Business Ethics/Corporate Social Responsibility Overview

Business Ethics & Corporate Social Responsibility: The Moral View Ethics is concerned with the following: Good vs Bad Right vs Wrong Fair vs Unfair Praise vs Blame

Ethics is concerned with the following:

Good vs Bad

Right vs Wrong

Fair vs Unfair

Praise vs Blame

Business Ethics & Corporate Social Responsibility: The Legal View What are the differences between legal , social , and ethical responsibility?

What are the differences between legal , social , and ethical responsibility?

Business Ethics & Corporate Social Responsibility: The Legal View What is implied by shareholder wealth maximization ? Specifically, what does this perspective 'mean' for the interests of other stakeholders ?

What is implied by shareholder wealth maximization ? Specifically, what does this perspective 'mean' for the interests of other stakeholders ?

Business Ethics & Corporate Social Responsibility: The Moral View Deontology: An ethical theory that holds that actions are right or wrong independent of their consequences

Deontology:

An ethical theory that holds that actions are right or wrong independent of their consequences

Business Ethics & Corporate Social Responsibility: The Moral View Does the contemplated action: Conform to important principles?

Does the contemplated action:

Conform to important principles?

Ethical Decision-making Model principles outcomes fairness caring liberty character sustainability 1 2 3 4 5 6

principles

outcomes

fairness

caring

liberty

character

sustainability

Business Ethics & Corporate Social Responsibility: The Moral View Problem: It is not clear on what basis non-humans can be considered to have ‘rights’

Problem:

It is not clear on what basis non-humans can be considered to have ‘rights’

Business Ethics & Corporate Social Responsibility: The Moral View Utilitarianism: An ethical theory that holds that actions are right if they produce, or tend to produce, the greatest amount of good for the greatest number of persons

Utilitarianism:

An ethical theory that holds that actions are right if they produce, or tend to produce, the greatest amount of good for the greatest number of persons

Business Ethics & Corporate Social Responsibility: The Moral View Does the contemplated action: Conform to important principles? Create more good than harm?

Does the contemplated action:

Conform to important principles?

Create more good than harm?

Ethical Decision-making Model principles outcomes fairness caring liberty character sustainability 1 2 3 4 5 6

principles

outcomes

fairness

caring

liberty

character

sustainability

Business Ethics & Corporate Social Responsibility: The Moral View Problem: This perspective only recognizes the instrumental value of ‘goods’

Problem:

This perspective only recognizes the instrumental value of ‘goods’

Business Ethics & Corporate Social Responsibility: The Moral View Justice: Consists in giving each person his or her due, treating equals equally and unequals unequally Distributive Procedural Compensatory Retributive

Justice:

Consists in giving each person his or her due, treating equals equally and unequals unequally

Distributive

Procedural

Compensatory

Retributive

Business Ethics & Corporate Social Responsibility: The Moral View Does the contemplated action: Conform to important principles? Create more good than harm? Lead to fair outcomes?

Does the contemplated action:

Conform to important principles?

Create more good than harm?

Lead to fair outcomes?

Ethical Decision-making Model principles outcomes fairness caring liberty character sustainability 1 2 3 4 5 6

principles

outcomes

fairness

caring

liberty

character

sustainability

Business Ethics & Corporate Social Responsibility: The Moral View Problem: Focus is on persons, and giving them what they ‘deserve’ based on ‘merit’

Problem:

Focus is on persons, and giving them what they ‘deserve’ based on ‘merit’

Business Ethics & Corporate Social Responsibility: The Moral View Ethic of Care: Asks us to recognize and take seriously the moral worth of relationships, particularly those characterized by caring

Ethic of Care:

Asks us to recognize and take seriously the moral worth of relationships, particularly those characterized by caring

Business Ethics & Corporate Social Responsibility: The Moral View Does the contemplated action: Conform to important principles? Create more good than harm? Lead to fair outcomes? Promote caring relationships?

Does the contemplated action:

Conform to important principles?

Create more good than harm?

Lead to fair outcomes?

Promote caring relationships?

Ethical Decision-making Model principles outcomes fairness caring liberty character sustainability 1 2 3 4 5 6

principles

outcomes

fairness

caring

liberty

character

sustainability

Business Ethics & Corporate Social Responsibility: The Moral View Problem: It is not clear what might be meant by ‘caring’ for non-humans—or what it might mean for them to ‘care’ for us

Problem:

It is not clear what might be meant by ‘caring’ for non-humans—or what it might mean for them to ‘care’ for us

Business Ethics & Corporate Social Responsibility: The Moral View Libertarianism: Suggest right action consists in maximizing the capacity for free, informed personal choice

Libertarianism:

Suggest right action consists in maximizing the capacity for free, informed personal choice

Business Ethics & Corporate Social Responsibility: The Moral View Does the contemplated action: Conform to important principles? Create more good than harm? Lead to fair outcomes? Promote caring relationships? Advance personal liberty?

Does the contemplated action:

Conform to important principles?

Create more good than harm?

Lead to fair outcomes?

Promote caring relationships?

Advance personal liberty?

Ethical Decision-making Model principles outcomes fairness caring liberty character sustainability 1 2 3 4 5 6

principles

outcomes

fairness

caring

liberty

character

sustainability

Business Ethics & Corporate Social Responsibility: The Moral View Problem: Non-humans are not considered to have ‘choices’ in the way in which humans do, and therefore are not privileged with liberty

Problem:

Non-humans are not considered to have ‘choices’ in the way in which humans do, and therefore are not privileged with liberty

Business Ethics & Corporate Social Responsibility: The Moral View Virtue theory: Focus is on achieving our personal ethical ideal–a matter of who we are, not what we do

Virtue theory:

Focus is on achieving our personal ethical ideal–a matter of who we are, not what we do

Business Ethics & Corporate Social Responsibility: The Moral View Does the contemplated action: Conform to important principles? Create more good than harm? Lead to fair outcomes? Promote caring relationships? Advance personal liberty? Stimulate personal ideals?

