Théorie d'Eddy Malou

Lecture 1 : Introducing Applied Business Ethics

Alex.hope@northumbria.ac.uk

Business Ethics News ( links )

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What is business ethics ?

Ethical issues occur when discretionary decisions can be judged by standards derived from accounts of good and bad, right or wrong.

Applied Ethics is the study of ethical issues that commonly arise in particular context – hence medical ethics comprises one field of enquiry, journalistic ethics another, business ethics a third.

Business ethics : “ the study of business situations, activities and deciions where issues of right and wrong are addressed” Crane and Matten

Types of ethical issue

The indefensible : slavery

The debateable : should sexual orientation AI be licensed for sale ?

The commendable : Bill Gates charitable giving

The issues that are most often debated reflect radically differing views of business purpose.

Many disputes in business ethics are about the proper purpose of bsiness and divide advocates of the Shareholder Model of Business and those of the Stake holder Model.

SHAREHOLDER VIEW (Friedman 1970) 

Managers should serve the interest of shareholder ie the maximisation of profit, within the limits of the law.

STAKEHOLDER VIEW (Freeman 1984)

Corporations shoud serve a variety of stakeholders whose interests are affected by its actions.

Example : The economist John Kay cited the contrast between the chemical company ICI’s corporate objectives in 1988 and 1994.

The change represented a move from stakeholder to shareholder form of capitalism.

THE CONTEMPORARY CONTEXT

1. Globalization

Increase the impact of business decisions and their risk

Divergengce of ethical standards in different regions

Divergence of stakeholders’ power and role in different regions

Issues of legal/governmental jurisdiction, rules and accountability

1. Sustainability

Meeting the needs of the present without compromising the ability of future generations

1. Corporate Social Responsibility

CSR includes the economics, legal, iethical and philanthropic expectations placed in organizations by society at a give point in time ( Caroll and Buchholtz)

1. Corporate accountability

The ways in wich a corporation is answerable for the its actions ex: annua report

1. Corporate citizenship

The        idea        that        Corporations        have        duties        that        result        from        both        the        special        rights        and        protections        given        to        them        by        the        states        and        from        their        importance        in        managing        risk,        solving        problems        and        providing        infrastructure        (especially        in        developing        countries)        (Crane        and        Matten        69-75)

These contexts help us understand the content of corporate missions suche as that of Enterprise Holding.

Companies claim ethical prpose as a central brand value

RESUME

Conclusions

1. Business        Ethics        is        the        study        of        ethical        issues        arising        in        business,        it        is        also        the        study        of        business        purpose

2. There        are        different        types        of        ethical        issue        (indefensible,        debateable        and        supportable)        and        there        are        different        views        of        both        what        counts        as        an        ethical        issue

3. The        type        of        issues        that        occur        vary        with                the        business        context        –key        elements        of        the        21st century        context        are        globalization,        sustainability,        CSR,        corporate        accountability        and        corporate        citizenship        and        the        ethical        corporation

4. Many        judgements        about        ethical        issues        in        business        vary        with        assumptions        about        the        fundamental        purpose        of        business        –to        serve        shareholders        or        to        serve        stakeholders.

Lecture 2 : Evaluating Business Ethics

What is the RELEVANCE of ethical theory today ?

AI : Is this the biggest ethical issue in human history ?

Do we need to build ethical considerations into AI ? If so, which theories to use ?

What kind of theory is ethical theory ?

1. ET is not like other types of theory (which seek to predict and explain behaviour)
2. Instead ethical theories comprise ways of thinking incluing rules, values, virtues and stories that are used to evaluate right and wrong in particular situations.
3. Crane        and        Matten        (2016)        Ch.3        distinguish        between        

              normative theories        which        guide        moral        thinking        about        right        and        wrong

Theories in the global context

1. Different ethical standards that apply in different places. Today the differing standards of countries, religions and regions
2. For example understandings of bribery, theft and plagiarism vary considerably between cultures. What is considered a normal gift in one culture may be considered a corrupt exchange in another
3. Crane        and        Matten        (pp87-88)        argue        that        this        context        requires        us        to        think        about        whether        ethics        should be        absolute(applied        in        all        times        and        places),        relative        (dependent        on        context)        or        plural(which        seeks        a        consensus        between        different        ethical        traditions)
4. In        this        lecture        we        will        take        a        tour        of        the        European        (and        latterly        North        American)        tradition        of        ethical        thought        that        has        been        the        main        resource        used        within        Business        Ethics        to        make        ethical        evaluations        of        business        practice

Normative ethics : Western modernist theories

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Type of consequentialist ethics

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