Business ethics Flashcards

1
Q

What is Business ethics?

A

Examines how people and institutions should behave in the world of commerce e.g. appropriate limits in self interest or profits or firms and when the actions of individuals or firms affect others.
Companies may publish codes codes of conduct for the corporation or individuals which may include responsibilities towards the environment and developing world created by globalisation of markets and free trade between countries.

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2
Q

How can a business be unethical?

A

If it ignores the unethical practises by its suppliers like child and forced labour, production in sweatshops or dangerous environments, violation of the basic rights of workers, ignoring health, safety and environmental standards. Ethical businesses are concerned with the behaviour of all businesses in the supply chain: suppliers, contractors, distributors and sale agents.

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3
Q

What did Adam Smith think about business ( Scottish philosopher and economist)?

A

The relationship between employers and employees is symbiotic based on need, need of employers for labourers and need for employees for work. Business allows society to prosper and the employers serve the needs of their employees alongside making profit.
Every individual is always trying to find out the most advantageous employment for whatever capital can command, he naturally prefers employment most advantageous to the society.
Man is always seeking profit e.g. only gives capital in support of industry he thinks will come to have a high value or to gain money or other goods.

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4
Q

What was his invisible hand theory?

A

The invisible hand connotes the self regulating behaviour of the business marketplace, businesses often have little control on what happens in the market place and are led by the invisible hand.
You can’t see it, just how the business as a concept operates - e.g. if there are shortages in the marketplace, the invisible hand is a metaphor for the price mechanism that increases prices to accommodate for the shortages
Some businesses like large supermarket chains discuss the lowest prices of other companies and attempt to match them, which leads to illegal control of the market..

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5
Q

Who drives the market according to Smith?

A

The consumer is a win win situation. we desire fair prices and good quality, which rewards good quality and fairly priced businesses. ‘win win’ = utilitarian.
Ethical egotism, self interest isn’t for selfishness, because by putting your company first you can help serve the common good of others. To maintain flourishing company, businessman products would have to be in demand, well made and competitively priced,. Created jobs and helping expand general economy, profiting industry.

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6
Q

What policy should the government take?

A

A hand off policy and allow private citizens economic freedom, which could establish the growth of a nation’s wealth.

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7
Q

What did Milton Friedman ( an American economist, wrote Capitalism and freedom) think about business?

A

The purpose of business is to maximise its profits, business can’t survive unless it carries out activities with increased profits.Companies have a duty to only their shareholders, society shoudl set the other ethical rules.

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8
Q

What did Ted Synder( professor of economic and management at Yate school of management) think about business?

A

Supported Friedman profit most important, but business have some social responsibility towards their employers and stakeholders secondary to making profit. by moving business outlets to less developed countries benefits the workers in those countries more than those in the western nations.

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9
Q

What did Karl Marx think?

A
Disputed Smith's description of the relationship between employer and employee as being based on need, in a capitalist business model founded on profit competition the proletariat reliant on the bourgeoisie for work are trapped without tools under the bourgeoisie,
Came up with Marxism: all human societies progress through class struggle, between an ownership class that controls production and a dispossessed labouring class that provides the labour for production.
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10
Q

What was his theory of surplus values?

A

Wrote about it in his book Das Kapital.
Objected to capitalistic system that was grossly unfair to the worker.
Theory of surplus values - intricate relationship between the worker and his product and the employer and his profit.
The worker only received as salary only a small part of the value of the good produced, The difference between the cost of labour and the price at which a product was sold led to the employer’s profit. “surplus value” all the money the employer maid after paying the worker.
E.G. A pair of shoes may cost a consumer £100, the worker may have been paid £10 to make them, earning £90 for the employer, this £90 is the surplus value. Implied whatever profits the capitalist class employers gained was stolen from the workers.
The means of production and exchange should be given to the workers not the capitalists, working class would be producing and exchanging good for itself collectively so no problem of surplus value.

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11
Q

Does ethical behaviour benefit business?

