Business Ethics Flashcards
What is whistleblowing?
When an employee exposes a company or business for unethical practises that are of the public interest.
Whistle blowers are protected by the Public Interest Act 1998
Why does Kant agree with whistleblowing?
Duty to tell the truth as we can’t universalise lying
Companies must treat people as ends in themselves (categorical imperative)
Why does Kant disagree with whistleblowing?
Employees have a duty of loyalty to the company
Why does utilitarianism agree with whistleblowing?
The outcome may stop more harm being caused, it is a teleological theory
Could bring the greatest happiness
Why does utilitarianism disagree with whistleblowing?
It can cause the end of a business which may cause loss of jobs and financial loss
It can be justified for a company to break rules to succeed as it results in greatest happiness
What is corporate social responsibility?
Businesses should be accountable for their actions and impacts. They must look after share holders and stake holders.
Why does Kant agree with CSR?
Duty is more important than profit
People are treated fairly, not just as means to an end
Why does Kant disagree with CSR?
Actions are only morally good if they come from good will, not just for ulterior motives such as to increase profit
Why does utilitarianism agree with CSR?
Maximum utility for all stake holders, not just share holders
Usually more stake holders than share holders (so greater happiness)
Why does utilitarianism disagree with CSR?
Acting irresponsibly may bring greater amount of pleasure
What did Milton Friedman say?
“The purpose of a business is to make money”
“Social responsibility is to increase profits”
“Hypocritical window dressing”
What is globalisation?
The integration of business, economy, industry and culture between different countries across the world
What are pros of globalisation?
Employs workers in developing countries, providing employment opportunities
When migrant workers move to new countries they bring culture
Multinationals provide competition; more jobs and lower prices
What are cons of globalisation?
Creates ethical issues as it’s more profitable to hire workers in other countries with lower wages and fewer health and safety regulations
Sweatshops are too common in third world countries, with 250 million children working worldwide
