CH2.6 Business Ethics

Question 1

from who is the quote: ‘the social responsibility of business is to increase profits’? and what was he reacting to?

Answer 1

Milton Friedman
-he was reacting against the idea that businesses have social responsibilities to improve their workers’ lives or help the communities they operate in. For Friedman, this was socialism

Question 2

what is meant by: corporate social responsibility?

Answer 2

it describes the concept that corporations should be accountable for impacts they have on people and the environment

Question 3

what is whistle-blowing?

Answer 3

it is when an employee of a business chooses to make public their belief that their employer has acted unethically.

Question 4

what is the slogan ‘good ethics is good business’ based on?

Answer 4

it is based on the idea that ‘doing the right thing’ is a route to business success

Question 5

what does globalisation challenge?

Answer 5

it challenges the ability of companies to ‘do the right thing’
-globalisation has created a highly connected global economy that relies on countries removing protection for their own businesses from international competition.

Question 6

why do businesses take on social responsibilities?

Answer 6

because they think these will improve their image with customers, or with a certain type of investor or a certain type of employee
-others may take on these responsibilities because they fear that if they do not, they will be viewed negatively by customers. Businesses may improve facilities for employees or offer discounts because they are worried that if they do not, employees will go and work for the competition.
-another ‘negative’ reason for corporate social responsibility is the fear that without adopting self-regulation, businesses will face far more restrictive regulation on their activities from the government.

Question 7

what affects can stakeholders have on businesses in terms of acting ethically?

Answer 7

stakeholders can pressure businesses into taking on corporate social responsibilities, even when businesses do not have to do so by law

Question 8

what would be important for a Kantian perspective?

Answer 8

the balance between in interest of the company and the interest of the employee

Question 9

in the UK are whistle-blowers protected by the law?

Answer 9

yes in most cases

Question 10

what are whistle-blowers in the UK treated as (legally)? what does this mean?

Answer 10

they are treated as witnesses, which means that they are not required to provide evidence for what they are reporting.

Question 11

can people whistle-blow anonymously?

Answer 11

yes, however, this can make investigating the claim more difficult

Question 12

what do social commentators argue about encouraging whistle-blowing?

Answer 12

they argue that encouraging whistle-blowing helps convince businesses to take their corporate social responsibilities seriously, as otherwise their unethical practices are likely to be revealed by one of their own employees

Question 13

when does legal protection for whistle-blowers not continue?

Answer 13

it does not continue if the person is discovered to be simply making accusations because they have a problem with the business they work for or particular individuals within it.

Question 14

what does ‘prima facie’ mean?

Answer 14

it means: from a first impression

Question 15

what does Kantian ethics emphasise the importance of? what would a Kantian employee find difficult?

Answer 15

emphasises the importance of honesty and promise-keeping through the categorical imperative
-they would find it difficult to allow a situation where a company broke the rules in what it did

Question 16

what is the utilitarian response to whistle-blowing?

Answer 16

-a utilitarian might resist whistle-blowing, depending on how much harm was done by the particular instance of an activity that was unethical or illegal.
-the utilitarian would have to weigh the balance of good or harm for all those with an interest or stake in the business continuing to do well, and whether this outweighed what was done or put at risk by the infringement.

Question 17

what are the 3 different ways in which the idea that good ethics is good business can be understood?

Answer 17

-that there is nothing different between business decisions and any other kind of decisions: business decisions are not inherently unethical and so a good business decision like any kind of good decision is likely to also be ethical
-that business decisions are inherently unethical because they are interested only in what benefits the business. This can have negative impacts on the business and such businesses will do better if they make their decision-making based on good ethics
-that most everyday business decisions do not involve ethical choices but that occasionally business decisions do involve a choice between doing the right thing or doing something that might be wrong. At this point those making the decisions would benefit from ethical guidance -perhaps in the form of a policy that sets out what the business must do in such circumstances.

Question 18

if a permanent commitment to high ethical standards seems unrealistic in out capitalist culture, then what is the next best thing for businesses to do?

Answer 18

then perhaps businesses should commit instead to involving ethical expertise when important decisions or choices are being made.

Question 19

what might make a utilitarian approach to ethical business too cumbersome for dynamic, fast-paced business environments?

Answer 19

-the complexity of business operations and the number of variables involved in business decisions could make a utilitarian approach to ethical business too cumbersome.
-it can also be difficult to quantify utility objectively - since businesses are used to putting a number on cost and benefit, businesses might struggle to say how much pleasure or how much pain a decision would cause to each stakeholder involved.

Question 20

what do the demands of Kantian ethics not sit very easily with?

Answer 20

they do not sit very easily with a highly competitive, capitalist business environment.

Question 21

what does globalisation describe?

Answer 21

it describes the integration of economies, industries, markets, cultures and policy-making around the world

Question 22

when did the poorly-made Bangladeshi factory collapse? who did the factory supply to? How many people died and were injured?

Answer 22

on 24 April 2013
-the factory had supplied to Primark and other companies like Wal-Mart, with low cost clothing
-over 1100 people died in the building and more than 2500 were injured

Question 23

what does the Kantian idea of meaningful work mean?

Answer 23

it means:
-work that is freely chosen and provides opportunities for the worker to exercise autonomy on the job
-work that supports the autonomy and rationality of human beings; if work reduces autonomy or rationality then it is immoral
-work that should provide a salary sufficient to exercise independent living, and also ensure physical well-being and satisfaction for at least some of the workers wishes
-work that should not undermine a worker’s moral development

Question 24

what are some features of a business that Kant would expect?

Answer 24

the firm should:
-consider all affected stakeholders when decision-making
-ensure that no one stakeholder automatically takes priority in any decision
-not simply consider the number of stakeholders affected when the interests of one group must be set against another (for instance in deciding that some employees must be made redundant)
-ensure that profit-making has some duty of beneficence (actions done for the good of others)
-ensure that relations with stakeholders should be governed by rules of justice.