business ethics

Question 1

what is corporate social responsibility

Answer 1

the idea that businesses have responsibilities that go further than profits eg social and environmental duties.
this argues that businesses have a duty to act in the interests of stakeholders as well as profit.

Question 2

examples of stakeholders

Answer 2

-local community (reduce pollution and noise, provide employment opportunities.
-government (ensure taxes are paid, ensure employment)
-competitors
-employees

Question 3

milton friedman quote about CSR

Answer 3

• ‘do corporate executives have responsibilities other than to make as much money for their stockholders as possible? my answer is no.’

Question 4

robert c. solomon quote about CSR

Answer 4

you shouldnt pretend ‘that the virtues of business stand isolated from the virtues of the rest of our lives’

Question 5

aristotle’s view on CSR

Answer 5

he emphasized communal aspects of ethics - the good of the individual was for the good of the community.
he emphasized polis (ancient greek society based on civic friendship and mutual dependency) and the place of work should be considered polis according to aristotle.

Question 6

what are solomon’s 6 points

Answer 6

-community
-excellence
-role identity
-holism
-integrity
-judgement

Question 7

crane and matten on business ethics

Answer 7

-economic responsibility: to ensure there are reserves as a duty to shareholders.
-legal responsibility: to obey the law (pay taxes, no price fixing etc)
-ethical responsibility: go go beyond the law (as the firm’s reputation is at stake)
-philanthropic responsibility: the love of one’s fellow human being (eg cadbury)

Question 8

microsoft fine for abusing monopolistic position

Answer 8

£280.5 million

Question 9

cadbury in favour of CSR

Answer 9

they were quakers and in the 19th century built schools, hospitals and decent housing for their employees and community as it was their christian duty to do so.

Question 10

cardinal vincent nichols

Answer 10

7 principles of good business ‘blueprint for better business’ in 2012 based on catholic social teaching.
1. human dignity - links to the sanctity of life and links with kantian ethics. never a means to an end - are a means in themselves.
2. the common good - should work for the interests of all people. catholics regard humans as the stewards of the earth form genesis so it is important to care for it
3. solidarity - be in touch with the needs of the community

Question 11

crane and matten names CSR

Answer 11

economic, legal, ethical, philanthropic.

Question 12

example of hypocritical window dressing

Answer 12

2019 Plus size clothes activists Simply Be campaigned in London Fashion week for more inclusive clothing sizes. hundreds of brands have adopted larger sizes however, there is a £24 million market potential. why would a business make an ethical decision if it didnt benefit them?

Question 13

examples of good csr

Answer 13

patagonia - all profits will be given to save the planet.
98% of the company’s stock will go to a non-profit called Holdfast Collective which fights the environmental crisis.

Question 14

milton friedman about hypocritical window dressing

Answer 14

he says such programs reveal a ‘suicidal impulse’ and it is ‘pure an unadultered socialism’ (if you go above and beyond to lower prices or achieve a hiring quote - this has nothing to do with your business and will only damage sales)

Question 15

example lush

Answer 15

one could argue that they are a great example of CSR
90% of packaging material was recycled
BUT they have made this their USP and so therefore using it to target environmentally conscious customers to make money.

Question 16

julian baggini - is good ethics good business, how is good ethics not sufficient for a good business

Answer 16

gives the example of running an ethical cafe on a deserted moor. they correlate but arent a guarantee you will have a good business.

Question 17

counter that badethics is good business (example of industries)

Answer 17

pornography, british american tobacco promise to be carbon neutral by 2030, drug businesses, fashion involving sweatshops.

Question 18

stats that good ethics is not good business FTSE

Answer 18

FTSE4good uk index of top 50% companies risen by 32.8%
FTSE (general) rose by 35.4%

Question 19

Adam Smith on symbiotic relationships

Answer 19

a business owner relies on customers for profit, employees rely on a business owner for wages etc.

Question 20

gordon gecko on CSR

Answer 20

he believes ‘greed is good’ and that greed has marked an upward surge of mankind = more productivity, innovation and progression

Question 21

solomon quote about profits

Answer 21

‘serving the public and taking care of one’s employees is the very essence. the profits will come as a consequence’

Question 22

is good ethics good business in globalisation?

Answer 22

probably not - as it is unfortunately easy to oppress and exploit foreign workers when abroad, if a business has the opportunity to lower costs, this will grant them more profits that can be used to expand the business. workers in lesser developed countries may have less job opportunity, deterring them from rebelling due to exploitation.

