107 midterm

Friedman arguments against CSR (4)

- Better profits = better society - Provides goods society needs - CSR undermines free market - All belongs to shareholders, should return

CSR cons (7)

- CSR not clearly defined, why bother - Lack of accountability - Taking responsibility from government gives even more power to corporations - Not the role of business - Reduces competitive advantage - Increasing profits is socially responsible - Reduces global competitiveness

6 possible stakeholders

- Customers - Employees - Government - Suppliers - Investors - Community

Friedman arguments for CSR (6)

- LR self interest of corporation (customers, employees, etc.) - Better image - Gov't regulation in your favor - Corporate citizenship: should have same goals as citizens - Expertise in certain areas to pass on - Paternalistic Capitalism: factory towns: avoid sanctions, economic efficiencies

Gratitude: an action is ethical when it...

returns favors others do for you

Beneficence: an action is ethical when it...

seeks to benefit others

Justice: an action is ethical when it...

ensures goods are distributed according to merit

Disadvantage of deontology

Underestimates the importance of happiness and social utility

Advantages of Utilitarianism

Utilitarianism is a theory of morality, which advocates actions that foster happiness and oppose actions that cause unhappiness. Utilitarianism promotes "the greatest amount of good for the greatest number of people." When used in a sociopolitical construct, utilitarian ethics aims for the betterment of society as a whole. Utilitarianism is a reason-based approach to determining right and wrong, but it has limitations. Utilitarianism does not account for things like feelings and emotions, culture, or justice.

Distributive justice discussion starters

"Are we creating systems (hiring, promotions, sales) that allow fair and equal opportunities?" "How will the least advantaged stakeholders be helped or hurt by this decision? How can we rectify this?"

Fidelity discussion starters

"Are we following our contractual and legal obligations?" "What are our roles and expectations in this partnership?"

Gratitude discussion starters

"How can we support our allies/stakeholders on this issue?" "Where can we build win-win partnerships?"

Utilitarianism discussion starters

"Let's talk about who our decision will impact the most. Who are the key stakeholders here?" "What decisions would add the most value to us and our stakeholders?"

Non-maleficence discussion starters

"What are the major risks for carrying out this plan? Who are the affected parties who bear the costs?" "How do we minimize liability in this situation?" "Are there any unintended negative externalities to this issue?"

Justice discussion starters

"What distribution and quality control processes do we have in place?" "How are we ensuring market access to our products/services? To whom?"

Self-improvement discussion starters

"What kind of professional development opportunities are available?" "How can we create a workplace culture that supports personal and professional growth?"

Beneficence discussion starters

"What value are we bringing to our partners and stakeholders?"

Reparation discussion starters

"What was the cost to the party injured and who is the responsible/accountable party for the issue?"

CSR pros (8)

- Long-run self-interest - Public image (PR) - Pre-empt government regulations - Power comes with responsibility - Most resources to share - Social problems caused by companies - Corporate social contract with society - Doing something > doing nothing

- Friedman cares about... - Friedman is pro-CSR...

-...the best interests of the firm - ...ONLY if it benefits shareholders...profits + gov't responsible for social issues

7 principles of deontology:

1. Fidelity 2. Justice 3. Beneficence 4. Non-maleficence 5. Reparation 6. Self-improvement 7. Gratitude

5 ways business influences government

1. Litigation 2. lobbying 3. PR/Advertising 4. campaign contributions 5. outside organizations

7 ways government influences business

1. Taxation 2. policies 3. consumption 4. litigation 5. trade restrictions/liberalizations 6. law enforcement 7. regulation

Disadvantages of Utilitarianism

A limitation of utilitarianism is that it tends to create a black-and-white construct of morality. In utilitarian ethics, there are no shades of gray—either something is wrong or it is right. Utilitarianism also cannot predict with certainty whether the consequences of our actions will be good or bad—the results of our actions happen in the future. Utilitarianism also has trouble accounting for values like justice and individual rights. For example, say a hospital has four people whose lives depend upon receiving organ transplants: a heart, lungs, a kidney, and a liver. If a healthy person wanders into the hospital, his organs could be harvested to save four lives at the expense of his one life. This would arguably produce the greatest good for the greatest number. But few would consider it an acceptable course of action, let alone an ethical on

Act Utilitarianism

Act utilitarianism makes the most ethical actions possible for the benefit of the people. In act-utilitarianism, we are required to promote those acts which will result in the greatest good for the greatest number of people. The consequences of the act of giving money to charity would be considered right in act-utilitarianism, because the money increases the happiness of many people, rather than just yourself.

