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Business Ethics Corporate Social Responsibility Overview

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1. Business Ethics/Corporate Social Responsibility Overview 2. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Ethics is…
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  • 1. Business Ethics/Corporate Social Responsibility Overview
  • 2. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Ethics is concerned with the following: </li></ul><ul><ul><li>Good vs Bad </li></ul></ul><ul><ul><li>Right vs Wrong </li></ul></ul><ul><ul><li>Fair vs Unfair </li></ul></ul><ul><ul><li>Praise vs Blame </li></ul></ul>
  • 3. Business Ethics & Corporate Social Responsibility: The Legal View <ul><li>What are the differences between legal , social , and ethical responsibility? </li></ul>
  • 4. Business Ethics & Corporate Social Responsibility: The Legal View <ul><li>What is implied by shareholder wealth maximization ? Specifically, what does this perspective 'mean' for the interests of other stakeholders ? </li></ul>
  • 5. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Deontology: </li></ul><ul><ul><li>An ethical theory that holds that actions are right or wrong independent of their consequences </li></ul></ul>
  • 6. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Does the contemplated action: </li></ul><ul><ul><li>Conform to important principles? </li></ul></ul>
  • 7. Ethical Decision-making Model <ul><ul><li>principles </li></ul></ul><ul><ul><li>outcomes </li></ul></ul><ul><ul><li>fairness </li></ul></ul><ul><ul><li>caring </li></ul></ul><ul><ul><li>liberty </li></ul></ul><ul><ul><li>character </li></ul></ul><ul><ul><li>sustainability </li></ul></ul>1 2 3 4 5 6
  • 8. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Problem: </li></ul><ul><ul><li>It is not clear on what basis non-humans can be considered to have ‘rights’ </li></ul></ul>
  • 9. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Utilitarianism: </li></ul><ul><ul><li>An ethical theory that holds that actions are right if they produce, or tend to produce, the greatest amount of good for the greatest number of persons </li></ul></ul>
  • 10. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Does the contemplated action: </li></ul><ul><ul><li>Conform to important principles? </li></ul></ul><ul><ul><li>Create more good than harm? </li></ul></ul>
  • 11. Ethical Decision-making Model <ul><ul><li>principles </li></ul></ul><ul><ul><li>outcomes </li></ul></ul><ul><ul><li>fairness </li></ul></ul><ul><ul><li>caring </li></ul></ul><ul><ul><li>liberty </li></ul></ul><ul><ul><li>character </li></ul></ul><ul><ul><li>sustainability </li></ul></ul>1 2 3 4 5 6
  • 12. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Problem: </li></ul><ul><ul><li>This perspective only recognizes the instrumental value of ‘goods’ </li></ul></ul>
  • 13. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Justice: </li></ul><ul><ul><li>Consists in giving each person his or her due, treating equals equally and unequals unequally </li></ul></ul><ul><ul><ul><li>Distributive </li></ul></ul></ul><ul><ul><ul><li>Procedural </li></ul></ul></ul><ul><ul><ul><li>Compensatory </li></ul></ul></ul><ul><ul><ul><li>Retributive </li></ul></ul></ul>
  • 14. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Does the contemplated action: </li></ul><ul><ul><li>Conform to important principles? </li></ul></ul><ul><ul><li>Create more good than harm? </li></ul></ul><ul><ul><li>Lead to fair outcomes? </li></ul></ul>
  • 15. Ethical Decision-making Model <ul><ul><li>principles </li></ul></ul><ul><ul><li>outcomes </li></ul></ul><ul><ul><li>fairness </li></ul></ul><ul><ul><li>caring </li></ul></ul><ul><ul><li>liberty </li></ul></ul><ul><ul><li>character </li></ul></ul><ul><ul><li>sustainability </li></ul></ul>1 2 3 4 5 6
  • 16. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Problem: </li></ul><ul><ul><li>Focus is on persons, and giving them what they ‘deserve’ based on ‘merit’ </li></ul></ul>
  • 17. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Ethic of Care: </li></ul><ul><ul><li>Asks us to recognize and take seriously the moral worth of relationships, particularly those characterized by caring </li></ul></ul>
  • 18. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Does the contemplated action: </li></ul><ul><ul><li>Conform to important principles? </li></ul></ul><ul><ul><li>Create more good than harm? </li></ul></ul><ul><ul><li>Lead to fair outcomes? </li></ul></ul><ul><ul><li>Promote caring relationships? </li></ul></ul>
  • 19. Ethical Decision-making Model <ul><ul><li>principles </li></ul></ul><ul><ul><li>outcomes </li></ul></ul><ul><ul><li>fairness </li></ul></ul><ul><ul><li>caring </li></ul></ul><ul><ul><li>liberty </li></ul></ul><ul><ul><li>character </li></ul></ul><ul><ul><li>sustainability </li></ul></ul>1 2 3 4 5 6
  • 20. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Problem: </li></ul><ul><ul><li>It is not clear what might be meant by ‘caring’ for non-humans—or what it might mean for them to ‘care’ for us </li></ul></ul>
  • 21. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Libertarianism: </li></ul><ul><ul><li>Suggest right action consists in maximizing the capacity for free, informed personal choice </li></ul></ul>
  • 22. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Does the contemplated action: </li></ul><ul><ul><li>Conform to important principles? </li></ul></ul><ul><ul><li>Create more good than harm? </li></ul></ul><ul><ul><li>Lead to fair outcomes? </li></ul></ul><ul><ul><li>Promote caring relationships? </li></ul></ul><ul><ul><li>Advance personal liberty? </li></ul></ul>
