Main Flashcards
Introduction to Business Ethics
Business ethics examines the relationship between capitalism and ethics, questioning whether businesses should adhere to ethical principles.
Good Ethics is Good Business
The idea that ethical business decisions lead to profitability and a positive public image, avoiding government regulation.
Utilitarianism and Business Ethics
Utilitarians believe some restrictions on business are necessary to maximize overall happiness and prevent harm.
Kantian Ethics and Business Ethics
Kantians assert businesses must not treat people as mere means and should uphold duties, including fair treatment and honesty.
Libertarian View on Business Ethics
Libertarians like Milton Friedman argue businesses’ sole responsibility is to maximize profit, equating profit with ethical good through economic freedom.
Corporate Social Responsibility (CSR)
CSR is the theory that businesses have ethical responsibilities toward the environment and their communities.
Types of CSR
CSR includes Environmental CSR (reducing environmental impact) and Community CSR (respecting human rights, avoiding exploitation, philanthropy).
CSR vs ESG
ESG (Environmental, Social, and Governance) extends CSR by including the requirement to avoid political corruption.
Utilitarianism on CSR
Utilitarians generally support environmental CSR but might reject philanthropy as a business responsibility unless it maximizes happiness.
Kantian Ethics on CSR
Kantians demand respect for workers and avoidance of exploitation, fraud, and environmental harm.
Critique of CSR as Window-Dressing
Critics argue CSR can be hypocritical, serving as PR to distract from a business’s overall unethical practices.
Anand Giridharadas on CSR
Anand Giridharadas criticizes CSR as self-serving, emphasizing that businesses, such as Amazon, should do less harm rather than more good.
“We don’t need you to do more good. We need you to do less harm.”
Globalisation
Globalisation refers to the integration of businesses globally, raising issues like CSR violations and monopolies.
Impact of Globalisation on CSR
Globalisation can lead businesses to violate CSR, especially in developing countries where regulations are weaker.
Monopolies and Globalisation
Globalisation can create monopolies, undermining competition and innovation, which harms the free market.
Utilitarianism on Globalisation
Utilitarians might support globalisation if it maximizes happiness but oppose its negative aspects like market manipulation.
Kant on Globalisation
Kantians oppose globalisation when it leads to CSR violations and exploitation.
Whistleblowing
Whistleblowing involves leaking information about unethical business practices, with both positive and negative consequences.
Utilitarianism on Whistleblowing
Act utilitarianism supports whistleblowing if it maximizes happiness, depending on the specific situation.
Kant on Whistleblowing
Kantians support whistleblowing as it aligns with the duty to tell the truth and treat people as ends. Kant would also regard the treatment of people as mere means to be wrong due to the second formulation of the categorical imperative.
Sweatshops
Sweatshops are factories with poor working conditions, relevant to CSR, globalisation, and whistleblowing debates.
Utilitarian Defence of Sweatshops
Some utilitarians argue sweatshops provide better opportunities than alternatives in impoverished regions, though conditions are poor.
Criticism of Utilitarianism in Business Ethics
Utilitarianism can justify bad actions if they result in greater overall happiness, conflicting with deontological human rights.
Kantian Critique of Utilitarianism
Kantian ethics opposes treating people as mere means, regardless of the positive consequences.
Adam Smith on Capitalism
Adam Smith argued that rational self-interest in a free market leads to societal prosperity, benefiting everyone.
Utilitarianism on Capitalism
Utilitarians support free markets for general happiness but advocate for restrictions to address market failures.
Kant on Capitalism
Kantian ethics supports market interactions that treat individuals as ends, but opposes exploitative practices.
Milton Friedman on CSR and Globalisation
Friedman asserts that a business’s only responsibility is to maximize profits for shareholders, rejecting CSR and market restrictions.
