Business Ethics: Moral Frameworks, Capitalism, and CSR

Ethics

Systematic reflection on norms and values: meaning, justification, and change.

Instrumental perspective of ethics

Ethics helps business succeed and creates win-win outcomes.

Philosophical perspective of ethics

Ethics defines business as a positive force and asks whether it improves life.

Sources of everyday norms and values

Laws, family, religion, etiquette, authority, community, peers.

Three types of ethics

Empirical, normative, analytical.

Ethics vs math vs taste

Math has one right answer; taste has none; ethics has better or worse supported answers.

Utilitarian argument

Which action maximizes overall happiness?

CI Method A

Which action can be universalized?

CI Method B

Which action respects the dignity of all persons?

Virtue Method A

Which action fits who someone is and wants to be?

Virtue Method B

Which action supports development and thriving?

Care method

Which action fits the specifics of the relationship?

Rawlsian method

What would people agree to behind a veil of ignorance?

Discourse method

Which decision wins by rational argument in open discussion?

Definition of utilitarianism

Judges actions by consequences and maximizes overall happiness.

Four steps of utilitarian analysis

List alternatives, list affected parties, score impacts, total scores.

Strengths of utilitarianism

Structured, useful for complex business decisions.

Weaknesses of utilitarianism

Hard to predict consequences; ignores intentions and relationships.

Core idea of Kantian ethics

Right motivation and duty matter more than consequences.

CI Method A definition

Act only on maxims you could will to be universal laws.

CI Method B definition

Treat people as ends, never merely as means.

Golden Rule vs CI

Golden Rule is based on personal wants; CI is based on universal principles.

Strengths of Kantian ethics

Clear rules and respect for dignity.

Weaknesses of Kantian ethics

Ignores specifics of situations and consequences.

Definition of virtue

Excellent, durable character trait developed through practice and reflection.

Virtue as the mean

Virtue lies between two vices: too little and too much.

Business virtues

Integrity, honesty, fairness, attentiveness, reliability, courage, responsibility.

Weakness of virtue ethics

Right action is not always clearly defined.

Ethics of care

Focuses on relationships, dependency, and moral roles.

Rawls veil of ignorance

Fair rules chosen without knowing one's position.

Discourse ethics

Right action is what wins through rational argument.

Market economy definition

System where supply and demand set prices; capitalist if production is privately owned.

Invisible hand

Self-interested actions unintentionally promote public good.

Market failure

Market-like situation that fails to produce efficiency.

External effect

Unpriced impact on others, such as pollution.

Public goods

Non-excludable and non-rival goods like defense or the atmosphere.

Arguments for capitalism

Efficiency, competition, freedom, innovation, growth.

Traditional criticism of capitalism

Dependency, inequality, unequal opportunity.

New criticism of capitalism

Challenges of sustainability, globalization, and the Anthropocene.

Responsibility definition

Obligation to answer moral questions about right and wrong.

Conditions for responsibility

Causality, knowledge, free will, role, ability, power.

ELCA life cycle stages

Sourcing, production, distribution, use, disposal.

CSR definition

Integrating social and environmental concerns into business operations.

Pillar model of corporate responsibility

Societal responsibilities, economic responsibilities, company-specific responsibilities.