business ethics corporate social responsibility overview

Business Ethics/Corporate Business Ethics/Corporate Social Responsibility Social Responsibility

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Business Ethics &Business Ethics &Corporate Social Responsibility: The Moral Corporate Social Responsibility: The Moral

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Ethics is concerned with the following:Ethics is concerned with the following: Good vs BadGood vs Bad Right vs WrongRight vs Wrong Fair vs UnfairFair vs Unfair Praise vs BlamePraise vs Blame

Business Ethics &Business Ethics &Corporate Social Responsibility: The Legal Corporate Social Responsibility: The Legal

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What are the differences between What are the differences between legallegal, , socialsocial, and , and ethicalethical responsibility? responsibility?


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What is implied by shareholder wealth What is implied by shareholder wealth maximizationmaximization? Specifically, what does ? Specifically, what does this perspective 'mean' for the this perspective 'mean' for the interests of other interests of other stakeholdersstakeholders? ?


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Deontology:Deontology: An ethical theory that holds that actions An ethical theory that holds that actions

are right or wrong independent of their are right or wrong independent of their consequencesconsequences


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Does the contemplated action:Does the contemplated action: Conform to important principles?Conform to important principles?

Ethical Decision-making ModelEthical Decision-making Model

principlesprinciples

outcomesoutcomes

fairnessfairness

caringcaring

libertyliberty

charactercharacter

sustainabilitysustainability

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Problem:Problem: It is not clear on what basis non-It is not clear on what basis non-

humans can be considered to have humans can be considered to have ‘rights’‘rights’


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Utilitarianism:Utilitarianism: An ethical theory that holds that actions An ethical theory that holds that actions

are right if they produce, or tend to are right if they produce, or tend to produce, the greatest amount of good for produce, the greatest amount of good for the greatest number of personsthe greatest number of persons


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Does the contemplated action:Does the contemplated action: Conform to important principles?Conform to important principles? Create more good than harm?Create more good than harm?



outcomesoutcomes

fairnessfairness

caringcaring

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Problem:Problem: This perspective only recognizes the This perspective only recognizes the

instrumental value of ‘goods’instrumental value of ‘goods’


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Justice:Justice: Consists in giving each person his or her Consists in giving each person his or her

due, treating equals equally and unequals due, treating equals equally and unequals unequallyunequally DistributiveDistributive ProceduralProcedural CompensatoryCompensatory RetributiveRetributive


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Does the contemplated action:Does the contemplated action: Conform to important principles?Conform to important principles? Create more good than harm?Create more good than harm? Lead to fair outcomes?Lead to fair outcomes?



outcomesoutcomes

fairnessfairness

caringcaring

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charactercharacter


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Problem:Problem: Focus is on persons, and giving them Focus is on persons, and giving them

what they ‘deserve’ based on ‘merit’what they ‘deserve’ based on ‘merit’


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Ethic of Care:Ethic of Care: Asks us to recognize and take seriously Asks us to recognize and take seriously

the moral worth of relationships, the moral worth of relationships, particularly those characterized by caringparticularly those characterized by caring


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Does the contemplated action:Does the contemplated action: Conform to important principles?Conform to important principles? Create more good than harm?Create more good than harm? Lead to fair outcomes?Lead to fair outcomes? Promote caring relationships?Promote caring relationships?



outcomesoutcomes

fairnessfairness

caringcaring

libertyliberty

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Problem:Problem: It is not clear what might be meant by It is not clear what might be meant by

‘caring’ for non-humans—or what it ‘caring’ for non-humans—or what it might mean for them to ‘care’ for usmight mean for them to ‘care’ for us


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Libertarianism:Libertarianism: Suggest right action consists in Suggest right action consists in

maximizing the capacity for free, maximizing the capacity for free, informed personal choiceinformed personal choice


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Does the contemplated action:Does the contemplated action: Conform to important principles?Conform to important principles? Create more good than harm?Create more good than harm? Lead to fair outcomes?Lead to fair outcomes? Promote caring relationships?Promote caring relationships? Advance personal liberty?Advance personal liberty?



outcomesoutcomes

fairnessfairness

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Problem:Problem: Non-humans are not considered to Non-humans are not considered to

have ‘choices’ in the way in which have ‘choices’ in the way in which humans do, and therefore are not humans do, and therefore are not privileged with libertyprivileged with liberty


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Virtue theory:Virtue theory: Focus is on achieving our personal ethical Focus is on achieving our personal ethical

ideal–a matter of who we are, not what ideal–a matter of who we are, not what we dowe do


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Does the contemplated action:Does the contemplated action: Conform to important principles?Conform to important principles? Create more good than harm?Create more good than harm? Lead to fair outcomes?Lead to fair outcomes? Promote caring relationships?Promote caring relationships? Advance personal liberty?Advance personal liberty? Stimulate personal ideals?Stimulate personal ideals?



outcomesoutcomes

fairnessfairness

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Problem:Problem: ‘‘Who’ we are in an ideal sense may have Who’ we are in an ideal sense may have

little or no relation with the ‘external’ little or no relation with the ‘external’ worldworld


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And to compound the problem...what And to compound the problem...what of the entity known as the of the entity known as the corporation? corporation?


