Business Ethics Flashcards
(19 cards)
Henry Ford quote?
A business that makes nothing but money is a poor kind of business
What is the Ford Pinto Case?
1970
Crash tests led to the discovery that a rear end collision would likely lead to a fire and explosion
It would have cost $11 per car to fix
Ford Motor Company knew and did nothing, until they would be abided by law to do so
Lord Alan Sugar quote?
Are you the cheap one … the ethical (one) … What’s your hook?
Milton Freidman quote?
There is one and only one social responsibility of a business … to increase its profits so long as it stays within the rules of a game
What did Freidman argue?
Socialism makes capitalism fail
What are some strengths of Freidman?
Without profit, a business cannot survive
Profit leads to the benefitting of citiziens through the multiplier effect
What are some weaknesses of Freidman?
Social responsibility should not be forced by the government - problematic as profit could lead to the exploitation of people
Companies can still be profitable whilst being socially responsibility
What are shareholders?
People who have invested into the success of a business - they get more money as a company gets more successful
What are stakeholders?
Internal stakeholders - owners, managers, workers, suppliers, lenders
External stakeholders - customers, community, local environment
What are some consumer rights?
Quality
Safety
Price
Good customer service
What is a Whistle Blower?
Someone who risks their livelihood to tell the truth about companies and make business accountable for their actions
They are legally protected
Can be anonymous
Endeavors that they did it to serve the public interest
What is Karen Silkwood case?
Challenged Kerr-McGee about the safety of a nuclear facility
1974 she testified that there were serious health and safety violations (spills, leaks, faults) and even enough missing plutonium to make nuclear weapons
She died mysteriously in a car accident that same year
What is globalisation?
The increasing interconnectedness of economies, markets, cultures, and policymaking around the world
What has happened due to globalisation?
Changing technology
Transportation is cheaper and faster
Removal of capital exchange controls
Consumer tastes have changed
What are some strengths of globalisation?
Provides jobs to LICs
Trains people - increased skillsets
Increased consumerism (cheaper to buy)
Annual consumerism (particularly in relation to food)
What are some weaknesses of globalisation?
Global companies jeopardise local businesses
Keeps LICs LICs and HICs HICs
Reduces amount of jobs in places where there is strict working laws
Deforestation and pollution
Child labour
What is the Rana Plaza disaster?
2013, a factory collapsed in Bangladesh
Primark, Mango, Zara, Walmart
Over 1100 deaths
Over 2500 injuries
Workers were ordered to return- threatened with being docked a months wage
What happened after Rana Plaza?
$30 million compensation
35 unsafe factories closed
What are one of the seven principles of good businesses by Cardinal Vincent Nichols in ‘A Blueprint for Better Business?’
Human dignity: each person can never be merely an instrument valued just for their usefulness
