introducing business ethics

Question 1

What are the main drivers of business ethics?

Answer 1

1. Government (Law, policies, infrastructure)
2. Civil Society (voting, power of many, activism)
3. Business (Speed, funding, globalisation)

Question 2

What elements makes up business ethics? (it’s MVP!)

Answer 2

1. Morality: concerned with norms, values and beliefs embedded in social process which define right and wrong for individuals/community.
2. Principles: specific and persuasive boundaries for behaviour that shouldn’t be violated. (human rights, freedom of speech and justice)
3. Values: enduring beliefs and ideas that are socially enforced. (teamwork, trust and integrity)

Question 3

Why is business ethics important? (5 things)

Answer 3

1. Power and influence of business in society too strong.
2. Business potential to provide major contribution to society
3. Increasing demands from stakeholders
4. Lack of business ethics education/training
5. business need to restore trust

Question 4

What is the relationship between ethics and the law?

Answer 4

” business ethics can be said to begin where the law ends.”

“choosing between what illegal and what is right”

Question 5

When is ethical decision making applicable? (1 things, with further explanation)

Answer 5

1. When accepted rules/law no longer serve and decision makers must weigh values and reach judgement
2. values and judgements play a critical role when we make ethical decisions

Question 6

What is does the timeline of business ethics look like? (1960-2000)

Answer 6

Before 1960: theological discussion of ethics (catholic: morality vs protestant: capitalist)

1960: social consciousness emerged. anti business sentiment! consumer protection groups fought.
1970: CSR emerged, philosophers involvement.
1980: strengthened, freeman: Stakeholder theory
1990: institutionalisation: rewards/punishments based on stakeholder evaluations
2000: increase public and politics demand for improved standards. future ethical issues: issues of data protection, climate change, consumer profiling

Question 7

Define Globalisation

Answer 7

A process which diminishes the necessity of a common and shared territorial basis for social, economic and political activities.

Question 8

How is globalisation relevant to Business Ethics? (CARL)

Answer 8

• due to global issues that affect BE:
  1. Cultural issues
  2. Legal issues
  3. Accountability issues
  4. Race to the bottom

Question 9

Define sustainability

Answer 9

The development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Question 10

What are the different approaches by companies in managing business ethics? (4 types of business organisations)

Answer 10

1. Large Corporation: Formal, PR or system based
2. Civil Society organisation: Informal, value-based
3. Public Sector organisation: Formal, bureaucratic
4. Small business: Informal, trust based