Business Ethics Flashcards
Whistle-blowing
Employee tells the employer or public about unethical practices within the business
What did Friedman say corporate social responsibility is?
Hypocritical window dressing
What is a quote from Friedman?
“A companies primary responsibility is towards its shareholders”
What is a quote from Maxwell?
“It is not a political issue, social issue, or business issue. It is a personal issue”
What is a company according to Maxwell?
A person or group of people not a thing
What is a quote from Maxwell about his beliefs of ethics?
“There is no such things as business ethics, just ethics”
What is Smiths ‘invisible hand’?
Businesses practise corporate social responsibility because it benefits them
What is Smiths ‘ethical manager’?
People behave ethically due to self interest
Stakeholders
People who are affected by the activities of a company
Shareholders
People who own a company
What does the FTSE4 Good Index do?
Invest in companies that demonstrate sustainability measures
Globalisation
That around the world economies, industries, markets, cultures and policy-making is integrated
Advantages of globalisation
Global shift of economy to China has given locals higher wages
TNCs do sometimes help to improve business ethics in the countries they operate in
International reactions to disasters like the Rana Plaza collapse can cause the country to act to make sure their workers are safe
Disadvantages of globalisation
Child workers in NEEs and LICs
Those working in the secondary industry lost jobs when manufacturing moved to Asia
Unsafe working conditions
Exploitation of workers
What would Kant say about the effects of globalisation?
Everyone should have the same degree of freedom
He accepted that govs. would restrict people’s freedom a little but only to ensure that everyone has the same degree of freedom
His view on equality would clash with the inequality generated by globalisation
