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R.S. Ethics > Topic 6 - Business Ethics > Flashcards

Topic 6 - Business Ethics Flashcards

1
Q

what is a corporate social responsibility?

A

the belief that an organisation has ethical responsibilities both in its own conduct and to the wider community. The moral requirement applies corporately and not just to individuals.

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2
Q

what is a stakeholder and shareholder?

A

STAKEHOLDER = anyone with a stake that relies upon that business e.g. workers

SHAREHOLDER = bosses

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3
Q

what is the idea of human dignity?

A

the notion that we are all made in the image of God and thus as the Cardinal said ‘each person can never be merely an instrument valued for just for their usefulness’

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4
Q

what is the idea of a common good?

A

Cardinal Nichols defines this as ‘the set of social conditions which allow people more easily to develop, individually and communally’

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5
Q

what is the idea of solidarity?

A

Concern of Pope John Paul II wjo expressed Donne’s idea that ‘no man is an island’, we are all in this world , dependent on each other and so should work collaboratively for a common goal.

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6
Q

what is the idea of subsidiarity?

A

Expressed by Pope Pius, belief that ideas should be made at the lowest level. e.g. its not the people at the top of a company that know what is best.

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7
Q

what is the idea of fraternity?

A

For Cardinal Nichols this entails fellowship towards those of different cultures. It is central to building relationships such as trust.

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8
Q

what is utilitarianism’s stance on business ethics?

A

Mill advocated a free economy as this maximised personal liberty and freedom in the market

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9
Q

what is kant’s stance on business ethics?

A

‘duty for duty’s sake’ e.g. shopkeeper should do right simply as its right

second categorical imperative, always as ends never as means.

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10
Q

what is the ford pinto example?

A

ford decided it would be cheaper to pay damage costs then recall all cars.

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11
Q

ESSAY PLAN - BUSINESS ETHICS WITH KANT/UTILITARIANISM

POINT 1

principle of utility vs individual autonomy

A

• It could be argued Utilitarianism offers an effective approach to business ethics as a result of the looking to maximise pleasure and minimise pain for the greatest number – this in turn enables the practise of CSR, as the people managing the business will have a duty to consider the interests of all stakeholders, including employees, customers, shareholders and the environment

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12
Q

ESSAY PLAN - BUSINESS ETHICS WITH KANT/UTILITARIANISM

POINT 1 - counter argument

means to an end (kant)

A
  • Yet as with all teleological normative theories, the principle of utility may undermine rights of individual workers, especially in the case of Act Utilitarianism, which is quantitative not qualitative
  • The greater good may be considered as cheap products for thousands of customers, therefore justifying the exploitation of poorly paid child-labourers in sweatshops, as is the case for Nike factory workers. Kant’s is more effective, due to idea of not treating individuals as means to an end.
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13
Q

ESSAY PLAN - BUSINESS ETHICS WITH KANT/UTILITARIANISM

POINT 1 - counter response

hedonic calculus (ford pinto + bentham)

A

• Although the principle of utility may enable people to favour the happiness of some over the pain of others, the hedonic calculus, when used correctly, will weigh up the intensity and duration of the pain/pleasure over one another, to ensure ethical practise. Ford Pinto (fuel tanks leading to fires if rear-ended; cost/benefit analysis determined it cheaper to ignore it) may have appeared to use the hedonic calculus to do a cost/ benefit analysis, but Bentham would argue the impacts of people dying through fires caused in cars would have long lasting and intense impacts, far greater than the profits made.

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14
Q

ESSAY PLAN - BUSINESS ETHICS WITH KANT/UTILITARIANISM

POINT 1 - conclusive response

issue with hedonic calculus, kingdom of ends better

A

• It would be arguably impossible to calculate the accurate impacts of business decisions in the globalised world, using the hedonic calculus, as decisions impact a number of people across the world and cannot always be predicted Thus a deontological approach, ensuring businesses act as legislating members in a kingdom of ends, universalising their maxims to judge whether their decisions contradict the will, ensures ethical practise from the offset.

