Business ethics - Utilitarianism Flashcards
Corporate Social Responsibility
Bentham was influenced by Adam Smith’s argument in which privatization encourages competition, results in economic growth and harnesses societal gain. This is because it aligns with the teleological proposition ‘the greatest good for the greatest number’ (the principle of Utility)
Corporate Social Responsibility Friedman
Milton Freidman who explicitly claimed that the only responsibility a business is to maximising profit for shareholders and compete in the free market fairly, without deception or fraud.
Corporate Social Responsibility Friedman disadvantages
However disagreed to this extent as damage to the environment by pollution from factories could result in a violation to the Principle of Utility
-Ethical as we have a responsibility to look after the environment as we live here and feels intrinsically wrong and self-daming if not to sustain it for future generations
However, regarding community CSR, they would probably reject philanthropy as a responsibility of business as it prevents human flourishing through consumerism
Corporate Social Responsibility problems of rejecting philanthropy
Sweat shops, Child Labour etc. could lead to mass exploitation of minority groups within society Reduces humans to be ego-centric and only focused on their own materialistic gain
Corporate Social Responsibility - sweat shops
Sweat shops, Child Labour etc. could lead to mass exploitation of minority groups within society Reduces humans to be ego-centric and only focused on their own materialistic gain
CSR - Mills solution
Mill – Laws should be put into place to prevent this from happening as arguably the suffering of thousands would supersede the satisfaction of consumers materialism (base)
follows Singer
Whistleblowing
Whistleblowing is when someone, usually an employee, leaks information about the wrongdoings of a company. This could be bad business practices regarding employees, customers, society or the environment.
Whistleblowing - Act util
Act utilitarianism holds that whistleblowing is morally right depending on the situation. If whistleblowing causes more happiness than not whistleblowing, then it is morally good; if it causes less happiness then it is morally wrong. For example, if the business is causing a lot of happiness, then whistleblowing about some suffering it is causing, e.g. through exploitation, might be wrong.
Whistleblowing - Act util advantages
Frances Haugen ‘The Facebook Files’. One quote from the files in the leak acknowledged that “we make body issues worse for one in three teenage girls”. The leak also shows that the Facebook algorithm promoted posts that caused anger or outrage.
- Prevention of the Leak would lead to a decreased happiness.
Whistleblowing - Act util disadvantages
Employee – employer relationship
Moreover, lack of rules and unclear to see the long-term consequences such as the Wiki leaks putting many people out of jobs but does this outweigh the consequences if were to continue
Whistleblowing - Act util disadvantages counter
An act utilitarian would consider each scenario individually and weigh up all the pros and cons.
Singer preference Utilitarianism – how we should minimise suffering and this most of the time enables people to live a better QofL
Should talk to employer and then if use rationalism and still discern immoral then whistle blow
Globalisation
Globalisation is the phenomenon where businesses are now global entities spanning multiple countries and continents and its impact on stakeholders.
Can lead to mass exploitation in sweat shops for example in Primark where they used fast fashion in the third world countries to make products cheaply
Globalisation - MacAskill
MacAskill if avoid sweatshops and business lose incentive to open it could make problem worse as prevents them from having a job which in many third countries they need as danger of starvation
Globalisation - MacAskill disadvantages
It justifies bad actions or harm (e.g. exploitation) to some minority if the happiness gained by a majority were greater.
Disregard human ’rights’ and allows the AC countries to dominate and exploit those who have less of an economical advantage
Globalisation - Mill’s solution
Mill’s harm principle seems to solve this problem because it suggests that society will be happiest if the rule of not harming others is followed. It seems this would commit Mill to being against exploitation as a rule, even if in individual cases it might produce more happiness than suffering.
Prevent Globalisation from happening on a level of the Rana Plaza where a third floor was illegally added to maximise profits
