Business ethics.

What key areas does business ethics evaluate when assessing the moral practices of a company?

-Business ethics studies moral principles + problems in business. It questions whether profit should be the main concern + examines how businesses operate.

-This includes considering the effects on the economy, workforce, consumers + the environment, especially for multinational companies like Coca-Cola.

What does Corporate Social Responsibility require businesses to consider beyond making a profit?

-Corporate Social Responsibility (CSR) is the principle businesses have obligations beyond profit, including responsibilities to the community, environment, governments + tax authorities.

How does stakeholder theory expand the consideration of who’s affected by business decisions?

-Stakeholders are anyone with an interest in a business.

-Stakeholder theory considers how business decisions affect a wide range of people, including employees, customers, local + wider communities, governments + even global populations.

How do the principles of human dignity, the common good + solidarity guide ethical business practices?

-Aristotle emphasised the communal aspects of ethics, valuing the good of the community alongside the individual. Cardinal Nichols applied natural law + Catholic social teaching to business ethics, highlighting 3 key principles:

-Human dignity: Treat every person as an end, not a means, linking to sanctity of life + Kantian ethics.

-The common good: Businesses should benefit all people, considering economic, environmental, + societal impacts, reflecting stewardship from Genesis.

-Solidarity: Businesses should care for + support communities, especially underprivileged ones, showing compassion to all stakeholders.

How do Aristotelian virtues + ethical behaviour contribute to both moral + practical success in business?

-Ethical business requires more than following rules; it demands honesty, concern for others + generosity.

-Cardinal Nichols emphasises developing good habits through Aristotelian virtues.

-Robert C. Solomon argues ethical behaviour in business aligns with success, as people prefer to trust + support companies that act honestly, kindly + responsibly, while avoiding those involved in unethical practices like child exploitation or deforestation.

What is the purpose of whistle-blowing in a workplace context?

-Whistle-blowing occurs when an employee exposes wrongdoing to their employer or the public.

-The term originates from the practice of policemen using whistles to alert others to a crime in progress.

How does an employee’s duty of honesty + integrity relate to whistle-blowing within the employer-employee contract?

-Whistle-blowing raises questions about responsibilities within the employee-employer relationship.

-Employment contracts outline explicit duties (pay, hours, holidays) + implied duties, such as honesty and integrity.

-Employees’ primary responsibility is to their employer, so exposing wrongdoing aligns with fulfilling their contractual + ethical obligations.

Why is whistle-blowing more ethically challenging when the employer is the wrongdoer + how does this relate to competing loyalties?

-Whistle-blowing becomes more complex when the wrongdoing is committed by the employer.

-Employees may face conflicts between loyalty to their employer + broader responsibilities to society, moral values + the law.

-Honesty requires taking action, but doing what’s morally right often requires courage + can be difficult.

Explain how ethical behaviour contributes to the long-term success of businesses.

-Robert C. Solomon argues ethical companies tend to be more successful because trust is essential for any organisation.

-Scandals in sport - such as corruption in FIFA, show how unethical behaviour destroys credibility. When cheating occurs, trust breaks down between players, fans lose interest, sponsors pull out + whole industries suffer financially + reputationally.

-This principle applies widely in business. Industries like banking rely completely on public trust. If corruption damages that trust, it affects individuals, companies + the entire economy. Therefore, ethical behaviour isn't just morally right - it’s essential for long-term success + stability.

How can ethical behaviour towards customers, suppliers + employees contribute to a company’s long-term profitability?

-Acting ethically strengthens a business because honesty builds long-term trust with customers, suppliers + employees. A reputation for integrity can allow a company to charge higher prices, gain better credit terms + form strong partnerships.

-Ethical treatment of employees - including fair pay, good working conditions + respect - creates a stable, motivated workforce.

-Companies show honesty through high-quality products, avoiding poor materials + using Fairtrade or ethically sourced goods to meet global responsibilities.

-Fair + open dealings reduce conflict with trade unions, helping avoid strikes + maintain industrial stability.

How have recent corporate scandals shown the impact dishonesty can have on a company’s reputation + financial success?

-Recent scandals show how dishonesty can seriously damage businesses. When companies like Volkswagen were exposed for publishing false emissions data, their share prices + customer trust collapsed.

-Similarly, some consumers boycott brands like Nike due to allegations of child labour. Ethical behaviour helps protect a company’s reputation - but it doesn’t guarantee success.

-Businesses such as Primark + Sports Direct have been criticised for poor working conditions + low pay, yet they still operate successfully because low prices attract customers.

-This shows the tension between ethical practice + commercial competitiveness.

What does globalisation mean + how does it affect the way companies operate across national boundaries?

-Globalisation refers to the increasing integration of economies, industries, markets, cultures + policy-making across the world.

-Improved travel + communication mean businesses are no longer limited by national borders.

-Countries often encourage global companies to open factories because they bring investment, create jobs + boost economic growth.

How can globalisation negatively impact stakeholders in both LEDCs + MEDCs?

-Globalisation often benefits the richest, most powerful countries, while LEDCs are mainly used for cheap labour + raw materials.

