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Business Ethics - Coggle Diagram
Business Ethics
AO1
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Globalisation
Globalisation is the phenomenon where world economies, industries, markets, cultures and policy-making/politics are connected. Businesses are global entities.
Leads to offshore outsourcing, when a business closes a factory in a 1st world country and opens it in a first world country, losing jobs in FWCs and promoting exploitation in 3WC
This also gives businesses political power, destroying the concept of free market capitalism by gaining control over the respective markets
Kant enjoys free market, dislikes globalisation destroying competition
Util would like free market, but dislike competition destruction
Whistleblowing
Going public with information about unethical business practices. Upside is these practices stop, downside is the business may go down and jobs are lost
In the UK, you cannot receive unfair treatment for whistleblowing
Kant
All shady/unethical business practices are likely to treat people as a mere means, so would be wrong for that reason and deserve whistleblow.
Furthermore, Kant claims that lying is not universalizable – so lying is always wrong, no matter the situation. This is another reason that telling the truth during whistleblowing is morally right.
Util
it depends on the situation. If the suffering alleviated by the whistleblowing outweighs the suffering caused by effect on the business, then whistleblowing is good, however if the conditions are reversed then whistleblowing is bad.
Sweatshops
A violation of CSR and a consequence of globalisation, normally what people whistleblow about and are heavily debated across util & kant
Utilitarians sometimes defend sweatshops, as it still provides some jobs in order to create products for western countries & 1st world countries
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By using Mill's rule util & the harm principle, so long as people are willingly working there, then there is no issue. However, children working is different due to the lack of consent
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Adam Smith & capitalism
Economics grow best through markets, where businesses compete to provide products & services. Competition creates better quality & cheaper products over time in a system that works so well as if it is guided by an invisible hand
Friedman
'Good ethics is good business', there is no moral responsibility when it comes to the management of your own private property. CSR is 'hypocritical window dressing' which may be used by businesses to disguise unethical practices
Marx argues that capitalism is inherently exploitative as it fosters inequality because there will always be a class division between those who own the businesses and those who work for them
“Jeff Bezos wants to start a school for kids whose families are underpaid by people like Jeff Bezos.”
Friedman would say a business has no responsibilities at all, except to fair competition in the free market. So he would reject the idea that CSR is needed at all – but if a business wants to do it for PR, that’s fine. The idea that it’s ‘hypocrisy’ covering up for their exploitative practices, Friedman would reject as nonsense – because he doesn’t think free market capitalism is exploitative.