Business Ethics

Question 1

Why are business ethics important?

Crane + Matten 2015

Answer 1

• huge power in society and can impact lives and governments
• Potential to provide major contributions to society
• Malpractice can inflict harm on individuals, communities and the environment
• Demand to be ethical by stakeholders is challenging
• Employees face lots of pressure to be unethical
• Lack of trust in businesses

Examples:

• M&S employ over 80,000 people + 2018 paid over £65 million in tax
• Lush & Waitrose high trust to be ethical VS Poundland & Primark low trust to be ethical
• 2010 BP oil spill in the Gulf of Mexico

Question 2

What is business ethics?

Answer 2

• Business ethics is a combination of actions, principles, rules
• Business ethics forces organisations to account for their actions, businesses should always aim to be moral at all hierarchical levels

Question 3

How does business ethics affect decision making?

Answer 3

• Decisions affected by morals, background, colleagues, possibility of increasing profit
• Code of conduct in place to guide decisions

Question 4

What is the difference between ethics and morals?

Answer 4

Ethics = Study of morals + application of principles / rules that determine morally accepted behaviour

Morals = concerned with social norms, values, beliefs. Determine right and wrong within social community.

Question 5

What are the 5 ethical theories? (Gregory 2009)

Answer 5

1. Cognitivism VS non- cognitivism
2. Consequential theories
3. Non- consequential theories
4. Virtue ethics
5. Situational ethics

Question 6

In relation to ethical theories, what is cognitivism VS non- cognitivism?

Answer 6

Cognitivism = firm statement about actions / beliefs being right or wrong
Non- cognitivism = there are no moral absolutes only beliefs, attitudes and opinions

Question 7

In relation to ethical theories, what is consequential theory? What are the issues with this theory?

Answer 7

Consequential = Actions are judged by their effect e.g Utilitarian
Issues: some views of stakeholders are prioritised, assumes consequences can be predicted, justifies act based on positive effect (being unethical but benefiting, suggests being unethical was worth end result)

Question 8

In relation to ethical theories, what is non- consequential theory?

Answer 8

Non consequential = All humans should be treated with dignity therefore all choices made by humans should benefit other humans.
Idea is based on obligation, principles, rights.

Question 9

In relation to ethical theories, what is virtue ethics?

Answer 9

Virtue ethics = focuses on motivations rather than actions, an individuals character is considered first

Question 10

In relation to ethical theories, what is situational ethics?

Answer 10

Situational ethics = Situation alters rules and can dictate if things are right or wrong

Determining ethics:

1. Action
2. Motivations
3. circumstances