Business Ethics

• Business = An organisation where people work together to make and sell products or services with the aim to earn a profit.
• Corporate Social Responsibility = The idea that a business has responsibility towards the community and environment
• Whistle blowing = The idea that an employee discloses wrongdoing to the employer or the public
• Good Ethics is Good Business = The idea that good business decisions are good ethical decisions
• Corporate social responsibility (CSR)

  A company would be described as having good CSR when it maintains a balance between profit, employees, shareholders and stakeholders.
• Utilitarianism fits business well when we consider that a business is at the heart

  of culture and society and as an ethical perspective it easily helps to address the

  ethical relationship and responsibilities between business and society.
• Kant is best known for defending a version of the "respect for persons"

  principle which implies that any business practice that puts money on a par

  with people is immoral.
• CSR enhances long term revenues

  Companies reap commercial success – Toyota and Tesla hybrid/electric cars
• CSR ensures that we manage risk and avoid uncertainty that leads to profit loss

  e.g BP – Deepwater Horizon

  Accident – Gulf of Mexico 2010
• CSR shows that stakeholders matter. Business decisions go beyond producing and selling goods and service.

  Crane and Matten
• Ways a business may consider the stakeholders:

  • Contracts of employment
  • Environmental Policy
  • Sick pay
  • Independent Reviews
  • Holiday pay
  • Returns policy
  • Pay taxes
  • Fair recruitment strategies
• Poor conditions for employees if CSR is not taken seriously
• Milton Friedman

  If businesses try to act morally responsible then they will be less effective as a business because socialism dilutes capitalism; profit decreases

  Only human beings have a moral responsibility for their actions
• Milton Friedman

  He doesn’t dispute some CSR practices but says that these are carried out in self interest for profit maximisation ‘under the cloak of social responsibility’
• Kant and CSR

  Nothing can be treated as a means to an end, any ethical practice must be

  genuine and come from good will.

  People and business decisions have to have worth in themselves and not just

  because of hypothetical profit.

  Considering stakeholders is important as Humans are distinct and dignified

  A business must balance ethical practices in relation to employees, avoid

  over monitoring them but all avoid ignoring unsafe working environments

  A business must recalling a product that is known to be faulty

  All business actions must add to a kingdom of ends.
• Utilitarianism and CSR

  It is important to think about corporate social responsibility

  Morality comes from any act that results in the greatest good for

  the greatest number so this could justify anything to maximising

  profit which in turn helps the business grow.

  The theory may lead to ruthlessness in business (swine ethics) as

  the minority could be over looked and abused

  It does stops the selfish business owner as stakeholders happiness

  would outweigh the one business owner so it promotes

  democracy
• Hypocritical window-dressing describes business pretending to support something that they do not really value in order to increase profit.
• Brand Activism

  Some businesses posted a black square on

  their socials in reference to the BLM agenda

  whilst still not having policies that support the ethics behind this movement.
• Hypocritical window-dressing describes business pretending to support something that they do not really value in order to

  increase profit.
• Genuine Ethics

  Some businesses support the causes they

  promote genuinely, it is not an add one or a

  trend but it is the message at the very heart

  of everything a brand does.
• Whistle-blowing

  When an employee discloses wrongdoing

  to the employer or the public

  This is more than just a personal

  complaint, its about raising awareness of

  business practices that threaten people

  and their quality of life.
• Kant on Whistleblowing

  We are fulfilling our duty to not lie

  An employee would have to whistle blow as

  you couldn’t universalise breaking health an

  safety laws

  It stops exploitation through the second formulation

  It means there must be a certain standard for business to reach due to the third formulation, it may stop immoral

  business practices

  Conflicting duties, an employee is loyal to the company too
• Norman Bowie: Business ethics

  Argues that whistle-blowing violates a “prima- facie duty of loyalty to one’s employer.”
• Whistle-blowing as unethical

  • As an employee you have a duty to your employer as they pay you
  • Public whistle blowing is only a moral practice when it is not just for personal gain, you need to give them employee chance to change
• Whistle-blowing applied to theory

  ACT: If it results in a business changing ethical practices to improve for the majority its good

  RULE: It is good of the community to have honest companies that adopt good laws.

