Business Ethics

What is Anita Roddick's quote and what did she do with the body shop?

'Being good is being a good business' Roddick launched an Against animal testing public awareness campaign and took a 4 million signature petition to the E.U to stop the sale of animal tested cosmetic products. The Body shop therefore guarantee that they only sell non-animal tested products.

Define globalisation

'The reduction of the difference between one economy and another, so trade all over the worlds, both within and between different countries, becomes increasingly similar'.

What are 3 christian teachings on business and wealth?

'the love of money is the root of all kinds of evil' - idolatry ''Do not defraud your neighbor' 'It is easier for a camel to fit through the eye of a needle than it is for a rich man to enter the kingdom of heaven..'

What is the Kantian response to CSR?

- Focuses on the need to treat people as ends and not just means to an end and so we should respect their autonomy and rationale. This means they would disagree with companies who control and excessively monitor their employees as they are not respecting their dignity as human beings. - Also companies that let workers work in unsafe conditions or pay little would not be acting in the interest of the employee and so this would be seen as wrong. The balance between the interest of the company and the interest of the employee is important.

What is the utilitarian approach to globalisation?

- The creation of the greatest good can be understood in global terms. The World bank calculated 800 million Chinese people have been lifted out of poverty since China's globalization in 1978. This massively outweighs any disadvantages.

What is a Kantian response to WB?

-Emphasises the importance of honesty ad promise keeping through the CI. - A kantian employee would find it difficult to allow a situation where a company broke the rules - WB in a sense involves the breaking of promises and loyalties as it is going against an agreed system - Kantians might interpret this as human beings not being treated as ends but only as means for private good.

What is the utilitarian response to CSR ?

-Focuses on the consequences for the greatest number of people. -The greatest good could be in terms of the greatest profit -This may be a ruthless attempt to lead a ruthless attempt to maximize income at all costs. However, utilitarianism has the greater good principle to try to set aside selfish interest for the broader interest of many more people than oneself. This would mean not just acting in the interests of shareholders, but also in the interests of workers and all other stakeholders, including the communities in which the businesses operate in, the economy that it supports and the environmental impacts it might have on a global scale.

Is Good ethics always good business?

-It is difficult for businesses to constantly practice good ethics in a business environment based on competition and reducing costs and maximizing profits. - Competition is the driving force of our capitalist economy as businesses complete for employees, markets and investors.

What is the utilitarian approach to good ethics is good business

-Mill would distinguish between high and low pleasures and would consider the exploitation of the employees as a low pleasure compared with their treatment. -A rule utilitarian would be concerned with behavior of the business on the whole and would not find zero hour contracts acceptable as they would cause more pain than pleasure and this would form their basis for their decision making, this being efficient for decision making.

What is a utilitarian response to WB?

-Resist wb, depending on how much harm is being done -Would weigh up the balance of good and harm for all those with an interest or stake in the business - A rule utilitarian might feel that there was a greater good of having companies in general always follow the rules to keep the system of companies ethical, even if in a particular instance it created more happiness to not blow the whistle.

What did Crane and Mattern 2004 define as a stakeholder?

A stakeholder of a corporation is an individual or group who is either harmed or benefited from / by the corporation or whose rights are violated or have to be respected by the business

What did Smith say?

Adam Smith: free market competition - gets rid of restrictions in business and so puts people into competition with each other. Free market helps create an equivocal relationship between employers and employees, making trade just and free.

Is whistle blowing ever unethical?

Although whistle blowing is encouraged by the government as it serves the public good, there are also ethical issues involved for the individual who is thinking about WB because of their responsibilities to their employer.

Define business ethics

Business ethics considers the ethical relationship between businesses, consumers and their employees.

Why do businesses take on corporate social responsibility?

Businesses take on CSR for many reasons such as to promote themselves.

Explain Social responsibility and profits

Consumers now expect businesses to be socially responsible after the example has been set by organisations such as 'The Body Shop' (alternative ways to test beauty products) and 'The Co-operative Bank'. Businesses are now increasingly looking how they can portray a more positive social image which will help reduce criticisms and increase appeal for consumers. However, it is important profits are the main motives to keep a company in business as it is much harder to agree to make a more ethical workplace than a more profitable one. Businesses are multinational and will be serving different cultures and so will be difficult to agree on one moral code to work by.

What is a negative of globalization ?

Global businesses can get away with lower health and safety in developing countries which was evident in april 2013 when a poorly constructed Bangladeshi factory collapsed. The factory supplied businesses such as Primark and Wal-mart with low cost clothing. Over 1200 people dies and 2500 were injured.

Explain Globalisation

Globalisation means that businesses are now freer to choose where they operate from and can move to countries where labour is cheaper, much manufacturing has moves to places such as Indonesia and many telecommunication call centres to India. Globalisation also brings problems; many issues arise in power countries. Trade between countries is often unfair - the interests of shareholders are more important than those of employees and consumers which can often mean the poorest people have just 1.4% of the global income. Often cheap goods are more important to businesses than employee working standards which can lead to such devastating events, such as the factory collapse in Bangladesh where Primark's clothes were manufactured. A building poorly built which housed around 2,000 workers collapsed killing 200 people. Shortcuts were obviously taken in building the infrastructure and health and safety was not up to regulations expected in the UK. Events like this can be harrowing for a company's image and this event sparked a lot of concerns about the welfare of Primark employees overseas.

