C.15 Business ethics

What is Friedman view on Business ethics

+ give a quote and explain it

- Friedman is saying the only ethical duty of a business executive is to maximize profits for shareholders, as long as it's within the law.

He rejects ideas like corporate social responsibility (CSR) if they go beyond profit-making, because he sees them as distractions from the main purpose of business

- "The business of business is business".. essentially saying all that matters is profit for shareholders

Using Roblox to critique Friedman

- Friedman upholds profit of business so long as it's within the law

-Their actions are within the law as it's the users who do the illegal things but, Roblox facilitates child sexual abuse by not interfering

- Banned a user Schlep who spent time trying to catch n expose predators leading to them loosing $12 billion in value (by Aug 2025)

- proves Good ethics is good business as bad ethics lead to collapse

What is Solomon's view on business ethics, which theory do they align with + 2 quotes

- Solomon pushes back against the "profit only" approach. He argues that business ethics cannot be separated from personal ethics.

- Views align w Stakeholder theory (stakeholder's upheld)

- Treating business as an isolated sphere (profit at all costs) where a "pressured employee violates his or her personal values" harms both people and businesses

- "Good employees are good people"

Development of business ethics in Britain (3) + what view would these be

- 1970 Equal pay Act, ensuring equal pay and treatment for men and women

- 1889 The great Dock strike, an effective trade union was created cus of it

- Fredrick Temple (Archbishop) called for appropriate moral treatment of workers

Shows reforms follow Solomonite views

• What is corporate social responsibility?

• What is a stakeholder?

• What is a Shareholder?

• CSR is the concern/ ethical responsibilities businesses have for society and in its own conduct.

• Stakeholder: any individual or group associated and therefore affected by the business e.g Employees, wider community, shareholders

• Shareholder: owns shares (invest in business) their main interest is usually profit

1) What is a polis? + Who mentions it in their writings?

2) Who's view is similar

3) How so?

1) Aristotle in his ethical writings insisted in the communal aspects of ethics; polis = the small state of Greece bound together by civic friendship and mutual dependency

2) Solomon thinks the work place should be treated as our polis

3) Like Aristotle, he stresses integrity, cooperation, and human flourishing in business life.

1) What are Cardinal Vincent Nicholas Archbishop of Westminster 7 principles for Good business?

(Hint: Happy-Ducks Find Certain-Geese's Really Stupid, Strange and Silly)

• Human Dignity: made 'imago dei' in secular terms tho 'each person can never merely be an instrument' - Cardinal (Invoking Kant's 2nd Cat imperative)

• Fraternity: belief we should treat everyone as our brothers/sisters and should have 'fellowship' which is the social glue (William Temple)

• Common Good: state of affairs where everyone can flourish effectively

• Reciprocity: giving what is due (lowest kind at the lvl of Justice) and being willing to do more (extends to fraternity/gratuity, true reciprocity is a call to generosity)

• Sustainability: stresses duties to future gen's, care for resources n environment

• Solidarity: people are interdependent

• Subsidiarity: belief that decisions should be made at lowest level compatible with efficiency. In business, it would mean respecting the autonomy of smaller units (e.g. store managers deciding what's best for their location).

2) What do the 7 principles by Cardinal Nichols provide?

3) Strengths (4) and Weaknesses (1) to the 7 principles

2) They provide a strong framework for Corporate social responsibility (CSR) + often used to evaluate whether businesses act ethically and justly

3) STRENGTH

- Focus on what's morally right (human dignity and sustainability n autonomy)

- encourages long-term ethical thinking not short-term gain (w Sustainability; shows environmentally conscious)

- Solidarity and Human Dignity helps prioritise and protect vulnerable

- Secular so applicable anywhere

WEAKNESSES

- Not legally guidelines so companies can ignore them + no one to enforce them

1) Case studies: Companies who follow/ignore the 7 principles by Nichols

2) What the main issue w businesses who ignore theses then try to make amends after?

1) FOLLOW

- Co-op; Subsidiarity: Locally-owned stores with decision-making power

IGNORE

- Amazon; Human Dignity: Reports of poor warehouse conditions and overworked drivers; Sustainability: Large carbon footprint due to shipping + packaging.

- Primark; Dignity / Reciprocity: History of low wages and unsafe working conditions (e.g. Rana Plaza factory collapse 2013); Solidarity (later): joined Ethical Trading Initiative and improved transparency.