A

Yes: Business gains revenue due to greater demand form supportive and content consumers. Improved local,national international awareness due to positive reputation.
Better staff morale and recruitment.
New sources of investment as a larger number of sources will contract the company.
No: Higher costs e.g. sourcing fair trade. Higher overheads e.g. staff training costs and communication with public about ethical practise.
Danger of building up false expectations and people thinking the business is ethical in every aspect.

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12
Q

Is ethical living possible?

A

Keith Tondeur - people can become more ethical in how they live, especially how they relate to money and services.
You could do this by: Modelling yourself on good people.
Live more singly - use public transport, recycle and grow your own produce.
Invest directly and with organisation with a good ethical reputation.
find out more about affairs and LEDCS.
Use your influence e.g. write to maps.
Carefully chose the companies you buy from.
Problems: as consumers can we always buy fair trade products? Can we really find out about the background of business we deal with?

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13
Q

What are examples of ethical businesses?

A

After being labelled as unethical gap has been named 2015 world’s most ethical company by the ethisphere institute for the ninth consecutive year. “ We value and strive for ethical behaviour and responsible practise in every role and function at gap inc.”
Body Shop - set up by Anita Roddick, became a great success in the mid 1980s following a change in how beauty products were tested looking for alternative ways.
The cooperative bank - The coop launched its ethical policy in 1992, allowing for customers to have their say on issues that matter to them like human rights, animal welfare, fair trade and the environment. Withheld £1.2 billion of funding from business activities that its customers said are unethical, increased commercial lending to ethical business to almost £9 billion.

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14
Q

What are examples of unethical business?

A

Apple - criticised for being highly unethical e.g. In China reported China rely on child labour 24 hour days and unsafe conditions. Just starting to become more ethical, launching investigations and dropping factories unethical.
Ford Pinto - the design and production of these cars was rushed to sell the car for under $2000 meaning a fault, correcting this would mean recalling all the cars. Ford thus decided to pay out lawsuit instead for injuries and deaths caused by the fault.
Primark - use of child labour outed in BBC documentary 2008, halted all bsuienss with those suppliers cancelling orders.
Since 2008 new ethical code and appointed ethical trade director.

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15
Q

What are the legal requirements and power of the consumer?

A

Businesses have a requirement to ensure safety of products. If somebody gets hurt it will be the responsibility of the company. As a consumer if you don’t buy a companies product they won’t make profits.

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16
Q

What do employees want?

A

An engaging job in a safe environment.
Good pay and benefits.
Long term contract with protection is case of redundancy.
To be consulted on changes to the business.
Training to develop skills.
Possibility of promotion.
Secure pension.

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17
Q

What do employers want?

A

Satisfied customer who return.
High sales with low cost.
Retain quality.
Competitive prices.
Well trained and motivated workers.
Investors who gain a good return on their investment.
The business surviving in bad times and growing in good times.

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18
Q

Do employers have an obligation to their employees?

A

For relationship between them to be successful there must be a balance of interests: the employer wants to plan for the future of the business, make profits and keep employees motivated, the employee wants the best possible conditions and living standards. Unhappy employees means a high turnover in poor time keeping and absenteeism, reducing profits,
In the stakeholder theory generally accepted employees is most undervalued.

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19
Q

What is the policy in the UK?

A

An employee has the right to be safe at work, earn at least a minimum wage and have a certain amount of holiday not evident in every country. Companies like John Lewis give their employees a state of ownership in the company and each receive a share of profits at the end of year.
Valuing employees has a positive effect on their well being and well being of the company as employees more likely to stay longer and work harder. Fair wage should be provided although reducing profit margin.

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20
Q

Why does Josephson think there is a moral obligation between employer and employee?

A

Mutually dependent and the impact of the actions has a great impact on the people involved.
Employees and employers should be treated with respect and build relationships of trust and loyalty.
Employees should be treated respectfully to pay them fairly and provided good working conditions, shouldn’t be treated as a means to an end.
Big changes should be treated with carting and sensitivity, the employee should be of genuine concern to the employer. They shouldn’t be mistreated or abused. The concept of profit and employee’s welfare should be on equal footing.
Exploitation and abuse can’t be abused, people above profit, duty to ensure moral obligations kept.

