Chapter 3:Philosophical Ethics& Business<br />Team 3:<br />Angela Van Strander<br />Matt Vital<br />
The Justification of Human Rights<br />By: Denis G. Arnold<br />
Human Rights<br />Moral rights that apply to all persons in all nations, regardless of whether the nation in which a perso...
Philosophical Questions<br />#1. How can human rights be justified?<br />Are they a Western concept?<br />#2. What specifi...
Activity #1<br />Reflection<br />Group yourselves and for a couple minutes think about the 3 previous questions & try to a...
Conclusion<br />Have a sense of personhood<br />“Metaphysical” rather than biological<br />Capable of acting in a manner c...
Caux Principles of Business<br />The Caux Round Table (CRT) is an international network of experienced business leaders, w...
Motives<br />Improve economic and social changes<br />Seek to begin a process that identifies shared values, reconciles di...
2 Basic Ethical Ideals:<br />Kyosei<br />Japanese concept meaning “living and working together for the common good”; thus ...
Section I: Preamble/Introduction<br />Business can be a powerful agent of positive social change.<br />They offer the foll...
Section II: General Principles<br />The Responsibilities of Business: Beyond Stakeholders toward Stakeholders<br />The Eco...
Section II: General Principles (cont’d)<br />Respect for Rules<br />Support for Multilateral Trade<br />Respect for the En...
Section III: Stakeholder Principles<br />Customers<br />Employees<br />Owners/Investors<br />Suppliers<br />Competitors<br...
Do CEOs Get Paid Too Much?<br />By: Jeffrey Moriarty<br />
BusinessWeekestimated that, in 2003, CEOs of 365 largest US corporations were paid on average $8 million, 301 times as muc...
3 Views of Justice in Wages<br />In general, what makes a wage just?<br />Agreement View<br />Desert View<br />Utility Vie...
Agreement View<br />Based on arm’s length negotiation between informed CEOs and owners<br />Meet 2 requirements:<br />Inde...
Agreement View (continued)<br />Board of Directors may be informed, but they may not act independently<br />3 factors that...
Agreement View (continued)<br />While admitting that these influences are problematic, directors are usually assisted by c...
Desert View<br />Company assumes that a CEO should get the wage deserved which is determined by contributions to the firm ...
Problem #1:Identifying the standard for deservingness<br />Difficulty, stress, dangerousness, risk, and unpleasantness<br ...
Problem #2:How does the job fare?<br />Based on:<br />Physical effort<br />Degrees of responsibility<br />Contributions to...
Desert View (cont’d)<br />While admitting that these influences are problematic, there is still justification of current d...
Utility View<br />Wages are not rewards, but as incentives for future work<br />Purpose:<br />To maximize firm wealth by a...
Wealth created by CEO must be weighed against the cost of their services</li></li></ul><li>Utility View (cont’d)<br />Attr...
Utility View (cont’d)<br />Pay of a CEO may be an effective motivational tool, but not likely cost effective<br />
Conclusion<br />How to Reduce CEO Pay<br />CEO’s should be removed from the director election process<br />Directors shoul...
Bingo word choices:<br />Caux Principles ofBusiness<br />Kyosei<br />Human Dignity<br />Section 1: Preamble<br />Section 2...
BA 356 Ch3 Team3 Presentation
Upcoming SlideShare
Loading in …5
×

BA 356 Ch3 Team3 Presentation

1,419 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,419
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

BA 356 Ch3 Team3 Presentation

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

×