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Extensive notes from the video lectures from Ethics in Business Management
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Ethics in BM-lecturesLecture 1
Morality
The problem with morality is that morality can change over time. It is linked to a certain
social context
Types of ethical theory The rule/principles that determine right/wrong for any given
situation
- Normative
Prescribes morally correct way of acting. What is the right thing to do
- Descriptive
Defines how ethical decisions are actually made
Scope of business ethics
- Systematic
Ethical issues that concerns the environment as a whole
- Corporate
Are related to what happens in corporations, issues like culture of how companies derive
policies
- Individual
How individuals make particular decisions and how they behave in a normative perspective
Corporations (perspective)
Employees play an important role for corporate culture and decision making procedures
Challenges to the idea of business ethics:
Moral relativism
- There are no ethical standards that are absolutely true and always apply to all people,
companies or societies. According to a moral relativist: Moral ideas are dependent to
some extent to the culture or background of the people behind these ideas
- “When in Rome, act like the Romans”
- It privileges whatever moral standards are widely accepted in that specific society.
This can be problematic
,Egoism
- All that matters is to advance your own interests
- Main objection: If you actually believe egoism, it is difficult to gain trust from others.
Because, why would anyone trust someone only interested in their own interest
The market will take care of everything
- Market actors are ‘rational’
- Assumption: Customers and business will only do business with companies with a
reputation for integrity
Ethics and the law
- The political obligation to obey the law even though it seems unreasonable is a
hindrance point
- Sanctions are for reinforcement, not defining the moral obligation
Failures of Smithian prudence
- Ignorance: the long-term indirect consequences via reputation
- Failure of self-command
- Prudence is also often not enough for moral behaviour. Whilst consumers have
interest in low prices, are not the same interest for corporations
Globalization centrality to business ethics
- Moral values: How are moral values different across countries
- Legal issues: Which legal framework should a company to
- Accountability issues
Sustainability
Sustainability development is the development that meet the needs of present times without
compromising the ability of future generations
- TBL Sustainability refers to the long-term maintenance e of systems according to
the TBL
, Corporate social responsibility
Refers to a corporations responsibilities or obligations towards society. Business ethics is
both a part of CSR as of the justification of CSR
- Stakeholders versus shareholders
Stakeholders
- Have legitimate claims towards the organisation
Principle of corporate rights: corp. has obligation not to violate rights of others
Principle of corporate effects: corp. is responsible for effect of actions on others
Lecture 2
Video 1
Normative ethics
How ethical decisions OUGHT to be made
Study of rules and principles that determine right or wrong in any given situation
Descriptive ethics
How ethical decisions are ACTUALLY made
Study of moral beliefs and practices to describe how people actually behave when dealing
with moral issues
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