Business Ethics Flashcards
What is Corporate Social Responsibility (CSR)?
CSR is the theory that businesses have ethical responsibilities toward the environment and the communities they impact.
What are the two main types of CSR?
Environmental CSR and Community CSR.
What does Environmental CSR focus on?
Reducing negative environmental impact, increasing reliance on renewable energy, and offsetting harm through initiatives like carbon neutrality.
What are examples of Environmental CSR?
Reducing pollution, using recycled products, and donating to pro-environment groups.
What does Community CSR involve?
Respecting human rights, avoiding exploitation, ensuring fair labor practices, and engaging in philanthropy.
How does ESG expand upon CSR?
ESG (Environmental, Social, and Governance) includes CSR principles but also focuses on avoiding corruption and ethical governance.
How can CSR and ESG benefit businesses?
They can improve public relations, increase profits by reducing regulatory risks, and enhance brand reputation.
How do Utilitarians view CSR?
Utilitarians support environmental CSR because climate change reduces happiness but may reject philanthropy if it does not maximize overall happiness.
How does Kantian ethics apply to CSR?
Businesses must treat people as ends, not as mere means, meaning fair wages, safe working conditions, and environmental responsibility are ethical duties.
What is whistleblowing?
When an employee exposes unethical or illegal business practices.
What is the main advantage of whistleblowing?
It brings unethical business practices to light, allowing for accountability and correction.
What is the main disadvantage of whistleblowing?
It can cause financial losses for the company and lead to job losses.
How does utilitarianism assess whistleblowing?
It depends on whether whistleblowing maximizes happiness overall.
How does Kantian ethics assess whistleblowing?
Since Kant opposes lying, he would support whistleblowing as it reveals the truth and opposes deception.
What is globalization?
The process by which businesses expand internationally, integrating economies, markets, and cultures.
How can globalization lead to ethical issues?
It can encourage exploitation, environmental harm, and undermine free market competition.
What is offshore outsourcing?
When companies move production to cheaper labor markets in developing countries.
What is the issue with monopolies in globalization?
Large corporations can dominate markets, reducing competition and innovation.
How can globalization give corporations excessive power?
Businesses can influence governments through campaign financing and lobbying, leading to laws that favor corporate interests.
What is the utilitarian view on globalization?
It supports globalization if it maximizes happiness but opposes aspects that harm free markets or exploit workers.
What is the Kantian view on globalization?
Kantian ethics would oppose globalization if it leads to exploitation and treating people as mere means.
How do critics view CSR?
Some see it as hypocritical “window dressing,” meaning it is used to distract from unethical practices.
How can CSR be seen as a business strategy rather than genuine ethics?
Businesses may engage in CSR to improve their public image and prevent regulations that could hurt their profits.
What is a key weakness of utilitarianism?
It requires complex calculations about future consequences, which are difficult to predict.
How does Kantian ethics address this issue?
Kant argues that moral duty is clear-cut and does not require predictions—simply follow ethical principles.
How does Mill’s version of utilitarianism attempt to solve this problem?
Mill focuses on established moral principles that have historically promoted happiness, rather than constant calculations.
What was Milton Friedman’s view on business ethics?
He believed the only responsibility of a business is to maximize profits for shareholders.
Why did Friedman oppose CSR?
He argued that any regulation of business restricts freedom and could lead to corruption.
What evidence does Friedman use to support free-market capitalism?
He cites the decline in extreme poverty from 70% in 1960 to 17% in 2012 as proof that capitalism improves living standards.