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15
Q

ESSAY PLAN - BUSINESS ETHICS WITH KANT/UTILITARIANISM

POINT 2

consequentalist vs duty, long term development, ethical practise after (solomon)

A

• Arguably a teleological approach is more practical for business ethics, as a business must be able to develop profits, which in turn will allow for ethical treatment and sourcing/ benefit of society

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16
Q

ESSAY PLAN - BUSINESS ETHICS WITH KANT/UTILITARIANISM

POINT 2 - counter argument

duty, good will and intentions (kant + mill)

A
  • Yet if ethical treatment comes after profits have been generated, this suggests the company is acting out of baser motives and not “duty for duty’s sake”
  • In the case of whistleblowing, a utilitarian may discourage an employee from speaking out against unethical employers for the sake of allowing the company to continue making profits. This, in turn, goes against both Kant and Mill’s ideas of individual liberty and autonomy, as workers may be coerced into staying quiet
  • Yet still, utilitarianism focuses on the overall good (of people and not just profits), thus if blowing the whistle brings about a greater good over pain, then it could be permitting e.g. Samuel Provance, an army intelligence soldier, blew the whistle on a cover-up involving abuses at Abu Ghraib – he was demoted and discharged in 2006 the intensity of the suffering inflicted in Abu Ghraib made it the right choice to blow the whistle, even if this impacted negatively on the profits of the business.
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17
Q

ESSAY PLAN - BUSINESS ETHICS WITH KANT/UTILITARIANISM

POINT 2 - counter response

businesses have no moral duties only profit (friedman)

A
  • Nonetheless, it could be said that in order for businesses to flourish and make a profit, one has to judge based on consequences and not duty or responsibility
  • Milton Friedman, in ‘The Social Responsibility of Business is to Increase Profits’ has challenged the idea of corporate social responsibility, arguing that the only aim of a business is “to use its resources and engage in activities designed to increase profits so long as it stays within the rules of the game”
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18
Q

ESSAY PLAN - BUSINESS ETHICS WITH KANT/UTILITARIANISM

POINT 2 - conclusive response

ethical practise is beneficial to profit making

A
  • Yet a Kantian approach, a following duty of ethical treatment will in fact increase a businesses profits!
  • Crane and Matten, in ‘Business Ethics’ argue that it is in a businesses interest, as well as the interest of stakeholders, to develop good business ethics
  • For example, the treatment of workers in Primark factories is awful and the company has developed a bad name for themselves
  • Solomon: no contradiction between existing good values in business behavior & success- “profits will come as a consequence” of good business / “an ethical business is more likely to prosper”
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19
Q

ESSAY PLAN - BUSINESS ETHICS WITH KANT/UTILITARIANISM

POINT 3

kingdom of ends, good ethics is good business, holistic approach leaves too much room for exploitation

A

• Overall it seems Utilitarianism’s holistic approach leaves too much room for exploitation. By applying a deontological approach it prevents companies from justifying exploitation or dishonesty, as one is forced to imagine maxims as laws of nature.

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20
Q

ESSAY PLAN - BUSINESS ETHICS WITH KANT/UTILITARIANISM

POINT 3 - counter argument

sovereignty of business and individualism (smith)

A
  • Nonetheless some may argue that such a rigid deontological approach to business ethics prevents businesses from having sovereignty. Indeed classical Utilitarians such as Mill and Bentham were committed to free market economics with minimal state intervention.
  • Adam Smith, in ‘The Wealth of Nations’ speaks of the “invisible hand” of the free-market system; we don’t need rigid deontological theories as humans have an innate compassion and sense of respect for others, which would enable a naturally humane capitalist economy.
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21
Q

ESSAY PLAN - BUSINESS ETHICS WITH KANT/UTILITARIANISM

POINT 3 - conclusive response

use the three formulations of CI

A
  • Although we may like to think businesses would naturally avoid exploitation it is evident this is not the case. In today’s capitalist society we must use Kant’s categorical imperative to ensure business is regulated.
  • Development of human rational capacities and dignity through making decisions in accordance to the Categorical Imperative, which ensures just treatment of all. Companies must see themselves as part of a wider community and thus work towards a common good where everyone can flourish.
  • Acting socially responsibly may prevent government legislation, which forces businesses into contracts which prohibit their sovereignty overall good ethics helps the business and the people it affects
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22
Q

