business ethics (6) Flashcards
corporate social responsibility
suggests business have ethical responsibilities towards their employees, community and environment.
share holder/ stake holders
share= those who own/invest money in the business
stake= somebody who is harmed or benefits from a corporation
whistleblowing
refers to an employee drawing attention to an unethical/illegal activity taking place. may be done internally or publicly. some companies have systems to internally report
what do whistleblowers report
environmental issues, cheating, discrimination, tax avoidance
they are legally protected but there are many risks attached
Friedman
argues that business having responsibilities is a mistake- leading to Socalism. it distracts from the core purpose- making money. if a business succesfully makes money then employees get it and use it for good. people can do what they want, but money should be kept within business.
utilitarinism cost-benefit
used by businesses. financial, human and environmental costs are given a value and then decisions are made. very case by case like act.
Bentham’s act
focus on pleasure and pain very narrow as may lead to shallow decision making. Mill has a more subtle understanding of ‘greatest good’ and has higher/lower pleasures
good things about utilitarian
- businesses are results driven, utilitarinism focuses on achieving best outcome
- gives flexibility to different situation
- Betham’s view is hedonistic, stating that humans are motivated by pleasire. businesses appeal to our desire
- depersonalises issues, bias is laid aside
bad things about utilitarinism
- act is very time consuming for a fast paced business
- no concept or rights and does not value justice. Betham called human rights ‘nonsense on stilts’
- not clear whether the objectivity promised can be achieved
- difficult to compare different goods- more than one thing can be beneficial.
applying Kantian ethics
based on the both idea of duty. moral agents of this we come into contact with regardless of inclination. we can work out our duty based on categorical imperatives and what can be universalise this. our duty matters more than making money.
motive kant
example of shopkeeper who treats his customers well as it s good for buisness- however not a purely good act as motive wrong.
means to an end
employees, customers, competitors should be treated as an end. this takes CSR seriously and has influenced employment law. all stakeholders need to be considered.
honesty
kantian ethics places great value in honesty. businesses need to make their advertising known etc. whistleblowing would be supported by KE as truth needs to be told.
John Rawls
defines justice as fairness and argues equality should be understood as equality of opportunity, not equity. ‘veil of ignorance’- if we were orn not knowing our situation we would agree these rules to ensure fairness:
1. each person has access to basic rights
2. social opportunities arranged to benefit disadvantaged and offer support
defending Kantian view
- principle of universal law requires we are consistent for ethical decisions.
- principle of treating others as an end ensures everyone isnt viewed as data
- focus on importance of motive ensures CSR is genuine
difficulties with Kantian views
- KE is very abstract and doesnt translate well to pratical use- unrealistic to think that business money
- universal law is not useful as every situation is unique and different
- focusing on motive is difficult as motives cannot be proven
- numerous stakeholders in business that we have duties to
globalisation
integration and connection between world economies. main two ways: technological and political
globalisation and ethics
Large companies known as multinational corporations (MNCs) have become more powerful- carrying out 2/3 world trade. concerns that these companies exploit cheap labour in less devloped countries and environment.
Crane and Matten
cultural issues: difference in belief, attitudes to child labour in middle east. may lead to loss of cultural identity
legal issues: laws are geographic. operating multicultually, companies can exploit by doing illegal things where it is legal
accountability: when a company based in 1 country is accountable fr laws- MNCs cant be held accountable
globalisation dicourages ethical action
- ‘race to the bottom’ in terms of wage, rights etc. corporation keen to cut costs where they can
- gap between rich and poor is growing
- Kantian may have concerns about effects- treating people as means to an end
- rise of globalisation causes neo-colonalism, standards of west imposed
globalisation encourages ethical action
- globalisation reduced number of extreme poor in India by 200 million, China 300 million since 1990
- technological advances in communication mean its harder to hide unethical practises.
2013 Rana Plaza disaster
1000 people killed when a garment factory collapsed following workers being ignored
political systems
capitalism is a system where production are owned by individuals. socialism views social goods as more important than individual businesses.
Adam Smith
one of key ideas of capitalism. argues that individuals make decisions based on self intrest, ethical egoism, but this generally works for the good. Smith believes in law of supply and demand, amount of goods avaible will determine how much businesses can charge. argues that businesses need to pay attention to how effectivley things produced- a conveyor belt system works best.
