5 - The Marginalisation of Ethics in Business Flashcards
(15 cards)
What does the “marginalisation of ethics” in business refer to?
Ethics is pushed to the periphery of business decision-making due to dominant cultural, economic, and social structures that prioritise profit, efficiency, and compliance.
According to Friedman, what is the only social responsibility of business?
“The social responsibility of business is to increase its profits.” (Friedman, 1970)
How does Friedman’s view marginalise ethics?
By reducing ethics to legal compliance, it excludes moral considerations not tied to profitability, ignoring stakeholders like workers, communities, or the environment.
What is Beckert’s argument about capitalism and ethics?
Beckert (2009) argues that capitalism is governed by a moral framework that justifies inequality as fair and inevitable, legitimising economic decisions through taken-for-granted moral claims.
What is Weber’s concern about rationality and ethics in business?
Weber warned that growing instrumental rationality (efficiency-focused logic) can undermine value rationality — decisions are made based on calculable outcomes, not moral principles.
What does Weber’s “iron cage” refer to?
A metaphor for how bureaucratic systems trap individuals in rule-based, impersonal processes that restrict moral autonomy and ethical reflection.
What are the three dimensions of marginalisation of ethics discussed in the lecture?
Cultural – Market-driven values displace ethical norms
Economic – Profit/efficiency override human or environmental concerns
Social – Bureaucratic roles and hierarchies reduce moral responsibility
What is a real-world case of marginalised ethics used in the lecture?
Electric Vehicles (EVs) – While marketed as ethical and sustainable, their production involves unethical practices:
- Lithium/cobalt mining under poor labour conditions
- Environmental degradation in supplier nations
How does the EV case reflect economic marginalisation of ethics?
Ethical claims (sustainability, green innovation) are co-opted for profit while ignoring supply chain exploitation, showing how ethics is used instrumentally.
What is “ethical washing”?
Using surface-level ethical language (e.g. “green”, “inclusive”, “sustainable”) to build brand image while engaging in unethical practices behind the scenes.
What is the risk of ethics becoming a market tool?
t turns ethics into a brand asset rather than a moral commitment, allowing businesses to appear ethical without changing exploitative practices.
Why is bureaucracy linked to marginalisation of ethics?
Bureaucracy creates moral distance through formal roles, procedures, and responsibility diffusion — making it easier to deny personal accountability.
How can ethics be re-integrated into business?
- Prioritising long-term over short-term gains
- Stakeholder-focused models
- Cultivating moral cultures, not just rule-compliance
What is the lecture’s main critique of “CSR as a strategy”?
It becomes a tool for competitive advantage rather than genuine ethical practice, reinforcing profit motives rather than challenging them.
How does this lecture connect with classical and contemporary ethics?
- Echoes Kant: business should treat people as ends, not means
- Reflects Levinas/Bauman: systems depersonalise and suppress moral impulses
- Highlights how economic rationality opposes virtue ethics and care
