Business ethics

Question 1

“Good ethics is good business”

Answer 1

The idea that poor ethics will cause businesses to be untrustworthy and develop a poor reputation, reducing profits. This loses your share holders money which is unethical. Nestle are an example of a company who gained a bad reputation due to poor ethics.

Question 2

Maxwell

Answer 2

“There is no such thing as business ethics”
The responsibilities of businesses are to improve the QOL of employees and society and generate a profit.
There must be a balance between the two.

Question 3

Kant

Answer 3

Humans are ends in themselves. It is the responsibility of businesses to not treat people as means e.g. not generating a profit from employees.

Question 4

Milton Friedman

Answer 4

Economist + political philosopher.
“The social responsibilities of business is to increase its profits”
Environmental concerns have challenged this view - maximising profit means using the cheapest fuel, labour and waste disposable (unsustainable)
Popularity?
Duty = to make profit

Question 5

Profit

Answer 5

Businesses must remain popular so that people can purchase goods and services. They must have buying power, so employment must be good. In order to stay in employment they need good wages which leads to a good quality of life.

Question 6

Capitalism

Answer 6

The means of production are privately owned.

Question 7

Socialism

Answer 7

The means of production are owned by the state and therefore the people.

Question 8

Criticisms of corporate social responsibility

Answer 8

You are spending shareholders money. Shareholders give a company a chance to make business, which is an ethically good thing so giving it away could be ethically wrong.

Question 9

Whistle blowing

Answer 9

Publicising unethical practice in business.

Question 10

Pros of whistle blowing

Answer 10

This can result in regulation to prevent it from happening in the future, raising QOL.

Question 11

Cons of whistle blowing

Answer 11

People can lose their jobs so it reduces the QOL.
National security is compromised.
Reputation/trust is lost
Contracts

Question 12

Are contractual obligations moral obligations?

Answer 12

They should be, for the greatest good of the greatest number.

Question 13

Legal reasons for corporate social responsibility

Answer 13

Businesses fear that if they don’t adopt self-regulation, businesses will face far more restrictive regulation on their actions from the government.
e.g. newspapers reducing intrusion into the lives of vulnerable celebrities to prevent government legislation that bans all kinds of intrusion.

Question 14

Stake holders

Answer 14

“An individual or group that is harmed or benefits from the corporation, and whose rights might be violated.” - Crane and Matten

Question 15

Obligations to stakeholders

Answer 15

A form of corporate social responsibility - the business is responsible for these people/groups.
e.g. TATA steel, Port Talbot.
Businesses are under intense social pressure to consider the impacts on stakeholders, despite profits.

Question 16

Milk example

Answer 16

Low price = happy customers, unhappy suppliers, supplier raises awareness = unhappy customer

High price = unhappy customer but happy suppliers = good image.

Question 17

Kant for corporate social responsibility

Answer 17

Companies which control and monitor employees excessively are seen to be without respect and dignity.
Poor working conditions = not considering the interests of employees = using them as means

Question 18

Kant against CSR

Answer 18

Balance between the interest of the company and interests of others is important

Question 19

Utilitarianism for CSR

Answer 19

Shouldn’t be selfish.
Act in the interest of the community.
Shareholders are investing in a long term benefit whereas CSR is only short term.

Question 20

Utilitarianism against CSR

Answer 20

Greatest good = greatest profit? leads to trickle down affect.

Question 21

Globalisation

Answer 21

The integration of economies/business/industries/markets etc globally.

Question 22

Pros of globalisation

Answer 22

Developed countries can afford more.
Increases in employment in developing nations.
Lifted people out of extreme poverty.
Disasters such as the primark factory have mass media which leads to improvement of working conditions - learning from mistakes.

Question 23

Cons of globalisation

Answer 23

Pollution 
Loss of manufacturing jobs in developed countries
Low wage economies increase
Less regulation 
Primark factory

Question 24

Utilitarianism for globalisation

Answer 24

Greatest good has to be universal
It benefits poor people in both economies
Links to Friedman’s trickle down - globalisation is necessary to improve quality of life.

