Ethical Principals in Business

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• Chapter 2
• Ethical Principals in Business

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Caltex and South Africa

• Jointly owned by Texaco and Standard Oil
• Many shareholders objected to doing business in a
  South African Apartheid Government
• A Moral Debate

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Utilitarian Standard of Morality

• Weighing Social Costs and Benefits or the
  consequentalist approach

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Rights and Duties

• Microsoft and Chinas human rights
• The idea of political neutrality

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Kants Categorical Imperative

• An action is morally right for a person in a
  certain situation if, and only if, the persons
  reason for carrying out the action is a reason
  that he or she would be willing to have every
  person act on, in any similar situation.
• (Do unto others as you would have them do unto
  you)

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The Libertarian view

• Nozick- American libertarian philosopher who
  claimed that the only basic right that every
  individual possesses is the negative right to be
  free from the coercion of other human beings.

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The Libertarian view

• Libertarians believe people are free to
• -do as they wish concerning their own labor
• -acquire property and exchange goods without
  government restrictions
• -be free of taxes that are used to
  redistribute wealth into government programs
  such as a welfare system

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Justice and Fairness

• Disputes among individuals in business are often
  interlaced with reference to justice or fairness.

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Justice and Fairness

• Distributive Justice-the fair distribution of
  societys benefits and burdens
• Retributive Justice-the imposition of punishments
  and penalties on those who do wrong
• Compensatory Justice-the just way of compensating
  people for what they lost when they were wronged
  by others

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Capitalist Justice

• Justice based on contribution- Benefits should be
  distributed according to the value of the
  contribution the individual makes to a society, a
  task, a group, or an exchange.

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Socialism

• Justice based on needs and abilities- work
  burdens should be distributed according to
  peoples abilities, and benefits should be
  distributed according to peoples needs

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Morality in International Contexts

• For class discussion Should Phillip Morris be
  forced to put warning labels on cigarette
  packages sold in other countries, even if foreign
  governments do not require them to do so?