ESSAY PLAN - GOOD ETHICS AS GOOD BUSINESS

“To what extent is a business responsible for its employees?”
“Good ethics makes good business” “The only concern of business should be to make a profit”

POINT 1

no it’s not responsible, all about profit (friedman)

A
  • Businesses don’t need to look after employees/customers – a good business is solely defined by how much profit the business is making
  • Ethics doesn’t determine the success of a business
  • Milton Friedman – ‘the business of a business is business’ – ethics doesn’t determine the success of it
23
Q

ESSAY PLAN - GOOD ETHICS AS GOOD BUSINESS

“To what extent is a business responsible for its employees?”
“Good ethics makes good business” “The only concern of business should be to make a profit”

POINT 1 - counter argument

yes; bad name = profits fall (solomon)

A
  • If the employees aren’t treated well, the company may develop a bad name and may lose profits through this
  • Solomon: no contradiction between existing good values in business behavior & success- “profits will come as a consequence” of good business / “an ethical business is more likely to prosper”
  • For example, the treatment of workers in Primark factories is awful and the company has developed a bad name for themselves
24
Q

ESSAY PLAN - GOOD ETHICS AS GOOD BUSINESS

“To what extent is a business responsible for its employees?”
“Good ethics makes good business” “The only concern of business should be to make a profit”

POINT 1 - counter response - lousy job best

A
  • Better than nothing defence – even if we treat employees poorly, they are still being given employment
  • National Centre for Policy Analysis suggests “Better a lousy job than no job at all”
25
Q

ESSAY PLAN - GOOD ETHICS AS GOOD BUSINESS

“To what extent is a business responsible for its employees?”
“Good ethics makes good business” “The only concern of business should be to make a profit”

POINT 1 - conclusive response

slippery slope

A
  • Slippery slope/making excuses for bad morals – Kant believes morality should not differ within business
  • Should act as if you are making rules in a ‘kingdom of ends’ – making excuses wouldn’t work if everyone was acting in this way
26
Q

ESSAY PLAN - GOOD ETHICS AS GOOD BUSINESS

“To what extent is a business responsible for its employees?”
“Good ethics makes good business” “The only concern of business should be to make a profit”

POINT 2

yes it should be sole purpose of business (kant)

A
  • Kant, in his ‘Groundwork for the Metaphysics of Morals’, highlights the importance of respect for persons – we have a duty to recognise autonomy and freedom, ensuring that we do not exploit employees for a profit
  • Nicholas reinforces this idea “each person can never be merely an instrument valued just for their usefulness”
27
Q

ESSAY PLAN - GOOD ETHICS AS GOOD BUSINESS

“To what extent is a business responsible for its employees?”
“Good ethics makes good business” “The only concern of business should be to make a profit”

POINT 2- counter argument

not first priority (eamon smith)

A
  • Businesses can be respectful towards employees once they have made profits – not the first priority
  • Eamon Smith – believes businesses do recognise the responsibility they have within the wider public but ultimately they are concerned with business alone
  • Legality defence- complying with rules is all that is needed?
28
Q

ESSAY PLAN - GOOD ETHICS AS GOOD BUSINESS

“To what extent is a business responsible for its employees?”
“Good ethics makes good business” “The only concern of business should be to make a profit”

POINT 2 - counter response

first duty = be ethical

A
  • Kant says we should judge businesses on their intentions and motivations – businesses should not be egotistical and act out of self-interest, they should intend to look after employees as the first duty!
  • Profits should come as a wider result of ethical behaviour
  • ENRON were only focused on profits… It is not the success of the business, but their actions that count!
29
Q

ESSAY PLAN - GOOD ETHICS AS GOOD BUSINESS

“To what extent is a business responsible for its employees?”
“Good ethics makes good business” “The only concern of business should be to make a profit”

POINT 2 - conclusive response

business is too flexible

A
  • Kant’s theory only works for an ideal world – in a practical world, businesses should be allowed to be flexible and look at both profits, customers and employees
  • Following our ‘duty’ at all times is inflexible and unrealistic in business, where a business is founded on money
30
Q

