Business ethics

Question 1

What is Corporate Social responsibility?

Answer 1

The idea that businesses or organisations have ethical responsibilities to the wider community and environment.

Question 2

What is a stakeholder?

Answer 2

Any individuals or groups who are effected by the actions of the business or organisation

Question 3

What is a shareholder?

Answer 3

Someone who has shares in the company and hence gains companies profits.

Question 4

Who famously counters the idea of Corporate social responsibility?

Answer 4

Milton Friedman

Question 5

What does Friedman argue about CSR?

Answer 5

That it is not the Job of the company itself to serve social responsibilities but individuals may choose to help the community.

Question 6

What is Friedmans Quote about CSR?

Answer 6

“the is one and only one social responsibility of business - to use its resources and engage in activities designed to increase profits so long as it stays within the rules of the game”

Question 7

What is Socialism?

Answer 7

A political theory which argues that the means of production should be owned or regulated a community as a whole.

Question 8

What does Adam smith say as a counter to Friedman?

Answer 8

A pragmatic approach that suggests ‘Good ethics is good business’

Question 9

What else should motivate us to have CSR?

Answer 9

a Kantian sense of duty and a religious sense of responsibility is how we treat humans and the rest of creation.

Question 10

Example company who have embraced CSR?

Answer 10

Cadbury - built schools and parks for workers and families - believed it was their duty towards their workers. + fair-trade

Question 11

What index is used to measure a companies CSR?

Answer 11

FTSE4Good Index - An ESG Rating (environmental, social, Governance)

Question 12

What does Friedman mean by rules of the game?

Answer 12

As long as you are within the law you can do what you like.

Question 13

What is capitalism?

Answer 13

An economic system based on private ownership and free trade rather than government intervention.

Question 14

Who was Adam Smith?

Answer 14

one of the fathers of capitalism, retakes a softer approach than Friedman.

Question 15

What is Adam smiths approach?

Answer 15

‘Good ethics is good business’ - Smiths approach is essentially utilitarian. whilst in the short term overcharging and low wages are good they damage reputation which ultimately leads to less money - we therefore should do CSR out of self-interest.

Question 16

Adam Smith said that primary focus is to make money - what was his first idea to illustrate this?

Answer 16

The law of supply and Demand: How much a business charges or how much it pays its workers is linked to how many workers are needed.

Question 17

dam Smith said that primary focus is to make money - what was his Second idea to illustrate this?

Answer 17

The division of Labour - Makes factory production more efficient - conveyer belt type system.

Question 18

What would Kant say on Good business Vs. Good ethics? what example does he use?

Answer 18

Our ethical duty is more important than good business - Shopkeeper who always charges others fairly because he knows this is good for business. - this is still not good enough because it is a hypothetical - acting in his own self interest. - it is only if he charges people fairly our of duty that is is a good action.

Question 19

How does Solomons support Kant?

Answer 19

Not possible to divide business from the rest of life. too often business lives bear no relation to their lives outside of business. - this should not be the case.

Question 20

What is whistleblowing?

Answer 20

When an employee acts in the public interest to let the employer or the public to wrongdoing with the organisation.

Question 21

What are the two types of whistleblowing?

Answer 21

Private and Public

Question 22

What is Private whistleblowing?

Answer 22

Raises concerns internally. Example - Black teacher is written a warning for having spoken to a student inappropriately. becomes aware that a white colleague who is a senior received no punishment for a similar offence. the Black colleague goes to the governors as a case of racial discrimination.

Question 23

What is public Whistleblowing?

Answer 23

raises concerns outside of the organisation in question - alerting the media. Example of this was Edward Snowden who blew the whistle on The NSA (National Security Agency) and leaked evidence of global surveillance programs and then fled to Russia.

Question 24

Why might someone Whistleblow?

Answer 24

1.Breach of company rules
2.illegal activity
3.Danger to the public
4.Discrimination
5.Bullying/harassment of employees

Question 25

What is the cost of Whistleblowing?

Answer 25

It takes a massive risk - whilst there are laws in place to protect whistleblowers including anonymous procedures in some companies. In reality they can face retaliation from colleagues or even legal action (Edward Snowden Example)

Question 26

What happened in 2015 for whistleblowing statistics?

Answer 26

'freedom to speak out' report into the NHS whistleblowing found that 30% of whistleblowers felt unsafe and some had contemplated suicide.

Question 27

Ethics concerning whistleblowing - Takes CSR Seriously

Answer 27

By allowing whistleblowing the company takes their CSR seriously. they know that there may be consequences for ethical wrong doing.

Question 28

Ethics concerning whistleblowing - Employee integrity

Answer 28

Increases the chance of employees acting badly because there is more of risk of being caught.

Question 29

Ethics concerning whistleblowing - Sometimes loyalty is better

Answer 29

Example of Edward Snowden revelations were so controversial.

Question 30

Ethics concerning whistleblowing - What would Kant say?

Answer 30

One must carry out duty to employer but sometimes this is overidden by a bigger duty to our fellow human beings.

Question 31

Ethics concerning whistleblowing - What would a utilitarian say?

Answer 31

a calculation must be made about the greater good or harm that may come from choosing to speak out or to remain silent.

Question 32

What is Globalisation?

Answer 32

The integration of economies, industries, markets, culture and policy making around the world.

Question 33

Benefits of Globalisation - Technology

Answer 33

We can communicate with all manner of people in various locations immediately.

Question 34

Benefits of Globalisation - Open to trade

Answer 34

most countries are open to trade with very few being self reliant (North Korea may the exception)

Question 35

Benefits of Globalisation - Culture

Answer 35

Culturally we are more connected. able to purchase the same brands wherever we are and able to enjoy worldwide food in our high streets.