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21
Q

What the reasons for and against whistleblowing?

A

Prevents harm to consumers or producers, Can offer legal protection. However can destroy business’ reputation. people will lose their jobs as a result of the business dealing.

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22
Q

What are examples of whistleblowing?

A

CIA agent went to different company and sold articles to journalists. Leaked to the media details of extensive internet and phone survelliance by American intelligence violating espionage act. Revealed thousands of NSA documents to journalists.
Flew to Moscow for asylum.
“ We are stateless, imprisoned or powerless.” Argued trying to protect constitution.
Jeffrey Wigard - Exposed company for which he was vice president of Brown and Williamson on a CBC news programme 60 minutes and stated they had intentionally manipulated tobacco belnd to increase nicotine levels. Claimed he was then harassed and death threats, 1999 film the insider.. Fired 1993, syas fired as he knew that high ranking corporate executives knowingly approved the addictive to their cigarettes that were known to be carcinogenic and addictive.

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23
Q

What is globalisation?

A

The process of increasing connections between people, companies and countries around the world.
Key feature = growth of huge corporations that dominate markets. Rapid developments in IT have enabled companies to operate across the world more easily, buy a mcdonald’s or coca cola in Chile, Croatia, France., South Korea, Singapore, Thailand, Austria etc.

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24
Q

Why has globalisation happened?

A

Technological change especially in communications tech, internet.
Transport is faster and cheaper.
Increase in privation, no longer in the hands of the people, no longer funded by the government gaining profit, countries able to own businesses in other countries.
Removal of capital exchange controls - money can now be moved easily form 1 country to another.
Free trade - trade barriers, remove of many by groupings like the EU.
Consumer tastes have changed, people more willing to try foreign products.

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25
Q

What are the benefits of globalisation?

A

Diversity.
Cheap rpodcuts.
More jobs i less developed countries.
Links between countries and businessses.
Blanace, a company has to work in teh world as it is, bnot as oit ideally ought to be.
“ a lousy job is better than none at all” National centre for policy analysis.

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26
Q

What are the negatives of globalisation?

A

Loss of culture - Americanisation.
Open to exploitation.
Injustice especially in poorer countries. Low wages and long hours.
Job loss in developed countries, outsourcing.
Trade between countries not nescessarily ffair.
In Bangladesh gvmts have limited funds to deal with pollution.
Safety standards ,may not be upheld often with disastrous results like Bhopal disaster 1984.

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27
Q

What groups are there that are anti globalisation?

A

Amnesty international campaigns for a global huamn rights framework for business based on the Un norms for business.
The world council of churches campaigns for responsible lending and unconditional debt cancellation.
No sweat campaign against sweatshops, fights for well being and protection of sweatshop labourers.

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28
Q

Do businesses have a responsibility to the environment?

A

All businesses emit pollution, produce waste and use resources.
Anglo American Mining company - heavily involved in mining and quarrying. - 3 positive effects: In the areas where the mine is located, it carriers out its operations with care and improve lives of local people e.g. minimising noise and pollution.
In the area immediately surrounding the mine active in conservation and improvement.
In the wider region around the mine, it contributes financially to local communities and helps generate new businesses.
E.g. in Tarmac’s Langford quarry planted reed beds and streams and ponds surrounding the quarry, reed beds are an endangered habitat and local people worked with Tarmac to plant the first 10,000 reeds.
Supermarkets green credentials important, concerns about food miles, plastic and packaging growing. Responding to consumer preferences, helping the environment, profitability and corporate social responsibility go together.

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29
Q

What are the advantages of business being ethical?

A

Better image globally. Appeals to consumers, better profit margins.
By being ethical, expensive and embarrassing public relations disaster avoided.
Better employee motivations as can be proud of their jobs working in a sustainable.
Higher revenues,, demand from positive consumer support.
Improved brand and business awareness and recognition.
Better employee motivation and recruitment, new sources of finances form ethical investors.

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30
Q

What are the disadvantages of business being ethical?

