Business ethics

What is business ethics?

The application of ethical theories and principles to business practices and decision-making

What does Corporate Social Responsibility (CSR) mean?

The idea that businesses have obligations to society beyond making profit, such as protecting the environment and supporting communities

What is whistleblowing?

When an employee exposes unethical or illegal practices within their organisation

How would Kantian ethics view whistleblowing?

Supports it – honesty and duty to truth are categorical imperatives

How would Utilitarianism view whistleblowing?

Justified if it maximises happiness and prevents harm to many people

What is globalisation in business ethics?

The worldwide interconnectedness of businesses, often raising ethical issues such as exploitation of workers in developing countries

How might Natural Law approach business ethics?

Businesses should act in ways that uphold primary precepts like preserving life and living in society. Exploitation or unsafe working conditions would be wrong

How might Situation Ethics approach business ethics?

Decisions should be based on agapē (love) – e.g., fair treatment of workers and honest advertising if it shows love to those affected

What is shareholder theory?

The belief that a business’s primary duty is to maximise profit for shareholders

What is stakeholder theory?

The view that businesses have responsibilities to all stakeholders (employees, customers, suppliers, community), not just shareholders

What ethical issue is raised by worker exploitation?

Whether it is right to prioritise profit over fair pay, safe working conditions, and human dignity

What is the difference between legal and ethical responsibility in business?

Legal responsibility = following the law; ethical responsibility = acting according to moral principles, which may go beyond the law

What are the strengths of applying ethics to business?

Builds trust, protects reputation, ensures fairness, promotes long-term success

What is a weakness of applying ethics to business?

May reduce profits and competitiveness in the short term (Economically disruptive)