EXAM 2 BA 300 Austin

Objectivism - focuses on 2 things

Be rational and be all that you can be

be rational

Objectivisim - rand believed that americans tend to get sloppy because of what?

She believed the only way to convince someone of your decision is through what?

She thinks americans get tend to be sloppy by believing that peoples intuitions or emotions give them reason or cause to change our way of interacting with one an other

She believed that the only way you should be conniving someone of your decision is through reason

Biggest pro of objectivism

- Reinforces personal responsibility

-Very important for people to take responsibility for themselves and develop through productive energy to help yourself with the pros and cons in your life

biggest con of objectivism

-Individualistic and judgmental

-They think it is too self centered

-they want people to be more community oriented and they think that rand it too focused on the self

what is an example of a company creating their culture on objectivism ?

-Motive Communications

-this company said we want competitive people, we want independent people, we don't want people who needs pats on the back

Objectivism pushes what values to the limit?

american values

objectivism values capitalism

Integrative Social Contract Theory

Decision Rule: decision is ethical if it is compatible with ethical rules of community I am doing business with=> meaning ethical norms are authentic, permit exit, allow community voice/input and are legitimate so they do not conflict with a hyper norm

Integrative Social Contracts Theory pro and con

Pro:

-its adaptability

-that you care about the local culture

-Gives you more respect for local cultures, helps you see how other people live

-Adapts to variations in local norms within some global limits

Con: concept of a hyper norm is vague; theory can be impractical

accepts a community's ethical norms as legitimate ONLY to the extent that they do not conflict with a hyernorm

what are the the two hyper norms of integrative social contract theory?

1) you need to respect the dignity of all human beings

2) Respect human rights

Example of integrative social contract theory

levi strauss had kids working as seamstresses in bangladesh

- people saw this as violating human rights

- levis pais for the kid workers education and told them they can come back after school and work for them

Ethic and care focuses on what two things?

Focus on relationships and responsibilities

Ethics and care

more on how it focuses on relationships

-your relationship with your spouse kids peers your colleagues coworkers - take care of those people - do not treat those as abstract people

-if sam the supplier isn't delivering in time- go talk to him

-he says that his son got hurt thats why things aren't on time

and your response - as someone who is relationship oriented - say no problem we will make do etc.

Biggest pro of ethics and care

-protects the weak and dependent

-the theory cares about those less advantaged

Biggest con of ethics and care

- it can neglect justice

- if someone does something wrong, you try to find causes/ feel sorry for them --> enables their bad behavior

What are care ethics?

care ethics emphasize how ethical reflection should focus on the quality of caring relationships

What did the feminist gilligan argue about the language of individual rights and justice?

She argued that the language of individual rights/justice did not accurately capture how people - especially women understand ethics in terms of concrete relationships and responsibilities interwoven in life

why did Feminist gilligan not agree with psychologist Kolbergs stages of moral development?

she argued that it represented a male bias and that women tend to speak with a different moral voice

Ethics of care is both blank thoery and blank theory

a descriptive phycological theory

a normative theory

Corporation def

Legal entity chartered by the state with rights and responsibilities apart from the persons running or working for the corporation"

in a corporation with shareholders there is a seperation of what

Separation of ownership and control

what are the 2 perspectives that must be kept in mind with corporations?

1) the shareholders value

2) the stake holder theory

what is the shareholders value?

maximize profits within the law and morality

the shareholder have taken a risk and you owe them this (max profits)

what is the stakeholder theory

Advance the interests of all stakeholders (even at the expense of profit)

The shareholders are a piece of the puzzle, if they do not get money this time or as much as they could thats fine if it means that employees or customers get more than what they bargain for

At IPO shareholders invest in the promise of max shareholder value within legal and moral constraints in exchnage for what

in exchange for taking on the firms residual risk

the promise stays with shares as they chage from person to person over time

what are the 3 arguments for the shareholders value

legal argument

economic imperative

ethical justifications

2 types of ethical justifications

efficiency - resources pulled to their most valued uses

liberty - individuals are free to participate or not

2 challenges to shareholders value

1) difficult to self rely on self interested business peopleto act on others behalf: market mechanisms are required to rein them in

2) shareholder value supporters think that part of corporate responsibilityis creating effective corporate governance mechanisms to portect long term interests of shareholders

Corporate Social Responsibility def

"Commitment to corporate actions beyond maximizing profits within the law" (and morality)

what is instrumental CSR

Instrumental/Strategic: How corporations should engage in CSR programs in order to maximize profits within legal and moral constraints

ex: a conpnay says lts do this fun run! we will have promotional things- we will increase public visibility and public relations—> more money for us and breast cancer research

Normative CSR

Normative: How corporations should engage in CSR programs because it's the right or moral thing to do, even at the expense of profits

they argue from a different moral perspective

the corporations should be taking this on them selves

Shareholders- you're using our money to take care of somebody else!

arguments against normative CSR 4

- violated uses -shareholders money without their consent

-presumes that mangers have better moral skills than share holders

-weakens managements accountability to shareholders

- distracts management from its primary purpose

Impact of normative CSR

Whos expectations are undermined?

