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business
business ethics

Questions and Answers of Business Ethics

Managers cannot be trusted to remain faithful agents, i.e., to stay faithful to the interests and goals of the owners/directors. This presupposes a particular view of human nature. Humans are
In agency theory, the owners/directors set the central objectives of the corporation. Managers, in turn, are responsible for executing these objectives in the corporation's day-to-day operations.
Paternalism: Often experts are tempted to act as overly concerned parents and take over the decision-making perogatives of the public because they (the experts) "know better." Paternalism, while well
Free and Informed Consent: The right to decide if a risk is acceptable based on access to pertinent information and absence of compulsion. The Belmont Report defines informed consent in the following
NIMBY: This acronym stands for "Not in my backyard." Citizens often find the risks associated with a project or product acceptable only if these are located somewhere else, i.e., in another person's
Risk: "A risk is the potential that something unwanted and harmful may occur." (IEE 108)
Safety: "A thing is safe if, were its risks fully known, those risks would be judged acceptable in light of settled value principles." (IEE 108)
Trust: The expectation of moral behavior on the part of others. Trust is built out of the social capital accumulated through successful interactions with others. It is consumed or undermined by those
Responsibility: Herbert Fingarette defines responsibility (in the context of criminal insanity) as (moral) response to (moral) relevance. Different senses of responsibility include causal, legal (vs.
Justice: Justice can be generally defined as giving each his or her due. Distributive justice, in the context of risk, prescribes a fair distribution of the benefits and harms associated with taking
Virtue: Responsible risk management can also be formulated as a virtue. Virtues are traits that extend "deep down" into an individual's character. They include an orientation toward excellence in
Duty: The obligation to recognize and respect the essential capacities of actions of others. Duties are correlative to rights. For example, the duty to avoid paternalism in the management and
Right: A capacity of action that others are obliged to recognize and respect. A key right in the context of risk is free and informed consent. (See below)
Finally, quickly list themes and issues that were left out of the public hearing that should have been included?
What opportunities arise for exercising resonsibility as an excellence? Which were taken advantage of? Which were lost?
Were there any opportunities to offer Fred moral support by those who shared responsibility with him? What were these opportunities. How, in general, can professional societies support their members
Do you agree with the Commissions findings? Why or why not? Be sure to frame your arguments in terms of the responsibility frameworks provided above.
Finally, what opportunities arose in the video practicing moral responsibility as a virtue? (Think about what an exemplary engineer would have done differently.)
How can interested parties provide moral support?
What can professional societies do to provide moral support to members in difficult situations?
Develop a two minute position paper summarizing Fred's interests, concerns, and rights. Anticipate questions that the Commission might raise about Fred's position and develop proactive and effective
Examine Fred's actions and participation from the standpoint of the three responsibilty frameworks mentioned above.
The Mexican Commission established to investigate this "incident" will ask you questions to help determine what cause it and who is to blame. What do you think some of these questions will be? How
Develop a statement that summarizes your interests, concerns, and rights. Are these being addressed by those at Phaust and the parent company in France?
Manuel, your plant manager, has just died. You and your co-workers are concerned about the safety of this new plant. Can you think of any other issues that may be of concern here?
Did Wally and Chuck evade their responsibility by delegating key problems and decisions to those, like plant manager Manuel, in charge of operations? (Start the answer to this question by determining
Is Fred (blame) responsible for the accident and even Manuel's death? (Use the conditions of imputability and the excuse table to get started on this question.)
