Business Ethics 300 Lecture Slide 3

8/10/2019 Business Ethics 300 Lecture Slide 3

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Curtin University is a trademark of Curtin University of Technology

CRICOS Provider Code 00301

Lecturer: Dr Theodora Issa

!elcome to"usiness #thics 300 $"#300%

&ecture 3

'o( do (e reconcile com)eting

values

and )riorities*


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!elcome +ack to the T'IR, lecture of

"#300-

.ny

/uestions*

.ny /ueries*


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!e are going to discuss

'o( do (e reconcilecom)eting values

and )riorities*


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irst

!hat did (edo last t(o

(eeks in thelectures and+uilt u)on in

the

(orksho)s*


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!##

!hat is "usiness for* $Telos of"usiness4 ,irty hands4 Teleo)athy -%


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5on6Conse/uentialis

Conse/uentialism


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Today7s lecture

Today (e (ill concentrate on the follo(ing

conce)ts8Cor)orate Social

Res)onsi+ility $CSR%

Stakeholders

#m)loyee loyalty


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&ecture7s o+9ectives

Critically e:amine the morality of CSR in the light ofethical theory

understand the notion of stakeholder4 its usefulnessand limitation and have considered some e:am)les

of good and not6so6good regard for stakeholders

Critically e:amine the idea of em)loyee loyalty

Consider the )ossi+ilities for com+iningutilitarianism4 deontology4 li+ertarianism and virtue

ethics;


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Reconciling


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'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 ia%*

In a (orld of glo+al su))ly chains4 it is very difficult to arguethat there is any such thing as a car =made in .ustralia7

$Especially following recent events in 2014% or any othermanufactured good for that matter; "ut 9ust su))ose you couldidentify 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 orea or >ermany*


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>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 reconcilingsometime com)eting values and )riorities;

ust ho( (ide $or narro(% should the circle ofconcern +e for a +usiness*

One (ay of looking at this )ro+lem is to use the

idea of =stakeholders7 $discussed in detail incha)ter 3 of your unit te:t%; The ta+le +elo( listssome ty)es of stakeholder


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!hat is a stakeholder*

.ccording to >race and Cohen $013%Stakeholder is a )erson or an entity (ith a=stake7 in the activities of a +usiness;

'o(ever4 >race and Cohen $013% hassome reservations against this definition;


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=Stakeholders7 includesmore than merely

shareholders4 +ut it doesnot include 9ust everyone;

There is a (eakness in thestandard account4 ordefinition4 of stakeholder asanyone (ho is affected +y

or can affect theorganisation;

1?>race @ Cohen4 Business Ethics4 Ath #dition4 OUP4 013

Stakeholders


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!hat is it to take account of the interests ofstakeholders*

. =stakeholder analysis7 is not strategic;

1B>race @ Cohen4 Business Ethics4 Ath #dition4 OUP4 013)); ?06?1

Stakeholders


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CRICOS Provider Code 00301 1E

'o(ever4

kee)ing in mindits lack of)recision4 the

notion of=stakeholder7 is4in fact4 a useful

notion;

>race @ Cohen4 Business Ethics4 Ath #dition4 OUP4 013PP; ?A6?B

SPC 2 .n em)loyee6

management )artnershi)


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$"rom4 de "akker4 ,e+londe4 and de >raaff4

00?4 CFR Fanual%


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CRICOS Provider Code 00301 1

#m)loyees are stakeholders4and they are a critical

resource for an organisation;

In +oth these res)ects4 anorganisation devotes a great

deal of attention to(ard the)erformance $and (ell+eing%of its em)loyees 2 sometimesfor +etter and sometimes for

(orse;

>race @ Cohen4 Business Ethics4 Ath #dition4 OUP4 013)); ?6BB

Random Testing4 CS- etc-


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Consumers are )ro+a+ly the mosttalked a+out stakeholdersG and they4too4 are sometimes treated (ell and

sometimes treated not so (ell;

>race @ Cohen4 Business Ethics4 Ath #dition4 OUP4 013)); BB60

The Fistral an case


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Stakeholders and 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 thisrest on*


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Cor)orate Social Res)onsi+ility

