Buisness

    Cards (212)

    • Corporate social responsibility
      The idea that a business has a responsibility towards the community and the environment, beyond simply maximizing profits
    • Responsibilities businesses have
      • Economic responsibility - to remain profitable
      • Legal responsibility - to obey the law
      • Ethical responsibility - to not only follow the law, but also do what is ethically and morally right
    • Milton Friedman's view

      There is one and only one social responsibility of business... to increase its profits so long as it stays within the rules of the game
    • Free-market economy
      • Prices, wages and all other aspects of business are determined by the laws of supply and demand, with minimal governmental interference
      • The role of the government is simply to uphold honest dealing, enforcing contracts
      • Supporters claim it respects human autonomy and freedom and brings the greatest material benefits to consumers
    • Friedman argued that making social improvements in society is the responsibility of democratically elected politicians, not business executives
    • Friedman argued that the business executive's responsibility is to 'make as much money as possible' within the law
    • Friedman argued that when companies appear to be acting ethically and promote themselves as such, it is most likely because doing so is in their self-interest
    • Friedman argued that underlying the view that businesses have a corporate social responsibility is the belief that 'the pursuit of profits is wicked and immoral'
    • Friedman argued that the pursuit of profits is not at all immoral, as long as it is within the law
    • Stakeholders
      Those affected by or involved with the business, including primary stakeholders (executive, shareholder, employees, customers) and secondary stakeholders (local community, suppliers, competitors)
    • Obligations and pressures from stakeholders

      May mean businesses are obliged to act more ethically even when they are not required to do so by law
    • Kantian ethics
      • Deontological, duty, the good will, motive, honest shopkeeper, categorical imperative - principle of universalisation, principle of humanity, principle of the kingdom of ends
      • You do what is right because it is right and for no other reason
      • The only motive truly moral is doing one's duty - this is the good will that 'shines forth like a jewel'
    • Kant would argue that if the motive behind corporate social responsibility is self-interest, as Friedman suggests, then it is not a truly moral action
    • Kantian approach
      • Principle of universalisation - can the business decision be universalised?
      • Principle of humanity - does it respect humans as rational and autonomous beings, treating them as ends, not means?
      • Principle of the kingdom of ends - act as though you were a law abiding member of like-minded individuals
    • Kant's approach faces criticisms that it is unrealistic and too idealistic in a free-market economy
    • Utilitarianism - Bentham
      • Psychological hedonism to ethical hedonism, Act utilitarianism - principle of utility applies to each action, consequentialist, quantitative - hedonic calculus, egalitarian - 'each to count for one'
      • The greatest happiness of the greatest number is the foundation of morals and legislation
    • Bentham's quantitative approach to ethics fits well with the cost/benefit approach businesses have when making decisions
    • Bentham's egalitarian principle that each is to count for one and none for more than one is impractical and time-consuming to apply in business decisions
    • Utilitarianism - Mill
      • Consequentialist, hedonist, Rule utilitarian - principle of utility applies to each rule, 'leave it to the competent judge' (brings about the greatest quantity of higher pleasures), happiness not pleasure, qualitative - higher and lower pleasures
      • Actions are right in the proportion they tend to promote happiness
    • Mill would argue that in any ethical decision we should follow the rule that maximizes utility
    • Mill would disagree with Kant's view that the motive is the key to the morality of an action, arguing that the motive is not morally significant
    • Mill: 'Actions are right in the proportion they tend to promote happiness'
    • Mill's view
      In any ethical decision we should follow the rule that maximizes utility
    • Strength of Mill's view

      • Consequences are more important than motives
      • Good compromise between deontological and consequentialist approaches
    • Whistle blowing is when an employee discloses wronging to the employer or public
    • Whistle blowers
      • Edward Snowden
      • Jeffrey Wigand
    • Legal protection for whistleblowers
      • In the US, the Whistleblower Protection Act protects government employees
      • In the UK, the Public Interest Disclosure Act protects whistleblowers and gives them legal status as witnesses
    • Arguments against whistle-blowing
      • Breach of contract and loyalty
      • May harm primary stakeholders
    • Arguments in favor of whistle-blowing
      • Duty to tell the truth and prevent harm is more important than duty of confidentiality or loyalty
      • Internal reporting may be ignored or retaliated against
    • Kantian perspective on whistle-blowing
      • Supports whistle-blowing based on the principle of universalization, principle of humanity, and principle of the kingdom of ends
      • Motive matters - whistle-blowing out of duty is moral
    • Bentham's utilitarianism
      Apply the hedonic calculus to determine which action brings about the greatest pleasure and least suffering
    • Mill's utilitarianism
      Follow the rule that brings about the greatest happiness for the greatest number
    • Globalisation is the integration of economies, business, industries and markets across the world
    • Globalisation has rapidly increased since the 1990s with the emergence of the Internet and improved transportation systems
    • Friedman's perspective

      A free-market economy brings the best benefits to the largest amount of people with minimal governmental interference and regulation
    • The ethics of globalisation are complex
    • In 2013 a poorly made clothing factory in Bangladesh called the Rana Plaza collapsed, killing over 1100 people
    • Free-market economy
      Brings the best benefits to the largest amount of people with minimal governmental interference and regulation
    • The global economy will grow and the benefits will trickle down to everyone in society with a free-market economy
    • Friedman's view

      The sole responsibility of businesses is to 'increase profits... within the rules of the game'
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