PHIL201 Lecture Notes - Lecture 5: Game Players, Deontological Ethics, Business Ethics
6 Jun 2018
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WEEK 3
The Social Responsibility of Business: The Narrow View!
The Central Issue:!
-role of corporations and businesses in society?!
-Normative question!
"—> maximize shareholder wealth (shareholder primacy view)#
- but: how should corporation be run?!
Somersby Sand Mine!
-its legal but bad for environment and surrounded people (society)!
-Is it legitimate to decide not to pursue the mining project for ethical reasons if shareholders are
committed to the project?!
Different Views of Business: (Shareholder)#
Friedmann:#
- use resources and engage in activities designed to increase its profits, as long it stays in within
the rules of the game, which is to say engages in open and free competition, without deception or
fraud!
Evan & Freeman: (Stakeholder)!
Moral obligations to consider the interests of all potential stakeholders in a company, these
include stockholders in a company, employees, customers, people who have a stake in or claim
on the firm (local community, suppliers)!
The Narrow View of Business Ethics !
Consequentialist argument for the narrow view:#
society benefits most if those business do not directly concern themselves with the public good
( Adam Smith)!
-neoliberals!
—> market forces will ensure that businesses act in morally responsible ways even though
businesspeople doe not directly intend this!
Friedman’s Narrow view:#
(non consequentialist (deontological))!
-corporate executive is a fiduciary agent of the owners (shareholders) of a firm!
—> overriding moral obligation between executives and interest of shareholder!
-its immoral for managers of corporations to pursue social objectives to further the public good if
doing so conflicts with their fundamental duty to shareholders!
-deontological ethics and special relationship:#
-certain privilege relations on the basis of prior commitments or undertaking!
-Promises or agreements creating a special relationship!
-if I make a promise to someone I place myself under an obligation to them which should be
given special weight in deciding what to do!
Carr & Business Bluffing:#
Albert Carr:#
different rules and norms that are typical for business, like rules for poker!
-sometimes lying is simply a game players decision to consistent with business ethics !
-Bc business often has different standards of right and wrong
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
The social responsibility of business: the narrow view. Its legal but bad for environment and surrounded people (society) Use resources and engage in activities designed to increase its pro ts, as long it stays in within the rules of the game, which is to say engages in open and free competition, without deception or fraud. Moral obligations to consider the interests of all potential stakeholders in a company, these include stockholders in a company, employees, customers, people who have a stake in or claim on the rm (local community, suppliers) Consequentialist argument for the narrow view: society bene ts most if those business do not directly concern themselves with the public good ( adam smith) > market forces will ensure that businesses act in morally responsible ways even though businesspeople doe not directly intend this. Corporate executive is a duciary agent of the owners (shareholders) of a rm. > overriding moral obligation between executives and interest of shareholder.