ESSAY PLAN - GOOD ETHICS AS GOOD BUSINESS

“To what extent is a business responsible for its employees?”
“Good ethics makes good business” “The only concern of business should be to make a profit”

POINT 3

seek balance, principle of utility (utilitarianism)

A
  • Business should aim to seek “greatest good for the greatest number”, therefore we should be responsible for employees as well as customers, employees, shareholders etc.
  • Peter Singer’s preference utilitarianism highlights the importance of also looking after animals and the environment
  • Bentham was concerned with rights for the working class – introduced many reforms which improved working conditions.
31
Q

ESSAY PLAN - GOOD ETHICS AS GOOD BUSINESS

“To what extent is a business responsible for its employees?”
“Good ethics makes good business” “The only concern of business should be to make a profit”

POINT 3 - counter argument

tyranny of the majority (nike)

A
  • But this may overlook the individual needs of persons, such as employees – people may justify the poor treatment of for example, Nike workers in factories, for lower prices for customers
  • Equally, with a globalising business market it is sometimes hard to look out for the benefits of all, when decisions in one country may have impacts on workers in another country
32
Q

ESSAY PLAN - GOOD ETHICS AS GOOD BUSINESS

“To what extent is a business responsible for its employees?”
“Good ethics makes good business” “The only concern of business should be to make a profit”

POINT 3 - conclusive response

hedonic calculus

A
  • Although the principle of utility may enable people to favour the happiness of some over the pain of others, the hedonic calculus, when used correctly, will weigh up the intensity and duration of the pain/pleasure over one another, to ensure ethical practise
  • Ford Pinto may have appeared to use the hedonic calculus to do a cost/ benefit analysis, but Bentham would argue the impacts of people dying through fires caused in cars would have long lasting and intense impacts, far greater than the profits made
  • Mill place’s huge impact of sovereignty of persons – consider all employees as individuals as well as looking to make profits
  • Should never favour profit over employees, look to seek equal balance for all!
33
Q

ESSAY PLAN - CORPORATE SOCIAL RESPONSIBILITY

POINT 1

all about profit (friedman)

A
  • The success of a business is solely defined by how much profit it makes – only activities that encourage a rise in profits will be encouraged
  • Economist Milton Friedman – ‘the business of a business is business’
  • Ethics doesn’t determine the success of a business
  • Only claim to be ethical to increase profits – not their main purpose
34
Q

ESSAY PLAN - CORPORATE SOCIAL RESPONSIBILITY

POINT 1 - counter argument

bad name = profits fall

A

¬ However, recently there has been much media attention given to poor labour standards and the responsibility of companies
¬ Increasing demands from statutory bodies for detailed info about corporate standards
- If the employees aren’t treated well, the company may develop a bad name and may lose profits through this
- For example, the treatment of workers in Primark factories is awful and the company has developed a bad name for themselves – customers have huge impacts
- The concept is more than window dressing as they can be found out etc.

35
Q

ESSAY PLAN - CORPORATE SOCIAL RESPONSIBILITY

POINT 1 - counter response

better than nothing

A
  • Better than nothing defence – even if we treat employees poorly, they are still being given employment
  • Producing misleading facts on a companies’ ethical practices doesn’t necessarily matter, as it will help the company, and those being lied about still have some form of employment, even if it is not as good as once suggested
36
Q

ESSAY PLAN - CORPORATE SOCIAL RESPONSIBILITY

POINT 1 - conclusiveresponse

slippery slope

A
  • Slippery slope/making excuses for bad morals – Kant believes morality should not differ within business
  • Should act as if you are making rules in a ‘kingdom of ends’ – making excuses wouldn’t work if everyone was acting in this way
  • Cannot hypocritical window dress, as this wouldn’t work on a larger scale!
37
Q

ESSAY PLAN - CORPORATE SOCIAL RESPONSIBILITY

POINT 2

autonomy and freedom (kant)

A
  • Kant, in his ‘Groundwork for the Metaphysics of Morals’, highlights the importance of respect for persons – we have a duty to recognise autonomy and freedom, ensuring that we do not exploit employees for a profit
  • Corporate social responsibility should not be hypocritical window dressing – should be the thorough duty of recognition of autonomy
38
Q

