Business Ethics Exam 2

Theories of Business

Robert Nozick

Philosophy prof. at Harvard,

Libertarianism

Advocates for a minimal state. What is role of gov?

Entitlement theory

Theory of legitimate ownership. What are the aspects of Entitlement Theory?

Distributive Justice asks -

What is a fair distribution of wealth/resources in society?

Entitlement Theory

Non-patterned form of distribution. What does it result in?

Distributive Justice

Rawls (difference principle)←DJ→Nozick (Entitlement theory)

Wilt Chamberlain argument

Nozick conclusion: D1 and T1 ethical, D2 ethical. Meets requirement of entitlement theory. Ethical transactions created ethical wealth distributions. Transactions and business are justified even when unfair or skewed distributions occur.

Shareholder theory

Primary responsibility of business is to make money and follow the law. Created by Milton Friedman

What is a shareholder?

A person who owns a financial stake in a business and is entitled to part of the profit

Why shouldn’t a business try to be ethical?

Corporate Social Responsibility

Created by Archie Carroll. Part of Deontological ethics - Carroll authority.

What goes into the economic responsibility of CSR?

Legal responsibilities of CSR

Required by society. Business will comply with laws that govern competition in market place in including..

Ethical responsibilities of CSR

Expected by society. Societal expectations that go beyond the law. Conducting their affairs in a fair and just way.

Discretionary/Philanthropic responsibilities of CSR

Desired by society. Business should