Flashcards
Business ethics
Cards in this deck (54)
- 1Kohlberg stagesKohlberg Stages of Moral development:
1) Level 1 preconventional
a. Stage 1 on pusinshment and obedience: do good to avoid punishment
b. Stage 2 Instrumental and Relative orientation: do good to have good done for you
2) Level 2 conventional stages
a. Stage 3 interpersonal concordance orientation: conform to expectations of those who are close
b. Stage 4 Law and Order orientation: conform what society expects
3) Level 3 Postconventional stage
a. Stage 5 Social Contract Orientation: All moral views should be tolerated
b. Stage six Universal Moral Principles - 2Kohlberg vs GilliganKohlberg: moral development through stages. Many stuck at some levels.
Gilligan says that difference between male and female. Male: right and justicee from impartial impersonal pov. Women concerned with nunrturing relationships. Caring, being responsible - 3Classification of stakeholdersInternal vs External
Active vs passive
Voluntary vs Involuntary - 4Levels of Stakeholder Framework1) ENDS : Purpose and values.
a. Values aspirations, basic business or value proposition
i. Aspirations? What do we stand for? How to make SH better off?
2) MEANS: Stakeholders and Principles.
a. Principles underlying all stakeholders or for specific stakeholders value driven stakeholder management
i. Major tradeoffs when manageing stakeholder relationship? Principles, values and policies we committed so that stakeholders can count on our support? Values, policies that underlie all stakeholder relationships?
3) Moral Legal constraints: Societal Context and Responsibility
a. Societal trends, critics, governance, stakeholder dialogue and engagement
i. What do critics say? Way of opening dialogue with critics? Future issues? - 5Fisher LowellTrigger level
Ordinary level
Veto level
Reject Level - 6Buddhist ethicsNot like deontological and consequentialist ethics in that the source of discussion is not the self. The aim is to reduce the self importance because it is a way of reducing suffering and reaching nirvana, enlightenment. Linked to teachings of gotama, summarized in 4 thruths: 1) there is suffering, 2) suffering is caused by attachment and cravings 3) no suffering is the nirvana 4) there is a path to nirvana --> buddhas 8 fold path divided in 3 parts: wisom, ethical wisdom and meditation. Link to business ethics and csr is that western ethical discussion is still embedded in the capitalist individualistic profit seeking maximization. If less self, then more altruism and paradoxically in the end no need for ethics.
- 7MOral principles1) Utilitarianism: right action is the one that produces most good for most people
2) Rights: Kant: universability and reversability, no means to ends.
Libertarian: Nozick, only right is negative right to freedom. To have freedom you need property rights.
3) Distributive: Egalitarianism
Dworking, resources
CApitalist: desert and contributtion
Rawls
4) Care
5) Virtue: different because not looking at deontological or consequences, but at what character it demonstrates. - 8Environment & EthicsAnthropocentric: instrumental
Enlightened Antrho: also nature but first humans
Intrinsic generates moral duty. - 9Intergenerational JusticeEqual rights or no rights?
no: do not exist yet, do not know their preferences
Issue: assymetry in power.
Libertarian: do what you want
CAre: should care about our descendence
Right: same rights as us
Utilitarian: which optimizes utility? - 10Blue EconomyQuestion resource neccessity
Waste does not exist
Full use of resources cascades into more efficiency
Ijects money back into local economy, and offers higher quality products - 11Blue economy, how to solve sustainability issues?Include externalities (make people pay)
Subsidies to change behaviours --> incentives e.g. company cars. - 12Precautionary principleIf practice has an unknown risk of catastrophic consequences, but uncertain how large risk is --> practice should be rejected until it is certain that the risk is insignificant
- 13Farber: climate change compensationclimate change already occuring , mitigation measures will not have time to have real impact --> need for adaptation.
Mitigation crucial for future generations, adaptation for our generation. - 14Buddhism vs virtueVirtue too self centered, buddhism not concerned with development of self.
- 15Principalism1. Autonomy
2. BEneficience
3. Non Maleficience
4. Justice - 16EthnocentrismEvaluate other culture by your own standards
- 17RElativismNo absolute truth
- 18Donaldson ethical algorythm1. Economic issues. Permissible if it was permissible in similar conditions at home
3. Cultural. Permissible if: impossible to do business without, no international rights are breached. - 19Ethical BankingMost banks apply neutrality principle: no Ethical environmental or social considerations in decision making. More and more financial institutions signing internationally accepted standards: principles for responsible investment or Equator principles.
But money is not neutral, it has an impact on human, social environmental welfare. Neutral banking is thus irresponsible.
Historically, ethical banking was already present in world religions with interest regulations. Quakers in the 18th century refrained from investing in industries they were morally opposed to. negative screening. This is known as responsible investment.
In the 1990 first attempt to create a positive ethical screening to be used with negative screening. Involves the “best in class method”: compare performances to competitors.
Socially responsible funds performance: mixed results.
Ethical banking is related to leans and direct financing BUT socially responsible investment relates to the ability to influence company behavior through the provision of capital.
Types of ethical banking: cooperatives, private dvlp - 20Impact InvestingInvestments made into companies, organizatios, and funds withy the intention to generate measurable social and environmental impact alongside return.