ESSAY PLAN - CORPORATE SOCIAL RESPONSIBILITY

POINT 2 - counter argument

not first priority (friedman)

A
  • Businesses can be respectful towards employees once they have made profits – not the first priority
  • Going back to Milton Friedman – he states that a profitable business creates jobs and goods that improves life for all – improves society in general
  • It is the responsibility on which all the others rest – same outcome so why does it matter?
39
Q

ESSAY PLAN - CORPORATE SOCIAL RESPONSIBILITY

POINT 2 - counter response

first duty = be ethical (profit later)

A
  • Kant says we should judge businesses on their intentions and motivations – businesses should not be egotistical and act out of self-interest, they should intend to look after employees as the first duty!
  • Profits should come as a wider result of ethical behaviour
  • ENRON were only focused on profits… It is not the success of the business, but their actions that count!
40
Q

ESSAY PLAN - CORPORATE SOCIAL RESPONSIBILITY

POINT 2 - conclusive response

business is too flexible

A
  • Kant’s theory only works for an ideal world – in a practical world, businesses should be allowed to be flexible and look at both profits, customers and employees
  • Following our ‘duty’ at all times is inflexible and unrealistic in business, where a business is founded on money
  • It may be hypocritical window dressing, but this is better than nothing
  • Not ignoring the fact we need to be ethical, as Keith Tondeur says: people should become more ethical in the way they live their lives, especially in a business sense. But need room for flexibility, Kant is too strict
41
Q

ESSAY PLAN - CORPORATE SOCIAL RESPONSIBILITY

POINT 3

utilitarianism, over looks individuals

A

¬ Utilitarianism would say hypocritical window dressing can be permitted, as if the greatest good is achieved then it doesn’t matter what happens in-between

  • But this may overlook the individual needs of persons, such as employees – if a company were to close a polluting factory for the greater good of the environment and society, the local community would suffer as they need jobs
  • Equally, with a globalising business market it is sometimes hard to look out for the benefits of all, when decisions in one country may have impacts on workers in another country
42
Q

ESSAY PLAN - CORPORATE SOCIAL RESPONSIBILITY

POINT 3 - counter argument

does it really matter

A

¬ Utilitarianism is all about ends justifying the means

  • Yes, it may be hypocritical window dressing, but in the end does it really matter? For example, environmental responsibility helps the environment – each year there is a prestigious award – ‘The Business Commitment to the Environment’, which the co-operative won and reduced 86% of its CO2 emissions and used 98% green electricity
  • May just be for profits, but the outcome is good!
43
Q

ESSAY PLAN - CORPORATE SOCIAL RESPONSIBILITY

POINT 3 - conclusive response

utilitarianism wrong

A

¬ Utilitarianism makes business a way of counting consequences which can lead to immoral actions to achieve ends – but these consequences cannot always be predicted
¬ Really not ethical to neglect certain groups of people
¬ Shouldn’t hypocritical window dress to cover up the greed of making profit and supposedly helping the most people
¬ BE ETHICAL FROM THE START AND ACHIEVE PROFITS AND ETHICS THE CORRECT WAY! (But also allow room for movement as we don’t want to be Kantian)

44
Q

ESSAY PLAN - GLOBALISATION AND GOOD ETHICS

POINT 1

good business as ethical business, encourages good business due to benefits

A
  • Countries across the globe able to interact with one another
  • Businesses can move to places which are cheaper to work in and where people are more willing to work as well as try their products
  • Transport is faster, money can be moved easier etc.
  • Good ethics as helping poorer countries!
45
Q

ESSAY PLAN - GLOBALISATION AND GOOD ETHICS

POINT 1 - counter argument

discourages as poorer workers exploited

A
  • But the employees and countries are often exploited
  • Global business drain some countries of their natural resources without returning appropriate money for doing so whilst employees in sweat shops work in dire conditions
  • No sweat movement: fights against sweatshop exploitation
46
Q

ESSAY PLAN - GLOBALISATION AND GOOD ETHICS

POINT 1 - counter response

free choice defence (nor beg + mill)

