Chapter 2

Business Ethics

 

Objectives:

1.  Distinguish law and ethics

2.  Compare various ethical theories

3.  Costs and benefits of cost/benefit analysis

4.  Kohlberg's stages of moral development

5.  Ethical responsibilities of business

 

I.  Introduction

          A.  Ethics

          B.  Business ethics

          C.  See, know, do

 

II. Law v. Ethics

          A.  Some overlap

          B.  Some does not overlap

 

III. Ethical Theories

          A.  Ethical fundamentalism

          B.  Ethical relativism

                   Cf.  Situational ethics

          C.  Utilitarianism, Bentham

                   1.  Act utilitarianism

                   2.  Rule utilitarianism

                   3.  Cost-benefit analysis

          D.  Deontological

                   1.  Kant's categorical imperative

          E.  Social ethics theories

                   1.  Social egalitarianism

                   2.  Distributive justice theories

                   3.  Libertarians

          F.  Intuitionism

                   1.  Good person philosophy

 

IV. Ethical Standards in Business

          A.  Choosing an ethical system

                   1.  Kohlberg model, see Fig. 2-1 on p. 21

          B.  Corporations as moral agents

 

V. Ethical Responsibilities of Business

          A.  Regulation of business

                   1.  Adam Smith's free market assumptions

                   2.  Regulation tries to create that market

          B.  Corporate governance

          C.  Arguments against corporate social responsibility

                   1.  Profitability

                   2.  Unfairness

                   3.  Accountability

                   4.  Expertise

          D.  Arguments in favor of corporate social responsibility

                   1.  Social contract

                   2.  Government regulation

                   3.  Long run profits

 

Chapter Questions

          Do 2, 4, 6, 7, 8, 9

 

Business Ethics Cases

          Pharmakon, Oliver Winery, JLM