Business Ethics 300 Lecture Slide 3

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Lecturer: Dr Theodora Issa
!elcome to
"usiness #thics 300 $"#300%
&ecture 3
'o( do (e reconcile com)eting
values
and )riorities*
!elcome +ack to the T'IR, lecture of
"#300-
.ny
/uestions*
.ny
/uestions*
.ny /ueries*
.ny /ueries*
!e are going to discuss
'o( do (e reconcile
com)eting values
and )riorities*
0irst
!hat did (e
do last t(o
(eeks in the
lectures and
+uilt u)on in
the
(orksho)s*
!hat did (e
do last t(o
(eeks in the
lectures and
+uilt u)on in
the
(orksho)s*
!##1 1
Introduction to "usiness #thics 2 !hat
is "usiness #thics*
!##1 3
!hat is "usiness for* $Telos of
"usiness4 ,irty hands4 Teleo)athy -%
5on6Conse/uentialism
5on6Conse/uentialism
Conse/uentialism
Conse/uentialism
Today7s lecture
Today (e (ill concentrate on the follo(ing
conce)ts8
Cor)orate Social
Res)onsi+ility $CSR%
Cor)orate Social
Res)onsi+ility $CSR%
Stakeholders
Stakeholders
#m)loyee loyalty
#m)loyee loyalty
&ecture7s o+9ectives
Critically e:amine the morality of CSR in the light of
ethical theory
Critically e:amine the morality of CSR in the light of
ethical theory
understand the notion of stakeholder4 its usefulness
and limitation and have considered some e:am)les
of good and not6so6good regard for stakeholders
understand the notion of stakeholder4 its usefulness
and limitation and have considered some e:am)les
of good and not6so6good regard for stakeholders
Critically e:amine the idea of em)loyee loyalty
Critically e:amine the idea of em)loyee loyalty
Consider the )ossi+ilities for com+ining
utilitarianism4 deontology4 li+ertarianism and virtue
ethics;
Consider the )ossi+ilities for com+ining
utilitarianism4 deontology4 li+ertarianism and virtue
ethics;
Reconciling <alues and Priorities
Consider the slogan
=+uy .ustralian7;
'ere are some /uestions
Is it )atriotic for an .ustralian to +uy a car made in .ustralia
$)erha)s a 'olden% rather than one made +y a foreign
manufacturer $may+e a 1ia%*
Is it )atriotic for an .ustralian to +uy a car made in .ustralia
$)erha)s a 'olden% rather than one made +y a foreign
manufacturer $may+e a 1ia%*
In a (orld of glo+al su))ly chains4 it is very difficult to argue
that there is any such thing as a car =made in .ustralia7
$Especially following recent events in 2014% or any other
manufactured good for that matter; "ut 9ust su))ose you could
identify goods that create local 9o+s; Is that good reason to
+uy them*
In a (orld of glo+al su))ly chains4 it is very difficult to argue
that there is any such thing as a car =made in .ustralia7
$Especially following recent events in 2014% or any other
manufactured good for that matter; "ut 9ust su))ose you could
identify goods that create local 9o+s; Is that good reason to
+uy them*
!hy should (e +e more interested in creating 9o+s for locals
than for (orkers in say a)an4 1orea or >ermany*
!hy should (e +e more interested in creating 9o+s for locals
than for (orkers in say a)an4 1orea or >ermany*
>lo+al economy is struggling +ut (hy (ould I (orry
to find a 9o+ to .ustralian rather than to a (orker in
China
This /uestion raises the issue of reconciling
sometime com)eting values and )riorities;
This /uestion raises the issue of reconciling
sometime com)eting values and )riorities;
ust ho( (ide $or narro(% should the circle of
concern +e for a +usiness*
ust ho( (ide $or narro(% should the circle of
concern +e for a +usiness*
One (ay of looking at this )ro+lem is to use the
idea of =stakeholders7 $discussed in detail in
cha)ter 3 of your unit te:t%; The ta+le +elo( lists
some ty)es of stakeholder
One (ay of looking at this )ro+lem is to use the
idea of =stakeholders7 $discussed in detail in
cha)ter 3 of your unit te:t%; The ta+le +elo( lists
some ty)es of stakeholder
!hat is a stakeholder*
.ccording to >race and Cohen $3013%
Stakeholder is a )erson or an entity (ith a
=stake7 in the activities of a +usiness;
.ccording to >race and Cohen $3013%
Stakeholder is a )erson or an entity (ith a
=stake7 in the activities of a +usiness;
'o(ever4 >race and Cohen $3013% has
some reservations against this definition;
'o(ever4 >race and Cohen $3013% has
some reservations against this definition;
=Stakeholders7 includes
more than merely
shareholders4 +ut it does
not include 9ust everyone;
=Stakeholders7 includes
more than merely
shareholders4 +ut it does
not include 9ust everyone;
There is a (eakness in the
standard account4 or
definition4 of stakeholder as
anyone (ho is affected +y
or can affect the
organisation;
There is a (eakness in the
standard account4 or
definition4 of stakeholder as
anyone (ho is affected +y
or can affect the
organisation;
1?
>race @ Cohen4 Business Ethics4 Ath #dition4 OUP4 3013
Stakeholders
!hat is it to take account of the interests of
stakeholders*
. =stakeholder analysis7 is not strategic;
1B
)); ?06?1
Stakeholders
1C
=Stakeholder7 is an
inherently im)recise
notion;
=Stakeholder7 is an
inherently im)recise
notion;
Pro+lems can arise
(hen it is treated as
though it is )recise and
offers some kind of clear
guidance;
Pro+lems can arise