A

Expensive e..g higher wages to employees.
If the business really wants to be ethical they will have to change all the suppliers in the chain to reach the standard, which can be timely, costly and hard if you struggle to find ethical suppliers that fits in with factors like cost and location.

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31
Q

What is the relationship between business and consumers?

A

Consumers may be against: Businesses they see as unethical e.g. animal fur, business acting unresponsibly, business using unacceptable business practise.
Consumer action can support businesses with a good ethical stance and record e.g. fairtrade.

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32
Q

What are the stakeholders in a business/

A

Internal - managers, employers and shareholders and external - local community, customers, suppliers, local authorities, government, other countries.
E,g, existence of a Tesco shop ,may mean local shopkeepers do better if more people visit or worse if business taken away. Stake in the future.
Any business is accountable to its shareholders and ethically responsible.
Stakeholder theory suggests the interests of all the stakeholders should be considered in any decision.
Stakeholder - shareholders, business needs to generate profits and pay dividends.
Customers - provide good quality products at reasonable prices safety, honesty, decency and truthfulness.
Employees - health and safety at work, security and fair pay.
Suppliers - pay on time, pay fair rates fir work done, security.
Local community - provide employment, safe working environment, minimise pollution and negative externalities.
Government - business abide by the law, pa taxes, regulations.
Management - arms vs those of the organisation as a whole considered.
Environment - limit pollution, congestion, environmental degradation and development etc.

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33
Q

What did Friedman argue?

A

An american economists argued that companies have a duty only to their shareholders to increase profits it is for society to set the other ethical rules.

34
Q

What has happened with business and environment/

A

Natural consequences of the growth of business and industry is damage, habitat destroyed as factories are built.
Growth leads to energy demands and the building of more power stations, meaning huge pollution.
In 1850 in Sheffield the World’s steel manufacturing industry capital sun was never seen,pollution all year round.
Devastation of the environment in the west during the industrial revolution is repeated on a larger scale in emerging economies.
China has one of the World’s fastest growing economies, in 2010 more than 200 million Chinese people didn’t have access to clean drinking water due to pollution.
Some scholars think it is possible that the damage caused by industrial growth may not be long lasting as in Britain temporal damage to the environment.
A child born in Britain in America or France will consume, waste and pollute more in a lifetime than 5- children in developing nations.
1 billion people in developing countries will bear environmental damage as burn traditional fuels, use leaded petrol or live near factories and rubbish dumps.
Poverty of a nation may lead to the gvmt taking short cuts for the environment.

35
Q

What is the Kantian approach to business?

A

Duty all important and must be done through the good will. Don’t act out of emotion or look at consequences, de ontological absolute and objective.
Rejected making money for its own sake.
Shopkeepers - who doesn’t overcharge his customers, not so they would return to hum but out of duty that he should be honest.
For Kant duty to people far more important than profit, promise keeping applied to business to not keep duty contradiction of wills.
Categorical imperative - Kant reject the idea that a business’s main responsibility to its shareholders - treating humans the workers as a means to an end. E.g. Ford Pinto. You need to imagine yourself as a law making member in a kingdom of ends, so consider all stakeholders.
Reject espionage, we have a perfect duty not to spy on others. Spying is self contradictory, if everyone did no new ideas to steal. Whistle-blower consequence losing a job etc are irrelevant as if an employer is acting unethically, employee has a duty to expose them - Jeffery Wigand.
Emotions and consequences not considered.

36
Q

What is Kantian approach to consumers?

A

Can’t treat people as a means to an end. Businesses have a duty to customers.

37
Q

What is Kantian approach to employers and employees?

A

Can’t treat people as means to an end. Employers and employees have duties to each other and to themselves.

38
Q

What is Kantian approach to globalisation and the environment?

A

Making money for its own sake morally wrong, others see globalisation as first step to Kingdom of ends.
Rozpedowski - globalisation utilitarian not Kantian, unrealistic to expect a global economy to be any more or less ethical than any other type of economy.

39
Q

What is Kantian approach to whisteblowing?

A

Duty - morally good if information involves corruption or breaking the law.

40
Q

What is Kantian approach to ethical business?

