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Ethics > ✅Business Ethics > Flashcards

✅Business Ethics Flashcards

1
Q

What is capitalism

A

An economical and political system, countries trade are controlled by private owners for profit

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2
Q

What is a consumer

A

Person who purchased goods and services for a personal use

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3
Q

What is consumerism

A

Protection or promotion of interests of consumers

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4
Q

What are consumer rights?

A

Rights to safety and to be informed and protected from false claims

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5
Q

What’s is CSR

A

Corporate social responsibility, belief that an organisation has thick responsibility both in its own conducts and to wider community

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6
Q

What is extrinsic ethics

A

Outside factors which give company moral goods

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7
Q

What is a shareholder

A

An owner of shares in a company

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8
Q

What is a stakeholder

A

Any individual affected by activities of an organisation- including suppliers and customers

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9
Q

What is social responsibility

A

Businesses should balance profit making activities to benefit society

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10
Q

What are sweatshops

A

A factory in the clothing industry where manual employers work at low wages for long hours

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11
Q

What is a whistle blower?

A

Occurs when member of organisation reports a misconduct by superior or co worker

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12
Q

“ a business that makes nothing but money is a poor kind of business “

A

Henry ford

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13
Q

When was the ford pinto case?

A

1970

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14
Q

What was the ford pinto case

A

Serious design flaw discovered in the crash tests of the ford pinto. When crash at 20mph, was likely to rupture and explode. Would have to change and cosy 11 euros per car.
To change all the cars it would cost 137.5 million, and the benefits from the acconsenta sig as deaths, injury and burned vehicles would cost 49.5 million.
They were aware they were putting lives at risk, even though they weren’t breaking the law.
Cheaper option

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15
Q

What does dame Anita Roddick say?

A

“Being good is good business”

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16
Q

What was Milton Friedman’s idea?

A

Corporate social responsibility.
Businesses should have a social responsibility to improve workers lives and help the community. This is socialism .
Argued this made capitalism less effective and restricted rights of individuals

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17
Q

What are the strengths of Milton Friedman ?

A

Main focus of a business should be to make profit.without profit, a business cannot survive

Friedman’s theory does promote social responsibility to society.

The increase of profits in a company benefits the economy which benefits the citizens of that economy

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18
Q

Issues with Friedman’s view

A

He also thinks that social responsibility should not be forced by the government

However, companies can still be successful while pursuing several different methods of social responsibility at the same time.

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19
Q

What dutydoes the shareholders have?

A

Key priority of a business should be to make profit, people who invest money into the successful of a business. More successful: more return on your money

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20
Q

What is the duty of the stakeholders

A

A business must monitor and ensure it complies not only with the law but with accepted ethical standards aswell.

The wider needs of employees, consumers and the community should be considered

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21
Q

What are internal stakeholders

A

Groups within a business.

Owners, managers, workers, suppliers, lenders

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22
Q

What are external stakeholders

A

Groups outside a business.

Customers, community, local environment

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23
Q

what is the relationship between the business and the consumers?

A

consumers want to see social responsibility from the businesses it buys from. the consumer rights are quality, safety, price, and good customer service.

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24
Q

what is the difference between employees and employers?

A

employers want to plan for the future, make profits and keep employees motivated.
employees want the best working conditions and job security.

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25
Q

what are whistle blowers?

A

someone who risks their livelihood to tell the truth about companies and make businesses accountable of their actions.
they are protected by the law, and are treated as witnesses to the crimes or can choose to give the information anomalously.

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26
Q

who is karen silkwood?

A

a whistle bower in 1974

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27
Q

what happened to karen silkwood?

A

died mysteriously in a car accident in 1974. she was a chemical technician at the Kerr-McGee fuels production. she was an activist and silkwood testified to the atomic energy commission that she has found serious violations of health and safety regulations. including spills, faulty fuel rods and enough missing platinum to make multiple nuclear weapons. during the week prior to her death, silkwood was resportedly gathering evidence for the Union to support her claim that Ker-McGee was negligent in maintaining plant safety.

