This document discusses several topics related to business ethics including human rights, philosophical questions about justifying and defining human rights, the Caux Principles of Business which outline ethical ideals of kyosei and human dignity, and views on justice in wages including the agreement, desert, and utility views. It also examines the debate around whether CEOs get paid too much based on a comparison to average worker pay increases.

1. Chapter 3:Philosophical Ethics& BusinessTeam 3:Angela Van StranderMatt Vital

2. The Justification of Human RightsBy: Denis G. Arnold

3. Human RightsMoral rights that apply to all persons in all nations, regardless of whether the nation in which a person resides acknowledge and protects those rightsHuman 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 #1ReflectionGroup yourselves and for a couple minutes think about the 3 previous questions & try to answer them.

6. ConclusionHave a sense of personhood“Metaphysical” rather than biologicalCapable of acting in a manner consistent with one’s considered preferences

7. Caux Principles of BusinessThe 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. MotivesImprove economic and social changesSeek 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:KyoseiJapanese concept meaning “living and working together for the common good”; thus enabling cooperation and mutual prosperity to coexist with healthy and fair competitionHuman dignitysacredness 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/IntroductionBusiness 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 PrinciplesThe Responsibilities of Business: Beyond Stakeholders toward StakeholdersThe Economic and Social Impact of Business Toward Innovation, Justice and World CommunityBusiness Behavior: Beyond the Letter of Law toward a Spirit of Trust

12. Section II: General Principles (cont’d)Respect for RulesSupport for Multilateral TradeRespect for the EnvironmentAvoidance of Illicit Operations

13. Section III: Stakeholder PrinciplesCustomersEmployeesOwners/InvestorsSuppliersCompetitorsCommunities

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 grantsAnd increased by 340% from 1991-2001, while workers’ paychecks increased by only 36%.What is wrong with this?

16. 3 Views of Justice in WagesIn general, what makes a wage just?Agreement ViewDesert ViewUtility View

17. Agreement ViewBased on arm’s length negotiation between informed CEOs and ownersMeet 2 requirements:Independent of the CEOMust be informedProblems:Mainly occurs on company’s ownersNo guarantee that shareholders would choose independent and informed representatives in electionsShareholders do not elect directors in a meaningful way

18. Agreement View (continued)Board of Directors may be informed, but they may not act independently3 factors that compromise director’s independence from CEOs:GratitudeSelf-interestAbsence 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 worthProblem: Sometimes they don’t always consider all the consultant’s advice

20. Desert ViewCompany 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 deservingnessDifficulty, stress, dangerousness, risk, and unpleasantnessDegree of responsibility/importanceContribution to the firmAmount of ability, skill, or training the job requires

22. Problem #2:How does the job fare?Based on:Physical effortDegrees of responsibilityContributions to the firmFormal education and years of experienceAfter 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 ViewWages are not rewards, but as incentives for future workPurpose:To maximize firm wealth by attracting, retaining, and motivating talented workersMotivate CEOs toward bonuses

25. Wealth created by CEO must be weighed against the cost of their servicesUtility View (cont’d)Attraction & RetentionReasons why employees get paid more based on their:EffortSkillDifficultyMotivationPay motivates CEO to work harderNo guarantee extra headwork will translate into extra revenueCompensation 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. ConclusionHow to Reduce CEO PayCEO’s should be removed from the director election processDirectors should be required to make meaningful investments in firmsOverall, this should make you think about the moral dimensions of wages.Activity #2

28. Bingo word choices:Caux Principles ofBusinessKyoseiHuman DignitySection 1: PreambleSection 2: General Principles (7)Section 3: Stakeholder Principles (6)Do CEOs Get Paid Too Much?BusinessWeekCEO packagesAgreement View (6)Desert View (5)Utility View (7)How to Reduce CEO Pay