowing policy to raise this with Governors as a case of Racial Discrimination
What is PUBLIC WHISTLEBLOWING
Whistleblower RAISES CONCERNS OUTSIDE the ORGANISATION, e.g. by alerting the Media.
e.g. a DOCTOR is CONCERNED that a NEW PROCEDURE introduced by managers is PUTTING Patient’s LIVES at RISK.
following Failed Attempts to Explain the Issue to Managers after seen an Increase in Deaths, she Contacts the Newspapers
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What is the KANTAIN view of WHISTLE BLOWING
DUTY to WHISTLE BLOW to MAKE SURE that Company is WORKING ETHICALLY
UNIVERSAL LAW
What is the KANTAIN view of WHISTLE BLOWING - Example
ERIN BROCKOVICH example of whistleblowing on Pacific Gas and Electric Energy ( PG&E ) company in the USA.
MILLIONS Paid Out to RESIDENTS who’s HEALTH SUFFERED due to contaminated water
What is the UTILITARIANIST view of WHISTLE BLOWING
- ALL people should feel SAFE in their WORKING ENVIRONMENT and in their dealings with different businesses ( everything from supermarkets to social media).
- Businesses Should Act with Integrity
- Whistleblowing Ensures this for the Masses
What is the KANT view of ‘GOOD ETHICS IS GOOD BUSINESS’ ? and example. Good Ethics > Business
- DUTY to TREAT People WELL.
This will KEEP the CUSTOMER COMING BACK and Keep EMPLOYEES HAPPY - John Lewis - Employees are the Stockholder. They work Harder as they reap financial reward
- Some use their ETHICS as a USP e.g. environmentaly friendly fashion H&M
Putting Modern Day Slavery policies published on website, appeal trusty
What is the UTILITARIANIST view of ‘GOOD ETHICS IS GOOD BUSINESS’ ? and example
RuleUT could work well - e.g. ensuring a minimum wage and holiday benefits for all employees, the MORE PEOPLE who INVEST in the BUSINESS, the MORE PROFIT the COMPANY makes to put back into the BUSINESS and BENEFIT EMPLOYEES
What does SMITH argue about GOOD ETHICS is GOOD BUSINESS
Business have a Symbiotic RELATIONSHIP with BOTH CUSTOMERS & EMPLOYEES
- ALTHOUGH it MAY BENEIFT us in the SHORT TERM to PAY Low Wages, OVERCHARGE Customers
- it HARMS REPUTATION and LESS INCOME.
What are SMITH’S 2 FAMOUS IDEAS to Illiustarye how Business can make Money
- the LAW Of SUPPLY and DEMAND - how much is charged / payed is linked to how many workers needed / avaliable
- the DIVISION of LABOUR - makes factory production more effcient.
What is Globalisation?
is the INTEGRATION of Economies, Industries, Markets, Cultures and Policy-Making AROUND the WORLD.
TNC’S have been KEY to the DEVELOPMENT of the GLOBAL ECONOMY : mega - business that have taken Advantage of Communication revolutions that ALLOW INVESTMENT and PRODUCTS to MOVE SEAMLESSLY BETWEEN COUNTRIES
How has MOVING PRODUCTION to LOW WAGE COUNTRIES had MAJOR IMPACT on STAKEHOLDERS in the US and EUROPE.
CONSUMERS BENEFIT from CHEAPER PRODUCTS, Fuelling a CONSUMER CULTURE
but, shifting manufacturing to low wage countries has ‘HOLLOWED OUT’ - MANUFACTURING in the MOST DEPRIVED COUTRIES - JOBS it once supported DISAPPEARED
Explain the LINK between INVESTEMENT to POORER COUNTRIES and GOV REGULATIONS
whilst GLOBAL BUSINESS has POWER to BRING INVESTMENT to POORER COUNTRIES, these countries often had WEAK GOV REGULATIONS, ALLOWING UNSAFE Working CONDITIONS
2003 - BANGLADESH poorley made Factory Collapsed - supplied Primark, 1000 + died in Rana Plaza
What are 3 POSTIVES of GLOBALISATION
+ WORLD getting SMALLER, PROBLEMS that we can RESPOND to are EASIER to get to - GLOBAL CONSCIENCE e.g. fairtrade , unicef
+ REDUCES EXTREME POOR - India 200 million more Jobs , increased employment
+ COSUMERS LOVE a BARGAIN, RECOGNISBLE BRANDS
What are 3 NEGATIVES of GLOBALISATION
- What HAPPENS if COMPNOES LEAVE DEVELOPING Countries? Worse than when they started
- Fair Wages = Less Profit / or Increase in Price
- The Environment, Carbon footprint
What is the KANTIAN ETHICS view on GLOBALISATION - DUTY
- CHEAPER Goods can be PRODUCED in LESS ECONOMICALLY DEVELOPING COUNTRIES leading to HIGHER PROFIT ( lower prices for the consumer )
- BRAND FAMILIARITY across the globe
- We have a DUTY to THINK about our CARBON FOOTPRINT and the LASTING DAMAGE that we MAY be CAUSING - GOODS TRAVEL FAR
What is the KANTIAN ETHICS view on GLOBALISATION - KINGDOM OF ENDS
Do we really think that the Rights of the Workers in the factories in other countries are As Important as being able to Buy Clothes / FEED our FAMILIES on a budget? PEOPLE CLOSE to Us always going to take PRIORITY
What is the UTIITARIANIST view on GLOBALISATION
WHO we TRYING to PRODUCE PLEASURE FOR? the Workers who have Jobs produced in LEDCs? the CUSTOMER who is ABLE to BUY GOODS for CHEAPER PRICE?
ENVIRONMENTAL IMPACT with International Travel - what is the Carbon Footprint? are Goods Cheaper at the Expense of the Planet
What is the UTILITARIANIST view on GLOBALISATION -
- WHO are we TRYING to Produce PLEASURE FOR? the WORKERS who have JOBS PRODUCED in the LEDCs? the CUSTOMER who is Able to BUY Goods for a CHEAPER PRICE?
- ECONOMIC GROWTH will BENEFIT the MAJORITY in LEDCs
- Those who may have LOST their JOBS ELSEWHERE to ENSURE MORE PROFIT for STOCKHOLDERS
What did MARX argue
believed that the EMPLOYER (BOURGEOISE) could FIND ALMOST ANYONE to DO the WORK, But UNLESS the WORKER (proleteriot ) Agreed to WORK on the EMPLOYERS TERMS then he would go without