A

Lying is wrong as goes against universability. Don’t treat people as only means to an end, fulfil obligations of duty.

41
Q

What are the strengths of this theory?

A

Clear cut.
Example of the shopkeeper, importance of placing people before profit and how this will enable a business to prosper - primark today.
All people treated equally and fairly.
Corporate social responsibility to all stakeholders, successful business work on this principle e.g. body shop better to look outwards.
Exploiting acts can’t be universalised - lying.
Treating people as ends in themselves would lead to a more ethical business world and arguably people should come before money.
Moral obligation to not be an exploitative or corrupt business, results in ethical business practises everyone considered.

42
Q

What are the weaknesses of this theory?

A

It may be hard to apply to modern business world that is often cut throat e..g globalisation, but can be beneficial e..g diversity.
Conflicting duties difficult as not allowed to look at emotions or consequences e..g the duty to shareholders to make a profit and duty of employees to treat employees well.
But modern Kantian ethics may solve - Ross prima facie duties, objective moral truths, obvious certain types of actions were right - duties of fidelity, reparation, gratitude, justice, beneficence, self improvement and non maleficence. Not absolute duties more in future, use our intuitions to make decisions and in cases of conflict weigh duties up, allowing for consideration of different situations in business - in some cases duty to whisteblow, other not as many lose their jobs. Theory flexible enough.

43
Q

What is the utiliatarian approach to business?

A

Principle of utility - gg4gn, teleological subjective.
The happiness of the majority considered, this could mean that isn’t enough to merely consider shareholders each shareholder’s happiness is worth no more or less than the happiness of each employee.
They are usually far more employees than shareholders, protect employees rights, ensuring fair pay, safe working conditions, sociable hours.
There could be more customers than employees, could potentially justify anything so the customers are kept happy with cheap goods,. Would allow bribery, slavery espionage etc if majority are happy - but Mill against as individual supreme guardian over their own body and opinions.

Energy company Enron lied about the state of their finances and shareholders lost $11 bill when they went bankrupt. Lying was wrong as it didn’t work, if it had it would seem to have say it was an ethical action. Preference utilitarian disagree, as being lied to go against the preferences of all shareholders.

44
Q

What does the Utilitarian approach rely on?

A

Good consequences from any action and these can be calculated not always accurately. Based on enlightened self interest of Adam smith - society functions well when individuals decided what is most useful in a situation and the invisible hand of the market means the wishes of others mist be considered or business will fail.
Useful for managers who try and take into account all the stakeholders’ interests and decide what is in the bets interest of the business.

45
Q

What is the Utilitarianism approach to consumers?

A

Bentham - all pleasures of consumers should be met as they are the biggest stakeholder and so a business should do what they want e.g. lower prices, consumer service etc.
Mill - consumer happiness is important but should not override pleasures of employees.
Preference - a mid point should be found between consumers’ material preferences and employees welfare preferences - ford pinto, sell them on ground compensation was cheaper.
Consumers happy with compensation, stakeholders happy although faulty cars might cause accidents.

46
Q

What is the Utilitarianism approach to globalisation?

A

Divides them as disagree over whether globalisation will maximise human happiness or welfare.
Bentham - benefits developing economies like china, maximal number of people will benefit s become factories of the world. Mill - forbid child/ slave labour.
Singer - intrinsic human worth prevents humans form being exploited.
Deforestation and environmental harm, destruction of marine life, mass tourism - Mill allow, Bentham and singer object.

47
Q

What is the Utilitarianism approach to whistleblowing?

A

Looks at maximisation of welfare that comes from revealing information. Benefit to society as a whole, Openness and accountability of all business is good for society. Produces pleasure for consumers, employees and the market.

48
Q

What is the Utilitarianism approach to ethical business?

A

Greatest good for the greatest number, but respect and human autonomy important also.

49
Q

What are the strengths of this approach?

A

Protects general welfare of the majority, which on the surface could lead to less exploitation, but no protection for the minority so employees rights could be considered irrelevant.
Flexible.
Looks at benefit to society as whole.