The shareholders expectations are undermined

A co has already made its promises, the CSR folks some in saying we want to make you a CSR company

From now on we wont max shareholders value if we are a CSR co

the shares will go down

Stakeholder theory

advance the interest of all stakeholders even at the expense of profit

which theory is this

You want to look at what stakeholders want and you might give less to shareholders to benefit stake holders

Stakeholder Theory

def of stakeholders

Entities significantly affected by the firm's activity, such as employees, customers, shareholders, the community or broader society, the environment, and suppliers"

what are the ethical justfications of stakeholders theory

-powerful corps can help eleviate global inequalities

- stakeholder approach leadsto more liberty for the vulnerable

capitalism will only be efficient if the masses buy into it

shareholders dont do the real work

consider non western values economic actors pursue what is sufficient

the powerful argument of stakeholders

A corporation's purpose is to "use its resources to advance the interests of all those who are most affected by its corporate activities"

employees, customers, community

It should use their vast wealth to benefit those groups

-

with great power comes what

great responsibility

The powerful arguement of Stakeholders in regards to corps being global

- alot of corporations are global —> goes beyond governments

-they have a reach that governments cant match

-because they have the power todo that they should take on social problems that governments can not

2 key CSR distinctions

1) Repair externalities/"do no harm," but not responsible for general social problems

2) Advance the common good, "whether or not it's directly related to their core business"

what are 4 pieces of evidence that CSR is gaining is popularity ?

1) Socially responsible investing

(many people put their money in stocks that are CSR)

2) CSR-related shareholder proposals

3) Nongovernmental organizations

(WHO, World Bank)

4)Benefit corporations: Special legal status for for-profit businesses that include social responsibility in their core mission

What are 2 types of government intervention (CSR)

Limited intervention

Significant intervention:

what is Limited intervention

limited interventions (gov intervention) includes 2 approaches:

1) Top-down process: International organizations (e.g., the UN) specify norms endorsed by executives

2)Bottom-up processes: "Ethical norms are rewarded by the purchasing decisions of consumers and investors"

I do good business and my customers and investors are happy with it

Gov intervention-

significant intervention

CSR as legal mandate (e.g., codetermination laws)

done more in europe

where employees can form boards of directors in a company by law because the CSR stake holder position of th employees is so strong - counterweight of shareholder power

Corporate Responsibility

focus of stakeholder and focus of shareholder

stakeholder - Advance the interests of all stakeholders (even at the expense of profit)

shareholder - Maximize profits within the law (and morality)

what are the 6 whistleblowing triggers?

- truth being violated

- trust being violated

-Employee or customer rights being violated

- harm being done or about to be done

-you reputation at state

- your orgs rep at state

-breaking the law

Before whisteblowing make sure to do these 5 things

- make sure its a serious issue

-assemble all the facts

- check to make sure facts are accurate

- ask peers or manager for advice

- see a law or policy about to be violated

7 steps of whistelblowing

1) tell your manager

2) discuss with your family

3) take it to next level

4) contact your companies ethics officer

5) Consider going out of your chain of command

6) get help outside of the company

7) leave the company

Virtue Ethics draws inspiration from what?

greek philospher artistotle

Virtue ethicisits focus not just on choices and actions but

the nature of the persons character

An example of focusing on someone as having an ethical or unethical character as opposed to focusing on the assessment of acts

someone could assess the same action by two people - someone being insensitive or rude

One person has the tendancy of acting this way

the other does does not ( you may learn, this person has a serious illness in the family)

For the first person, this action reflects their character

virtue ethics expresses the idea that ethics is about having what?

about having virtue - the quality of having a good character

what is the opposite of virtue?

vice - having a bad character

What are Eudaimonistic theories?

goal oriented or teleogical approaches to ethics that focus their study on how to cultivate virtues to achieve the end of a well live life

Eudamonia

happiness/human flourishing

Eudaimonistic theories focus on the theory and often include traits such as what

honestly, kindness, temperance, loyalty, courage, tolerance, forgiveness

vices ex:

greed, arrogance, self centeredness, impatience, untrustworthiness, envy, disloyalty, vanity

What is the doctrine of the golden mean?

Aristotle

a mark of virtue is to develop dispostion that is the mean between 2 extremes

Example of the golden mean ?

courage is a virtue according to aristotle

falling in between 2 extreme vices of cowardice and recklessness

character formation is the balance of what

abut finding a nature that balances reason and emotion

Ex of deficiency

the mean

excess

Deficiency (Cowardice - Vice) --> the mean (courage (a virtue) ---> Excess (Recklessness - vice)

Both blank and blank can become habits

virtuous behavior and vice

A person who is good at analyzing ethics but doesnt act on the conclusion is missing something -

a good charcter

What does charcter development shape?

shapes how we act and the quality of our personal relationships

Suppose I can make consumer purchasebased on whether the business engages in CSR ? should i take that info into account

The virtue ethicist examines whether living in way sthat take CSR into account support what?

a good charcater or not

What are the 3 alternative approchaes to ethics?

