Lecture 3: Responsibility Flashcards
(10 cards)
What is the Framework Paradigm (Paradigm I) in business ethics?
A model where the state provides an ethical framework, transforming self-interested business actions into ethically acceptable outcomes through regulation.
What role does the state play in the framework paradigm?
The guardian of competition (as per Walter Eucken), protecting the weak and ensuring markets function ethically.
What is the consequence of the framework paradigm for business ethics?
All ethical responsibility is placed on the state; businesses focus solely on profit and outsource ethics to the state.
What is the Corporate Social Responsibility (CSR) Paradigm (Paradigm II)?
A model where both the state and corporations share ethical responsibility, with companies actively contributing to moral concerns, such as environmental impact.
How does CSR relate to the framework paradigm?
It builds on the framework paradigm but adds that corporations must also act ethically beyond legal obligations.
What happens if corporations fail to act responsibly under CSR?
The state can intervene again, such as with laws like the Responsible Business Initiative.
Why did the CSR Paradigm replace the Framework Paradigm?
States lost power over global corporations
Society expects ethical corporate behavior
Social media exposes unethical acts quickly → leading to reputation risks
What is the Responsibility Principle?
You are responsible for all the effects your actions have on others.
What is meant by the space dimension of corporate responsibility?
Corporations have global responsibility for the effects of their actions across the world.
What is the time dimension of corporate responsibility?
Corporations are responsible not just for the present, but also for future generations (intergenerational responsibility).
