Business Ethics Flashcards
Capitalism
An economic system based on private ownership of how things are made and sold, in which businesses compete freely with each other to make profits
Common good
A state of affairs in which everyone can floutrish most effectively
Consumerism
A set of social beliefs that put a high value on acquiring material things
Corporate Social Responsibility
A sense that businesses have wider responsibilities than simply to their shareholders, including the communities they live and work in and to the environment
Ethos
The characteristic spirit of culture, era or community that can be observed in its attitudes and aspirations
Free market economy
An economy which praises, wages and so on are determined by the aws of supply and demand, with minimal government interference
Globalisation
With the growth of communication, movement of peoples, trade and so on the phenomenon of economic and cultural movements across boundaries to the world level
Human Dignitiy
People are valuable by virtue of their being human, not because of their usefulness
Reciprocity
Giving to everyone what is due and being willing to do more than strict justice requires
Solidarity
People are inter dependant, needing each other and responsible for each other, especially the less priveleged
Stake holder
A person who is affected by or involved in some form of relationship with a business
Subsidiarity
The belief that decisions should be made at the lowest level compatible with efficiency
Sustainability
The belied that we are responsible for maintaining Earth and its resources for future generations and ourselves
Usury
The practice of lending money at unreasonably high rates of interest
Whistle blowing
This occurs when a member of an organisation reports misconduct by a superior or co worker
What is a shareholder ?
Own the business
Invest and trust the managers to use their money wisely to make a profit for them
What did Martin Friedman famously say about businesses ?
‘The purpose of business is to make me money’.
Why did Martin Friedman disagree with Business Ethics ?
Maximise profits for shareholders men increasing profits
When a businesses becomes ethical - this has negative effects for profits - higher costs, high overheads
Why do Businesses do CSR ?
Dont want to damage reputation
According to Maxwell, what is the only rule for making decisions ?>
The Golden Rule
Why should we adopt the Golden Rule for our ethics ?
- It is accepted by most people and can be used to create common ground with any reasonable perso
- Easy to understand
- Win-win philosophy
- Is a compass when you need direction
When faced with an ethical dilemma why do people make unethical choices ?
- Do whats most convenient
Do what we must to win
We rationalise our choices with relativism
What is the good thing about the Golden Rule ?
As our guide, we will make fewer unethical choices
To pursue the opportunities available to those who live their life unfailingly ethically, Maxwell recommends that you …
1) Take responsibility for your actions
2) Develop personal discipline
3) Know your weaknesses
4) Aling your priorities with your values
5) Admint wrongdoing quickly and ask forgiveness
6) Take extra care with finances
7) Put your family ahead of your work
8) Place high value on people
What did the Josephson Institute of Ethics write about business ethics ?
‘Ethics is about how we meet the challenge of doing the right thing when that will cost more tha we want to pay’
Why would Kantian ethics agree with CSR ?
- Duty to people is far more important than profit
- Greed is wrong (lead businesses to do immoral things).
What is the formula of the law of nature ?
‘Act only according to that maxim whereby you can at the same time will that it should become a universal law
Why is Kant’s view of CSR useful ?
Kantian ethics puts everyone on equal ground
Aims to treat everyone fairly
Absolutist nature mens that what it says will never change and that nobody is an exception
Avoids the needs to assess consequences
Why would some Kantians not agree with CSR programs ?
An action is only truly good if it comes from a good will and not from anything else
If the reason they are caring about pollution or environment is just to better their reputation, then this is not good
Why would some Utilitarians not agree with CSR ?|
If there were cases when acting irresposnsibly would provide for a greater amount of pleasure than pain, then the utilitarian should support irresposnsibly, which is not in line with CSR
Why would some Utilitarians agree with CSR ?
- Maximises utility for all stakeholders
Usually more employees than shareholders, so will protect employees rights
What would an Act Utilitarian say about CSR ?
Would need to weigh up the potential pleasure and pain that CSR may cause using the Hedonic Calculus
How intense the pleasure would be and the extent of people affected
What do ethical business decisions involve for Peter Singer ?
Weighing the interests of all stakeholders, not just shareholders
What would rule utilitarianism say about CSR ?
principles and laws have to be accepted, meaning businesses cannot act completely outside of accepted business rules. They would never break the rules even if doing so maximised utility
Things like promise keeping matter for them
Why are rule utilitarians views on CSR useful ?
- Provides a good guide for people to know what to do.
- Doesn’t allow horrendous acts to be permitted
What was the Ford Pinto case study ?
Desing fault
Exposion in 8/11 tests
Overall bill to fix and recall each car was 137 million dollars
To payout for the deaths would be 49.5 million
What would a Utilitarian say about Ford Pinto Case Study ?
Only considered cost to the company
Someone dying would have effects which last for years and would lead to family suffering
Need to consider all the consequences
What would Kant say about Ford Pinto Case Study ?
By putting a value on human lives, Ford has treated its customers as a means to an end
What is the Erin Brokovich and Pacific Gas case study ?
