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BUSINESS ETHICS (Can Humans really flourish in a consumer-driven…

- - - - if you divide up the production you can make more
- - - - pragmatic approach that suggests ‘good ethics is good business
        
        Adam Smith
        
        takes a slightly softer view than Friedman
        
        good ethics is good business
        
        utilitarian approach
        
        may benefit us in the short term to overcharge customers or pay low wages
        
        but this will ultimately harm our reputation and may make less money ultimately
        
        when we provide good service to others, Smith argues that we do so out of self-interest knowing that we will benefit in the end.
        
        He is primarily focused on how businesses can make money and two of his most famous ideas illustrate this
        
        law of supply and demand
        
        The division of labour makes factory production more efficient.
      - Duty and Kant
        
        good ethics matters more than good business
        
        example of a shopkeeper
        
        charges others fairly because he knows that this is good for business
        
        He concludes that this is not sufficient for the action to count as morally good
        
        shopkeeper is acting in his own interest
      - A Religious sense of responsibility in how we treat humans and the rest of creation
        
        that it is not possible to divide business from the rest of life
        
        Robert Solomons
        
        people's behaviour in their business lives bears no relation to how they act outside of work
- - - - Kantian ethics also has implications for the employee.
        
        It challenges the widespread culture of overclaiming on expenses or using company items for personal business.
        
        Not only do employees have a duty of honesty towards their employers, but it also is not possible to universalise these actions.
      - The requirement to treat persons as ends are very powerful. This leads to the idea of rights within the workplace and for consumers. It also leads to the ideas of giving autonomy and dignity in the workplace.
      - Supportive of whistleblowing where there are significant ethical concerns, Although employees have a duty to their company they also have wider ethical responsibilities.
      - in summary, Duty over profit, Duty of employee and persons of ends
      - KE states that we should do our duty regardless of or possible consequences or loss of money. Eg Kant’s shopkeeper example
    - - The theory gives priority to rights over profits. This is at first glance a good thing but it is debatable whether it is always realistic to ignore profits
      - Kantian Ethics has a helpful focus on treating persons as end
      - Universal Law not really fitting for this
      - Kantian Ethics focuses on motive and the idea of doing the right thing for the right reason and motives are hard to measure and track
      - The idea of duties to all the various stakeholders is fine in theory but in practice may lead to conflicting duties. We may not be able to satisfy everyone. Friedman's idea that we should just focus on profit is at least clearer.
  - - - the classical Utilitarians Bentham and Mill were very much in favour of freedom and minimal state intervention, this fits in well with Adam Smith's idea of enlightened self-interest
        
        We should be free to run our businesses as we choose without interference
        
        But behaving ethically may be the most profitable course of action in the long run
      - value of 'utility' or usefulness means that utilitarianism is flexible as an ethical theory and weighs up individual situations considering economic benefits of the various options
      - Act utilitarian may make decisions on a case by case basis but a rule utilitarian may view that the long term benefits of having a minimum wage or holiday entitlements may mean that a rule should be made on this issue regardless of individual cases.
      - In cases involving whistleblowing the utilitarian has to make a judgement regarding the risks and benefits for all concerned
      - could broadly support increased globalisation by pointing to the growth of economies in developing countries as a result of increased trade
      - However this support would be on the assumption that the economic benefits are enjoyed by the majority of that country's citizens
    - - Utilitarianism gives a significant amount of freedom: this leaves businesses free to consider situations for themselves and do what they calculate to be right
      - It can be argued that society flourishes best when lots of individuals flourish. This requires a variety of possible options rather than having rigorous rules imposed by governments
      - Utilitarianism depersonalises issues. This may be a good thing as it enables us to look logically rather than becoming emotionally attached
      - Alternatively, this can mean that we consider numbers and profit before we consider people and their rights. Bentham famously described the idea of 'rights' as nonsense on stilts.
      - It is more difficult that it appears to be objective when weighing the right course of actions. We often see situations differently depending on our point of view.