Question 25

Utilitarianism against globalisation

Answer 25

Just simply a justification of the rich for their unethical actions. The West want poorer countries to open up their markets and provide goods at the lowest possible prices. Globalisation deepens inequalities, rather than providing the greatest good for the greatest number.

Question 26

Kant on globalisation

Answer 26

Opposed to capitalism Inherently seen to use humans as means rather than ends. Can humans flourish in a capitalist society? Everyone should have the same degree of freedome

Question 27

Pros of good ethics = good business

Answer 27

Companies will become so rich that they can genuinely be ethical.

Question 28

Cons of good ethics = good business

Answer 28

Pollution Low wages Consumerism

Question 29

Good ethics = good business - Kant

Answer 29

A business is naturally unethical if it does things purely for self interest. CSR means a company is less competitive = bad business? Businesses should aim to please everyone - profit may be sacrificed.

Question 30

Good ethics = good business - Utilitarianism

Answer 30

It is difficult to determine how much pleasure/pain is caused by business decisions. Higher + lower pleasures Rule based approach - the safety and protection of employees is more important than satisfaction of customers.

Question 31

Kant for whistle blowing

Answer 31

'Duty' categorical imperative Using individuals as means, not ends Tell the truth

Question 32

Kant against whistle blowing

Answer 32

You have a duty to the company Contract = promise Whistle blowing can be done for personal gain - people who lose their jobs are used as means to an end.

Question 33

Ethics as a branding choice

Answer 33

Toyata's 'global vision' ' enriching lives around the world' Walmart 'save people money so they can live better' Are these really true in practice? Microsoft - donated over $1 billion to charity since 1983.

Question 34

Utilitarianism for whistle blowing

Answer 34

Greatest good for greatest number Act - one action Rule - if a company has broken rules that ensure greatest good for the greatest number. Trickle down - rules are in place to maintain the status quo

Question 35

Utilitarianism against whistle blowing

Answer 35

Act - capitalism and competition People who abide by rules get left behind Enhancing profit

Question 36

Bowie on Kantian ethics

Answer 36

"meaningful work" Work should be freely chosen and exercise autonomy. Work that reduces autonomy is immoral. Work should provide a sufficient salary and ensure physical well-being and satisfaction.

Question 37

Consumerism

Answer 37

A set of social beliefs that put a high value on acquiring material things. This drives the economy.

Question 38

The view that human beings CAN flourish in the context of capitalism and consumerism

Answer 38

A key driver in human life is the ever-increasing acquisition of products and services, which produce greater wealth. "self interest" outcome Better business = more rewards

Question 39

The view that human beings CANT flourish in the context of capitalism and consumerism

Answer 39

This encourages greed and irresponsible acts. | Leads to inequalities and the exploitation of natural resources.

Question 40

Will Hutton

Answer 40

Stakeholder theory | All stakeholders should have shares in a business

Question 41

Adam and Smith

Answer 41

The idea that all stakeholders should have a shares in a business puts pressure on businesses, leading to the invisible hand theory. Utilitarian view "win-win" Businesses have little control on what happens in the market place.

Question 42

Louis Pojman

Answer 42

Ethical egoism | Self-interest is not selfishness because by putting your company first you are helping serve the common good of others.

Question 43

Julian Baggini

Answer 43

"good ethics is not necessarily good business"

Question 44

Cons of utilitarianism in business

Answer 44

How do we calculate the greatest number? Profit = happiness > sustainability = number Consequences cannot be foreseen Can human life be measured against profit? The minority will be exploited

Question 45

John Stuart Mill

Answer 45

Money is a lower pleasure

Question 46

Pros of utilitarianism in business

Answer 46

Fair trade leads to happiness, motive is irrelevant. | Sustainability + CSR makes people happy.

Question 47

Pros of Kantian ethics in business

Answer 47

Universal - you cannot lie, steal, cheat or exploit people because these things cannot be universalised. Duty is not good if it does any of these things. Customer or employees shouldn't be treated as means to make money.

Question 48

Cons of Kantian ethics in business

Answer 48

Collisions of duty between companies and stakeholders. Doesn't consider consequences Not realistic (people>profit) Maxims can be manipulated to allow pretty much anything.