>i+son $0114 )); BE60%

.ccording to >i+son $011% the language ofCor)orate )ersonhood tends to mask the essential

intersu+9ective nature of moral action (ithin anorganisation;

>i+son $011% suggests that it might +e a))ro)riateto 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 suchas a firm4 $in fact4 at least in the US and U%4 the

la( is moving in that direction;


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This im)lies that (e have to e:)and theor+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;


>i+son $0114 )); BE60%


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Conversely4 em)loyees cannot a+dicate theirmoral res)onsi+ility or a+solve themselves offault (hen confronted (ith )o(erful culturalinfluences4 +ut should recogniHe that they

are inevita+ly changed +y institutional values;

.ckno(ledging these influences need not +ea negative finding4 though4 since it also

means em)loyees al(ays simultaneouslyhave the )otential to enhance the moralvalues of the firm;


>i+son $0114 )); BE60%


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Our discussions so far have demonstratedthat +eing in +usiness unavoida+ly involvessu+stantive ethical /uestions a+out ho( to

reconcile com)eting )riorities of various

stakeholders;

!hether (e favour CSR or focusing onForal Res)onsi+ility4 it remains to +e asked

9ust ho( (e can )roceed given the lack ofclarity a+out kno(ing (hat the right thing todo is;


>i+son $0114 )); BE60%


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Is it )ossi+le to make decisions (ithout gettingho)elessly lost in arguments*

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

This may seem a reasona+le (ay of ensuring a

much sim)lifying com)le: and sometimescontroversial +usiness situations $(e (ill see inthe (orksho) 2 a+out the horse meat issue%


>i+son $0114 )); BE60%


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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 areci)e for creating resentment against +usiness;

.n environment (ithout ethical engagement makes fora )oor situation;

Peo)le make decisions in a +usiness and as (e have

seen often find themselves in a situation (here nomatter (hat they do they (ill disadvantage at least oneof their stakeholders at least in the short term;


>i+son $0114 )); BE60%


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.t the )ersonal level4 as a +usiness)erson you might (ant to +egin +y

asking ourselves (hich stakeholdershave )riority and ho( far should ourloyalty go to these stakeholders*

Ignoring this invites taking narro(

vie(s a+out (hat +usiness is;


>i+son $0114 )); BE60%


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So ho( might (e create an ethically engagedsituation in +usiness*

'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;

This (ill +e our focus for the ne:t three sessions;


>i+son $0114 )); BE60%


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In the (orksho) (e (ill discuss ooks et al;

$01% article on the limits of CSR

ooks et al $01% underlines the im)ortanceof and highlights and develo)s matrices to

assess the negative social im)acts of CSR;


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In the (orksho) (e (ill discuss ooks et al;

$01% article on the limits of CSR

ooks et al $01% analyses of the issueof CSR +ring forth three im)lications for

)ractice and research in the issue ofCor)orate Social Res)onsi+ility8

It underlines the im)ortanceof a))roaching cor)orate

managers7 )u+lic

comments on CSR criticallyand situating them in their

economic4 )olitical andhistorical conte:ts;

It illustrates the im)ortance

of focusing on the )oliticalaims and effects of CSR;

"y sho(ing ho( CSR)ractices are used to

stymie evidence6+asedgovernment regulation;


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&oyalty 2 a /uestion for you

'o( far do

you thinkloyalty to a+usiness

should go*


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&OJ.&TJ in +usiness* $Corvino4 00%

Corvino )oses a dilemma for ,uska4 stating8 onecan inter)ret ,uska7s )hrase =relationshi)s that

demand self6sacrifice (ithout e:)ectation ofre(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;

#ither (ay4 ,uska7s argument is unsound;


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&OJ.&TJ in +usiness* $Corvino4 00%

'o(ever4 after re9ecting ,uska7sconclusion a+out loyalty in +usiness4

Corvino goes on to argue that ,uska isright to deny that the duty of loyalty

conflicts (ith the duty to +lo( the (histle;

Fore generally4 Corvino7s $00% )eer6revie(ed 9ournal article is an attem)t to

elucidate the )ro)er a))lication of loyaltyin +usiness- and this (hat (e (illdiscuss in the (orksho);


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5e:t (eek7s lecture

#thics of

theR##

market


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Thank you

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Business Ethics 300 Lecture Slide 3

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