W1 - Ethics & Corporate Purpose

Question 1

What are the three systems of ethics

Answer 1

1. Consequentialist (instrumental)
2. Deontological (rules-based)
3. Virtue-ethics (principles-based)

Question 2

What is Consequentialism

Answer 2

• Act because of the payoff of the action - “ends justify the means”
• Greatest happiness principle, bring about the outcome that yields the greatest good for the greatest number
• Modern consequentialist theories “utility” is a numerical representation of individual preferences.

Question 3

What is utilitarianism (falls under consequentialism).

and what are the problems with it

Answer 3

Classic utilitarianism assumes impartiality: we have a moral duty to all people affected by a decision.

Distribution: Largely ignores synchronic distributional issues e.g. some groups may get a bad deal

Measurement:
- Difficulty in accessing the information necessary (and cost of doing so)
- Meaningfulness of aggregating interpersonal comparisons of utility
- With uncertain single cases, how do we determine probability?

Question 4

What are Deontological systems of ethics?

Answer 4

Follow the rules (law, codes of best practise, social norms)

May yield same results as a consequentialist approach but the ethical reasons for this course of action are different

Complying with legal reqs may be viewed as fulfilling the moral requirements of business (Friedman)

Question 5

Problems with Deontological systems of ethics?

Answer 5

• Minimal compliance
• Manipulation
• Most people still have the intuition that outcomes matter

Question 6

What are virture ethics systems fo ethics

Answer 6

• Virtues as foundational to ethical reasoning (honesty, integrity, courage)
• Useful especially where consequentialism is not feasible and rules are not known universally

Question 7

Summarise the Ford Pinto case,

Answer 7

• In the 1960s, Ford began designing the Pinto.
• The prototypes of the Pinto all failed the fuel tank integrity test
• Ford used a cost-benefit reasoning to justify continuing manufactering
• estimated cost of human deaths totalled $49m
• estimated cost of redesigning care totalled $138m

Question 8

What are the two challenges to ethics

Answer 8

Absolutism and Relativism

Question 9

What is Absolutism in ethics

Answer 9

There are universal moral truths

Question 10

What is Relativism in ethics

Answer 10

Morality can only be understood contextually and should be coherent with a particular context.

Question 11

What is a purposeful company?

Answer 11

Deliberate strategy to deliver positive social impact. Profit flows from purpose.

Question 12

What are B-CORPS

Answer 12

companies who are transparent, positively impactful and commit to being accountable to all of their stakeholders.

Question 13

What was the Bhopal disaster in Gibson Ch.1 2007, what ethical complexities does it bring to light?

Answer 13

Bhopal disaster of 1984 involved a toxic gas leak from the Union Carbide plant, resulting in significant harm and loss of life.

Case raised questions about the distinction between legal responsibility, as stipulated in the settlement between the Indian government and Union Carbide, and moral responsibility for the harm caused by the disaster.

The differing perspectives on the causes of the disaster, such as deliberate sabotage versus poor maintenance, raised ethical questions about the level of risk that companies are willing to accept in their operations.

Question 14

What is Egoism? Gibson Ch.1 2007

Answer 14

-Egoism, driven by self-interest, can influence corporate behaviour, particularly in international operations.

• It mentions that companies may alter their moral stance based on cost-effectiveness, akin to a chameleon changing its color to suit its surroundings.
• The document acknowledges that many companies have a baseline of acceptable behavior independent of external monitoring.