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28
Q

what is globalisation?

A

companies which become world wide. integrating industries, economies, markets, cultures, and policy making around the world.

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29
Q

why is the process of globalisation speeding up?

A

technologies are changing, transport is cheaper and faster, removal of capital exchange controls, consumer tastes have changed, UK gets year round food and produce because of globalisation.

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30
Q

what are the benefits of gloabalisation?

A

gives jobs
trains local people to have new skills
consumers are happy with cheaper clothes
consumers can buy products they enjoy all year around.

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31
Q

What are the disadvantages of globalisation?

A

Global companies taking trade from smaller businesses.
Keep poop communities poor and big companies rich- capitalism
Take jobs away from countries with stricter human rights acts
Deforestation and pollution
Child labour

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32
Q

What happened in 2013?

A

In Bangladesh, a factory collapsed, with shops such a Primark and Walmart clothing.
110 people died and 250 were injured in the building called Rana plaza.
A day before the collapse, the shops on the ground floor of the 80 story building shut due to cracks in the walls,
The garment workers were ordered to return to work.

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33
Q

What are the seven principles for good business according to cardinal Vincent Nichols 2012

A

Human dignity
Common good
Solidarity
Subsidiarity
Fraternity- fellowship towards different culture
Reciprocity - giving everyone what is due
Sustainability

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34
Q

What does kantian ethics think about business?

A

Whistle blowing is important due to honesty and promise keeping
But what bout promises they made to the employer to the company?
Globalisation- using construes with fewer human rights act as a means of cheap labour is a means to an end.
Kant promotes importance of equality
Also opposed to slavery

35
Q

What did William temple say in “ Christianity and social order”?

A

Develops kants second formulation,
act always for the good of persons.
The purpose of production is consumption. Manipulating the market to create shortages to maximise profit is immoral.
To use buyers as a means for profit is wrong

36
Q

What does utilitarianism think about business?

A

Might resist whistleblowing, depending on how much harm was done in the case,
Weigh us balance of good and harm
Globalisation, western gods produce at lowest ossicle price, greatest happiness for greatest number (Bentham rejects this)
Singer- a modern utilitarian argues we should focus on minimising pain rather than maximising pleasure.

37
Q

What does good ethics is good business mean?

A

1- good ethics is necessary for good business
2- any given business will do better if it is run ethically.
3-good ethics generally correlates with good business.

38
Q

What is the stakeholders invisible land?

A

Stakeholder benefits within CSR etc

39
Q

Where did the phase invisible hand originate from

A

The Wealth of Nations

“Led by an invisible hand to promote an end whic was no part of his intention”

40
Q

What does it mean “from greed to good”

A

Became a mantra in 1980, when a move aggressive form of capitalism began. Rejected the idea that ethics and business didn’t go together.
Greed is “the essence of evolutionary spirit”
Competitive economy is more efficient one as it leads to riding of prosperity,

41
Q

Why isn’t ethics good business good enough?

A

1987 stock market crash,
Competitive markets were all society needed and it no longer seemed credible.
Environmental concerns rose, due to the hole in the ozone layer,
Public awareness of social and environmental impact of consumption increases,
Cheap goods made in sweat shops put pressure on businesses.

42
Q

What is good for business about ethics?

A

Good ethics leads to intrinsic rewards for a business.
Danger businesses respond to what customers perceive as important.
Eg, plastic beads die to environmental concerns,

43
Q

Who believed that good ethics led to reward in a business?

A

Groucho Marx,

“Sincerity. If you can take that you’ve got it made”

44
Q

Why is good ethics necessary for good business?

A

Good business require good ethics, it’s not possible to have a good business to be unethical. Never any conflict if ethical.
Any business which seems successful but is acting unethical is unsustainable, and the business will gain eventually.

45
Q

What is Friedman’s thesis?

A

“There is one, and only one social responsibility of business. To use its resources and engage in activities designed to increase or fit so long as it stays within the rules of the game, which is to say, engages in open and free competitive without deception or fraud”

46
Q

What is Friedman’s justification for the shareholder theory?