Question 36

Effects of Globalisation - Larger companies

Answer 36

rise of multinational corporations with divisions in various countries

Question 37

Effects of Globalisation - increased competition

Answer 37

There is an increased competition in manufacturing and services - often cheaper to get things done in other countries

Question 38

Effects of Globalisation - Lower wages and loss of jobs

Answer 38

Wages are more in developed countries such as the US and UK so can be done cheaper abroad leading to Job loss

Question 39

Effects of Globalisation - Rise in Developing country economy

Answer 39

Countries in Africa and Asia have seen economical growth as they are competitive economically

Question 40

Effects of Globalisation - loss of culture

Answer 40

There is a lack of individual identity and national identity because of global brands are seen on every high street.

Question 41

Example of companies cutting corners to make cheap products?

Answer 41

Rana Plaza disaster in 2013

Question 42

How would a utilitarian view globalisation?

Answer 42

- benefits are that millions have been lifted out of poverty in countries such as china and a result of global trade. - but there is evidence that the gap between the rich and poor is getting wider - hard to calculate if globalisation is enough good to counter the individual suffering it causes.

Question 43

How would Kantian ethics respond to Globalisation?

Answer 43

- increases exploration which is using people as a means to an end. - loss of identity of developing countries and some business have more power than the country they are in - jobs in developed countries may be lost due to cheap labour elsewhere.

Question 44

issue of the environment and globalisation

Answer 44

there is little incentive for countries to care about the environment if the country next to them doesn't and therefore can have more business.

Question 45

Applying Utilitarianism to Business - Act (case-by-case) vs. Rule long-term impacts

Answer 45

Whilst an Act Utilitarianism would argue that it should be a case-by-case a rule Utilitarian would see the long-term benefits of a minimum wage or holiday entitlements and so would make a rule regardless of the individual case.

Question 46

Applying Utilitarianism to Business - flexibility of 'utility'

Answer 46

it is a flexible theory and weighs up the individual situations considering economic benefits of various options

Question 47

Applying Utilitarianism to Business - in favour of minimal state intervention

Answer 47

both mill and Bentham believed in freedom and minimal state intervention which fits with Adam smiths ideas of enlightened self-interest. We should be free to run businesses how we like but should be aware that good ethics is more likely to make profit.

Question 48

Applying Utilitarianism to Business - when applying to whistleblowing

Answer 48

believe they should make the decision based on risks and benefits for all concerned.

Question 49

Applying Utilitarianism to Business - Assumption of happiness for the majority in globalisation

Answer 49

The utilitarian could support globalisation pointing to the economical growth as a result of increased trade. However, this support is on the assumption that economic benefit would be enjoyed by the majority.

Question 50

Case study - Volkswagen emissions utilitarian response

Answer 50

in 2014 - Vw found to have planted device that changed the emissions output on car when it was being tested. The utilitarian would weigh up the options if the device remained undetected then profits would be increased. However if, as actually happened, the deception was discovered, the cost of replacing cars, and paying fines and reputation damage would count against such an action.

Question 51

Assessing utilitarianism on Business - Freedom

Answer 51

Leaves businesses free to consider situations for themselves and do what they calculate to be right.

Question 52

Assessing utilitarianism on Business - flourishing individuals

Answer 52

can be argued that society flourishes best when lots of individuals flourish. this requires a variety of possible options rather than having strict rules imposed by government.

Question 53

Assessing utilitarianism on Business - Depersonalises issues

Answer 53

Enables us to look logically rather than becoming emotionally attached. However can also lead to profit and numbers to be considered more than people and their rights. - Idea of human rights is "nonsense of stilts"

Question 54

Assessing utilitarianism on Business - difficult to be objective

Answer 54

One criticism is that it is more difficult to be objective when weighing up the right course of action. we often see situations differently depending on view point.

Question 55

Applying Kantian ethics to Business - duty above all else

Answer 55

We should always do our duty no matter the consequences which includes the loss of profit. - shopkeeper example.

Question 56

Applying Kantian ethics to Business - implication on the employees

Answer 56

challenges the widespread culture of over-claiming on expenses or using company items for personal business. they have a duty of honesty to their employers and we cannot universalise dishonesty.

Question 57

Applying Kantian ethics to Business - People cannot be used as means to an end

Answer 57

this protects human rights and workplace rights for both the employees and consumers. Can also be argued that excessive or intrusive monitoring of workers would be morally wrong.

Question 58

Case study to support Kantian ethics on business - intrusive monitoring

Answer 58

Sports Direct -2016 following an investigation by a whistleblower, MPs criticised Sports direct for disciplining workers for being off sick, were times on toilet breaks and made to queue unpaid to be body searched. MPs stated that employees were being treated like commodities.

Question 59

Applying Kantian ethics to Business - approach to whistleblowing

Answer 59

whilst supportive in the case of significant ethical concerns. they have a duty to their employer.

Question 60

Assessing Kantian ethics on Business - puts people over profits

Answer 60

Whilst this is good because people are important. it is debatable whether it is always realistic to ignore profits.

Question 61

Assessing Kantian ethics on Business - universal law is unhelpful

Answer 61

Businesses make specific decisions in specific situations they cannot be governed by rules which must apply all the time.

Question 62

Assessing Kantian ethics on Business - Focus on motive is hard to prove

Answer 62

Kantian ethics focuses on doing the right thing because It is the right thing not for gain but this is hard to assess as we cannot know what someone is thinking.

Question 63

Assessing Kantian ethics on Business - conflicting duties for all stakeholders

Answer 63

The idea of duties to all various stakeholders is fine in theory. but in practice may lead to conflicting duties - we cannot satisfy everyone. Friedman's idea of profit is at least clearer.