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Ethics > Business Ethics > Flashcards

Business Ethics Flashcards

1
Q

CSR

A

Idea that businesses have responsibilities to community and environment not purely profit driven

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2
Q

Stakeholder

A

Anyone with involvement with the business

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3
Q

ESG

A

Measure of how businesses are judged on their responsibility

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4
Q

Whistleblowing

A

An employee discloses unethical or illegal business practices to the employer or public

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5
Q

What is the cost of whistleblowing

A

May lose job, friends, poor treatment from managers

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6
Q

Who champions Shareholder Theory

A

Friedman

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7
Q

How does Friedman argue that CSR is wrong

A

CSR leads to socialism instead of capitalism, they cant have responsibilities and CSR districts businesses from their main purpose of profit, also implying pursuing profit is immoral

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8
Q

How does Friedman argue that pursuing profit leads to benefits for all stakeholders

A

When businesses are successful in making money that benefits employers in wages, when people have more money society in general becomes better as people become more charitable

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9
Q

What everyday business practices is effectively Act Utilitarian

A

Cost Benefit analysis holds many similarities to the hedonic calculus in mathematically weighing up the good and the bad of an action

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10
Q

Advantages of Utilitarianism in Business Ethics

A
  • Businesses are results driven so a teleological theory makes sense
  • Act utilitarianism gives flexibility to different situations which is vital in business
  • Advertisement plays on ideas of customers pain and pleasure
  • Enforces and objective approach to business which is important, competent judge and impartial observer
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11
Q

Disadvantages of Utilitarianism in Business Ethics

A
  • Act requires prediction of all consequences which takes a lot of time which is detrimental in the business world
  • Bentham and utility has no right and wrong so could result in unethical business practices
  • Good and bad can be very subjective in different circumstances
  • Difficult to compare goods that would be measured in different ways, envirinemtal or wages
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12
Q

How would Kantian value of duty work in business ethics

A

Employer has duty to pay a fair wage, whilst employee has a duty to work hard and not take excessive breaks or expenses

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13
Q

How does Kant display the importance of motive with the shopkeeper example

A

A shopkeeper treats customers well as it is good for business, this isnt purely good act as his motive for treating customers well is wrong, treating them as a means

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14
Q

Universalisability applied in business ethics

A

Good business practices must be universalisable, employees must always be payed a fair wage, taxes must be paid by businesses, environmental concerns cant be universalised.

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15
Q

People as ends applied in business ethics

A

Companies must treat customers well treating them as ends, not means to an end of profit, branding with fair-trade and greenwashing and false advertisement both take advantage of customers good will

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16
Q

Kingdom of ends applied in business ethics

A

Kant would favour stakeholder theory as this treats all people involved in a business as they should creating a kingdom of ends

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17
Q

Kant view on globalisation

A

Main effect of globalisation which is transnational companies are normally exploitative to governments and employees in less developed countries, not treating as ends

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18
Q

Rawls veil of ignorance in Business Ethics

A

If we didn’t know whether we were gonna be rich or poor then we would all agree larger taxes for the rich, businesses are ethically inclined to pay their taxes to create a fair society

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19
Q

strengths of Kant in business ethics

A
  • universal law ensures consistent decision making that builds trust and equality
  • Ensures customers and employees aren’t treated like numbers
  • Focus on good motives ensures CSR is genuine and not a marketing ploy
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20
Q

Weaknesses of Kant in business ethics

A
  • Very abstract and unrealistic as no business would prioiritse ethics over profit to the extent Kant suggests
  • Universal law isnt helpful in business as situations are so unique
  • Motive is empirically unverifiable
  • Duties will conflict very often in businesses due to the large number of stakeholders, but Kant doesnt provide judgement on this, such as whistleblowing
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21
Q

Globalisation

A

Integration and connection of world economies

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22
Q

What is the main impact of globalisation

A

Business and social interaction isnt restricted to one area, decisions have larger worldwide impacts

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23
Q

Technological and political impacts of gloablisation

A

Technological - communication and travel technology allows businesses to conduct business instantly online, allows for larger companies