Does the contemplated action:

Conform to important principles?

Create more good than harm?

Lead to fair outcomes?

Promote caring relationships?

Advance personal liberty?

Stimulate personal ideals?

Ethical Decision-making Model principles outcomes fairness caring liberty character sustainability 1 2 3 4 5 6

principles

outcomes

fairness

caring

liberty

character

sustainability

Business Ethics & Corporate Social Responsibility: The Moral View Problem: ‘ Who’ we are in an ideal sense may have little or no relation with the ‘external’ world

Problem:

‘ Who’ we are in an ideal sense may have little or no relation with the ‘external’ world

Business Ethics & Corporate Social Responsibility: The Legal View And to compound the problem...what of the entity known as the corporation?

And to compound the problem...what of the entity known as the corporation?

Business Ethics & Corporate Social Responsibility: The Legal View What is a corporation?

What is a corporation?

Business Ethics & Corporate Social Responsibility: The Social View Corporations are not human beings. The differences between human individuals and corporations, other formal organizations, and nations are significant from a moral point of view and from the point of view of moral responsibility.

Corporations are not human beings. The differences between human individuals and corporations, other formal organizations, and nations are significant from a moral point of view and from the point of view of moral responsibility.

Business Ethics & Corporate Social Responsibility: The Social View A corporation as such has no conscience, no feelings, no consciousness of its own. It has a conscience only to the extent that those who make it up act for it in such a way as to evince something comparable to conscience.

A corporation as such has no conscience, no feelings, no consciousness of its own. It has a conscience only to the extent that those who make it up act for it in such a way as to evince something comparable to conscience.

Business Ethics & Corporate Social Responsibility: The Social View Because a corporation only acts through those who act for it, it is the latter who must assume responsibility for the corporation.

Because a corporation only acts through those who act for it, it is the latter who must assume responsibility for the corporation.

Business Ethics/Corporate Social Responsibility Overview The exclusively economic definition of the purpose of the corporation is a deadly oversimplification, allowing overemphasis on self-interest at the expense of consideration of others. --Kenneth Andrews

The exclusively economic definition of the purpose of the corporation is a deadly oversimplification, allowing overemphasis on self-interest at the expense of consideration of others.

--Kenneth Andrews

Business Ethics/Corporate Social Responsibility Overview Man…ought to regard himself, not as something separated and detached, but as a citizen of the world, a member of the vast commonwealth of nature…to the interest of this great community, he ought at all times to be willing that his own little interest should be sacrificed. --Adam Smith

Man…ought to regard himself, not as something separated and detached, but as a citizen of the world, a member of the vast commonwealth of nature…to the interest of this great community, he ought at all times to be willing that his own little interest should be sacrificed.

--Adam Smith

Business Ethics & Corporate Social Responsibility: The Moral View Land Ethic: A thing is right when it tends to preserve the beauty, stability, and integrity of the biotic community. It is wrong when it tends otherwise.

Land Ethic:

A thing is right when it tends to preserve the beauty, stability, and integrity of the biotic community. It is wrong when it tends otherwise.

Business Ethics & Corporate Social Responsibility: The Moral View Does the contemplated action: Conform to important principles? Create more good than harm? Lead to fair outcomes? Promote caring relationships? Advance personal liberty? Stimulate personal ideals? Contribute to sustainability?

Does the contemplated action:

Conform to important principles?

Create more good than harm?

Lead to fair outcomes?

Promote caring relationships?

Advance personal liberty?

Stimulate personal ideals?

Contribute to sustainability?

Ethical Decision-making Model principles outcomes fairness caring liberty character sustainability 1 2 3 4 5 6

principles

outcomes

fairness

caring

liberty

character

sustainability

Business Ethics & Corporate Social Responsibility: Mindwalk Locke believes land that is left "wholly to nature" is "waste." How does this viewpoint compare with the attitudes of today's American businesses? Give examples.

Locke believes land that is left "wholly to nature" is "waste." How does this viewpoint compare with the attitudes of today's American businesses? Give examples.

Business Ethics & Corporate Social Responsibility: Mindwalk One of the distinguishing characteristics of any social system is the way in which property is owned and transferred from one party to another. What are the socio-political implications of community property ownership? Of private property ownership?

One of the distinguishing characteristics of any social system is the way in which property is owned and transferred from one party to another. What are the socio-political implications of community property ownership? Of private property ownership?

Business Ethics & Corporate Social Responsibility: Mindwalk If the best way to insure adequate treatment of the environment is through some form of community ownership, can we conclude socialism is a better political system for ensuring the protection of nature? What evidence do we have for this conclusion? Perhaps a hybrid system would be a good framework for preserving the environment. Either "community owned, individually managed" or "individually owned, managed for the community." What type of system do you recommend?

If the best way to insure adequate treatment of the environment is through some form of community ownership, can we conclude socialism is a better political system for ensuring the protection of nature? What evidence do we have for this conclusion?

Perhaps a hybrid system would be a good framework for preserving the environment. Either "community owned, individually managed" or "individually owned, managed for the community." What type of system do you recommend?

Business Ethics/Corporate Social Responsibility Overview