Business Ethics A02 and Essay Plans

Question 1

Human beings flourish in a capitalist and consumerist culture

Answer 1

• Examlples of politicians who have reduced government regulations on business ( e.g Ronald Regan, Margaret Thatcher), believing that if business had more freedom, these benefits would ‘trickle down’ to others in society and result in a growth of CSR. (WAS THERE ACTUALLY A GROWTH IN CSR, DID THIS HAPPEN?)
• Freidman- capitalist focus on profit- businesses flourish (consider number of people who benefit- Utilitarianism)
• Encourages advances/development in many fields- technology, science etc.
• Economic flourishing creates other opportunities for people
• Competition/variety facilitates creativity/development of technology (contrast to limited options in communist societies)
• Relate to globalisation creating jobs for millions of people in developing countries
• Facilitates development in developing countries (physical and human capital) technology.

Question 2

Human beings do not flourish in a capitalist and a consumerist society

Answer 2

• Consumerism- based on a lie? (Things that ‘are used’ become things that are ‘used up’/disposed of)
• economic or social flourishing?
• KANTAre people happier in a consumerist culture- does this treat people as a means to an end, Rana Plaza tragedy.
• Big businesses that are overly preoccupied with he profit at the cost of treating their workers fairly (sweatshops in poorer countries?)- too much freedom?

Question 3

CSR is nothing more than hypocritical window dressing

Answer 3

• -Friedman- focus of business should be making a profit; businesses should not be confused with philanthropy.
• Focusing on profit above anything else allows the business to flourish
• Could argue that CSR is beneficial to the company and ensures that they make good profit- might be seen as a more attractive option for customers in a competitive market with multiple businesses offering similar products/services.
• (Though perhaps hypocritical, this could also protect the m from whistleblowing scandals)
• Hyporcritical but necessary important for people to invest (Lord Sugar)
• If CSR is not integral to business, but rather is viewed as having a better brand reputation.

Question 4

CSR is not hypocritical window dressing

Answer 4

• The pressure from activists may force companies into adopting a CSR approach- they may feel as if they have little choice if they want to ensure the success of the business.
• Financial Times stock Exchange promotes CSR as an important part for business (not tokenistic)-provides information for the investors.
• Steve Jobs said that integrity was at the heart of the business, and if this had become jeopardised, he would not continue with this (consider the stance of the individual/s who has/have established the company
• Major businesses are highly successful (in terms of profit made), but are still regarded as socially responsible. e.g. Unilever received very high scores for the ‘Behind the Brand Camplain’ vs. Kellogs.

Question 5

Act utilitarianism as a theory to approach the issues surrounding business ethics

Answer 5

• Benefits the company and the shareholders. Always looks what benefits the majority.
• Generally be good as a business needs to benefit the majority to appeal to a wider consumer base… therefore will have good CSR
• Gives freedom due to no strict rules. Allows for flexibility in a globalised world.

Question 6

How is rule utilitarianism useful when approaching the issues surrounding business ethics

Answer 6

• Consequentalist in nature and allows us to consider outcomes which focus on the greater good for society. Therefore promotes good CSR.
• Allows rules to be created which benefit society in general and has a clear concept of utility and happiness

Question 7

Act utilitarianism as a theory to approach the issues surrounding business ethics
NOT

Answer 7

• Puts profits over people and leads to potentially immoral decisions which lack CSR and have long term damage.
• Allows persecution of minority for the consumer benefit. E.g. in case of globalisation allows small numbers of workers to be paid low wage, poor conditions and long hours for the benefit of the modern consumer…Link to hedonic calculus.
• Not good for businesses as it may discourage ethical actions such as whistleblowing… Impact of whistleblowing may cause harm and damage for many.

Question 8

How is rule utilitarianism not useful when approaching the issues surrounding business ethics?

Answer 8

• Hapiness and general utilitarian rules are still subjective in nature and open to human desire and interpretation, this would not lead to the greatest happiness as only our desires would be promoted.
• WD Ross would say that any utilitarian theory still neglects our sense of duty.
• We cannot know consequences and therefore any form of utilitarianism is still a guess at what might still be possible. E.g. what if a whistleblower costs hundreds of people their jobs.

Question 9

Utilitarianism is the best approach to business ethics

Answer 9

• The hedonic calculus can help make large decisions for shareholders and how they might impact stakeholders.
• Rule Utilitarianism can protect vulnerable employees or stakeholders and avoid large corporations from abusing the minority for the sake of the shareholder and a large profit.
• The consequentialist nature of utilitarianism helps us to have flexibility and consider the consequences of businesses in our actions.
• The principles of utility should help promote greatest benefit for all associated with the business decision and meet out natural hedonistic pleasures which we all seek in life

Question 10

Utilitarianism is not the best approach to business ethics

Answer 10

Lacks a sense of duty and can also call into question the fact that it does not always protect the minority. E.g. It can be used to abuse the minority workers for the benefit of large groups of consumers.

• Can be open to abuse and we do not always know the consequences of our business decisions. Instead we should aim for a business approach which is regulated and protects rules and therefore promotes good CSR rather than opportunistic profiteering and schemes.
• Does not promote a higher purpose for business. E.g. Natural Law and the Catholic Church would state that businesses must exist for the common good, not just utility.

Question 11

Kantian ethics is the best approach to business

Answer 11

• Avoids only acting for consequences (e.g performing an immoral action for a large financial gain.) HOWEVER CONSEQUENCES ARE VITAL IN BUSINESS AND NEED TO BE CONSIDERED. IS BENTHAMS UTILITARIANISM BETTER?
• Keeps businesses focused on the right thing- can encourage good CSR.HOWEVER MILTON FRIEDMAN SAYS BUSINESS IS ABOUT MAKING A PROFIT…BENTHAM BETTER AGAIN TO FULFILL THIS PURPOSE?
• Makes sure an individual remembers there personal responsibilities- whistleblowing in correct circumstances.HOWEVER KANTS THEORY IS QUITE ABSTRACT. BETTER THEORY IS NATURAL LAW WHICH CAN GIVE SIMPLER GUIDLINES.
• 2nd Formulation of the categorical imperative means employees are always treated well , means contracts are honoured, people are paid a fair wage. In today’s society can avoid poor treatment as seen in many circumstances E.g. Zero Hour Contracts, Sports Direct Factory. HOWEVER OTHER THEORIES COULD DO THE SAME THING WITHOUT THE ABSOLUTIST NATURE. e.g. SITUATION ETHICS WHICH MEANS EACH SITUATION COULD BE JUDGED INDIVIDUALLY.
• Consistent business expectations across cultures. E.g 1st FCI avoids poor factories and treatment such as Primark in India. Cultures are not consistent as shown in BUSINESS PRACTICE. Therefore is another theory e.g. Mill’s utilitarianism better?