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BA 356 Ch3 Team3 Presentation

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  • 1. Chapter 3:Philosophical Ethics& Business
    Team 3:
    Angela Van Strander
    Matt Vital
  • 2. The Justification of Human Rights
    By: Denis G. Arnold
  • 3. Human Rights
    Moral rights that apply to all persons in all nations, regardless of whether the nation in which a person resides acknowledge and protects those rights
    Human rights are inalienable
  • 4. Philosophical Questions
    #1. How can human rights be justified?
    Are they a Western concept?
    #2. What specific human rights exists?
    #3. How do human rights differ from other rights?
    Such as legal rights.
  • 5. Activity #1
    Reflection
    Group yourselves and for a couple minutes think about the 3 previous questions & try to answer them.
  • 6. Conclusion
    Have a sense of personhood
    “Metaphysical” rather than biological
    Capable of acting in a manner consistent with one’s considered preferences
  • 7. Caux Principles of Business
    The Caux Round Table (CRT) is an international network of experienced business leaders, who work with business and political leaders to design the intellectual strategies, management tools and practices to strengthen private enterprise and public governance to improve our global community.
    http://www.cauxroundtable.org/
  • 8. Motives
    Improve economic and social changes
    Seek to begin a process that identifies shared values, reconciles differing values, and develop a share perspective on business behavior acceptable to and honored by all.
  • 9. 2 Basic Ethical Ideals:
    Kyosei
    Japanese concept meaning “living and working together for the common good”; thus enabling cooperation and mutual prosperity to coexist with healthy and fair competition
    Human dignity
    sacredness or value of each person as an end—not simply as a means to the fulfillment of others’ purposes or even majority prescription
  • 10. Section I: Preamble/Introduction
    Business can be a powerful agent of positive social change.
    They offer the following principles as a foundation for dialogue and action by business leasers in search of responsibility.
    Necessary for moral values in business decision-making
  • 11. Section II: General Principles
    The Responsibilities of Business: Beyond Stakeholders toward Stakeholders
    The Economic and Social Impact of Business Toward Innovation, Justice and World Community
    Business Behavior: Beyond the Letter of Law toward a Spirit of Trust
  • 12. Section II: General Principles (cont’d)
    Respect for Rules
    Support for Multilateral Trade
    Respect for the Environment
    Avoidance of Illicit Operations
  • 13. Section III: Stakeholder Principles
    Customers
    Employees
    Owners/Investors
    Suppliers
    Competitors
    Communities
  • 14. Do CEOs Get Paid Too Much?
    By: Jeffrey Moriarty
  • 15. BusinessWeekestimated that, in 2003, CEOs of 365 largest US corporations were paid on average $8 million, 301 times as much as factory workers.
    CEO packages includes:
    Salary, bonus, and restricted stock & stock option grants
    And increased by 340% from 1991-2001, while workers’ paychecks increased by only 36%.
    What is wrong with this?
  • 16. 3 Views of Justice in Wages
    In general, what makes a wage just?
    Agreement View
    Desert View
    Utility View
  • 17. Agreement View
    Based on arm’s length negotiation between informed CEOs and owners
    Meet 2 requirements:
    Independent of the CEO
    Must be informed
    Problems:
    Mainly occurs on company’s owners
    No guarantee that shareholders would choose independent and informed representatives in elections
    Shareholders do not elect directors in a meaningful way
  • 18. Agreement View (continued)
    Board of Directors may be informed, but they may not act independently
    3 factors that compromise director’s independence from CEOs:
    Gratitude
    Self-interest
    Absence of a reason directors have to favor shareholders
  • 19. Agreement View (continued)
    While admitting that these influences are problematic, directors are usually assisted by compensation consultants that can make accurate and bias-free assessments of a CEO’s worth
    Problem: Sometimes they don’t always consider all the consultant’s advice
  • 20. Desert View
    Company assumes that a CEO should get the wage deserved which is determined by contributions to the firm and the proper measure of contribution is firm performance
  • 21. Problem #1:Identifying the standard for deservingness
    Difficulty, stress, dangerousness, risk, and unpleasantness
    Degree of responsibility/importance
    Contribution to the firm
    Amount of ability, skill, or training the job requires
  • 22. Problem #2:How does the job fare?
    Based on:
    Physical effort
    Degrees of responsibility
    Contributions to the firm
    Formal education and years of experience
    After determining the deserving factor, decide on what wage is deserved for the CEO
  • 23. Desert View (cont’d)
    While admitting that these influences are problematic, there is still justification of current disparities between CEOs and worker pay.
    If employee pay cannot be increased, then this view demands that CEO pay is reduced drastically.
  • 24. Utility View
    Wages are not rewards, but as incentives for future work
    Purpose:
    To maximize firm wealth by attracting, retaining, and motivating talented workers
    • Motivate CEOs toward bonuses
    • 25. Wealth created by CEO must be weighed against the cost of their services
  • Utility View (cont’d)
    Attraction & Retention
    Reasons why employees get paid more based on their:
    Effort
    Skill
    Difficulty
    Motivation
    Pay motivates CEO to work harder
    No guarantee extra headwork will translate into extra revenue
    Compensation packages make stock prices rise because stock is include within their compensation package
  • 26. Utility View (cont’d)
    Pay of a CEO may be an effective motivational tool, but not likely cost effective
  • 27. Conclusion
    How to Reduce CEO Pay
    CEO’s should be removed from the director election process
    Directors should be required to make meaningful investments in firms
    • Overall, this should make you think about the moral dimensions of wages.
  • Activity #2
  • 28. Bingo word choices:
    Caux Principles ofBusiness
    Kyosei
    Human Dignity
    Section 1: Preamble
    Section 2: General Principles (7)
    Section 3: Stakeholder Principles (6)
    Do CEOs Get Paid Too Much?
    BusinessWeek
    CEO packages
    Agreement View (6)
    Desert View (5)
    Utility View (7)
    How to Reduce CEO Pay