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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 $013% hassome reservations against this definition;
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=Stakeholders7 includesmore than merely
shareholders4 +ut it doesnot include 9ust everyone;
There is a (eakness in thestandard account4 ordefinition4 of stakeholder asanyone (ho is affected +y
or can affect theorganisation;
1?>race @ Cohen4 Business Ethics4 Ath #dition4 OUP4 013
Stakeholders
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!hat is it to take account of the interests ofstakeholders*
. =stakeholder analysis7 is not strategic;
1B>race @ Cohen4 Business Ethics4 Ath #dition4 OUP4 013)); ?06?1
Stakeholders
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'o(ever4
kee)ing in mindits lack of)recision4 the
notion of=stakeholder7 is4in fact4 a useful
notion;
>race @ Cohen4 Business Ethics4 Ath #dition4 OUP4 013PP; ?A6?B
SPC 2 .n em)loyee6
management )artnershi)
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$"rom4 de "akker4 ,e+londe4 and de >raaff4
00?4 CFR Fanual%
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#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;
Cor)orate Social Res)onsi+ility
>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;
Cor)orate Social Res)onsi+ility
>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;
Cor)orate Social Res)onsi+ility
>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%
Cor)orate Social Res)onsi+ility
>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;
Cor)orate Social Res)onsi+ility
>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;
Cor)orate Social Res)onsi+ility
>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;
Cor)orate Social Res)onsi+ility
>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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