50
Q

What the weaknesses of this approach/

A

No protection for minority.
Used to support Friedman aim of business is profit, using whatever means necessary so long as desire result achieved.
Human life measured against profit!
Consequences not seen beforehand - Enron.
Allow theft and corruption if majority are happy.

51
Q

What is the NL approach to business?

A

Basis of theory which aims to assist everyone in fulfilling their purpose and primary precepts: education of the young, preservation of the innocent, ordered society, worshipping God, reproduction, guiding us in achieving this purpose and enabling us to live and flourish in society.
1 is ordered society, responsibility to the whole of society and upholding human rights are important, business need to be regulated so that they don’t mistreat employees.
Another primary precept is education, natural law against child labour as stops child fulfilling their God given purpose.
Preservation of life, absolutist stance on sanctity of life and not work for or invest in a business that benefited form experiments on embryos or businesses producing pornography, encouraged gambling etc.
Absolute, deonotlogical secondary precepts against all forms of exploitation and huamn rights abuse.

52
Q

What is the NL approach to consumers?

A

Grisez - corporate finance not virtuous, Aquians opposed to usury - the practise of making ethical or immoral momentary loans intended to enrich the lender as goes against primary precepts. Leads to exploitation of consumers which goes against harmonious society.

53
Q

What is the Utilitarianism approach to employers and employees?

A

Businesses should work in harmony like organs in a body. The end of a business is to produce profit an final end happiness. Must fulfil happiness of all constituent parts including staff and management.
Encyclical Rerum Novarum, Pope Leo XIII 1891 - closed letter to catholic priests that spoke about the condition of many working people, supports rights to join trade union.

54
Q

What is the Utilitarianism approach to globalisation and the environment?

A

Largely agrees as supports religious ideas of catholicity and ecumene - bringing together Christian ideas and the global world.

55
Q

What is the Utilitarianism approach to whistle-blowing?

A

Valasquez’ virtue of courage, compassion, fairness etc should be part of the policies of an ethical company.

56
Q

What is the Utilitarianism approach to Ethical business?

A

Examines business in terms of telos of virtue and eudaimonia, certain industries go against this telos if they exploit other e..g sex industry. God given natural rights protect workers and consumers.

57
Q

What are the strengths of this approach?

A

Prevents may forms of exploitiation people would find wrong e.g. child labour, outrage if factory collapses.
Deontological.
Human rights important. responsibility to whole society not just profit - better society.

58
Q

What are the weaknesses of this approach?

A

Relativism and localism challenge to universal moral precepts of natural law.
Supports the rights of all people, but absolutes not always helpful in specific situations like the salaries paid to different ranks of employees, employees in different countries with different living standards working for the same business.
Natural law can seem too rigid or general to help with day to day business decisions.

59
Q

What is the first type of business according to Aquinas( virtue ethics)?

A

Oikonomikos or household trading e..g where a farmer who has crops and trades some of these, e..g for clothes. Aristotle thought this sort of trading vital part of a eudaimon society, exchanging goods for money or service helps society function as a single person can’t be an expert in everything.

60
Q

What is the second type of business?

A

Chermatisike or trade for profit - Aristotle wholly devoid of virtue. True wealth is ‘ the stock of things that are useful in the community.’ Trade done just for profit not gaining any true wealth. Money only has value if you exchange it for something useful. If I come to a market with bread, I come with true wealth, if I exchange it for bread I leave with true wealth. If I come with money no true wealth. Exchange and leave with more but no true wealth.

61
Q

What is today’s’ business like?

A

Seems to have a ‘mission statement’ summary of their telos or purpose. Companies don’t state their purpose just as profit but to community local and worldwide, Eudaimonia for a community in ve more important than the individual. E.g. cooperative - members are customers and owners “ we work with members to tackle issues that are important to them. Membership is open to everyone as long as they share our values and principles.”

62
Q

What did Aristotle say about business?

