INTRODUCTION TO ETHICS

Cards (40)

  • Capitalism
    • Market system in which production and distribution of goods and services is privatised
    • Efficiency is achieved if there is no interferences from the state
    • Division of labour and specialisation
  • Capitalism
    Widely used economic system
  • Capitalism has contributed to major developments in technology, medicine, innovation, science and ultimately, humans
  • The general wealth of society has also increased through time
  • Adam Smith's view of capitalism

    • Market system in which production and distribution of goods and services is privatised
    • Efficiency is achieved if there is no interferences from the state
    • Division of labour and specialisation
  • Capitalism
    • Manufacturer A specialises in making shirts and trousers
    • Manufacturer B specialises in making shirts and trousers
  • Specialisation
    Reduces time spent on production and results in more profit
  • Capitalism assumes that we are all materialistic
  • Capitalism also advances self centered behaviours
  • If you do not have money, you cannot participate or expect goods and services from the system
  • The rich get richer, and the poor get poorer (Inequality)
  • South Africa being the most unequal country in the world
  • Karl Marx's view of capitalism

    • Capitalism brings about alienation and exploitation of the workforce
    • Workers are forced to work for less wages and have no bargaining power
    • Resulting in lower costs of sales and more profit for the capitalists
    • Capitalism is dehumanizing
  • Karl Marx was concerned about the workers in a capitalist country
  • Countries have policies to protect workers (EFF/ SACP/ Trade Unions)
  • Every country has applied capitalism differently
  • Corporations
    • Groups of people come together to form a single entity with a single objective
    • The corporation has a perpetual life
    • The corporations are juristic persons with rights and obligations
    • Liability of shareholder is limited to the investment made
  • Capitalism
    • Private property
    • Profit motive
    • Competition
  • Competition helps regulate and control prices. Thus, the greater interest of society are served
  • The position of the seller is the same as the position of the buyer i.e. there is no monopoly
  • Corporations are part of society and have relationships with the stakeholders where they conduct business
  • Corporations create employment, improve economy, and develop opportunities
  • CSR is legislated in some countries, whilst in others, there is no such
  • Ethical dimensions of CSR

    • Economic
    • Workplace
    • Social Environment
    • Natural environment
  • Economic expectations (Sustainable financial performance)

    • Corporations must be economically/ financially sustainable
    • Corporations should aim for long term economic growth without negatively affecting the natural and social environment, and the workplace
  • Mandatory Responsibility (Law)

    Comply with formal obligations employed by law
  • Societal Expectations (Society has expectations)

    • Corporations should contribute positively towards society
    • Ensure corporations gain legitimacy, advance their strategic interest and honour ethical duties to society
  • Discretionary Contributions

    • Companies engage in these CSR work voluntarily
    • They take the form of philanthropy or social investment
  • Corporate Citizenship

    • Corporations should become responsible corporate citizens
    • Comply with laws, comply with best practices, respect everyone including the environment etc.
  • Organisations cannot function and survive without ethics
  • In business today, the interest of shareholders is the main focus
  • Shareholder focus results in the view that organisations are only created to make money
  • Managers take the view that businesses should be "ethics neutral" and as such, should not engage in ethical debates
  • Amoral Managers (Ethically neutral)

    • They are decisive
    • They choose to disregard ethics/ not balance ethical considerations when pursuing ethical objectives
    • They are often unaware of the consequences of their ethical decision making or lack thereof
  • There are two types of amoral managers: intentional and unintentional
  • Ethics is inherently part of businesses
  • The relational nature of businesses requires ethics like trust, honesty, integrity, respect, empathy, compassion, responsibility, accountability
  • The cooperative nature of work requires ethics as the foundation of teamwork
  • Organisations have to build trust-based relationships through ethics with various stakeholders
  • Employee performance is based on the ethical relationships within organisations