Political - Countries are no longer self sufficient with large reliance on trade increasing the interconnected nature of economies

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24
Q

MNC

A

Multinational corporations 2/3 world trade

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25
Q

What are the three areas where globalisation is relevant in business ethics

A

Cultural issues
legal issues
Accountability issues

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26
Q

Cultural Issues created by globalisation

A

Different cultures have different views on business ethics, matter like child labour, gender equality. another concern is that gloabalisation and branding is creating a loss of local identity and cultures

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27
Q

Legal issues created by globalisation

A

MNCs exploit looser laws on cheap labour and environment to better their profits that would be stricter in their own country. No minimum wage or maximum working hours in some asian countries

28
Q

Accountability issues cerated by globalisation

A

MNCs can act unethically but get away with it because these practices may be legal in the country they are operating in, some MNCs are so large and powerful they cant be held accountable

29
Q

Reasons why Globalisation discourages ethical action

A
  • Makes exploitation of environment workers rights and wages much more commonplace
  • Gloabalisation tends to benefit the richer more increasing inequality
  • MNCs treat people in the developed world as means to an end
  • Neo colonialism effectively
30
Q

2013 Rana Plaza Disaster

A

1000 people died when a factory collapsed due to employees ignoring safety regulations

31
Q

Reasons why Globalisation encourages ethical action

A
  • Harder for companies to hide unethical action due to internet, Nike exploitation in chinese factories got exposed causing boycotts
  • Reduced number of extreme poor in china by 300 million as provides stable better wage than past agricultural jobs
32
Q

Kant on CSR

A

Employers and employees are under contracts which give a sense of duty that must be upheld. Every in the business must be treated as an end so this is supporting CSR, For Kant CSR should be the primary even over profit

33
Q

Benthams Act Utilitarianism on CSR

A
  • Principle of utility concerns acting for benefit of others because we benefit ourselves, co-insides with Adam smith and shareholder theory about making profit as this will benefit society, invisible hand keeps all stakeholders happy
    —-> This exploit the customer usually, tyranny of majority
34
Q

Kant on Whistleblowing

A

It would seem whistleblowing is wrong as breaking a promise or contract is wrong, but also lying to customers about unethical business practice is also wrong, so Kants theory may struggle to solve whistleblowing
—–> Prima facie duties may help

35
Q

Utilitarianism on whistleblowing

A

ACT - Whistleblowing would have to be weighed up on the happiness it created, if whisleblowing caused company to lose millions and workers be payed off then it is wrong.

Rule - General principles would assert always reporting unethical business practices

36
Q

Kant on Globalisation

A

International trade can be universalised as it improves relations between countries and reduces conflict, creating a kingdom of ends with peace.
However MNCs treat employees and governments in developing countries as a means to an end.

37
Q

Utilitarianism on Globalisation

A

relativist with no absolute right or wrong, Utilitarianism can be used for and against MNCs operating in developing countries, as ensures basic wage for all, but also exploits large majority in that country.

38
Q

Mills Rule Utilitarianism on CSR

A

A purely profit driven business may be subject to the tyranny of the majority, by putting low pleasure profits over higher pleasures societal goods and peoples welfare

39
Q

Example of a firm treating employees as ends

A

Springfield Manufacturing Company created open book financial information to all employees

40
Q

Friedman on CSR

A

Social concerns are governmental not the businesses

41
Q

how is fair trade an example of kingdom of ends

A

Contractual agreement is agreed with farmers so they aren’t exploited, employers duty to uphold the agreement

42
Q

What do critics say about principle of utility in globalisation

A

Its used to justify exploiting workers by saying they are payed a better wage than before MNCs, and customers are happier because they have cheap goods, as a consequentialist theory surely must look into future effects of pollution

43
Q

Ford Pinto case study

A

Ford began to lose market share, they were so focused in profit that they created a cheap car as quickly as they could whilst disregarding health concerns. They created a dangerous car that caused 500 deaths in the 1970s

