Business Ethics

Business Ethics

1. The Kuznets Curve

   • Graph shows people that as people get wealthier they buy and use things that are good for the environment
     • Also gain habits, about recycling and tourism
       • In early years of development the damage is worse but the richer people are the more the environment is restored
   • Criticisms
     • It's based on doubtful assumptions, if there is no social mobility then the damage remains bad for the environment

2. Globalisation

   • Free Market Economy with measures to stimulate trade around the world
     • E.g Abolition of border controls for free movement of labour
     • Standardization of taxes affecting companies
     • Improvements in transport and communication
   • Creates interdependency between countries in the developed and developing worlds; products can be internationally sold
   • The Problems
     • National Identity: ties to a birthplace, religion and country prevent a fully integrated global society
       • E.G: The failure of the United Nations Climate Change Conference, national interests can interfere with global needs
     • Jobs taken away from developed countries like the UK, cheaper labour in lesser developed places like Brazil

3. Relationship Between Employers and Employees

   • Trade Unions exist to protect workers' rights
     • For example:
       • Safe Working conditions
       • Equal opportunities (protection of discrimination based on race, religion, gender and sexual orientation)
   • Ethical problems are largely gone, but a seperate issue has arisen, the problem of mass migration to the UK
     • British workers want British jobs, but a globalised economy affects jobs in the UK
       • Solution: To limit number of migrant workers, restricting what jobs they can do, even restricting them to certain areas of the country
         • Christian Response: Old testament places hospitality to strangers as morally important, in New testament Jesus taught 'Love thy Neighbour'
         • Utilitarian Response: Considers the importance of the happiness for the maximal number. However, how can we calculate the maximal, is it the UK, the EU, or the entire planet?
         • Virtue Ethics Response: The concept of 'British Jobs for British Workers' leads the moral agent to seeing foreigners as different, therefore it would not inspire those character traits that leads to a moral life

4. Whistle Blowing

   • Where an employer has the perception that illegal or immoral activities are being pursued by the company for whom he or she works
     • Many businesses hate it, but without it the consumer and judicial system would be ignorant of corrupt/dangerous practices
       • Accountability must be present E.G Politicians have to be accountable for their expenses and how they spend taxpayers' money
   • Criticisms:
     • Revealing company information can benefit rival businesses, a company has a moral right to anything it has developed (John Locke principle of property rights)
   • Responses
     • Utilitarian: Maximisation of welfare from revealing the information (must benefit society as a whole)
       • Virtue Ethics: What type of person is whistleblowing? What do their actions reveal about them? Do they have a sense of Justice?
         • Kantian Ethics: Universalization, sense of duty. But who do you have a duty to? It is morally good if you report corruption/illegalities

5. Christian Ethics

   • "You shall not cheat in measuring length, weight or quantity" -Leviticus 19:13
   • Work is considered intrinsically good
     • Adam Laboring in Eden
     • Protestants: A virtue can be made from hard work
   • Globalisation
     • Tool of ensuring God's love is applied in the world. E.G commitment to the relief of poverty. Interdependence of developed nations with emerging economies like Africa and the Far East

6. Natural Law

   • A business should work like the parts of the body all working in harmony
     • The end should be profit, final should be happiness/contentment
       • This means the happiness of all parts E.G The consumer, staff etc.
   • Importance on human prospering, moral and economic betterment are combined with NL
     • Also says work should be uplifting, should be a moral environment
     • Criticism: The whole basis of NL is flawed, work has no intrinsic moral basis, just for earning a living. It is impossible to create a society where every job is inspiring

7. Virtue Ethics

   • Manuel Velasquez, American philosopher with 5 qualities an executive should have
     • Courage
     • Compassion
     • Fariness
     • Faithfulness
     • Honesty
     • Generosity
     • Integrity
     • Prudence
     • Self- Control

8. Kantian Ethics

   • Treat employees as means in themselves, not means to an end
   • Workers have a sense of duty to employers, but also vice-versa
     • However a workers autonomy must still be respected
     • The problem: Conflict in duties
   • Making money for its own sake & greed is wrong
     • Companies must be honest, lying when universalized is wrong

9. Utilitarian Ethics

   • Workers' rights should be developed and maintained if it has a positive effect on society
     • Asserts the right of joining a union but going on strike is likely to be detrimental on most people
   • Globalisation
     • Divided opinion: Uncertain if it will cause maximal happiness: New developing countries with higher quality of living vs the damage to the environment with industrialization
   • Issues
     • Utilitarians are divided by huge changes in the model in the 20th century, shift from economy making maximal happiness, to privatization and big multinational corporations, have either of them even worked?