A

Removes social responsibilities that the rest of us have, and replaces them with a single requirement to increase profit.

Focuses on the role of CEO. Do what you have to do.

47
Q

What are the 3 parts of Friedman’s theory?

A

If the CEO were to be obligated by responsibilities behind increasing profit he would be forced to act in ways that went against employers wishes

CEO is hired due to skills. Those skills are to run a profitable business. Not hired for abilities to address social responsibilities

People with expertise to address social issues are civil servings, people who are hired to respond to social responsibilities. Leader of business should stick to his job and leave the other teases to appropriate parties.

48
Q

What is freeman’s thesis?

A

The basic idea is that businesses actually do and should create value for customers, suppliers, employees, communities and financiers.

49
Q

What is freeman’s theory called?

A

Stakeholder theory,

50
Q

What does the stakeholder theory replace the word PROFIT with?

A

The word value.
Profit is a measure in money, value can be measure in all sorts of ways,
We are here to create value for various groups that freeman’s mentions.

51
Q

What is the main difference between Friedman and freeman theory?

A

Friedman is interested in stockholders and shareholders.

Freeman is interested in stakeholders.

52
Q

Why can’t a business exist in a vacuum?

A

Requires there to be investors, customers, employers, suppliers, and a community enthusiast which they all thrive. If ANY of these groups are absent, the business cannot be successful,

53
Q

What is the separation fallacy?

A

Claim that the statement “x is a business decision” has not ethical content,
When we make a statement if that sort, we are making a claim that needs not be analysed in the light of ethical concern.

54
Q

What is the open question argument in freeman’s theory?

A

There are several questions that are always open:

If this decision is made for whom is value created and destroyed ?
Who is harmed or benefitted by this decision?
Whose rights are recognised or infringed by this decision?
What kind of person will I become if I make this decision?

55
Q

What is the responsibility principle in freeman’s theory ?

A

Applies to people managing a business in the same way it applies to everyone. The principle is one that is basic to ethics,
“Most Poeple, most of the time, want to, actually do, and should accept responsibility for the effects of their actions on others”

56
Q

CASE STUDY

McDonald’s

A

Damaging the environment:
Forests throughout world are destroyed. Forced to admit to using beef reared on ex-rainforest land. Suppliers force local people to move on to other areas and cut further trees down

Largest user of beef in the world. Methane emitted.
Heavy chemical in modern agriculture destroys wildlife.
Use unnecessary plastic every year and paper production,

Cruelty to animals:
Based on torture and murder of millions of animals. Intensively farmed with no access to fresh air.

57
Q

CASE STUDY

co-operative

A

Ethical plans:
2011 launched groundbreaking new plan with one clear goal- to be the most socially responsible business in the UK.

Protecting the environment:
40% reduction since 2006 in greenhouse gas emissions. 50% by 2020.
Construct a head office by 2013 that will set new standards in sustainable design,.

Reduce environmental impact further 15% by the end of 2013 and increase our carrier bag reduction by 75%,

Ban pesticides by end of 2014.
UK leading retailer on forest protection
Plan Bee campaign which seeks to address decline of bees,

58
Q

CASE STUDY

Body shop

A

Environment:
Committed to help. Reducing energy they consume, generating less waste and carbon dioxide emissions, energy consumption, waste and water consumption by 50%.
Animal cruelty free

59
Q

CASE STUDY

Coca Cola

A

Wide spread concerns on water production, traces of harmful pesticides in India.
Aquafers drying up and forcing farmers to relocate.
Factories where issues of water shortages are,
Plachimada- severe water short, destroyed farms and drained,

60
Q

CASE STUDY

Marks and Spencer’s

A

Launched plan A to aid sustainability and become worlds most sustainable major retailer. Set goals to achieve by a certain year. 2007 set out 200 commitments to achieve in 5 years,
First to have prices on plastic bags, before global law was set.

