Business Ethics

Which do you agree with most? ‘Globalisation is the best approach for all stakeholders in multi-national business’ ‘The pursuit of profits ignores and ultimately exploits the rights of the workers. It leads to the rich getting richer and the poor getting poorer.’ ‘Fair trade is just a way for large companies to claim that they are ethical to get more money for their products!’

NOTE Business and environmental ethics are related topics. You may be asked about them separately, combined or with reference to an applied ethical theory or theories

Moral Questions on Business Ethics Discuss your responses to the following ethical charged statements… Shareholders or stakeholders?… Bankers’ bonuses immoral? Do you/should you…buy fair trade products? Global free trade – a good thing vs foreign companies be taxed… Employees as THE key stakeholders…

Business Ethics in Practice What potential moral and ethical issues are raised by the following companies:- Wonga HSBC Yellow pages Nike Camelot (lottery company) Nestle Shell Does this mean the companies are immoral?

Business Ethics - Spectrum Hardline Capitalism (no government…world governed by profit and exchange) Capitalism (some state public services but business and system of exchange widely used and viewed as force for good) Socialism (companies seen as greedy and exploitative and focusing on profits over people although accepts necessity of some business and profit) Communism (profit is evil, all pursuit should be for the collective and equal good of all. Down with the bourgeois ruling elite)

Business Ethics - Capitalism In common usage, the word capitalism means an economic system in which all or most of the means of production are privately owned and operated, and the prices of commodities (goods and services) are determined mainly in a free market, rather than by the state. In capitalism, the means of production are generally operated for profit.

Business Ethics - Capitalism In a purely capitalist economy, there would be no public schools, no state owned or maintained roads and highways, public works, welfare, unemployment insurance, workers compensation, Social Security benefits etc.

Business Ethics - Communism Communism refers to community ownership of property, with the end goal being complete social equality via economic equality. 

Business Ethics - Communism Communism argues that all labor belongs to the individual laborer; no man can own another man's body, and therefore each man owns his own labor.  In this model all "profit" actually belongs in part to the laborer, not, or not just, those who control the means of production, such as the business or factory owner.  Profit that is not shared with the laborer, therefore, is considered inherently exploitive.

Wider Reading – Discussion next lesson http://books.google.co.uk/books?id=1kqNYzLW-EAC&pg=PA58&dq=capitalism+evil&hl=en&sa=X&ei=KRNaU8_QGqvB7Aarm4GgBg&ved=0CFoQ6AEwBw#v=onepage&q=capitalism%20evil&f=false The Virtues of Capitalism: A Moral Case for Free Markets  By Scott Rae, Austin Hill

2 – Capitalism vs Communism? “Private vices become public virtues.” Wealth of Nations “Workers of the world unite!” Communist Manifesto