(hen it is treated as
though it is )recise and
offers some kind of clear
guidance;
)); ?16?D
Stakeholders
1E
'o(ever4
kee)ing in mind
its lack of
)recision4 the
notion of
=stakeholder7 is4
in fact4 a useful
notion;
'o(ever4
kee)ing in mind
its lack of
)recision4 the
notion of
=stakeholder7 is4
in fact4 a useful
notion;
PP; ?A6?B
SPC 2 .n em)loyee6
management )artnershi)
SPC 2 .n em)loyee6
management )artnershi)
$"rom4 de "akker4 ,e+londe4 and de >raaff4
300?4 CFR Fanual%
31
#m)loyees are stakeholders4
and they are a critical
resource for an organisation;
#m)loyees are stakeholders4
and they are a critical
resource for an organisation;
In +oth these res)ects4 an
organisation devotes a great
deal of attention to(ard the
)erformance $and (ell+eing%
of its em)loyees 2 sometimes
for +etter and sometimes for
(orse;
In +oth these res)ects4 an
organisation devotes a great
deal of attention to(ard the
)erformance $and (ell+eing%
of its em)loyees 2 sometimes
for +etter and sometimes for
(orse;
)); ?C6BB
Random Testing4 CS- etc-
33
Consumers are )ro+a+ly the most
talked a+out stakeholdersG and they4
too4 are sometimes treated (ell and
sometimes treated not so (ell;
Consumers are )ro+a+ly the most
talked a+out stakeholdersG and they4
too4 are sometimes treated (ell and
sometimes treated not so (ell;
)); BB6C0
The Fistral 0an case
Stakeholders and CSR
The idea of stakeholders has
+ecome closely associated
(ith Cor)orate Social
Res)onsi+ility $CSR%;
The idea of stakeholders has
+ecome closely associated
(ith Cor)orate Social
Res)onsi+ility $CSR%;
The /uestion is though4 on
(hat ethical +asis does this
rest on*
The /uestion is though4 on
(hat ethical +asis does this
rest on*
Cor)orate Social Res)onsi+ility
>i+son $30114 )); BE6C0%
.ccording to >i+son $3011% the language of
Cor)orate )ersonhood tends to mask the essential
intersu+9ective nature of moral action (ithin an
organisation;
.ccording to >i+son $3011% the language of
Cor)orate )ersonhood tends to mask the essential
intersu+9ective nature of moral action (ithin an
organisation;
>i+son $3011% suggests that it might +e a))ro)riate
to ado)t a discursive frame(ork that e:)licitly
descri+es the dynamic and reci)rocal e:change of
values that goes on (ithin a structured setting such
as a firm4 $in fact4 at least in the US and U1%4 the
la( is moving in that direction;
>i+son $3011% suggests that it might +e a))ro)riate
to ado)t a discursive frame(ork that e:)licitly
descri+es the dynamic and reci)rocal e:change of
values that goes on (ithin a structured setting such
as a firm4 $in fact4 at least in the US and U1%4 the
la( is moving in that direction;
This im)lies that (e have to e:)and the
or+it of moral consideration +eyond the
enlightenment notion of discrete and
)articular su+9ects4 and look more to a
sense of em+odied culture;
This im)lies that (e have to e:)and the
or+it of moral consideration +eyond the
enlightenment notion of discrete and
)articular su+9ects4 and look more to a
sense of em+odied culture;
Taking this ste) (ill mean that
managers cannot ignore moral issues
(hen there is no o+vious cul)rit;
Taking this ste) (ill mean that
managers cannot ignore moral issues
(hen there is no o+vious cul)rit;
>i+son $30114 )); BE6C0%
Conversely4 em)loyees cannot a+dicate their
moral res)onsi+ility or a+solve themselves of
fault (hen confronted (ith )o(erful cultural
influences4 +ut should recogniHe that they
are inevita+ly changed +y institutional values;
Conversely4 em)loyees cannot a+dicate their
moral res)onsi+ility or a+solve themselves of
fault (hen confronted (ith )o(erful cultural
influences4 +ut should recogniHe that they
are inevita+ly changed +y institutional values;
.ckno(ledging these influences need not +e
a negative finding4 though4 since it also
means em)loyees al(ays simultaneously
have the )otential to enhance the moral
values of the firm;
.ckno(ledging these influences need not +e
a negative finding4 though4 since it also
means em)loyees al(ays simultaneously
have the )otential to enhance the moral
values of the firm;
>i+son $30114 )); BE6C0%
Our discussions so far have demonstrated
that +eing in +usiness unavoida+ly involves
su+stantive ethical /uestions a+out ho( to
reconcile com)eting )riorities of various
stakeholders;
Our discussions so far have demonstrated
that +eing in +usiness unavoida+ly involves
su+stantive ethical /uestions a+out ho( to
reconcile com)eting )riorities of various
stakeholders;
!hether (e favour CSR or focusing on
Foral Res)onsi+ility4 it remains to +e asked
9ust ho( (e can )roceed given the lack of
clarity a+out kno(ing (hat the right thing to
do is;
!hether (e favour CSR or focusing on
Foral Res)onsi+ility4 it remains to +e asked
9ust ho( (e can )roceed given the lack of
clarity a+out kno(ing (hat the right thing to
do is;
>i+son $30114 )); BE6C0%
Is it )ossi+le to make decisions (ithout getting
ho)elessly lost in arguments*
Is it )ossi+le to make decisions (ithout getting
ho)elessly lost in arguments*
!e could e:)ect +usiness )eo)le to leave their
ethical convictions +ehind them at the office door;