Whistelbower in 1993
Case alleged contamination of drinking water with hexavalent chromium in the southern California town of Hinkley
Hinkley Compressor Station - built in 1952 - they used the chemical to fight corrosion in the tower
It put people’s lives ta risk and posioned those who drank it
The case was settled for 333 million dollars
What would Kant say about Erin Brockovich Case Study ?
Put people at risk
May be possible to live in a world where every company does this
However, a rational person would not choose to live in a world like this
If we made ‘Putting people at risk’ a universal rule, it would be contrary to the will
What would Utilitarianism say about Erin Brockovich Case Study ?
They should have considered the wel–being of local people poisoned
They took unethical risks
If a factory;s pollution only affects a small number, their suffering might be outweighed by the good done by the product
Locals are no more or less important than the customers
What is the Nestle Case Study
FORMULA - They aggressively forced their infant formula on less economically developed countries which led to 66,000 child deaths in 1981
WATER - 2013 - Thousands of Pakistanis in the Bhati Diwan village were getting sick by being forced to drink sludge water, as Nestle drained their water supply for their bottled water
What would Kant say about the Nestle case studies ?
The formula of the end of itself means that a moral code must treat humans with respect
Nestle treat poor people as means to an end
Duty to people is more important than profit
Greed is wrong
What would Utilitarianism say about Nestle case studies ?
When applying the principle of utility to business the happiness of the majority needs to be considered
Isnt enough to merely considered #They should have considered all stakeholders not just shareholders
What law ae whisteblowers protected by
?
The Public Interest Discolsure Act 1998
What can people blow the whistle for ?
- Criminal offence
- Someone’s health and safety are in danger
- Risk or damage to environment
A miscarriage of justice
Company is breaking the law , for example does not have the right insurance - You believe someone is covering up the wrongdoing
What can you not blow the whistle for ?
Personal grievances - bullying, harrasment, discrimination
Anything that will risk national security
How do people blow the whistle ?
Police or press
May do it anonymously
Why do some people disagree with whistleblowing ?
May be acting unethically
Company sensitive info is often revealed
What does Kant think about whistleblowing ?
Duty to tell truth
ALSO
Duty of loyalty and promise keeping to shareholders and to the company itself
Have to decide which duties outweighed which others
What would Utilitarianism say about Whistle blowing ?
Weigh up whether it would maximise pleasure or not
What is the Edward Snowden case study ?
Employee of the National Security Agency
Told newspapers they were routinely monitoring the communications of millions of ordinary citizens without their consent
What would Kant say about Edward Snowden case study ?
He signed a non-disclosure agreement to had a duty to company and not the public
He should have been loyal
What would Utilitarianism say abotu Edward Snowden case study ?
Act Utilitarianism - Use Hedonic Calculus
Would argue he made the right decision because maximise pleasure over pain
What is the Samuel Provance case study ?
Army intelligence soldier
Iraq war 2003
Personnel of the United States Army and CIA committed series of human rights violations against detainees in the Abu Ghraib prison
What is globalisation ?
Integration of business, economics, industry and culture between countries across the world
What are the benefits of globalisation for Business ethics ?
Provides employment in poorer countries
Sharing of cultures when migrant workers come
Multinationals also provide competition , leading to more jobs and lower costs
What are the negatives of globalisation for business ethics ?
More profitable for businesses to hire workers in countries where wages are lower and health and safety requirements are fewer
Sweatshops
Global weapons trade - global terrorism
Interest often charged on aid to third world countries
What is the globalisation case study of Nike ?
Sweatshops in China, Vietman, Indonesia and Mexico
What would utilitarianism say about Nike globalisation case study ?
Bentham and Mill - Social reformers
Some believe that the net benefits of globalisation will outweigh the defecit
However also causes deforestation which is disadvantages to human wealthfare and happiness
What would Kantians say about Nike globalisation case study ?
Law for a kingdom off peole who were ends in themselves - safe working conditions, good wages, no child labour.
Nike have not behaved as a member of this
What is capitalism ?
’ An economic and political system in which a country’s trade and industry are controlled by private owners, rather than by the state ‘
What would Kant think about Capitalism ?
Not support him
If it meant stakeholders were being mistreated or if companies got rich through unethical practices
Categorical Imperitivve - people should act only according to maxims that they would be willing to see become universal norms
People should never be treated as a means to an end
What do Utilitarians say about Capitalism ?
Good thing
Allows humans to flourish
‘Greatest good for greatest number’
Everyone benefits when goods can be produced cheaply enough for most people to be able to buy them
Everyone also benefits when people are employed and paid a wage
What two things can consumerism be defined as ?
- The human desire to own and obtain products and goods in excess of one’s basic nneeds
- it involves the buyers knowing their rights in seeking protection from being unfairly treated or being taken advantage of by businesses
What does Kant think about Consumerism ?
The word ‘consumer’ implies a means to an end relationship
What does utilitarianism say about Consumerism ?
Good thing - allows humans to maximise pleasure
Mill = spedning money on food and fashion is a lower pleasure
What did Julian Baggini say about GEIGB ?
‘no one could credibly argue that good ethics is sufficient for a good business ‘