A
  • But the people choose to work there! Not forced to
  • In a typical developing nation, if you’re able to work for an American multinational, you make eight times the average wage. That’s why people are lining up to get these jobs” (John Norbeg- In Global Defence of Capitalism)
  • The people choose to work in these conditions and are able to have a better life because of it?
  • J S Mill Liberal principle – individual is best judge of their interests, should be free from state interference
47
Q

ESSAY PLAN - GLOBALISATION AND GOOD ETHICS

POINT 1 - conclusive response

companies could protect rights (amnesty international)

A
  • But companies could do more to ensure the employees and countries are being treated fairly
  • Amnesty International campaigns for a global human rights framework for business based on the UN Norms for Business
  • Still allow for globalisation to occur but have stricter regulations, perhaps the minimum wage / work conditions to meet the standards of the country the business is from
48
Q

ESSAY PLAN - GLOBALISATION AND GOOD ETHICS

POINT 2

good business as making profits, following law is what matters (Friedman)

A
  • Global businesses follow rules (e.g. tax evasion- don’t declare v tax avoidance- putting in off shore accounts)
  • If they follow the law that’s all that matters, good ethics can merely be following legalities
  • Milton Friedman – ‘the business of a business is business’ – a good business is one that has good profits, don’t HAVE to encourage good ethics but by following laws in a way they are!
49
Q

ESSAY PLAN - GLOBALISATION AND GOOD ETHICS

POINT 2 - counter argument

bad ethics = profit loss (solomon)

A
  • If the employees aren’t treated well, the company may develop a bad name and may lose profits through this
  • Solomon: no contradiction between existing good values in business behavior & success- “profits will come as a consequence” of good business / “an ethical business is more likely to prosper”
  • For example, the treatment of workers in Primark factories is awful and the company has developed a bad name for themselves
  • Globalisation therefore discourages good business as lacks good ethics
50
Q

ESSAY PLAN - GLOBALISATION AND GOOD ETHICS

POINT 2 - counter response

principle of utility over individual rights (primary + utilitarianism)

A
  • Despite supposedly “bad ethic’s”, Primark is still able to prosper and has a $9 billion net worth
  • Suggests majority of people don’t object to their behaviour
  • Utilitarianism: greatest good for greatest number! By using sweat shops they are able to produce low cost clothes which is what the customer wants- although some suffer, majority of people benefit
51
Q

ESSAY PLAN - GLOBALISATION AND GOOD ETHICS

POINT 2 - conclusive response

overlooks individual (nicholas)

A

• But this may overlook the individual needs of persons, such as employees – justifying poor treatment is exceedingly unethical!!

  • Equally, with a globalising business market it is sometimes hard to look out for the benefits of all, when decisions in one country may have impacts on workers in another country which is equally important!
  • Nicolas drew on natural law to come to this conclusion, solidarity “means being in touch with the needs of communities; striving for the common good particularly by looking for ways of helping under privileged communities”
  • As Globalization does not do this it discourages good ethics
52
Q

ESSAY PLAN - GLOBALISATION AND GOOD ETHICS

POINT 3

local business ensures no one treated as means to end

A
  • In Globalisation people are used as a means to an end! The countries and people are exploited for the profit of one business
  • Nicholas reinforces this idea “each person can never be merely an instrument valued just for their usefulness”
53
Q

ESSAY PLAN - GLOBALISATION AND GOOD ETHICS

POINT 3 - counter argument

encourages interaction (aristotle + temple)

A
  • It encourages interaction with other countries, this is helping people’s interaction with foreign countries and perhaps reducing the amount of racism
  • Aristotle: community, or polis, was the small state of Ancient Greece bound together by notions of civic friendship and mutual dependent and service
  • If the workplace is to be treated as our polis, it should interact with other organizations
  • Temple: this “fellowship” brings about “social glue”
54
Q

ESSAY PLAN - GLOBALISATION AND GOOD ETHICS

POINT 3 = conclusive response

individual rather than global decisions ;

A
  • But Globalisation still takes away the countries rights partially
  • Nicholas advocated subsidiarity: belief that decisions should be made at the lowest level compatible with efficiency
  • “Desirable it should be done by them (local individuals) rather than by the means of government” (Mill)

R.S. Ethics (10 decks)

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