!e could e:)ect +usiness )eo)le to leave their
ethical convictions +ehind them at the office door;

This may seem a reasona+le (ay of ensuring a
much sim)lifying com)le: and sometimes
controversial +usiness situations $(e (ill see in
the (orksho) 2 a+out the horse meat issue%
This may seem a reasona+le (ay of ensuring a
much sim)lifying com)le: and sometimes
controversial +usiness situations $(e (ill see in
the (orksho) 2 a+out the horse meat issue%
>i+son $30114 )); BE6C0%
Faking im)ortant +usiness decisions that affect other
)eo)le4 the environment4 etc; (hile )retending to +e
neutral cannot +e achieved and as (e have found is a
reci)e for creating resentment against +usiness;
Faking im)ortant +usiness decisions that affect other
)eo)le4 the environment4 etc; (hile )retending to +e
neutral cannot +e achieved and as (e have found is a
reci)e for creating resentment against +usiness;
.n environment (ithout ethical engagement makes for
a )oor situation;
.n environment (ithout ethical engagement makes for
a )oor situation;
Peo)le make decisions in a +usiness and as (e have
seen often find themselves in a situation (here no
matter (hat they do they (ill disadvantage at least one
of their stakeholders at least in the short term;
Peo)le make decisions in a +usiness and as (e have
seen often find themselves in a situation (here no
matter (hat they do they (ill disadvantage at least one
of their stakeholders at least in the short term;
>i+son $30114 )); BE6C0%
.t the )ersonal level4 as a +usiness
)erson you might (ant to +egin +y
asking ourselves (hich stakeholders
have )riority and ho( far should our
loyalty go to these stakeholders*
.t the )ersonal level4 as a +usiness
)erson you might (ant to +egin +y
asking ourselves (hich stakeholders
have )riority and ho( far should our
loyalty go to these stakeholders*
Ignoring this invites taking narro(
vie(s a+out (hat +usiness is;
Ignoring this invites taking narro(
vie(s a+out (hat +usiness is;
>i+son $30114 )); BE6C0%
So ho( might (e create an ethically engaged
situation in +usiness*
So ho( might (e create an ethically engaged
situation in +usiness*
'o( (ould it +e different from the current
environment*
'o( (ould it +e different from the current
environment*
To find out (e (ill +egin to learn ho( to develo)
an ethical )osition and communicate it to others;
To find out (e (ill +egin to learn ho( to develo)
an ethical )osition and communicate it to others;
This (ill +e our focus for the ne:t three sessions;
This (ill +e our focus for the ne:t three sessions;
>i+son $30114 )); BE6C0%
In the (orksho) (e (ill discuss 0ooks et al;
$3013% article on the limits of CSR
0ooks et al $3013% underlines the im)ortance
of and highlights and develo)s matrices to
assess the negative social im)acts of CSR;
0ooks et al $3013% underlines the im)ortance
of and highlights and develo)s matrices to
assess the negative social im)acts of CSR;
In the (orksho) (e (ill discuss 0ooks et al;
$3013% article on the limits of CSR
0ooks et al $3013% analyses of the issue
of CSR +ring forth three im)lications for
)ractice and research in the issue of
Cor)orate Social Res)onsi+ility8
0ooks et al $3013% analyses of the issue
of CSR +ring forth three im)lications for
)ractice and research in the issue of
