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Summary lectures business ethics
- Instelling
- Radboud Universiteit Nijmegen (RU)
Summary lectures business ethics
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Summary lectures business ethicsContents:
Lecture 1: Introduction
Lecture 2: Stakeholder theory
Lecture 3: Moral decision-making
Lecture 4: Organizational Justice
Lecture 5: Reward, incentive, and compensation
Lecture 6: Leadership
Lecture 7: Whistle-blowing
Lecture 8: Corporate social responsibility
Lecture 9: Corporate responsibility standards
Lecture 10: Sustainability
Red = people
Blue = things of the book
Lecture 1 - introduction
,Crossings between business and ethics
Crossings between business and philosophy
Crossings between business ethics and continental philosophy
The idea of crossing implies a willingness to take a critical stance, to ‘cross’ positions that
have remained unanswered. To develop your own position or perspective on business
problems.
There is a difference in analytical philosophers and continental philosophers
What is ethics?
- It studies good and bad
- It is reflective and critical
- It does not provide answers but is aporetic à philosophers do not think in terms of
easy solutions. Aporias cause doubt, puzzlement and confusion. Aporias are
theoretical situations in which one cannot make a decision à undecidability
Continental philosophers use the concept of aporia to undermine the idea that words,
concepts, sentences, or language as such have determinate meaning.
Morality is prevailing ideas about what is good and bad à ethics criticizes morality
What is business ethics?
- Practical philosophy which studies good and bad in organizations
- Keen on improving the status quo (present situation) in business and organization
- Criticism: it does not question the status quo (not asking serious questions)
Lecture 2 – stakeholder theory (2)
, A stakeholder is any groups or individual who can affect, or is affected by, the achievement
of a corporation’s purpose. Stakeholders include employees, customers, suppliers,
stockholders etc. (groups who can help or hurt the corporation)
Debate in business ethics: Friedman vs Freeman (p.38-41)
Friedman Freeman
One responsibility of the corporation: We need a plural apperception of the
increase its profits (within the rules of the relation between business and society
game)
Stakeholder theory is dangerous Isolating economic tasks from social task is
(undermines democracy, because it opens intellectually fallacious (the separation
up perspective on philanthropy and this is fallacy). Thinking that economy does not
not the tasks of entrepreneurs) belong to the social is systematically wrong
It is the task of politicians, not Stakeholders’ interests should therefore
entrepreneurs, to decide about the inform strategic management
distribution of wealth (you cannot vote for
entrepreneurs and when they do have a say
it is not democratic because they are not
chosen by the people)
Stakeholder theory is a form of socialism Freeman opts for a prescriptive approach
(many organizations are overwhelmed by
clashes of interest)
Shareholder capitalism serves the
institutions of democracy and freedom
Why does this debate matter?
- It is a debate about what we are supposed to expect from organizations in terms of
their performance
- It matters in a pragmatic sense: managers are keen to know what society expects
from them
- It is politically relevant: are business corporations better equipped to solve social
problems than politics
- Freeman advocates a ‘reasonable pluralism’, which is supposed ‘to bend together
the central concepts of business with those of ethics’ (p.41)
Philanthro-capitalism: When you have a lot of money you have to contribute to a good
cause
Critiques:
- The philantrocapitalist project is jeopardizing democracy. We are letting people
make decision, for whom we have not voted.
- It sets the scientific agenda, because researchers go where the money is.
Critiques stakeholder theory:
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