BUISNESS ETHICS -> summary sheet

AO1

  • the relationship between capitalism and ethics is highlighted in this topic and the relevencey between the two within buisness

  • corporate social responsiblitly → a buisnesses responsiblitly to wider commuinty and environment. it is an obligation beyond the law to persuse long term goals for the good of society, in 4 parts economic, ethical, voluntary and legal. this is mesured using the tripple bottom line

  • shareholder → someone who owns a part of a buisness

  • stakeholder → any individual or group who is affected by activties of a buisness

  • whistleblowing → when an employee reports misconduct within a buisness

  • globalsation → economic and cultural interets are more interconnected and not restricted to one country

  • case study of ford pinto → in 1960’s ford were trying to dominate home american market so made a cheap car which would be used to maximise profit, in doing so, there was a malfunction which could make the gas tank blow up and when this occured they paid the victims rather than chaning the car. overall they put shareholders first which ended up having negative CSR

  • the body shop → take CSR on board with their ethical practises, taking full responsiblitly to which buisness are run. reducing co2 by 50%

  • coca cola → Production takes place in india where they use water which dries up local farmers but also contains harmful pesticdes

  • adam smith → early free markter highlighting captialism but also having an equal relationship between employee and employer

  • karl marx → bourgeoise employed anyone who could agree to terms but have an overall explotative relationship

  • whilsterblowing and challanger disater → discovered issues with the rocket with a failing o-ring, boisjoly did highlight this, but due to pressure from management it wasnt taken seriously and the rocket was launched leading in a failure

AO2

  • milton friedman SHAREHOLDER theory → the only purpose of buisness is profits, however this ends up benefiting society as buisnesses can pay employees more and boost the economony, they have no obligation to CSR

  • Freemans STAKEHOLDER theory → buisness should fufil need human need rather than profit, should aim to benefit the commuinty

  • utilitrianism and buisness ethics → profit should be the only concern for a buisness as we are maximising pleasure for the majoirty through trickle down economics. the greatest happiness for the greatest number in a market place the hedonic calculus is a cost benefit anaylsis

  • utilitrianism and buisness ethis → kant would critque as this practicse leads to depersonalsation since compaines are using people as a means to an end rather than an end in themselves. mill highlights how the happiness of shareholders should not come at the unhappiness of stockholders thus creating a tryanny of the majoirty. it’s also key to note whom is actually being postively effected by buisnesses e.g = consquentalists

  • kantain ethics and buisness ethics → duty fits well with buisness ethics especially with a stockholder approach as this is treating people as an end in themselves

  • kantain ethics and buisness ethics → too abstract to be applied to buinsess since it doesnt work within the real world when to surivive buisness must make profit, buisness people sometimes do unethical things in order to keep their buisness alive. utilitrianins argue that it is better to act in the interest of shareholders because it will have postive effects for everyone

  • CSR → kantian ethics would support as it goes with the 3 maxisms and fufils ones duty, utilitrians however this goes against free market economics which prohbits maxisming profit and restrictions could interfere with the general happiness of a workforce

  • globalsation → friedman highlights how buisness is not a friend of the free market. although it does allow for more opportuinties for people to work, it can however lead to exploitative working conditions and monoployes. for utilitrians globalsation can undermine free markets however it can be sucessful with offshore resourcing only if this however is in the means to maximse happiness. kantian ethics however sees globalsation as a violation of CSR

  • Whistleblowing → it can be useful when negative buisness pracistes are bough to peoples attention but it can have the secondary effect of causing fiancal loss and bankcruptcey. utilitrians agree that in some cases whistelblowing is the right thing to do when it shall maximse the greatest happiness for the greatest many, but if the buisness was causing lots of happiness and gets whistleblown then this wouldnt be ok. kantain ethics is in favour as it goes with the 3 maxisms - however it wouldn’t be ok if someone lied

  • sweatshops → utilitrianism shows how there could be good consquences, william MCAskhill highlights how by boycotting sweatshops we are going agaisnt the happiness of the majoirty as workers have the best opportuinty for them. however it’s crucical to note the incompatitbiltly between consquentialist utilitrianism nature and the deonotological one which human rights are. kantian ethics would strongly oppose → mill may respond through his harm principle (is expliotation harmful) however those in sweatshops are often vunraible people

  • utilitrianism and calculation → because it is consquentialist, we cannot overall predict CSR or globalsation impacts whilst kantian ethics doesnt have this problem. bentham defends himself however suggesting that we only need resonable expectations of the consquences and mill aviods this moral obligation enteirly as we must just aim to do the most loving thing

  • kantian ethics and consquences → consquences arent morally relevent, so there is no consideration to the secondary effects which may occur from actions E.G - CSR leading to bankurptcey or Whistleblowing leading to a hostile work environment

  • utilitrianism intention of character → CSR and globalstion can be done under the intention of bad nature, to mill he believes that motive do matter ethically bu kant suggests that greed and deception shouldn’t be morally deficent

  • kantain ethics and capitalism (adam smith) → the rational individual should be at the centre of moral responsibilty and through contracts, we can treat people as an end in themselves however macro capitalism has led to people being treated as a means to an end

  • utilitrianism and capitalism (adam smith) → mostly agree with smiths reasoning as generally happiness is maxismised by leaving markets free however some restrictions can conflict with happiness

  • globalsation → can lead to better lives since we can imporant life chaning and saving goods and give people more choice. it can allow for economies to propser as well as it gives opportuinty for trade

  • globalsation → the west has become a consumer society where we buy cheap products often leading to class gaps, it has also lead to british manufacting dying down so making people jobless. it also is credited to the growth of expliotation as transnational buisness expliot the poorest people for their labour

  • is good ethics good buisness → GEIGB highlights how goods ethics has some nessicity link to good buisness, smiths highlight through regulation which helps to promote buinsess but also protect people. ‘greed is good’ however it is still unnatural to add ethics to a highly competative capitalism of modern society (friedman link) and there also should be a note that often ethical incorporations can limit profitablitly of a buisness