1) analyzing actions and institutions in terms of its good or bad consequences

2) in terms of fulfilling specific ethical dutuies independent of conserquences

3) in terms of what leads to a well lived life

what is the most important ethical assessment of capitalism as an economic system?

examine whether or not the system

1) corrodes peoples charcter

2) undermines the experiences of a well lived life

A proponent of eudamonisitc approach empahsizes the taring and cicrumstances that do or do not lead people to develop good charcters such as what

quality of educastion

the values practied at home

long term effects of work environemnt

Third instead of professional ethics being conceived as dos or donts - virtue ethicisits focus on

developing and being surrounded by people who have good charcter

instead of creating a complicated strict rule guide in the workplace - virtue ethics recommends in what

finding people of good charcter who have the wisdom to make good choices

Rands ethical egoism celebrated the interests of the self blank

sef as the ultimate ground of value and ethics

under rands ethical egoism, objectivism, parents want children not to save the world but what

become something for themselves, find a good and happy life

what is rands objectivism view opposite of ?

ultalirtarian ethic that recommends self sacrifice to advance the interest of others

Rand argues that blank is the only reliable guide in life

rationality

she argues that reason allows people to understand objective reality and being rational allows people to live in reonse to reality

under rands objectivism - what can lead people astray

rand ---> rational

emotion and feelings

rands approach goes against what moralities?

religious moralitie of humility, mercy, dependence,

what does some argue that rands objectivism glorifies?

selfishiness

what are the 3 points to emphaisze about rands objectivism / virtuous egoism

- emphaisis on dependence means people are not defined by their relationships

-the noblest activity in human life is productive activity

- third is to treat people as they really are each person ought to get what he or she deserves based on what the person does

Which philosophy grounds the value of relationships and the celebration of free makret capitalism through an egoistic virtue ethics

rands objectivism

ethics of care emphasised how ethical reflection should focus on what

the quality of caring relationships

what did gilligian the ethics of care creator think was male bias and that women tend to speak with a different moral voice?

kohlbergs stages of moral development

gilligan - ethics of care lady argues that wthics requires what

relationships wher epeople care about one another

where attitudes and motivations are the responsibility of both men and women

but more often minimized in men and emphazied in women

what did ehtics of care think was the responsibility of both men and women

where attitudes and motivations are the responsibility of both men and women

but more often minimized in men and emphazied in women

ethics of care is both what and what theory

descriptiive pyshcological theory and a normative thoery

ethics of care argued that many ethical problems arise because

poeple do not appropriatly cqre about one another

what is one thing that eudamoistinistc approaches to ethics (objectivism) and ethics of care both emphasize

that analysing actions identifies only the surface of ethics

Roosevelt believed that big business and cmmunities have an implicit contract to eachother

this contract was the basis for what

for creating moral understandings

the obligation is the result of what

a relationship or tie acdepted as part of the ongoing terms of cooperation

what people/businesses owe eachother

prof donaldson and thomas dunfee consider common ethicla challenegsthat mangers face in international busones

like to accept a gift or not

they acknowledge a need for what

hypernorms

what happens when you dont have hypernorms

without hypernorms standards of professional ethics are only relative to the local norms yåa¸

EXOF LOCALIZED BUSINES norm

giving gifts

first condituon of integraive social contract thoery

must be authentically dervied from community relationships

what do hypernorms do

set limits on the obligations that microcontracts can create

what do hypernorms include

human rights to personal freedom, physical security, political participartion informed consent ownership subsistence and general obligation to respect people dignity

rule of thumb for social integrative contract ttheory

do as the locals believe you should do as long as the norms were derived voluntaruly and do not violate global norms

the social integrative contract theory conbines what analysis with what thoery

The approach combines empirical analysis, to identify authentic local standards, with normative theory, to derive universally applicable standards for assessing these local standards

3h

What is an example of how a corporation is a legal entity chartered by states with RIGHTS AND RESPSONSIBILITES APART FROM THE PERSON WORKING FOR THE CORP

A corp can be sued without individuals working for the corp being sued

Shareholders have a limited control over the firms operations, apart from a right to

a right to nominate and vote for a board of directors

What is an important feature of shareholders rights - which keeps shareholders immune from paying the debts of the corp beyond their initial investment ?

principle of limited liability

What are the largest economic entity in the world after US, China, Japan and Germany (that is not a country)?

Walmart

If we measure revenues as its own economic unit, Walmart has more revenues than the combines final sales of most of the nation states on earth