WK8- Business Ethics and Corporate Social Responsibility

Ethics

An individual’s personal beliefs about whether a decision, behaviour, or action is right or wrong.

Business Ethics

The capacity to consider values in the business decision-making process, and how these values and decisions affect various stakeholders.

Corporate Social Responsibility (CSR)

The firm’s consideration of issues beyond the narrow economic, technical, and legal requirements, including economic, legal, ethical, and philanthropic expectations placed on organizations by society.

Stakeholders

Individuals or groups that have an interest or investment in the business and are affected by its operations, including customers, employees, dealers, shareholders, and society.

Surveillance Capitalism

The commodification of personal data for profit, characterized by the prediction and manipulation of behavior through constant surveillance and data analysis.

Milton Friedman’s view on business responsibility

The social responsibility of business is to increase its profits, serving the interests of shareholders within legal and ethical frameworks.

Benefits of Business Ethics

Includes building trust, improving competitiveness, compliance with regulations, lawsuit protection, enhancing employee morale, and promoting societal change.

Moral Arguments for CSR

Reasons for engaging in corporate social responsibility based on the ethical obligation to do the right thing.

Instrumental Arguments for CSR

Reasons for engaging in corporate social responsibility based on the belief that it is beneficial for business in terms of opportunities and reputation.

The Case Against CSR

Arguments stating that business is solely an economic activity, and managers should only pursue shareholder goals, not engage in social issues.