Question 23

globalisation definition

Answer 23

the integration of economies, industries and markets around the world.

Question 24

positives of globalisation
china+joan

Answer 24

+ consumers can purchase cheaper products = fuels consumer culture and helping the economy
+advances technology, knowledge adn job opportunity where it may be scarce.
+some MNCs can do the right thing - eg a fund was set up to aid Rana Plaza victims and compensate = $30 million
+800 million chinese lifted out of poverty since china opened up the economy in 1978
+joan robinson quote: “The misery of being exploited by capitalists is nothing compared to the misery of not being exploited at all.”

Question 25

joan robinson quote

Answer 25

“The misery of being exploited by capitalists is nothing compared to the misery of not being exploited at all.”

Question 26

globalisation negatives

Answer 26

-exploits workers in developing countries who are forced to work under hideous conditions.
-has decreased work in more developed countries who have opted for a service economy
-has less strict regulation eg Rana Plaza 2013, 1100 died with 2500 injured.

Question 27

kant on business

Answer 27

kantian idea of meaningful work is work that is freely chosen and provides opportunities for the worker to exercise autonomy on the job

Question 28

Marx on business

Answer 28

humans cannot flourish in a capitalist society as they are alienated from their true nature. he predicts capitalism will fall as people will recognise their exploitation and the inequality.

Question 29

jesus on capitalism

Answer 29

‘watch out! be on your guard against all kinds of greed; life does not consist in an abundance of possessions’ - luke 12:15
‘LOVE THY NEIGHBOUR’ - selfish individualism where ethics stands in the way of profit so is ignored goes against the bible.

‘for the love of money is the root of all evil’ 1 Timothy 6:10 JESUS DID NOT SAY

Question 30

kant on exploitation (simple)

Answer 30

capitalism will tend to use people as a means to an end, not seeing them as ends in themselves

Question 31

capitalist belief about why capitalism is ethical and fair

Answer 31

trickle down economics means that wealth trickles down through classes which ideally ensures everyone is able to live.

Question 32

margaret thatcher on business

Answer 32

privatisation of the public sector
de-regulation of the economy
freer market -> more moeny can be made by anyone with talents.

Question 33

adam smith invisible hand

Answer 33

markets will solve issues by themselves as the invisible hand guides them.
pursuing self-interest contributes to society’s well-being

Question 34

max weber on business

Answer 34

hard work is good for human morale and spiritual development
‘the devil finds work for idle hands’
‘work hard in your calling’

Question 35

Abu Ghraib + Sam Provance case

Answer 35

Sam Provance was aware of torture happening to Iraqis in the American camps in 2003. he blew the whistle regardless of his honourable discharge

Question 36

Oxfam case

Answer 36

2018 Oxfam workers aiding in the Haitian earthquake relief were found to be paying under-age sex workers. someone blew the whistle which led to a large decrease in donations.

Question 37

facebook case

Answer 37

2021 - facebook employee frances haugen blew the whistle about how meta hid the extent to which their platforms promoted hate, eating disorders and disinformation. they put profit before ethics and chose not to act.

Question 38

criticisms of whistle-blowing

Answer 38

1. john locke argues the company has a moral right to anything it has developed or paid for. this means that the leaking of company-sensitive info is not moral as they are entitled to the principle of property rights. instead, the matter should be handled internally eg Oxfam.
2. some lines of work are not covered by the law - eg the armed forces in the Abu Gharaib case. intelligence services may be compromised and could risk national security if details were exposed to the public. eg Edward Snowden

Question 39

Edward Snowden case

Answer 39

2013 - he previously worked for the CIA and disclosed numerous confidential documents to the public about government surveillance programs which violated the espionage act. despite a conflict of duties he did this.

Question 40

aristotle on whistleblowing

Answer 40

he said that loyalty was a virtue; however are our loyalties only to our employer or may they extend beyond this.

Question 41

Norman Bowie on whistleblowing

Answer 41

it violates a ‘prima facie duty of loyalty to one’s employer’ (PF = from first impression)

Question 42

utilitarianism on whistle-blowing

Answer 42

+unethical/illegal, would create greater happiness
-consider all those with a stake in the business.
-act = yes, rule = probs not,

Question 43

kant on whistle-blowing

Answer 43

+emphasizes the duty of honesty
-promise-keeping = contract
-conflicting duties - to be honest/ to employer
+if company was using people as a means to an end eg not paying fair wages this would be justified