  • 23. Ethical Decision-making Model <ul><ul><li>principles </li></ul></ul><ul><ul><li>outcomes </li></ul></ul><ul><ul><li>fairness </li></ul></ul><ul><ul><li>caring </li></ul></ul><ul><ul><li>liberty </li></ul></ul><ul><ul><li>character </li></ul></ul><ul><ul><li>sustainability </li></ul></ul>1 2 3 4 5 6
  • 24. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Problem: </li></ul><ul><ul><li>Non-humans are not considered to have ‘choices’ in the way in which humans do, and therefore are not privileged with liberty </li></ul></ul>
  • 25. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Virtue theory: </li></ul><ul><ul><li>Focus is on achieving our personal ethical ideal–a matter of who we are, not what we do </li></ul></ul>
  • 26. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Does the contemplated action: </li></ul><ul><ul><li>Conform to important principles? </li></ul></ul><ul><ul><li>Create more good than harm? </li></ul></ul><ul><ul><li>Lead to fair outcomes? </li></ul></ul><ul><ul><li>Promote caring relationships? </li></ul></ul><ul><ul><li>Advance personal liberty? </li></ul></ul><ul><ul><li>Stimulate personal ideals? </li></ul></ul>
  • 27. Ethical Decision-making Model <ul><ul><li>principles </li></ul></ul><ul><ul><li>outcomes </li></ul></ul><ul><ul><li>fairness </li></ul></ul><ul><ul><li>caring </li></ul></ul><ul><ul><li>liberty </li></ul></ul><ul><ul><li>character </li></ul></ul><ul><ul><li>sustainability </li></ul></ul>1 2 3 4 5 6
  • 28. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Problem: </li></ul><ul><ul><li>‘ Who’ we are in an ideal sense may have little or no relation with the ‘external’ world </li></ul></ul>
  • 29. Business Ethics & Corporate Social Responsibility: The Legal View <ul><li>And to compound the problem...what of the entity known as the corporation? </li></ul>
  • 30. Business Ethics & Corporate Social Responsibility: The Legal View <ul><li>What is a corporation? </li></ul>
  • 31. Business Ethics & Corporate Social Responsibility: The Social View <ul><li>Corporations are not human beings. The differences between human individuals and corporations, other formal organizations, and nations are significant from a moral point of view and from the point of view of moral responsibility. </li></ul>
  • 32. Business Ethics & Corporate Social Responsibility: The Social View <ul><li>A corporation as such has no conscience, no feelings, no consciousness of its own. It has a conscience only to the extent that those who make it up act for it in such a way as to evince something comparable to conscience. </li></ul>
  • 33. Business Ethics & Corporate Social Responsibility: The Social View <ul><li>Because a corporation only acts through those who act for it, it is the latter who must assume responsibility for the corporation. </li></ul>
  • 34. Business Ethics/Corporate Social Responsibility Overview <ul><li>The exclusively economic definition of the purpose of the corporation is a deadly oversimplification, allowing overemphasis on self-interest at the expense of consideration of others. </li></ul><ul><ul><li>--Kenneth Andrews </li></ul></ul>
  • 35. Business Ethics/Corporate Social Responsibility Overview <ul><li>Man…ought to regard himself, not as something separated and detached, but as a citizen of the world, a member of the vast commonwealth of nature…to the interest of this great community, he ought at all times to be willing that his own little interest should be sacrificed. </li></ul><ul><ul><li>--Adam Smith </li></ul></ul>
  • 36. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Land Ethic: </li></ul><ul><ul><li>A thing is right when it tends to preserve the beauty, stability, and integrity of the biotic community. It is wrong when it tends otherwise. </li></ul></ul>
  • 37. Business Ethics & Corporate Social Responsibility: The Moral View <ul><li>Does the contemplated action: </li></ul><ul><ul><li>Conform to important principles? </li></ul></ul><ul><ul><li>Create more good than harm? </li></ul></ul><ul><ul><li>Lead to fair outcomes? </li></ul></ul><ul><ul><li>Promote caring relationships? </li></ul></ul><ul><ul><li>Advance personal liberty? </li></ul></ul><ul><ul><li>Stimulate personal ideals? </li></ul></ul><ul><ul><li>Contribute to sustainability? </li></ul></ul>
  • 38. Ethical Decision-making Model <ul><ul><li>principles </li></ul></ul><ul><ul><li>outcomes </li></ul></ul><ul><ul><li>fairness </li></ul></ul><ul><ul><li>caring </li></ul></ul><ul><ul><li>liberty </li></ul></ul><ul><ul><li>character </li></ul></ul><ul><ul><li>sustainability </li></ul></ul>1 2 3 4 5 6
  • 39. Business Ethics & Corporate Social Responsibility: Mindwalk <ul><li>Locke believes land that is left &quot;wholly to nature&quot; is &quot;waste.&quot; How does this viewpoint compare with the attitudes of today's American businesses? Give examples. </li></ul>
  • 40. Business Ethics & Corporate Social Responsibility: Mindwalk <ul><li>One of the distinguishing characteristics of any social system is the way in which property is owned and transferred from one party to another. What are the socio-political implications of community property ownership? Of private property ownership? </li></ul>
  • 41. Business Ethics & Corporate Social Responsibility: Mindwalk <ul><li>If the best way to insure adequate treatment of the environment is through some form of community ownership, can we conclude socialism is a better political system for ensuring the protection of nature? What evidence do we have for this conclusion? </li></ul><ul><li>Perhaps a hybrid system would be a good framework for preserving the environment. Either &quot;community owned, individually managed&quot; or &quot;individually owned, managed for the community.&quot; What type of system do you recommend? </li></ul>
  • 42. Business Ethics/Corporate Social Responsibility Overview
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