NOTES AND SUMMARY FOR : MORALITY OF COMMERCIAL LIFE
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Course
30J302
Institution
Tilburg University (UVT)
NOTES AND SUMMARY FOR : MORALITY OF COMMERCIAL LIFE
Including: Fairness in the workplace, Ethics of markets, Care and the future of work, Markets are terrible, Corporate Social Reponsibility, Global Management, Incentives vs Awards, Markets and meritocracy, Sustainability, Ethical Theories
Fairness in the workplace
Fairness=Justice- treating equally, right, or reasonably
Justice is a virtue (Plato, Aristotle) -justice is an individual claim
-obligation (enforceable or not)
-fairness, not arbitrariness
Justice (Rawls)-Justice as a virtue of institutions, as social structure, shaped by institutions
and enforce practices. Two principles: (I)everyone has equal rights to liberty
as long as it does now affect liberty of others (II)inequalities are arbitrary
unless advantageous for all.
Organizational justice (I)Top down- designed by employers (following laws or moral values)
(II)Bottom up- based on employees perception of fairness
TYPES OF ORGANIZATIONAL JUSTICE
Distributive justice: fairness of rewards “outcomes” (eg: equal pay for same work)
Procedural justice: fairness of rules and procedures by which rewards are distributed “process”
Interactional justice: people now interested in outcomes or procedures but on the quality of
interpersonal relationships
FAIRNESS IN THE WORKPLACE
Fairnessdiscrimination
Discrimination- treating group of people differently, especially worse due to religion, sex skin color,
etc.
How to achieve fairness? -DJ- qualifications for a job=selection decision
-PJ- fair and justice procedures
Valid procedures can be seen as unfair (cognitive ability test, drug screen test, personality tests)
Less valid procedures perceived as fairer (interviews)
Fairness is respected if you hire the more qualified-just decision, each person receives what they
deserve (good or bad)
Merit- hard to define, who it is to judge
Positive action- looks at factors outside the hiring process to address disadvantages
Positive discrimination- certain characteristics become legitimate criteria for evaluating candidates
Pros: adjusts or repairs something wrong, considers the effects of the past in the present, by
enforcing it companies send a message to society
Cons: hiring less qualified, no meritocratic, affects what other people think of person hired or what
himself thinks, reverse discrimination
Tie-break system: use positive discrimination for equally qualified candidates
Threshold system: still need some minimum requirements
, Ethics of markets
Market- Institution or mechanism, exchange of products based on price
The market- capitalist free market economy where supply and demand control prices without gov
intervention
Polanyi- social relationships are embedded in the economy
Why care about market ethics? - Businesses operate in market and are tied to functioning of market
Going shopping- exercise freedom but violate the one of others if not shopping at right places
Hiring an employee- maximize profit and efficiency, in free market no regulations for minimum wage
If not regulations- CSR is up to businesses
Market ethics- establish what is the morally best way or organizing economic activity. How?
Consequentialism(utilitarian)-(+)markets allow for best possible society(best distribution of
resources, max efficiency and productivity, support innovation
Deontology-(+)markets allow for exercise of freedom and rights(private property,hierarchy of
rights), (-)violates rights and freeedoms(not based on desert, individuals are coerced into functions of
others)
Virtue ethics-
Lisa Herzog-argues that there are friends of markets(markets are great), foes(not so great), critical
friends(could be great).
In favor of markets (Adam Smith, Friedman)- they promote personal freedom and have positive
impact on society.
Against markets (Jean-Jaques Russeau, Karl Max, Sandel)- Market alienate individuals and have
negative impact in societies
Background assumptions: 1) Humans act on selfself-interest (Adam Smith)
2)Market is often idealized
3)Market regulates itself by invisible hand
Why are they the best way to organize society: efficiency, productivity, and
freedom(consequentialist): benefits from division of labor, provides incentives for productivity,
coordinates actions between agents, more results with less labor.
Freedom- people are free in markets but subject to state power (taxes)-legalized robbery
Friedman-market is essential for a free society. If exchange is well informed, both parties benefit from
it.Both consequentialists and deontological arguments:
Freedom matters because it is an end in itself and duty to create system that respects freedom(D) and
a condition for political freedom(C)
Libertarians- freedom as highest good. Implies minimal taxation, minimal regulations, minimal state.
Robert Nozick-“self-ownership” gov intervention in free markets incompatible with self-owners
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