Act Utilitarianism Example

An example of act utilitarianism could be when pharmaceutical companies release drugs that have been governmentally approved, but with known minor side effects because the drug is able to help more people than are bothered by the side effects. Act utilitarianism often demonstrates the concept that "the end justifies the means"—or it's worth it.

Rule Utilitarianism Example

An example of rule utilitarianism in business is tiered pricing for a product or service for different types of customers. In the airline industry, for example, many planes offer first-, business-, and economy-class seats. Customers who fly in first or business class pay a much higher rate than those in economy seats, but they also get more amenities—simultaneously, people who cannot afford upper-class seats benefit from the economy rates. This practice produces the highest good for the greatest number of people. And the airline benefits, too. The more expensive upper-class seats help to ease the financial burden that the airline created by making room for economy-class seats.

Ethical, social, and political questions

Ethical: "This is/is not fair to do because" Social: "This is how [this topic] affects [this group]..." or try a stakeholder analysis Political: "The government shouldn't allow this since..." "The government is doing/will do this because..."

Midterm Rubric

Frameworks: ● 5 points: The framework is comprehensively and accurately referenced. ------------------- Application: ● 6 points: The analysis of the situation responds generally to the concepts and nuances of each framework, although the integration of these concepts is neither exhaustive nor seamless. The student makes at least one supported tradeoff for each framework, and analyzes that tradeoff systematically and coherently. The student has applied the framework to each outcome. ● 9 points: The student demonstrates a good understanding of the tradeoffs presenting them coherently and with appropriate evidence. The student refutes these arguments systematically and convincingly. The analysis of the situation responds specifically to the concepts and nuances of each framework, and the integration of these concepts is intuitive and seamless. ------------------- Stakeholders: ● 9 points: The student demonstrates a good understanding of the stakeholders, defines them, and presents their stakes in a thorough manner. ● 12 points: The student demonstrates a thorough understanding of the stakeholders, defines them, and presents their stakes in a thorough manner. The student weaves in stakeholders throughout their broader analysis. ------------------- Solution: ● 6 points: The student makes at least a couple of cohesive arguments. The synthesis of these arguments into a single solution piece is adequate, but not entirely persuasive. ● 9 points: The student makes a number of convincing, well-presented arguments and is able to synthesize these arguments into a unified, persuasive solution. ------------------- Structure: ● 6 points: The midterm is organized coherently. ● 9 points: The structure of the midterm is excellent, and ideas are articulated concisely and intuitively, in an ordered manner.

What is distributive justice?

How does this affect the least advantaged? just distribution of goods among members of society The responsibility that society has for safeguarding essential human rights and ensuring the just distribution of the earth's resources, with special regard for those people whose basic needs are going unmet.

Walter Haas on CSR

Increasingly consumers are holding corporations accountable, not only for their products and services, but also for how they are made and how they're marketed. Consumers want more than growth and shareholder value from business. They also expect good corporate citizenship. Great brands and businesses are built through a combination of two things continuously providing superior products and services and earning the trust of consumers employees and the communities in which they operate. This is the formula for sustained business success.

Friedman key terms

Invisible hand: will reward/punish company for unethical conduct

Act Utilitarianism Disadvantages

It is difficult to predict the consequences. There is the potential to justify any act. There is difficulty in defining pleasure. There is no defence for minorities. It is impractical to say that we should calculate the morality of each choice.

Midterm Grading Criteria

Knowledge: Uses and defines the 5 frameworks (Utilitarianism, Deontology, Distributive Justice, Haas and Friedman) and applies them correctly to each outcome. ----------------------------- Thoroughness: Stakeholder interests are analyzed. All 5 frameworks are applied using relevant principles from class and specific details from prompt. Any questions stated in the prompt are answered. ----------------------------- Structure & Clarity: Analyses are rational and well-organized. Arguments are clear and concise.

