Business ethics

Question 1

Define ‘capitalism’

Answer 1

An economic system based on private ownership of how things are made and sold, in which businesses compete freely to make profits

Question 2

Define ‘shareholder’

Answer 2

A person who has invested money in a business in return for a share of the profits

Question 3

Define ‘corporate social responsibility’

Answer 3

A sense that businesses have wider responsibility than to their shareholders including their communities and their enviornment

Question 4

Define ‘whistle-blowing’

Answer 4

When an employee discloses wrongdoing to the employer or public

Question 5

Define ‘globalisation’

Answer 5

The international integration of economies, industries, markets, cultures and policies

Question 6

Define ‘stakeholder’

Answer 6

A person who is affected by or involved n some form of relationship with a business

Question 7

Define ‘consumerism’

Answer 7

A set of social beliefs that put a high value on acquiring material things

Question 8

Is corporate social responsibility an example of socialism or capitalism?

Answer 8

Socialism

Question 9

What is Kant’s view on how people should be treated within a business, (workers and customers)?

Answer 9

• Treat people as an end in itself not a means to an end
• Companies that control and monitor employees seem to be without respect for human dignity
• Companies that don’t ensure safe working conditions are treating their workers as a means
• You cannot mislead customers with false information

Question 10

What is the general view of utilitarianism in business ethics?

Answer 10

• If the greatest good is to get the greatest profit then maximise income at all costs
• Don’t just act in the interest of the shareholder but also the stakeholders, workers, the environment, the community and the national economy

Question 11

Explain Kant’s shopkeepers example

Answer 11

1) Honest because they’re scared of being caught to give short change
2) Honest because it’s their duty
Only the second shopkeeper is being moral

Question 12

Give a disadvantage of Kant’s views

Answer 12

Abstract - tells us what is right and wrong but not how to act

Question 13

Give a disadvantage of Utilitarianism

Answer 13

No regard for human value

Question 14

Milton Friedman

Answer 14

Textbook

Question 15

Give a quote from Adam Smith

Answer 15

“It is not from the omnibenevolence of the butcher… we expect our dinner but from their regard to their own self-interest”

Question 16

Adam Smith is the founder of (1)

Answer 16

Capitalism

Question 17

Karl Marx - Gov intervention is essential to avoid what?

Answer 17

Exploitation of workers

Question 18

What is the Protestant work ethic?

Answer 18

Hard work, frugality and discipline are an aspect of a person’s salvation, capitalism incentivises human behaviour for the result of self-interest

Question 19

What are two disadvantages of the Protestant work ethic?

Answer 19

• Encourages greed and moral corruption

- Capitalism encourages consumerism at the expense of human relationships

Question 20

How are whistleblowers treated by law in the UK?

Answer 20

Protected as witnesses and so don’t need to provide evidence

Question 21

What are two advantages of whistleblowing?

Answer 21

• Improves work safety

- Encourages businesses to accept social corporate responsibility

Question 22

What are Kant’s views of whistleblowing?

Answer 22

Accepted as long as people are not treated as an end and so duty beyond employment encourages people to take personal risk

Question 23

What is the Utilitarian view on whistleblowing?

Answer 23

Depends on the severity caused by the wrongdoing, it is justifiable for companies to break rules to succeed whereas rule utilitarians believe that the greatest good comes from following rules

Question 24

What are imperatives? (Kant)

What are Kant’s two types?

Answer 24

Instructions telling people what to do

Categorical and hypothetical

Question 25

What are hypothetical imperatives?

Answer 25

Instructions on what to do to achieve a goal

Question 26

What are categorical imperatives?

Answer 26

What to do irrespective of desire (moral behaviour)

Question 27

Give some effects of globalisation

Answer 27

• Increased TNCs
• Increased competition in manufacturing industries
• Lower wages abroad causes loss of jobs in MEDCs
• Cultural erosion

Question 28

A Utilitarian may be in favour of globalisation due to (1) as a result of global trade but the (2) divide is increasing and the utilitarian does not have specific notions of (3) and so may see globalisation as greater good despite individual suffering

Answer 28

1 - millions lifted out of poverty
2 - rich-poor
3 - individual human rights

Question 29

A Kantian may be concerned that globalisation will increase (1) in LEDCs where TNCs have greater power than the government. This may be seen as (2) causing (3) loss. Everyone should have the same freedom with (4) and a sufficient (5) to support independent living

Answer 29

1 - exploitation of workers
2 - neo-colonialism
3 - national identity 
4 - government control
5 - salary

Question 30

What environmental issues have been caused by globalisation?

Answer 30

LEDCs have greater priorities than the environment and so standards decrease including building safety regulations

Question 31

Give four advantages of globalisation

Answer 31

• Foreign investment increases LEDC economies
• Tech advancements in LEDCs increasing net QoL
• products are cheaper for consumers allowing greater access
• May force businesses to accept social corporate responsibility

Question 32

An act utilitarian may make decisions on a (1) structure but a rule utilitarian may view that the long term benefits of minimum wage and (2) entitlements may mean a rule should be enforced regardless of individual cases

Answer 32

1 - case-by-case

2 - holiday

Question 33

Give a quote by Crane and Matten

Answer 33

“Utilitarianism comes close to what we know as cost-benefit analysis”

Question 34

How were Bentham’s and Mil’s ideas similar to those of Adam Smith?

Answer 34

In favour of minimal state intervention and Smith’s idea of enlightened self-interest. Privatisation is most beneficial but behaving ethically may be the most profitable in the long term

Question 35

Give a criticism of the utilitarian view of globalisation

Answer 35

The advantage of an increased economy for an LEDC is based on the assumption that the wealth is shared by the majority of the country’s citizens

Question 36

The Utilitarian view depersonalises the issues of globalisation, why could this be a good thing? Why is this an issue?

Answer 36

Enables logic rather than emotional attachment

Bentham described human rights to be ‘nonsense on stilts’

Question 37

Describe the 2016 Sports Direct case study

Answer 37

MPs released a report following an under-cover investigation that revealed workers having to queue unpaid before going home being body searched, timed on toilet breaks and penalised for taking time off sick

Question 38

Give one criticism of Kantian ethics on business ethics

Answer 38

Treating every stakeholder as an end and trying to satisfy all rights before prioritising profits may lead to conflicting duties