Business Ethics (2) Flashcards
What is Whistle-blowing?
- When a member of an organisation reports misconduct by a superior or co-worker
Why might people not Whistle-blow?
- Brought up to not ‘tell tales’
- Reap rewards og social misconduct, e.g Lance Armstrongs team and the cyclists
- Loyalty to the organisation/team, e.g cricket
Is loyalty a virtue in the case of Whistle-blowing?
- Companies often treat loyalty as a virtue, an army without loyalty is a rabble
- Loyalty matters for building trust, good relationships are social glue for organisations
What is the assumption made in employee and employer contracts that make it harder to whistle blow?
- Contract sets out duties and responsibilities that both parties have to each other, e.g rates of pay, holidays etc
- There are many implications, e.g do not steal, do not turn up to work dunk and this is not written but enough to terminate your employment
- The same assumption is made that you will behave with honesty and truthfulness
What is the Kantian view on Whistle-blowing?
- We must do our duty, this could include loyalty
- However we must consider wider loyalties
- We would not wish to universalise that everyone covers up their corruption
What is the Utilitarian view on Whistle-blowing?
- Would covering up lead to a greater good?
- Who decides this, how can we know who is truly benefitted?
What is the issue of duty in Whistle-blowing?
- Is my duty to a contractually enforced employer or organisation or ALL the stakeholders?
- Is there a higher duty good, even if it serves a bad purpose, e.g SS were loyal to Nazism
What is ‘group think’ and why does it make Whistle-blowing harder?
- Hannah Ardent pointed out how in totalitarian countries individuals think they can make no difference
- They do their own work and not focus on the evil around them
What is the Case Study of Enron (1999)?
- Collapsed due to financial misconduct and 100’s were involved in fraud
- People were brought in to pretend working hard
- Arthur Anderson was punished for covering up and destroying audit forms
- This entire thing happened as corporate culture and money makes it hard to speak out
What is the Case of Jimmy Saville and Whistle-blowing?
- Committed sexual and child abuse even at the BBC
- People were discouraged from reporting what happened as the fame of those involved can prevent Whistle-blowing
What is the case of match-fixing in cricket show about good business?
- Cricket clubs have been caught match fixing in the past
- Being beaten honestly and beaten through cheating are two different things
- Sports people depend on honesty
- I do not mind if my team loses, but if they had no chance in the first place then the loss is even worse
How can match-fixing affect cricket?
If I think all matches are fixed:
- I would not pay
- Income would stop for layers
- Sponsors would stop
- Honest players reputations would be tarnished
How are the public stakeholders when considering the Brazilian World Cup and Olympics?
- 2014 World Cup and 2016 Olympics were prestigious events
- Money gained could have been used for social assistance
- Instead Charity ‘Terre Des Hommes’ revealed 170,000 people lost homes
- They were rehomed to places with no electricity and water
- Shows how public are stakeholders to business action
Why might business act ethically and not exercise hypocritical window dressing?
- Companies may be able to charge higher prices by acting ethically
- Honestly in dealings allows for benefits, e.g supplier credit
- A stable and reliable workforce who take pride in their work knowing they are treated well
What sways people to buy things from non-ethical businesses?
Cheap prices:
- Primark use poor working conditions
- Sports Direct pay below minimum wage
- Shein use child labour
- Nike has been accused of child labour
What is the issue of hypocritical window dressing?
The question of whether a business is acting ethically for its own sake or just for good business and more profits?
What is Globalisation?
Creation of a connected world through communication, transport links etc has allowed for business to expand on a global scale
Who were the Phoenicians and what was their early contribution to globalisation?
- They were great merchants who traded overseas
- They were still limited by the amount of gold they could carry, bandits and robbers and perishability of the products
Who invented double book keeping and how did this contribute to globalisation?
- Invented by Muslims in the middle age
- Allowed money to be withdrawn at other banks, e.g Fuggers and Medici banks were now international
- Banks were now global powers leading to ruling powers as a source of capital and loans
What are problems with countries having different laws in relation to globalisation?
- Can lead to exploitation
- In 1920’s companies registered ships belonging to Liberia, Panama and Mongolia as the laws were looser due to them being land locked countries
What are some issues with globalisation?
- Global stock market altercation affects everyone
- Companies are bigger than suppliers and can take advantage of them
- Cultural affects on locals with deforestation and indigenous people having to change their ways
What does Pope St John XXIII’s encyclical ‘Mater et Magister’ say about globalisation? (Quote)
- “impossible for wealthy nations to look with indifference upon… misery and poverty of other nations”
- “introducing a new form of colonialism”
- identified the issue of solidarity and Neo-clonialism
What is Neo-colonialism?
the use of economic, political, cultural, or other pressures to control or influence other countries, especially former dependencies.
- Can be through providing aid or just pure take over of another nation
What is Economic Neo-colonialism?
- Global companies can become richer than other nation, an economic weapon that can allow them to colonise
What is the main issue with Economic Neo-colonialism?
- Whether companies use natural resources different nations provide for their own good or for the collective good of the nation in question
- NOTE shareholders usually aware of the ethical issues behind some of the things companies involve themselves in and seek an ethical solution
How would Kantian Ethics apply to globalisation?
- Only acting for the good of your own nation is treating people as means not ends
- You cannot universalise exploiting every nation
- Exploitation shows no good will, no good will to others either
How does Classical Utilitarianism apply to globalisation?
- A lack of natural rights can be argued to allow for exploitation
- “Greatest good for the greatest number” can arguably allow for a small number of workers to be exploited for majority good of stakeholders
How does Peter Singers Preference Utilitarianism apply to globalisation?
- Emphases the ability to suffer as a crucial factor
- Poor person in a developing country has the same capacity to suffer as me
- Therefore I cannot have a privilege of making him suffer for my pleasure of profit and cheap goods
- I am not of more value than said person
Who is passionate about the environment ?
- Peter Singer displayed great need for environmental sustainability
- Popes, e.g Pope Francis were also concerned
What did Pope Francis’ ‘Laudato Si’ encyclical say about the environment? (Quote)
“natural environment is a collective good”
- Speaks of how New Zealands bishops ask what “Thou Shalt not Kill” means when 20% of the world consumes resources straining future generations