- 21continuum of investments from social to profitphliantrophic donations
Venture philanthropy
program related investing
IMPACT INVESTING
ESG investments
Socially responsible investments
Traditional investment - 22Equator principlesDeveloped by private sector to model the equator principles on environmental standards of the world back and social policies of the international finance corporation.
- 23New spirit of capitalismResillience: progressive adoption of values of critics. (study with economics textbooks)
- 24Moral reponsibility1) causality
2) knowledge
3) deliberate - 25DeGeorges10 principles for cross cultural management
Picks: no intentional harm
More good than bad
COntribute to development
REspect human rights
Pay taxes
REspect culture
Cooperate with gov to support just institutions
Accept responsibility
Ensure safe working conditions
Redezign dangerous working conditions - 26UN COMPACTCode of conduct for international comapnies. 10 principles in 4 categories: human rights, labor standards, environment and anti-corruption.
- 27Why NO Business ethicsRelativism
Libertarianism (friedman, only resposibility towards shareholders)
Neo-liberal : responsibilities to shareholders only
Legalist: limited to the law
Pessimist: oxymoron - 28Codes of conduct - DefinitionWritten documents that guide the decision making in a corporation in terms of values, rules of conduct, stakeholder principles, institutional values. Also practical mechanisms for reporting and sanctions.
- 29Classification of Codes of conduct1 zone internal
2 zone environment impacted by activities
3 zone political environment - 30Motivations for code of conductMarketing
Self interest
Politics of consumption
Forced
Vacuum created by globalization - 31Forum shoppingMNC putting countries in competition between each other regarding legal regimes. influence on politics
- 32Theories of moral virtueVirtues enable...
Aristotle : ...live according to reason
Aquinas: ...+ united with god
MacIntyre: ...achieve the good at which human "practices" aim (reach happiness)
Pincoffs: generally desirable dispositions which are desirable to have in view of the human situations under which human beings must live. - 33Integrative thesisMost business decisions, or statements about business, have some implicit ethical view. Most ethical decisions, or statements about ethics, have some implicit view about business
- 34Rode, Lemenestrel : studyTest how subjects decide to allocate revenues when one is contributing more than the other. REsult: meritocratic or egalitarian.
- 35Fair wage- talking pointsSROI by NEF
Criteria for wages: Market base, procedural, deontological - 36Standards for fair wageEgalitarianism
Positive rights (minimum subsistence)
Moral desert (according to contribution)
Libertarianism (fair when voluntary) - 37SROItells you how much social value is created for each pound invested. Is a measure of how effective work is creating benefits for everyone involved.
- 38A bit rich - NEF - RecommendationsEnd the policy silence on high pay (Some Japanese firms voluntarily impose pay ratios limiting the gap between the top and bottom pay)
Learn from the successes of anti-discrimination legislation
Build social and environmental value into prices
Introduce more progressive taxation (Wealthiest o not pay their fair share of tax, the very wealthy may pay none at all)
Encourage new forms of ownership (Mutually owned building societies, cooperatives, land trusts)
Radically reform the role of the City (Return finance to its role as servant, not master of the economy) - 39DeontologicalRightness and wrongness of actions themselfes, not consequences
- 40Three levels of ethical issuessystemic
Corporate
Individual - 413 views on moral resposibilitycompany
Employees
both - 42Easterlin ParadozAverage happiness not correlated (or very weakely) with GDP. (example of US)
- 43Dominance principleprefer living in bel than BRA, because of living conditions despite level of happiness
- 44What impacts happinessunemployement
Stress
Health, age, gender, family...
SOCIAL COMPARISON, HABITS, UNOBSERVED - 45Rights PrincipleThe morally correct action is the one that you have a moral right to do, that does not infringe on the moral rights of others, and that furthers the moral rights of others.
MEans not result - 46Conflicting rights exampleHIV in Africa : intellectual property and right to healthcare
- 47Gilligan steps development of ethics of care1. care for self
2. care for others
3. Understand interconnection between other and self. Care becomes self chosen principle. - 48Distributive justice DEsertLocke: contribution, effort, compensation
- 49Nozick entitlement theoryjustice in acquisition and transfer.\
Entitled if:
1 not previously owned
2 voluntary transaction - 50Rawls theory of justice1. each person has an equal claim to a fully adequate scheme of equal basic rights and liberties
2. SOcial and eco inequalities satisfy 2 conditions
(a) attached to positions open to everyone
(b) profit the leas andvantaged members of society - 51Karel DeGuchtResembles Rawls: eco inequality justified by 2 ways:
a) personal responsibilities
b) economic efficiency
Duty of assistance for less well off societies.
TO do: boost GDP in poorer countries, open borders. - 52Forms of Tax avoidance practicesDe Colle & Bennet
1) state-induced (legal and welcome)
2) Strategic (transparent legal but not always in accordance with legislators intentions)
3) Toxic (strictly legal but contradict intent of law - 53Sarbanes-OXley actRequires all public firms to disclose whether or not they have adopted a code of ethics
- 54Mailand: fair salaryIf freely accepted by informed workers
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- Business ethics SOlvay
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- Deleted user · Mar 2017
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- Mar 4, 2017
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- Created by Alexander Rehn · May 26, 2015
- Copied by Dane Jordan · Mar 4, 2017
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