Business Ethics
Classic business ethics dilemmas
Ethical Theory: Definition
Theories of Corporate Personhood
Ethics is a discipline that answer certain kinds of question
Emanuel Kant
Introductory Case
Ethical Question?
What action is right or wrong to take
What is Business?
conscience was a "moral law within."
Businesses as ethical person
Businesses as bureaucracies
Doing right by employees
Doing right by Customers
Doing right by shareholder
Businesses as collective person
Peter French
LA Theory
Business is a company or an enterprising entity that engages in commercial, industrial, or professional activities
Businesses itself is responsible for wrongdoing not just the people who work there
Doing right by community
From the pinto case
The Dominant Model theories would encourage the Pinto to break the law to maximize the shareholders' profits.
Shareholders Theory will encourage Pinto to not selling the car especially if it's not safe & lower the price
Corporations are like umbrellas
The Help (2011) movie case
adaptation of the novel 'The Help' by Kathryn Stockett and directed by Tate Taylor
both Minnie and Hilly done something unethical but the most unethical one goes to Hilly
its started when minnie use the toilet when hilly already told her not to. Hilly forbid minnie to use the toilet when there's storm going on
from cost&profit theories, its actually fine to build new toilet for the helper as long as the boss has lots of money and its not offending the helper
Tatiana and the fair distribution of chores
Jackall
Businesses are essentially bureaucracies
Knowledge of corporations
An administrative chain of command
Standard work processes, regular schedules, and uniform policies
Central control
Is Tatiana's behavior ethically acceptable?
The significant thing about a corporation is the people inside the corporation not the corporation
What should people do in this circumstances?
What Tatiana's room mates should do in this circumstances?
Altman
Kantian perspective
Corporations are not morally responsible
Kant struggles to attribute moral responsibility to the people who work in the corporations
Ethical theories must be able to attribute collective responsibility
Shareholder and Cost Benefit Analysis
Business Decision Making
Business in Society
Community
Employees
Consumers
CBA is the name of the technical strategy that is used to serve shareholder interests in maximizing profits. It could be used by either the DM or by ShareT.
- The Shareholder Theory (ShareT)
- Cost Benefit Analysis (CBA)
- The Dominant Model (DM)
Watson and Guardian Study Case
- Many people compare both Watson and Guardian
They have their own code of conduct that can make them reach their goals with a healthy competition, without trying to take down the competitors
Watsons and Guardian competition does not violate the existing business ethics
Business Ethics
- Business ethics is concerned with ethical quandaries or contentious issues that a company may face.
Business Competition
- Business ethics entails a set of practices and procedures that aid in the development of consumer trust.
- Typically, the law sets the tone for business ethics, providing a basic guideline that businesses can choose to follow in order to gain public approval.
Healthy competition
Cutthroat competition
place a high value on corporate ethics.
Unfair competition which leading to justification of any means to drive down the opponent's price so that one is eliminated
Watsons is Asia's leading health and beauty product retailer, currently operating more than 7,200 stores and 1,500 pharmacists in 13 Asian and European markets
Guardian Pharmacy is a kind of pharmaceutical retail business with a modern idea as compared to traditional pharmacies that give services to their consumers through a self-service system.
- Many people think they are the same since their products are mostly the same
- Watsons and Guardian store which always seems so close to each other.
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Ethical theories
The Philosopher
Betham and Mill
Aristotle
Kant
Focus on duty
Focus on Utility
Focus on virtue
Betham have a spesific proccedure for decision
making called Hedonic calculus
Hedonic calculus work though the most Quantify happiness
The way of Quantifiying happines is using a scale 0-10
Bentham says there are seven ways to quantify happiness: a) the intensity of the happiness; b) the duration of the happiness; c) the certainty of the happiness; d) the remoteness of the happiness; e) the repeatability of the happiness; People Excellence f) the purity of the happiness; g) the extent of the happiness
Mill version call The rule utilitarianism
Mill thinks that any person who has experience of both the higher pleasures and the lower pleasures will support the priority that he has given to higher pleasures
To be able to judge which is better, higher pleasures or lower pleasures, he thinks that judges must have experienced both kinds of pleasures
In act utilitarianism, decision-makers evaluate what action would maximize utility overall
Kant calls the duty is categorical imperative
Kant's strategy for ethical decision-making does not, then, consider what will create the most happiness. Rather, he requires that people's actions meet certain rational standards
The most important difference between Kantian ethics and utilitarianism is the standard the viewpoints offer for right actions
Kant thought that there is one basic duty that is straightforward to understand. That is the duty to act in accordance with rules
His ethical theory seeks to assure both that people act virtuously and that they are always striving to be more virtuous
There are three main ways that people can become virtuous, for Aristotle
Aristotle does not directly address the question: what action should I do? Rather, he is concerned with what virtue is and what it means to be a virtuous person
By choosing a virtuous role model, on whose behavior the person can pattern their own.
People Innovation Excellence By attempting to cultivate specific virtues
. By engaging in continual reflections on the nature of virtue.