BUSINESS ETHICS
OCR Religious Studies Religion and Ethics
4 ESSAYS
, Does good ethics equal good business
P: Utilitarians would say good ethics does equal good business because lifting people out of poverty to work is a genuinely
good ethical outcome
E:
• Globalisation has reduced the number of extreme poor whilst increasing pro t for business: this means
good business equals good ethics
• The World Bank estimates that since 1978, and the beginning of trade liberalisation, 850 million Chinese
citizens have been lifted out of poverty
• Economic growth can be ethically bene cial
• As a result of economic globalisation, the Global North is now losing jobs to the Global South. Millions
of people in developing countries have been lifted out of poverty.
• Utilitarianism: Real business situations require considering trade-offs and the lesser evil (e.g., the impact
of sweatshops on communities)
•
R:
• Kant: Need a clear ethical framework which most business' do not follow
• Example of the shopkeeper: always charges others fairly because he knows it is good for business- this is
not suf cient for the action to count as morally good
• It is only if the shopkeeper does the right thing out of duty, and would continue to do so even if he lost his
money, that this becomes a good action. Hence business should prioritise good ethics over making money
• While globalisation bene ts some people, many of the poorest in society have become even more badly
off
• In many countries the gap between rich and poor is growing
• Has been described as a 'race to the bottom' in terms of wages, workers rights and environmental
standards
• Corporations are keen to cut costs and consumers are keen to have goods as cheaply as possible
• Exploits people and their environments. 2013 Rana Plaza disaster: over 1000 people killed when a
garment factory collapsed due to employers ignoring hazardous working conditions.
• The universal law principle ensures fairness, consistency, and dignity in business.
• It prevents companies from treating employees or consumers as mere tools for pro t.
• Acting out of nancial interest only (a feature of globalisation) is a slippery slope and can lead to
exploitation of workers
• Therefore, globalisation proves that good business can come about without good ethics
•
E: Good business lifts people out of extreme poverty which must be seen as an ethically good thing. Without the
business they would be left with no form of income.
• Kant’s rigid rules are unrealistic in today’s global economy, where businesses face complex ethical
dilemmas.
• Mill has a more subtle understanding of what greatest good means with his idea of higher and lower
pleasures; happiness is more broad than simple pleasure vs. pain- still allows for globalisation
• Will use higher pleasure to take into account people's rights.
• Utilitarianism is a practical and action-guiding ethical approach in business context
•
P2:
P: Good ethics equals good business because reputational damage can damage a business' nances
E:
• Economist Adam Smith: businesses have a symbiotic relationship with both their customers and their
employees.
• Our self-interest will more than likely lead us to treat others well. It is short-sighted to overcharge
customers or pay low wages, because it will harm your reputation and ultimately make less money.
• E.g. McKinsey: diversity= more pro t.
• Utilitarians: the consequences of bad ethical decisions are often great- reputation can be ruined in
seconds. E.g. Facebook data scandal (Cambridge Analytica)- lost 16 percent of its value
• Advances in the internet and social media mean they cant hide.
• Whistleblowers can tweet within seconds, TV news can inform millions about what is happening e.g.
activists/workers at Foxconn posted images of the factories to social media of the harsh conditions
• Although Kant might argue that this shouldn't be a motive in acting morally, in practice worries about
reputation prevent much unethical behaviour.
•
R:
• Milton Friedman: rejects any link between business and ethics
fi fi fi fi fi fi fi fi
OCR Religious Studies Religion and Ethics
4 ESSAYS
, Does good ethics equal good business
P: Utilitarians would say good ethics does equal good business because lifting people out of poverty to work is a genuinely
good ethical outcome
E:
• Globalisation has reduced the number of extreme poor whilst increasing pro t for business: this means
good business equals good ethics
• The World Bank estimates that since 1978, and the beginning of trade liberalisation, 850 million Chinese
citizens have been lifted out of poverty
• Economic growth can be ethically bene cial
• As a result of economic globalisation, the Global North is now losing jobs to the Global South. Millions
of people in developing countries have been lifted out of poverty.
• Utilitarianism: Real business situations require considering trade-offs and the lesser evil (e.g., the impact
of sweatshops on communities)
•
R:
• Kant: Need a clear ethical framework which most business' do not follow
• Example of the shopkeeper: always charges others fairly because he knows it is good for business- this is
not suf cient for the action to count as morally good
• It is only if the shopkeeper does the right thing out of duty, and would continue to do so even if he lost his
money, that this becomes a good action. Hence business should prioritise good ethics over making money
• While globalisation bene ts some people, many of the poorest in society have become even more badly
off
• In many countries the gap between rich and poor is growing
• Has been described as a 'race to the bottom' in terms of wages, workers rights and environmental
standards
• Corporations are keen to cut costs and consumers are keen to have goods as cheaply as possible
• Exploits people and their environments. 2013 Rana Plaza disaster: over 1000 people killed when a
garment factory collapsed due to employers ignoring hazardous working conditions.
• The universal law principle ensures fairness, consistency, and dignity in business.
• It prevents companies from treating employees or consumers as mere tools for pro t.
• Acting out of nancial interest only (a feature of globalisation) is a slippery slope and can lead to
exploitation of workers
• Therefore, globalisation proves that good business can come about without good ethics
•
E: Good business lifts people out of extreme poverty which must be seen as an ethically good thing. Without the
business they would be left with no form of income.
• Kant’s rigid rules are unrealistic in today’s global economy, where businesses face complex ethical
dilemmas.
• Mill has a more subtle understanding of what greatest good means with his idea of higher and lower
pleasures; happiness is more broad than simple pleasure vs. pain- still allows for globalisation
• Will use higher pleasure to take into account people's rights.
• Utilitarianism is a practical and action-guiding ethical approach in business context
•
P2:
P: Good ethics equals good business because reputational damage can damage a business' nances
E:
• Economist Adam Smith: businesses have a symbiotic relationship with both their customers and their
employees.
• Our self-interest will more than likely lead us to treat others well. It is short-sighted to overcharge
customers or pay low wages, because it will harm your reputation and ultimately make less money.
• E.g. McKinsey: diversity= more pro t.
• Utilitarians: the consequences of bad ethical decisions are often great- reputation can be ruined in
seconds. E.g. Facebook data scandal (Cambridge Analytica)- lost 16 percent of its value
• Advances in the internet and social media mean they cant hide.
• Whistleblowers can tweet within seconds, TV news can inform millions about what is happening e.g.
activists/workers at Foxconn posted images of the factories to social media of the harsh conditions
• Although Kant might argue that this shouldn't be a motive in acting morally, in practice worries about
reputation prevent much unethical behaviour.
•
R:
• Milton Friedman: rejects any link between business and ethics
fi fi fi fi fi fi fi fi