Explain globalisation

Globalization is the integration of economies, industries, markets, cultures etc. around the world. This means that businesses can be set up in one country such as a developed country and be managed from another. Moving production from Europe to lower wage countries such as Chine and India has rapidly increased economic development and technological matters. The wages are lower in developing countries than what they would be in the UK, but higher than other jobs such as farming. This has had great economic benefits for stakeholders.

What is a Kantian's response to globalisation?

Kant argued that everyone should have the same degree of freedom and that humans should not be treated like animals. Kant's view on equality would clash with the inequality created by globalization and tolerated by those who benefit from it.

What is the kantian approach to good ethics is good business

Kantian's would agree that good ethics is good business ad they would argue that the CI would clarify for a business what is permissible and what isn't. - Kantians do not agree with a highly competitive, capitalist environment as the 3rd maxim of the CI requires a business to act in only ways that everyone would deem acceptable This fits well with CSR, in which society demands certain ethical standards of business.

What did Marx say?

Marx criticised Smiths views, arguing that free market could lead to inequality and would not benefit the needs of the wider workforce.

What did Friedman say?

Milton Friedman: only activities which increase profits are to be encouraged as this is the only way that companies will survive, therefore Friedman wouldn't be interested in making a business more ethical as this means focuses less on profits and more on welfare standards.

What is the Nestle case study?

Nestle developed an unethical use and promotion of formula feeding in 3rd world countries instead of promoting breast milk. It distributed free samples and used 'milk nurse' as promotion. Te World Health organisation said that 1.5 million infants a year die as a result of infectious diseases due to not being breastfed.

What is the relationship between business and consumers?

Relationship between business and consumers: Consumer power is growing and now more than ever can consumers have a voice and be able to change the things they don't like in businesses. Some companies have been the focus of consumer criticism and forced to change their practices e.g. Nike and Gap over child labour, which resulted in Nike now monitoring their factories following exposure by BBC panorama. Events like this may make businesses think how volatile a consumer's voice can be and might encourage them to create a more ethically aware business.

What is the relationship between business and the environment ?

Relationship between business and the environment: Environmental responsibility is a vital component of a business strategy as it not only helps the environment, but it wins the trust of the communities and gains respect in operating countries. In 2007 Co-operative won the Business Commitment to the Environment Award for its response to global climate change, by: reducing its CO2 emissions by 86%, use of 98% green electricity and the ethical investment of the bank.

What is the relationship between employers and employees?

Relationship between employers and employees: For this relationship to be successful the two must balance their interests: the employer wants to plan for the future, make profits and keep happy employees; the employee wants the best conditions and working standards and good pay. Employees are vital in how a business can flourish as happy employees encourages people to invest and buy your products, also along with consumers employees now have a voice through social media and if they negatively portray a business this could affect how other people see the business. Whistle blowing is when employees may expose a business by voicing unethical conduct or quandaries involving the business.

What are religious approach to business ethics ?

Religious approach to business ethics Golden rule: treat others as they would be treated this would advocate fair trade and standards in all businesses as one could not be treated worse than another, this view could be backed up by the importance of 'loving thy neighbour'. Do not steal: infers that you should keep fair in business and not oversell products or take advantage of consumers or employees as this is stealing a fair wage or price from them. Protestant social teaching directed focus at personal integrity: a business man could be praised for his charity; therefore if business is seen acting ethically or doing something positive e.g. recycling scheme, this should be praised and will benefit the business. Catholicism: The common good, of solidarity, is a basic value in catholic social teaching and has led the catholic church to criticise both communism and free market capitalism which acts against the poor and leads to the selfish pursuit of wealth.

What dpoes Bowie say about Whistle blowig?

States that whistle blowing violates loyalty to the employer. He says it is more ethical to make an effort to solve the problem through the business' own complaints procedure before resorting to whistle-blowing.

What did Bowie say about kantian ethic's response to globalisation?

Suggests that Kantian thinking can inform all business on how they should organise meaningful work. This would include: - providing freedom and opportunities for workers to show their autonomy on the job - Work that supports autonomy and rational - work that does not undermine moral development

What did Snydner say?

Ted Snyder: 'Profit is more important than principle'

Explain the Columbia space shuttle incident (2003)

The space shuttle needed to meet NASA's criteria and performance requirements to be deemed successful. However, the spacer shuttle broke on its decent to Earth killing the 7 astronauts on board. An investigation showed that a large piece of foam fell from the shuttle's tank and breached the spacecraft's wing. The problem of foam had been known for years before and so NASA came under scrutiny.

Is whistle-blowing ethical?

Whistle blowing is when an employee discloses wrongdoing to the employer or the public. Whistle blowing may be perceived as a moral choice but in some cases it may be a legal responsibility to report unethical behavior because of the likelihood it could be criminal In most cases the UK law protects whistle blowers due to the public interest disclosure act. They are treated as witnesses, which means they are not require to provides evidence of what they are reporting, and it is possible to whistle-blow anonymously. It may be argued that by encouraging whistle-blowing, it helps businesses take their CSR seriously and consider all ethical practices.

Define shareholder

a person who has invested in a business and in return gets a share of the profits

Define stakeholder

a person who is affected by or involved in some form of relationship with a business

Define corporate social responsibility

a sense that business has wider responsibilities than simply to their shareholders

Define consumerism

a set of social beliefs that put a high value on acquiring material things

Define capitalism

the economic system based on the private ownership of means of production

Define globalisation

the integration of economies, industries, markets and cultures around the worlds

Define whistle-blowing

when as employer discloses wrongdoing to the employer or the public