  • Act could justify a company failing its consumers to increase profit if this created greater happiness, such as higher salary for its employees if these are the majority large numbers.
  • If it results in a business shutting down and everyone losing their jobs it may not be the right thing.
• Unethical practices in the pursuit of profit from low prices goods, more consumers and therefore more money made.
• Business pursue profit, they become greedy and are prepared to act irresponsibly.

  Capitalism drives consumerism

  Humans existence is reduced to how much

  someone owns and how much they are able to buy at the expense of their spirituality or morality

  It stops us from thinking about our planet, it makes us less resourceful and unkind to each other whilst we pursue more and more products
• Capitalism drives Consumerism

  Amazon’s profit rose 220% during the pandemic
• Consumerism drives capitalism

  People want more things in life to look wealthy

  Individuals have the power to choose what they buy and where from which drives the economy as business compete for their custom

  Competition between business creates a mass market for consumers to choose what they want

  Capitalism encourages consumer greed so leads to greater moral corruption as businesses exploit this greedy nature
• Capitalism causes immorality as it promotes unfair working conditions because companies are profit driven so fail to make decisions that will cause human flourishing which Kant rightly argues goes against our duty.

  Despite this, whistle blowing is a practice consumer and employees adopt to safeguard society from unfair business practices which is a direct result of consumerism as they control where they spend so they can demand better.
• Capitalism causes immorality to be rife in business as it could promote unfair working conditions as companies are

  profit driven rather than caring about humanity flourishing which, for a Kantian ethics goes directly against good

  morals as it is not inline with our duty.
• Good Ethics is Good Business

  Good ethics means that you will have a good public image

  It attracts loyal consumers

  Attracts investors who will feel like they are contributing to society

  This will bring you more revenue to afford decent wages, thus maintain

  quality employees, they also stay loyal.

  Ethics = good staff and good customer = high profits
• The Cooperative – good ethics

  • 1% of all purchases is invested to support local communities
  • massive own brand fair trade selection,
  • low environmental impact as there is limited packaging on own brand produce
  • Offers large range of vegan varieties of food – more sustainable
• Good Ethics is Good Business

  Good ethics means that you will have a good public image

  It attracts loyal consumers

  Attracts investors who will feel like they are contributing to society

  This will bring you more revenue to afford decent wages, thus maintain

  quality employees, they also stay loyal.

  Ethics = good staff and good customer = high profits
• Tony Chocoloney

  Its a mission-driven brand, exists to make chocolate

  100% slave free

  Fairtrade certified company,

  In 2011 they made 2.4 million euros,

  By 2022 they made 130 million euros.
• Bentham: moral acts are those which maximises the pleasure

  If acting ethically increases profit for a business it will increase

  opportunities for its work force so is it morally good
• By stocking a large range of fair trade goods, which promotes equality and is a popular ethics for society, COOP have a positive

  reputation. This attract new customers which in turn with increase profit, making is a financially pleasurable act, therefore morally

  good according to Act utilitarianism.
• Mill asserts that morality comes from actions that promote general

  happiness

  When a business following the rules that conform to ethical business

  practices they are contributing to societies pleasure at large.
• By enforcing fair trade deals with chocolate companies that refuse to use child labour, Tony's Chocoloney maintains rules that promote general happiness, such as the equality act. Which has led to increasing profits and a reduction in child slavery in chocolate production.
• Kant argues that morality comes from fulfilling your duty and that good will

  ‘shines like a jewel’

  For a business to act ethically it must avoid certain practices such as not paying

  fair prices for imported products as this fails the second formulation of the

  categorical imperative as it treats people unfairly