-Local communities in LEDCs may not gain much because profits usually flow back to the company’s home country. It can lead to local businesses shutting down, unemployment + exploitation due to weak laws - like poor safety standards, low wages + environmental damage.

-Culturally, globalisation risks erasing local traditions + languages as Western products + media dominate. It can harm jobs in MEDCs, as companies relocate to cheaper countries.

Applying utilitarianism to corporate social responsibility - corporate social responsibility is nothing more than 'hypocritical window-dressing'.

-Classic utilitarians like Bentham + Mill would support corporate social responsibility because businesses should act in ways that maximise overall happiness. If a company benefits most of its stakeholders + supports the community + environment, it’s morally good as it creates the greatest happiness for the greatest number.

-Utilitarianism focuses on outcomes rather than intentions. Even if a company uses corporate social responsibility as “window dressing” for profit, what matters is whether the outcome creates the greatest happiness for the greatest number. If this profit ultimately benefits stakeholders such as employees + the government, then the ends can justify the means.

Applying kantian ethics to corporate social responsibility - corporate social responsibility is nothing more than 'hypocritical window-dressing'.

-Kant argues moral actions should be done out of duty rather than self-interest. His example of the “good shopkeeper” shows someone who’s honest not to boost business, but simply because honesty is the right thing to do. From this view, corporate responsibility exists because businesses have a moral duty to act rightly, regardless of the consequences.

-Kant believes a business must act ethically + consider all stakeholders because it’s the morally right duty. Acting ethically solely to make a profit isn’t moral, as Kant emphasises duty over outcomes; morality depends on intention, not consequences.

Applying utilitarianism to whistle-blowing - do we have a duty to the business or to the wider world?

-A utilitarian evaluates actions by their consequences. Corruption or cover-ups are harmful, but if they somehow result in the greatest happiness for the greatest number, they could be considered morally acceptable. The focus is on overall outcomes, not intentions.

-Whistle-blowing is ethically right but can be difficult + emotionally complex. Personal feelings toward the wrongdoer can influence decisions. A utilitarian like Bentham would use the hedonic calculus to weigh the pleasure gained against the pain caused; if the overall happiness doesn’t outweigh the harm, whistle-blowing might not be the best course of action.

Applying kantian ethics to whistle-blowing - do we have a duty to the business or to the wider world?

-Kantian ethics emphasises duty, including loyalty, but also requires actions be universalisable. Covering up for a corrupt colleague cannot be morally justified because we wouldn’t want such behaviour to be universalised; it fails the test of the categorical imperative.

-Kantian ethics prioritises moral duty over personal or contractual loyalty. In the case of a planning officer, loyalty should be to the public good rather than to friends or personal gain, because categorical imperatives of right + wrong transcend obligations to an employer.

Applying utilitarianism to good ethics is good business - should the only concern of business be profit?

-Utilitarianism in business focuses on outcomes, aiming to maximize positive effects + minimize negative ones. Decisions are judged by whether they produce the greatest good for the greatest number, meaning ethical behaviour is likely but not guaranteed.

-Rule utilitarianism, as developed by Mill, provides guiding principles such as harm, honesty, justice + rights to assess the morality of actions. Businesses shouldn’tt exploit utilitarianism to justify unethical behaviour, because ethical rules are meant to constrain actions, not allow “anything goes.”

Applying kantian ethics to good ethics is good business - should the only concern of business be profit?

-Sustainability in ethics requires considering not just current stakeholders (horizontal), but also past + future generations (vertical). Moral duty extends to protecting the interests of people yet to be born.

-Kant’s categorical imperative stresses humans are the pinnacle of creation, so businesses must treat all people ethically. Exploitation or mistreatment for profit is immoral, as illustrated by his ‘good shopkeeper’ analogy.

Applying utilitarianism to globalisation - does globalisation encourage the persuit of good ethics as foundation of good business?

-A strict utilitarian approach may justify harm to a few (e.g., workers in distant countries) if it produces the greatest overall good for the majority of stakeholders.

-Peter Singer argues all individuals’ capacity to suffer must be considered equally, meaning businesses cannot prioritise profit over the suffering of people in poorer regions.

Applying kantian ethics to globalisation - does globalisation encourage the persuit of good ethics as foundation of good business?

-Exploiting workers + resources in developing countries is morally wrong from a Kantian perspective because it treats people as a means to an end, not as ends in themselves.

-Kantian ethics rejects global exploitation because it cannot be universalised; exploiting people everywhere shows no good will + fails the test of duty.

What are some positive impacts of globalisation on local communities + global awareness?

-Globalisation can bring positive effects, such as creating jobs + skills through inward investment, boosting local economies with wealth + foreign currency, sharing cultural ideas and products, increasing awareness of global events + promoting consciousness of global issues like deforestation + climate change.

What are some negative impacts of globalisation on developing countries + local communities?

-Globalisation can have negative impacts, particularly on developing countries (LEDCs). It often benefits richer nations, exploits cheap labour + resources + may not bring local benefits as profits are repatriated.

-TNCs can drive local businesses out, close factories + impose poor working conditions.

-Globalisation may threaten cultural diversity + reduce jobs in more developed countries, especially in manufacturing.