Cor)orate Social Res)onsi+ility8
It underlines the im)ortance
of a))roaching cor)orate
managers7 )u+lic
comments on CSR critically
and situating them in their
economic4 )olitical and
historical conte:ts;
It underlines the im)ortance
of a))roaching cor)orate
managers7 )u+lic
comments on CSR critically
and situating them in their
economic4 )olitical and
historical conte:ts;
It illustrates the im)ortance
of focusing on the )olitical
aims and effects of CSR;
It illustrates the im)ortance
of focusing on the )olitical
aims and effects of CSR;
"y sho(ing ho( CSR
)ractices are used to
stymie evidence6+ased
government regulation;
"y sho(ing ho( CSR
)ractices are used to
stymie evidence6+ased
government regulation;
&oyalty 2 a /uestion for youI
'o( far do
you think
loyalty to a
+usiness
should go*
'o( far do
you think
loyalty to a
+usiness
should go*
&OJ.&TJ in +usiness* $Corvino4 3003%
Corvino )oses a dilemma for ,uska4 stating8 one
can inter)ret ,uska7s )hrase =relationshi)s that
demand self6sacrifice (ithout e:)ectation of
re(ard7 either narro(ly or +roadly;
Corvino )oses a dilemma for ,uska4 stating8 one
can inter)ret ,uska7s )hrase =relationshi)s that
demand self6sacrifice (ithout e:)ectation of
re(ard7 either narro(ly or +roadly;
If one inter)rets it narro(ly4 then ,uska7s first
)remise is falseG if +roadly4 then his second
)remise is false;
If one inter)rets it narro(ly4 then ,uska7s first
)remise is falseG if +roadly4 then his second
)remise is false;
#ither (ay4 ,uska7s argument is unsound;
#ither (ay4 ,uska7s argument is unsound;
&OJ.&TJ in +usiness* $Corvino4 3003%
'o(ever4 after re9ecting ,uska7s
conclusion a+out loyalty in +usiness4
Corvino goes on to argue that ,uska is
right to deny that the duty of loyalty
conflicts (ith the duty to +lo( the (histle;
'o(ever4 after re9ecting ,uska7s
conclusion a+out loyalty in +usiness4
Corvino goes on to argue that ,uska is
right to deny that the duty of loyalty
conflicts (ith the duty to +lo( the (histle;
Fore generally4 Corvino7s $3003% )eer6
revie(ed 9ournal article is an attem)t to
elucidate the )ro)er a))lication of loyalty
in +usiness- and this (hat (e (ill
discuss in the (orksho);
Fore generally4 Corvino7s $3003% )eer6
revie(ed 9ournal article is an attem)t to
elucidate the )ro)er a))lication of loyalty
in +usiness- and this (hat (e (ill
discuss in the (orksho);
5e:t (eek7s lecture
#thics of
the
0R##
market
#thics of
the
0R##
market
.ckno(ledgements
These slides (ere derived
from material )rovided +y
the )revious unit
coordinator4 the )u+lishers
of the >race and Cohen
+ook4 the material on the
+lack+oard4 and other
sources derived from the
(e+4 including some
images relevant to the
conce)ts under
discussion;
These slides (ere derived
from material )rovided +y
the )revious unit
coordinator4 the )u+lishers
of the >race and Cohen
+ook4 the material on the
+lack+oard4 and other
sources derived from the
(e+4 including some
images relevant to the
conce)ts under
discussion;
Thank youI
"#300 6 TIK,P

Business Ethics 300 Lecture Slide 3

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Curtin University is a trademark of Curtin University of Technology

CRICOS Provider Code 00301

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