44
Q

What does Shareholder theory say about ford pinto

A

Enforces that shareholder theory only operates within the law, ford had gone beyond committing fraud

45
Q

Stakeholder theory

A

Businesses should work in the interests of all stakeholders equally not just profit, businesses exist also for human need to work

46
Q

Body shop example of stakeholder theory

A

They accepted smaller profits in order to pay better wages and take part in fair trade supply schemes

47
Q

Co-op example of stakeholder theory

A

Employers have a owning in the business so they can enforce a positive work environment, incentive to keep prices low

48
Q

Separation fallacy

A

When something unethical is called a business decision, because there is no separation between business and ethics

49
Q

Roger Boisjoly

A

Blew the whistle on the construction of the rocket boosters for nasa space shuttle in 1980s, but he was ignored and overrides by management and ostracised for whistleblowing

50
Q

Why is complicit whistleblower theory better than standard theory

A

Allows whistleblower to speak out even fi they cant prevent the harm, more significance on exposing the wrongdoing publicly due to ones own involvement in the wrongdoing

51
Q

Socialism and capitalism in cuisines ethics

A

Capitalism is more profit focused whereas socialism is more social goods focused

52
Q

Socialism and communism on division of labour

A

Dividing labour makes factory production much more efficient and more profitable, but socialism would say it alienates the workers by turning people into machines

53
Q

Reasons why capitalism doesnt allow humans to flourish in society

A
  • based on competition for profit so brings out the worst in people
  • Huge inequalities between workers and shareholders
  • Religious theachings place emphasis on good of all people, capitalism disregards wellbeing of some
  • capitalism treats everyone as main to an end
54
Q

Why capitalism allows humans to flourish in society

A
  • Everyone becomes richer in capitalist countries
  • Capitalism co-insisdes with utility theories
  • Parable of the tales supports using talents to make money in competition with others
  • Communism and socialism has always had bigger social costs and more oppressive to people
  • No true capitalist state as the government intervenes to stop people being exploited
  • When socialism has worked in china post Mao that is because they introduced a level of capitalism
55
Q

Adam Smith on GEIGB

A

outlines symbiotic relationships that interact for good of eachohet like businesses and customers as businesses get more customers when they treat them ethically and well, especially present in age of globalisation when bad ethics news travels quick

56
Q

GEIGB

A

good ethics is good business

57
Q

Freidman on GEIGB

A

Ethics has no connection to business within legal frames

58
Q

Kant on GEIGB

A

Good ethics is more important than good business, as they decision in business must always first be categorically morally good, uniersalisabliity and mass to an end ensure that ethics is put in priority over business as false advertising cant be universalised but abiding by a work contract can.

59
Q

Examples of GEIGB being used to gain customer attention for profit purposes

A

Bodyshop and M and S

60
Q

Utilitarianism on GEIGB

A

If a business is ethical than they may make more profits which keeps everyone in the business happy so agrees with GEIGB. However good ethics can fail a business by driving costs to high and causing them to collapse which is bad for everyone.

61
Q

Rule and Act utilitarianism on GEIGB in zero hour contracts

A

Act may agree with the use as by exploiting minority employees the majority of customers and shareholders can be kept happy with profits and low prices, However Act would argue that a higher pleasure is the dignity and wellbeing of the employee so would disagree with zero hour contracts

62
Q

Facebook data scandal in showing bad ethics is bad business

A

Facebook allowed political consulting firm access to 50 million users data to target them with political advertising, this cut Facebook share price by 16%

63
Q

france telecom scandal

A

Workers were delibaretly given demeaning jobs away from their families in order to pressure them to resign during a drastic restructuring process, caused 19 suicides

64
Q

How can extreme Good ethics in Knats case mean bad business

A

By refusing zero hour contracts due to ethical concerns the business will lose out on large amounts of profit and be undercut by competition

65
Q

How does Kant oppose ethical marketing

A

This is GEIGB for the wrong reason, businesses are using customers as a means to an end by exploiting their good will by appearing ethical to make more profit

Ethics (9 decks)

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