In-depth and critical A01 + A02 notes and model paragraph structures for the Business Ethics topic, for the Religion and Ethics unit for OCR Religious Studies.
BUSINESS ETHICS
Development of Business Ethics in the UK
The global acceptance of trickle-down economics leaves a lack of
stability, especially for those lower down
Industrialisation brought prosperity and modernity, at the cost of
worker exploitation
Memoir of Robert Blincoe (1828)-John Brown: Recounts the horrific
factory accident that crushes a ten-year-old girl to death-> The
price of capitalism and innovation in business!
Development took over 200 years:
i) Trade unionism began and vouched for better workers rights,
aided by figures like Lord Shaftesbury in Parliament.
ii) After the War, employees were discriminated upon in order to
lessen attention and worth towards them
iii) 1970 Equal Pay Act ensured gender equality and no more
discrimination in maternity leave.
Contracts represent a set of duties and responsibilities between the
employer and employee. There is a moral implication to HOW these
duties are applied-> how are they affecting the employee’s life
Church and Business Ethics
In religious texts we see the repudiation of “usury”- making immoral
loans or dishonest business
1889- Great Dock Strike: Dockers unionized and went on strike over
poor pay and lack of stability in pay.
Anglican members pressured Parliament for a just settlement for the
workers
In the 1840s, the Christian Socialist movement consisting of Bishop
Frederick Temple pushed for more just arrangement of business
favoring the worker
Bishop William Temple and Christianity and the Social Order: Coined
the word “welfare state” and spoke concerning post-war industry
reconstruction and welfare.
The Catholic Church favored the workers of the world:
1891 Pope Leo XI published “Rerum Novarum” or “Workers Charter”
-> condemns the excesses of Capitalism and encourages wage
regulation in the government
Corporate Social Responsibility
The idea that a business or organization has ethical responsibilities
to the wider environment and community
Cardinal Nichols’ Seven Principles of Good Business
, Based on Catholic Church and natural law
1. Human dignity: People aren’t “tools”
2. The Common Good: Does the business allow people to progress?
3. Subsidiarity: Co-operate with the lowest level when making
decisions that concern them.
4. Solidarity: We need to depend on each other.
5. Fraternity: Respecting different types of people
6. Reciprocity: Justice and generosity.
7. Sustainability: Caring for the future.
Robert C. Solomon says that sentimentality in practice and value
has no contradiction
Friedman and Criticism of Corporate social responsibility
A company has NO corporate social responsibility
People can choose to be charitable outside of work, but that doesn’t
reflect on the company
Corporate social responsibility contradicts the higher wages of a free
market, as working for the community would make them public
employers and employees
Measuring Corporate social responsibility
Can be expressed in different ways:
1. Pragmatic approach to increase profit ethically
2. Kantian sense of duty
3. A religious sense of responsibility
Example: Cadbury’s Bourneville village
Example: FTSE4 Good index, based on ESG (environmental, social
governance). Information is difficult to come by intentionally.
Whistleblowing
The practice of raising awareness to an unethical or illegal practice
occurring in a company
Can be (1) raising it to a senior in the company (2) telling the media
or authorities
Phillip Agee and the CIA
Whistleblower on the insidious practices and military backing of
Latin American dictators in the 70s by the US government and CIA
Denounced as a traitor by George Bush Sr, threatened with death by
his former agency colleagues and deported from Britain as a threat
to the security of the state.
Panama Papers
Anonymous whistleblower exposed the unethical practices of many
rich and famous through a Panamanian law firm
, Worldwide elites of hoarding their wealth in offshore tax havens
while ordinary people have been hit by recession, austerity, and the
increasing cost of living.
Enron organization
Energy firm found guilty of unethically hiding financial losses and
not paying debt
Avoiding responsibility as a firm and endangering their shareholders
and employees
There should be legal protection, but often the whistleblowers are socially
isolated or in more serious cases targeted
When we sign contracts with employers, a level of trust and loyalty
is established. Therefore, the morality surrounding whistleblowing
on an employer opposed to an employee is dubious
However, there are outside loyalties too
Some companies (like the CIA) have been whistle blown on, raising
questions on the entire code of conduct of NOT QUESTIONING
superiors
Political thinker Hannah Arendt raised the idea of “group think”
affecting how people disengage from the bad things occurring,
simply focusing on work. Especially prevalent in totalitarian nations
Some recent cases (concerning rape and sexual abuse) reveal that
many victims felt afraid of speaking out, due to the legal and social
repercussions.
“Good ethics is good business”
We need a certain level of trust in our businesses, and that
responsibility of being transparent and honest may reflect on how
ethical a company is
Positive outcomes of honest business:
i) Companies can charge higher prices for ethically sourced product
ii) An organization honest with its suppliers and partners can
negotiate better terms and get better credit
iii) The workforce will take pride in their job when working for an
honest employer
iv) Inspires loyalty and brotherhood
Being unethical can still have success: Nike has sweatshops in the
third world, online shops like SheIn or Primark
Scholar: Adam Smith
Utilitarian capitalist-> believes in maximizing the best outcome for
the business and all its shareholders
Even though unfair business practices (high prices low wages) are
lucrative, the outcome will ruin the company’s image and the loyalty
of the workforce
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