What is deontology?

Moral rules: Action/motivation, not the outcome Deontology is an ethical theory that uses rules to distinguish right from wrong. It specifically does not look to consequences of actions to determine right or wrong. Instead it examines a situation for the existence of essential right or wrong. perfect duties and imperfect duties. A perfect duty is inflexible. "Do not kill innocent people" is an example of a perfect duty. You can't obey it a little bit - either you kill innocent people or you don't. There's no middle-ground. Imperfect duties do allow for some middle ground. "Learn about the world around you" is an imperfect duty because we can all spend different amounts of time on education and each be fulfilling our obligation. How much we commit to imperfect duties is up to us.

Rule Utilitarianism Disadvantage

One objection to rule-utilitarianism is that in some situations the utility of breaking a certain rule could be greater than keeping it. For example, it is not difficult to imagine that a rule-utilitarian who lives by the rule 'tell the truth', sometimes will find him or herself forced to lie in order to increase utility. John Smart argues that refusal to break a generally beneficial rule in cases where it would be beneficial to do so seems irrational for a utilitarian and is a form of rule-worship. When a rule-utilitarian is compelled to break a rule, he or she will be forced to modify the rule in order to repair the theory. This rule-modifying will continue as long as there are situations where the rules do not produce the greatest utility. The rule for promise-keeping, for example, would be of the form: "Always keep your promises except ..."; with a very long list of exceptions. The rule-breaking is necessary in order to maintain the greatest utility. A plausible formulation of rule-utilitarianism would thus have it recommend the same actions as act-utilitarianism. The two kinds are extensionally equivalent and the only stable rule available to the rule-utilitarian is the act-utilitarian one, e.g. to maximise the benefit of your actions. The rule-utilitarian might defend the theory by saying that it is beneficial to follow the rule in most cases, so the general good is still increased when looking at a series of situations. Another reply might be that it is better that everybody follows the rule than that nobody should, as the latter situation would certainly not be beneficial to the greater good of all.

Utilitarianism

Provides the greatest benefit to the most people Utilitarianism is a theory of morality that advocates actions that foster happiness or pleasure and oppose actions that cause unhappiness or harm. When directed toward making social, economic, or political decisions, a utilitarian philosophy would aim for the betterment of society as a whole. Utilitarianism would say that an action is right if it results in the happiness of the greatest number of people in a society or a group. Utilitarianism does not account for things like feelings and emotions, culture, or justice.

Rule Utilitarianism

Rule utilitarianism helps the largest number of people using the fairest methods possible. a utilitarian theory asserting that the morally right action is the one covered by a rule that if generally followed would produce the most favorable balance of good over evil, everyone considered The principle of utility in rule-utilitarianism is to follow those rules which will result in the greatest good for the greatest number of people. In the example above, the general rule would be: 'share your wealth'. Utilitarianism holds that whatever produces the greatest utility (pleasure or any other such value as defined and justified by the utilitarian) is good and that which produces the greatest nett utility, is considered right. Both theories count as utilitarian because both define that which produces the greatest utility as good and seek for the greatest nett amount of utility, be it either through actions or indirectly through rules.

Layout for midterm

Stakeholder Analysis: Who are the major stakeholders? What do they care about? ------------------- Ethical Frameworks: 1. Utilitarianism: - Costs vs. benefits - Impact on all of society - Short-term vs. long-term - Consider risks and future uncertainty 2. Deontology (+ relevant principles): 3. Distributive Justice: - Put on the veil of ignorance...Who is the least - advantaged group? - In what ways do they benefit? - In what ways are they harmed? ------------------- CSR Perspectives: 1. Friedman 2. Haas

Distributive justice: an action is ethical when it:

addresses social and economic inequality by creating greatest benefit to the least advantaged

Non-maleficence: an action is ethical when it...

avoids injury to others

Reparation: an action is ethical when it...

compensates people for wrongful injury

Self-improvement: an action is ethical when it...

continues to try and improve your high moral standards and intelligence

Fidelity: an action is ethical when it...

keeps promises and fulfills contracts