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23 Cards in this Set
- Front
- Back
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What is the problem with suggesting that businesses have responsibilities? |
a person can act on their own/individually in a company rather than following company policy (company flow charts aren't really definite) corporate charters have language like "any lawful purpose" (implies that corporations cannot act unlawfully) corporations can't be punished, only people can |
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What is the problem with thinking that business executives have social responsibilities beyond increasing profits, in their professional roles? (Friedman) |
--any other action they do other than increasing profits would be their own decision and not one of the company's --any money they spend doing so would either be the employers money, the shareholders money, or the customers money ^^lead to socialism -only directly responsible to employer |
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Why might a business appear to be behaving for socially responsible motives (in Friedman's view)? |
could help gain more profits for the business (giving money to community would attract good employees, prevent sabotage, less tax when charity is done through corporations so shareholders may choose this route for their personal charity donations --- all self-interested actions and not really for social benefit |
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Flew claims that if we are going to be concerned with the profit motive, then what else should we be concerned with? |
wage, rent, and salary motive |
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Purpose versus motive |
Justify = cite a purpose for doing something—justifies it and gives a reason—This is the “what for” of the thing Explain = cite a motive for doing something—provides a psychological explanation |
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What does Duska think that the purpose of business is? Why? |
purpose of business is to produce a good or service answers the "what for" |
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What, according to Duska, is the problem with the profit maximization view of business? |
if the purpose of a business is to make money, then there is no description of what the business does to make money allows for businesses to act immorally but we don't have the language to fight it because "that's just business" |
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Negative vs positive externalities |
negative = costs paid by third parties positive = benefits received by third parties |
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What are French's 2 types of responsibility? |
1. pins responsibility on someone ("who-dun-it") 2. like first but adds accountability (or authority) |
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How does French claim a corporation can be responsible? |
tie to corporate intention through their internal structure (CID) -separates actions of corporation and executives |
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What are the problems with French's view? |
cannot treat corporations as full-fledged moral citizens because they aren't (they can't be directly punished or praised) |
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What are the basic steps of Orlando's argument? |
1. shareholders and workers have no moral distinctions; one can not have preference 2. there are reasons downsizing is morally wrong 3.downsizing is morally wrong |
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How does Orlando argue that shareholders and workers are morally equal for business decisions? |
rejects arguments for shareholder preference (property rights, private vs public, risk, other people's money, contracts, utilitarian argument, fiduciary duties) PPROCUF |
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What does Orlando say specifically against downsizing? |
harm some to benefit others, legitimate expectations, and fairness |
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What is good about such a model (the profit maximization model)? (Arrow) |
-firms buy products to make their products and therefore pay for costs they impose on others -what they receive from customers who buy their good is voluntary on the customers part because no one has to buy the goods and they must consider them worthwhile |
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What are the different types of inefficiencies/problems with a profit maximization model of economics? (Arrow |
-negative externalities (i.e. pollution) -lack of knowledge (i.e. used car) -assumes no monopolies -uneven distribution of wealth -typically a selfish system |
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How does Costco pay so much more for labor costs, yet still maintain its position? |
-maintain low turn over rate which saves company money by treating employees well and providing job security -customers are more willing to spend with companies who treat employees well |
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Shareholders vs stakeholders |
shareholders = those who have paid funds directly into a company stakeholders = all other parties involved |
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What is the “separation fallacy” (Freeman)? |
"x is business decision" has no ethical content (separation between business and ethics) |
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What are the dominant narratives of capitalism? (Freeman) |
labor capitalism entrepreneurial capitalism managerial capitalism investor capitalism government capitalism LEMIG |
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What are the assumptions that all those narratives make? (Freeman; dominant narratives of capitalism) |
-each assumes primacy of a group, value and creation is framed from that perspective -naive version of self interest -separate business from morality -competition for limited resources is dominant mode of prosperity |
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What problems are caused by those assumptions? (Freeman; dominant narratives of capitalism) |
-problem of competition (ignores cooperation) -problem of bus ethics (even if survival is a stake, cooperation/ethical behavior is still more necessary) -problem of dominant group (all focus on one group dominating or "win/lose") -problem of business in a liberal democracy (govt resolves stakeholder conflicts, then legislate morality of capitalism, then redistributes wealth, and this becomes a cycle) CBDB |
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What are some of the principles of “stakeholder capitalism”? (Should know a few) |
stakeholder cooperation stakeholder engagement stakeholder responsibility complexity emergent competition continuous creation CERCEC |