Finally, responsibility as an excellence requires extending the range of knowledge and control that one exercises in a situation. Preventing accidents requires collecting knowledge about a system
Responsibility as a virtue manifests itself in a willingness to pick up where others have left off. After the Bhopal disaster, a worker was asked why, when he saw a cut-off valve open, he didn't
Virtues are more than just modes of reasoning and thinking. They also consist of emotions that clue us into aspects of the situation before us that are morally salient and, therefore, worthy of our
Aristotle situates virtues as means between extremes of excess and defect. Can you think of examples of too much responsibility? (Does Fred try to take on too much responsibility in certain
Virtues are excellences of the character which are revealed by our actions, perceptions, beliefs, and attitudes. Along these lines, responsibility as a virtue requires that we reformulate
If Fred (a) failed to carry out any of his role responsibilities, (b) this failure contributed to the accident, and (c) Fred can offer no morally legitimate excuse to get himself off the hook, then
Determine if there is any moral fault present in the situation. For example, did Fred act on the basis of wrongful intention (Did he intend to harm Manuel by sabotaging the plant?), fail to exercise
Identify situation-based factors that limited his ability to execute his role responsibilities (These are factors that compel our actions or contribute to our ignorance of crucial features of the
Specify his role responsibilities and determine whether he carried them out
Responsibility as a Virtue: Here one develops skills, acquires professional knowledge, cultivitates sensitivies and emotions, and develops habits of execution that consistently bring about value
Preventive Responsibility: By using knowledge of the past, one can avoid errors or repeat successes in the future. Peter French calls this the "Principle of Responsive Adjustment." (One adjusts
Sharing Responsibility extends the sphere of responsibility to include those to whom one stands in internal relations or relations of solidarity. Shared responsibility includes answering for the
Blame Responsibility determines when we can legitimately praise or blame individuals for their actions.
Capacity Responsibility sets forth those conditions under which someone can be praised or blamed for their actions. Praise and blame associate an agent with an action. Excuses are based on means for
Role Responsibility delineates the obligations individuals create when they commit to a social or professional role. When Fred became an engineer he committed to holding paramount the health, safety
Causal Responsibility refers to prior events (called causes) which produce or prevent subsequent events (called effects). Cheap, inacurate sensors (cause) required that Manual be present on the scene
This module and two others (A Short History of the Corporation and Corporate Governance) are designed to help you understand the corporate context of business. In this section, you should reflect on
Try to resolve conflicts. If you cannot and are forced to prioritize, then you still must find a way of recognizing and responding to each legitimate stakeholder stake. You may want to refer to the
Switch from the stakeholder role to that of Burger Man management. You are responsible for developing a comprehensive corporate social responsibility program for Burger Man. You job is to integrate
Listen to the stakeholder presentations from the other groups. Try to avoid a competitive stance. Instead, look for commonalities and shared interests. You may want to form coalitions with one or
Take your assigned stakeholder group and prepare a short presentation(five minutes maximum) on your stakeholder's interests, rights, needs, and vulnerabilities.
Participate in the Burger Man Stakeholder Meeting
Develop a full blown CSR program for Burger Man that carries out the responsibilities of this company to its stakeholders.
Prepare for and participate in a board meeting for Burger Man to examine ethically its practices and develop for it a viable and sustainable program of corporate social responsibility. This requires
Prepare a Social Impact Analysis on the fictional firm, Burger Man.
Develop a fully articulated social contract between business and society. Use this contract to understand the basic CSRs of business corporations.
Learn about three models of corporate social responsibility.
Examine the CSR challenges presented above. Compare the two responses to each challenge.
CSR and STS Choose one of the CSR challenges above and construct a socio-technical table around it
In small groups, spell out the social contract between society and business. How can the absence of force, deception, and fraud be guaranteed in this contract? How should each side hold the other
Werhane, in her alliance model, argues for the importance of a CSR model that decentralizes the corporation and facilitates morally imaginative solutions. Why does she argue that Nike's program is
Which model would be preferable by Evan and Freeman under the stakeholder view? Who are Nike and Wal Mart's stakeholders? What are their stakes? How should the wealth produced by these two
Which model would Friedman prefer under the his version of the shareholder view of CSR? Explain and evaluate.