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What What isis a corporation? a corporation?

Business Ethics &Business Ethics &Corporate Social Responsibility: The Social Corporate Social Responsibility: The Social

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Corporations are not human beings. The Corporations are not human beings. The differences between human individuals differences between human individuals and corporations, other formal and corporations, other formal organizations, and nations are organizations, and nations are significant from a moral point of view significant from a moral point of view and from the point of view of moral and from the point of view of moral responsibility.responsibility.


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A corporation as such has no conscience, A corporation as such has no conscience, no feelings, no consciousness of its no feelings, no consciousness of its own. It has a conscience only to the own. It has a conscience only to the extent that those who make it up act extent that those who make it up act for it in such a way as to evince for it in such a way as to evince something comparable to conscience.something comparable to conscience.


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Because a corporation only acts through Because a corporation only acts through those who act for it, it is the latter who those who act for it, it is the latter who must assume responsibility for the must assume responsibility for the corporation.corporation.

Business Ethics/Corporate Social Business Ethics/Corporate Social Responsibility OverviewResponsibility Overview

The exclusively economic The exclusively economic definition of the purpose of definition of the purpose of the corporation is a deadly the corporation is a deadly oversimplification, allowing oversimplification, allowing overemphasis on self-overemphasis on self-interest at the expense of interest at the expense of consideration of others.consideration of others.

--Kenneth --Kenneth AndrewsAndrews

Business Ethics/Corporate Social Business Ethics/Corporate Social Responsibility OverviewResponsibility Overview

Man…ought to regard himself, not Man…ought to regard himself, not as something separated and as something separated and detached, but as a citizen of the detached, but as a citizen of the world, a member of the vast world, a member of the vast commonwealth of nature…to the commonwealth of nature…to the interest of this great community, interest of this great community, he ought at all times to be willing he ought at all times to be willing that his own little interest should that his own little interest should be sacrificed.be sacrificed. --Adam --Adam

SmithSmith


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Land Ethic:Land Ethic: A thing is right when it tends to preserve A thing is right when it tends to preserve

the beauty, stability, and integrity of the the beauty, stability, and integrity of the biotic community. It is wrong when it biotic community. It is wrong when it tends otherwise.tends otherwise.


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Does the contemplated action:Does the contemplated action: Conform to important principles?Conform to important principles? Create more good than harm?Create more good than harm? Lead to fair outcomes?Lead to fair outcomes? Promote caring relationships?Promote caring relationships? Advance personal liberty?Advance personal liberty? Stimulate personal ideals?Stimulate personal ideals? Contribute to sustainability?Contribute to sustainability?



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Business Ethics &Business Ethics &Corporate Social Responsibility: MindwalkCorporate Social Responsibility: Mindwalk

Locke believes land that is left "wholly Locke believes land that is left "wholly to nature" is "waste." How does this to nature" is "waste." How does this viewpoint compare with the attitudes viewpoint compare with the attitudes of today's American businesses? Give of today's American businesses? Give examples.examples.


One of the distinguishing One of the distinguishing characteristics of any social system is characteristics of any social system is the way in which property is owned the way in which property is owned and transferred from one party to and transferred from one party to another. What are the socio-political another. What are the socio-political implications of community property implications of community property ownership? Of private property ownership? Of private property ownership?ownership?


If the best way to insure adequate treatment of the If the best way to insure adequate treatment of the environment is through some form of community environment is through some form of community ownership, can we conclude socialism is a better ownership, can we conclude socialism is a better political system for ensuring the protection of political system for ensuring the protection of nature? What evidence do we have for this nature? What evidence do we have for this conclusion?conclusion?

Perhaps a hybrid system would be a good framework Perhaps a hybrid system would be a good framework for preserving the environment. Either "community for preserving the environment. Either "community owned, individually managed" or "individually owned, individually managed" or "individually owned, managed for the community." What type of owned, managed for the community." What type of system do you recommend?system do you recommend?

Business Ethics/Corporate Business Ethics/Corporate Social Responsibility Social Responsibility

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