Business Ethics Flashcards
What is corporate social responsibility?
The attempt of a business to fulfil the interests, needs and wants of all stakeholders involved in the business
How is Kantian Ethics applied to CSR?
Stakeholder theory
Formulations
Dignity
Country-specific laws
Agrees with Stakeholder theory
Business practise must adhere to the three formulations of a categorical imperative
Maintain dignity of the individual
If ethical, must adhere to the laws within the country the business is in
How is Act Utilitarianism applied to CSR?
Emphasise quantity of happiness
Exploitation of workers is fine as the biggest group, the consumers, get a cheaper product
Prioritise customers at all times due to them being largest group of stakeholders
How is Rule Utilitarianism applied to CSR?
All those involved in the business are equally important
Middle-ground approach that leads to compromises
How is Preference Utilitarianism applied to CSR?
Singer viewed the environment as a stakeholder, and it is important not to unduly damage the environment
What is whilste-blowing?
The Act of an Employee alerting or revealing to the public that a company is using unethical practise, even if it is against the contract of the individual
How is Kantian Ethics applied to whistle-blowing?
It is both the right and responsibility of the employee to whistle-blow, as it is an a priori maxim
If a contract is broken by whistle-blowing it should not be done, as breaking contracts cannot be universalised, and could be considered a lie (W D Ross prima facie duties)
How is Utilitarianism applied to whistle-blowing?
Act: If it brings the greatest happiness for the greatest number, then yes, if not, then no
eg Barry Adams whistle-blew and lost all his colleagues their jobs
Rule: The higher pleasure of respect and valuing individuals is of greater good, so whistle-blowing is permitted
What is meant by, “good ethics is good business”?
If a business practices good ethical standards, this will result in better productivity for the company, better products, and a raised public opinion of the company, this will lead to better business
What is hypocritical window-dressing?
Faking good ethics in order to increase business
eg Pretending to offset environmental damage by planting trees, when you use much more than you plant (greenwashing)
How is Kantian Ethics applied to “good ethics is good business”?
If the intent was focused on the duty of caring for the staff, valuing employees and all other stakeholders then it is supported
However, if it is done to increase profit this uses people as a means to an ends
Hypocritical window-dressing uses customers as a means to an end and so it is strictly prohibited
How is Utilitarianism applied to “good ethics is good business”?
Act: Should ethical business practices results in good business, then it is supported as everyone is theoretically happier, including customers who get a good product
Rule: Good as it creates happiness for all stakeholders equally
What is Globalisation?
The increase in flow of goods, services, capital, people and ideas across international borders
How is Kantian Ethics applied to Globalisation?
Does not under any circumstances endorse the outsourcing of cheap labour
Cannot use workers as a means to an end
States that outsourced work must uphold 4 principles
Treats decisions made by businesses as those made by individuals
What are Kant’s 4 principles for outsourcing labour?
- The job must be chosen, free from coercion
- The work must be meaningful and provide the worker with the chance for advancement
- Must allow the worker to develop ethically
- Work on a fair salary and be able to live a life which affords them activities they enjoy