61
Q

CASE STUDY

Nike

A

Use of greenhouse gases, sweatshop labour. Factories in Asia.
Pockets of harmful air in the sole of shoes.

Forgiven, recognised reality and perfected the right way on going production,
14 years and 10 million dollars to find another eg it make shoes. Didn’t advertise the problem.

62
Q

What does CSR involve?

A

Conducting businesses in an ethical way
Responding positively to emerging societal priorities
Willingness to act ahead of regularity confrontation
Balancing shareholder interests against the interests of the wider community
Being a good citizen.

63
Q

What are the 4 parts of CSR

A

Economical- earn profit owners
Legal- comply with law
Ethical- not acting just for profit
Voluntary and philanthropic - promoting human welfare

64
Q

How do you measure CSR?

A

Triple bottom line:
Record the profit. Reviews performance on social performance and environmental performance.

Social audits:
Business can measure ins progress when it is committed to acting responsibility towards all its stakeholders.

65
Q

Trafigura

A

Guilty of exporting toxic waste, 2006. Injury of thousands of people in Ivory Coast,
Firm was fined 1million euros,

66
Q

Why does globalisation increase?

A 
Technological changes in communication
Transport is faster
Removal of capital exchange controls
Free trade
Consumer tastes have changes
Emerging markets in developing countries
67
Q

What is easier to do due to globalisation?

A 
Run a business in foreign countries 
Source raw materials from other counties 
Mark profit due to cheap labour 
Import and export goods from abroad
Support economy of other counties
68
Q

What are the impacts of globalisation

A 
Large multi natural companies 
Exploration 
Ledcs cannot stand on their own
Increase in labour 
Lead to unemployment  
Goods can now be brought everywhere. Not totally fair 
May increase pollution 
Opportunities in rich counties drives talent away 
Global drug trade etc
69
Q

Who is roger boisjoly?

A

Challenger disaster, he conducted a post flight analysis on the rocket boosters for NASA discovery. Exhibited signs of failed O-ring, which occurs when ignited fuel leaks.
Alarmed, he wrote to his boss RK Lund.
Challenger was rescheduled for launch, with a member of the public, the school teacher, on board.
All overrode the judgement of the engineers and 73 seconds after launch, the rocket exploded with the loss of the whole crew.

Boisjoly was criticises by Congress and the press. For being disloyal employees. He was intentionally isolated from NASA and he felt a psychological strain and eventually took sick leave and resigned.

70
Q

What is the expectation of loyalty with a whistle blower?

A

Prime facile duty of loyalty towards one employers and coworkers. Paid to do their best.

71
Q

What is the complicity theory?

A

Michael Davis though of 2 approaches. The standard theory and the complicity theory

72
Q

What is the standard theory?

A

Organisation to which the would-be whistler belongs to, through its product do serious harm.
Would be whistle blower identified the threat and reported it immediately
Would be whistle blower exhausted other internal procedures within organisation,
Morally required to reveal threat if nothing is done about it,

73
Q

What is the complicity theory?

A

What you reveal derived from your work for an organisation
You are a voluntary member of that organisation
You believe that the organisation is engaged in serious moral wrongdoing
Believe that your work for the organisation will contribute to the wrong
Justified in beliefs

74
Q

UT opinion on risk assessments

A

Hedonic calculus.

75
Q

UT opinion on environmental destruction

A

Teleological and consequentialist appreach,

76
Q

UT opinion on pollution 0

A

Everyone counts for one.

77
Q

UT opinion on human rights

A

Qualitative, higher pleasure, happiness

78
Q

UT opinion on whistle blowing

A

Principle of utility

79
Q

Kant opinion on risk assessment

A

Categorical imperative, ends in themselves

80
Q

Kant opinion on environmental destruction

A

Categorical imperative, universalisation

81
Q

Kant opinion on pollution

A

Contradiction of the will

82
Q

Kant opinion on human rights

A

Categorical imperative, kingdoms of ends

83
Q

Kant opinion on whistle blowing

A

Duty

Ethics (9 decks)

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