A

Where people work is the polis where some out friendships are made, values are formed and where we seek to achieve eudaimonia. Our well being depends on h well being of the business ( polis) and that well being depends on virtues like honesty, fairness and concern for others. Wouldn’t’ agree with Friedman business solely for profit, profit necessary to help achieve the true purpose of the polis and eudaimonia of all the stakeholders.
Becoming a virtuous person involves following role models for the employer and the employee - Richard Branson, Erin Brockovich who exposed the toxic leaks of pacific gas in a USA town.

63
Q

What is the VE approach to consumers?

A

A virtuous business will treat its consumers with respect and honesty.

64
Q

What is the VE approach to employers and employees?

A

Valasquez executive of a company must have certain virtues; courage, honesty, compassion, fairness etc. manager of company very powerful and this power can be abused - virtuous boss make virtuous decisions.

65
Q

What is the VE approach to globalisation?

A

Are the aims and effects of globalisation virtuous?

66
Q

What is the VE approach to whistle-blowing?

A

Character traits of whistle blower, what type of person, strong sense of justice, honesty or integrity.

67
Q

What is the VE approach to ethical business?

A

Valasquez - compassion fainress etc policies of ethical company.

68
Q

What are the strengths of this theory?

A

Shows that business part of society and not separate from it.
Very fair approach.

69
Q

What are the weaknesses of this theory?

A

So many virtues hard to know which ones to develop as many that apply to business.
Some virtues like cooperation may be made to flourish at the expense of others like enterprise and competitive spirit.
Theoretically nice, but not pragmatic can’t truly expect most businesses not to focus on profit,
Danger of MacIntryre bureaucratic manager dominating, business not really concerned with ethics but with efficient, systems , profit and controlling resources will VE help in a global market?

70
Q

What is the religious ethics approach to business?

A

Bible teachings about fair treatment of others that can be applied to business - old testament laws about honesty and fairness in business and new testament how to treat others, sharing with the suffering and not gaining wealth for the sake of it.

71
Q

What is the protesant approach to business?

A

Wealth as a good thing and as stewards of the world should try to generate wealth by working to support out families,. Can be seen as supporting capitalism and a free market economy, but business people are encouraged to support the poor through charitable giving.

72
Q

What is the catholic approach to business?

A

Catholic tradition looks at the idea of the common good and has condemned selfish pursuit of wealth that ignores justice and needs of the poorer in society.

73
Q

What is the situation ethics approach to business?

A

Flexible approach to business ethics. Agape only absolute, a follower of SE would reject rules like ‘never spy on other companies’. Agape doesn’t mean doing everything possible to make a profit or be a successful business and means treating all the stakeholders in a business fairly.

74
Q

What is the RE approach to consumers?

A

Leviticus 19 “ You shall not cheat in measuring length, weight or quantity.”

75
Q

What is the RE approach to employers and employees?

A

Workers must be well treated “ you shall not keep for yourself the wages of a labourer until morning” - Leviticus.
Must not exploit workers to poverty - Amos, Hosea.

76
Q

What is the RE approach to Globalisation and environment?

A

Accumulation of wealth for its own sake immoral, but Christian talk about catholicity and ecumene, universal nature of the church. Breaking down global barriers is good, globalisation enhances sense of global family. Tool for ensuring God’s love applied in teh world e..g poverty relief.
Amartya Sen - hunger and starvation caused by lack of money, globalisation help against this. But multi national companies exploit their workers, globalisation exploits the poor and “destroys human communities and devastates the natural world.”

77
Q

What is the RE approach to whistleblowing?

A

Honesty key 10 commandments - thou shalt not bear false witness. Companies need to be honest if not employers need to be honest and whistle-blow.

78
Q

What is the RE approach to ethical business?

A

Truth and honesty. Love thy neighbour. Treat others as you would want to treated - golden rule of Jesus.

79
Q

What are the strengths of this theory?

A

Reminds us businesses deal with people and have corporate responsibility,
Very fair and inclusive approach.
All stakeholders in a business of important rules such as ‘ do not steal.’
Profit associated with treating all in business fairly.

80
Q

What are the weaknesses of this theory?

A

Some consider religion as having little to say of relevance to world of business.
Divided as to whether creation of wealth should be within the free market or cooperate avoiding capitalism
.Some see business as just for profit no social responsibility.