If it is necessary to trade off stakeholder stakes as both Wal Mart and Nike do, which trade off is more just? Nike's distribution of its wealth from its stockholders to the needy manifested in its
From a broader CSR perspective, is Nike maximizing stakeholder value? Is it redistributing burdens and costs from customers and investors to its suppliers and their employees? Does CSR allow this
Which moral ecology would you like to work in: finance-, customer, or quality-driven companies? Why? Specify your answer in terms of how the company allocates praise or blame, the centrality of moral
Closure Groups After listening to the debate and commentary, recap what has happened and discuss whether there are any conclusions that can be drawn from this activity Do people agree or disagree
Commentary Groups Your job is to evaluate the arguments made by the teams debating in parts one and two. Be sure to focus on the argument and not the content of the position. Listen to their
Milgram and Business Continuing with the task in part one, you will be asked to either defend or criticize the following position on the meaning that the results of the Milgram experiments have for
What we do when nobody is looking You will be asked either to defend or criticize the following position on the nature and function of punishment Entiendo que ser castigado es una manera de educar a
Handling Dissenting Professional Opinions: Dissent is interpreted as disloyalty in finance-driven companies. This organizational habit (maintained by managers to hold on to their authority) will even
Information Exchange between Engineers and Managers: In finance driven companies, managers withhold information from the engineers under their supervision for a variety of reasons. For example, if it
Allocating Praise and BlameJackall goes into detail on how finance-driven corporations (and bureaucracies in general) assign praise and blame. The crucial factor is one's position in the corporate
Centrality of ethics and values in the corporations decision making process: Ethical considerations play only the role of side constraits in the setting of corporate policity and in the formulation
Manager and Engineer Roles and Participation in Decision Making Process: Managers play the line role in that they make the decisions that drive the day to day operations of the corporation. They bear
Finance-driven companies place financial objectives at the very heart of their constitutive objectives and corporate identity. For example, such companies are focused on maximizing returns for
What is it according to Andrew Jorgensen? Write a paragraph on which argument you find most persuasive, that of Larry or that of Andrew. Explain why you find it persuasive.
What is the social responsibility of a corporation according to Larry the Liquidator?
What is Andrew Jorgensen's conception of the nature and value of the corporation?
What is Larry the Liquidator's conception of the nature and value of the corporation?
What is Andrew Jorgensen's basic argument?
What is Larry the Liquidator's basic argument?
Property: According to Locke, we own as property that with which we have mixed our labor. Thomas Jefferson argues that ideas are problematic as property because, by their very nature, they are shared
Privacy: If an item of information is irrelevant to the relation between the person who has the information and the person sho seeks it, then that information is private. Privacy is necessary to
Free Speech: Free Speech is not an unlimited right. Perhaps the best place to start is Mill's argument in On Liberty. Completely true, partially true, and even false speech cannot be censored, the
Responsibility: (Moral) Responsibility lies in the ability to identify the morally salient features of a situation and then develop actions and attitudes that answer to these features by bringing
Respect: Respecting persons lies essentially in recognizing their capacity to make and execute decisions as well as to set forth their own ends and goals and integrate them into life plans and
Justice: Justice as fairness focuses on giving each individual what is his or her due. Three senses of justice are (1) the proper, fair, and proportionate use of sanctions, punishments and
Integrity: "Integrity refers to the attributes exhibited by those who have incorporated moral values into the core of their identities. Such integration is evident through the way values denoting
Describe the data and data structures in your STS. Use the two templates below that fill in this table for energy generation systems and for engineering ethics in Puerto Rico.
Itemize the laws, statutes, and regulations.
Describe any procedures in the STS.
What are the major people groups or roles involved?
Describe the physical surroundings.
What are the major hardware and software components?
STSs change, and this change displays a trajectory or path. Frequently this trajectory is brought about by the power exercised by entrenched interests. Ladd Devine, as a wealthy business person, is
Socio-Technical systems embody values which can be located in the system's components and throughout the system as a whole. (a) These values may be vulnerable, under attack, or at risk. For example,
STS have different components which interact with one another. Some of these are described just below. They include business projects/processes, physical surroundings, stakeholders, procedures, laws
Socio-Technical Systems are first and foremost systems: their components are interrelated and interact so that a change in one component often produces changes in the other components and in the
Give special attention to the links provided in this module. Are there solutions to David’s problem not mentioned in the video?
Make your decision. Defend it in terms of key moral values. Use the values provided above in the UPRM College of Business Administration’s Statement of Values.
What solutions do different individuals in the video recommend to David? How good are they in terms of realizing or protecting key moral values? Does David (and the video) pay sufficient attention to
What is David’s problem? Try formulating it in terms of values that are under threat and conflicts between values. You may even want to identify information needs relevant to solving this problem?

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