2) Businesses often only act ethically when it benefits them either to save reputation, avoid boycott, or due to public pressure; Shows why Solomonic approach to business is necessary ethics should be embedded in business values from the start. If businesses like Primark acted from an internal moral commitment to human dignity, reciprocity and the common good, these scandals might never happen

Theologians supporting 7 Principles

- Pope JP

- Maritain

- Sen

- Pope JP II especially in Laborem Exercens; "Work is for man, not man for work."

- Maritain, catholic philosopher argued Human dignity and Common good must shape economic life

- Sen held a secular view which focused on human flourishing, believed businesses and gov's should empower people

1) What is Whistle blowing (WB)?

2) The contract/ conflict as to why ppl don't whistle blow

3) What law protects whistle blowers? Is it effective and why?

1) When a member of an organisation reports misconduct

2) When we join a business we sign a contract and become part of an organisation; some may not report due to fear or think they can't make a difference.

Political thinker Arendt explained how in totalitarian countries individuals think they can't make a difference so they concentrate on their own work

3) The Public Interest Disclosure Act 1998 (PIDA) protects whistleblowers from unfair treatment or dismissal. No, act is largely ineffective due to challenges like slow processes and lack of legal support

Case study of Whistleblowing and Pro's (2) n Con's (1) of it

- Enron scandal; Watkins as VP alerted CEO abt accounting irregularities, helped expose massive corporate fraud which led to new regulations on corporate accountability world wide

- In 2021, Haugen exposed Facebook for prioritising profit over safety of users, but she faced backlash and her career suffered, with little real change made

STREGTHS

- Helps identify unethical behaviour prompting honesty

- By exposing wrongdoings can protect stakeholders

WEAKNESSES

- Risk of retaliation, can face job loss or harassment, can be isolating and stressful

1) Good Ethics is good business ( What does this mean?)

2) Case studies for

3) Pro's n Con's

1) The idea that behaving ethically (e.g. being honest, fair, sustainable) leads to long-term business success including profitability, loyalty, and reputation.

2) FOR: The Body Shop: Built success on ethical sourcing and CSR.

STRENGTHS:

- Builds customer loyalty and brand trust

- Attracts ethical consumers/investors, reduces scandals

WEAKNESSES:

- Ethical materials/labour can be more expensive

- Some unethical companies still thrive e.g. Amazon

1) What is Globalisation?

2) What does this allow in business

3) What are the ethical issues attached w this (name three)

1) Increasing interconnection of the world through trade, technology, and communication, trade and cultural exchange.

2) Allows MNCs/TNCs (multinational & transnational corporations) to operate across borders, often shifting production to lower-cost countries.

This involves capital flow - the movement of money, investment, and resources across countries. Businesses often chase cheap labour, lower taxes, and fewer regulations in developing nations.

3) Exploitation of workers, lack of health n safety and environmental damage

Pro's n Con's of Globalisation (3 each)

STREGTHS

- Lower prices for consumers

- provides jobs in developing countries

- Economic growth, capital flow and infrastructure in poor countries

WEAKNESSES

- Exploits works

- profit over people

- cultural erosion (local culture starts to fade or disappear)

What is the Kantian view on business ethics

- Corporate social responsibility

- Whistleblowing

- Globalisation

CSR - Only good if it's done from duty, not for profit.

Must treat workers, consumers, and environment as ends in themselves.

WB - We must do our duty, which includes loyalty, unlikely we would be willing to universalise corruption/ it's cover up

Global - Opposes using people (e.g. workers) as means to an end. Globalisation must respect human dignity and rights

What is the Utilitarian view on business ethics:

- Corporate social responsibility

- Whistleblowing

- Globalisation

+ What did Bentham and Mill believe about Free markets? Evaluate use of free markets (1 each)

CSR - good if it increases happiness e.g. helping the community, eco-friendly, fair wages.

WB - Would question whether greater good is served by allowing a cover-up.. would normally lead to greater harm 4 those who planning officers are supposed to be protecting

Global - Globalisation is good if it improves happiness (jobs, trade, growth).

But it's bad if it causes more harm (e.g. exploitation, pollution)

Believed free markets give people freedom to choose, create wealth, and (ideally) increase happiness for the majority

+ People can choose what to buy, sell, or produce

- Without rules, harmful things (like pollution or unsafe products) may go unchecked.