213.32 6 Winter 2013

EM

213.32

6

Winter 2015

Reading Assessment 1 Notes

• general comment:• writing that is below a professional standard

is getting in the way of good analysis and ideas


• careless mistakes were surprisingly common• confusion or inconsistency about capitalization

• “Target” and “target”

• “states” vs “United States”

• Confusion about apostraphes• “customer’s”

• “Canadian’s”

• footnotes in different font than body of essay

• incorrect name of course on cover page

• body of essay not behind cover page

• bibliography not behind body of essay


Two big problems1. some (not all) did not follow

Chicago/Turabian rules for footnotes and bibliography

• this is a basic requirement

• if this is not done in the next Reading Assessment, the maximum mark you can get is 5 out of 10


Two big problems2. some (not all) have grammar problems

• if I’ve written “grammar” anywhere on your paper, or suggested you work with the tutor in the library, you need to do this

• your writing needs to improve before you will be able to work in business in English


• “brainwashing”• Skinnerian Conditioning• training

• If a business “does what comes naturally”:• Does that mean it’s behaving ethically?• Does it mean it’s behaving unethically?

• How do we judge a business with mixed motives?

ch 5 text your thoughts

The Corporation limited-liability moral agency corporate responsibility broadening responsibility institutionalizing ethics

enthusiasm

Limited Liability

What is it?

Why does this exist?

What effect does it have?

reluctance

http://www.economist.com/node/347323

Moral Agency

What does this mean?

What is the problem?

Moral Agency

What is “moral responsibility?” being able to make moral decisions being held accountable

• for past actions

• for care & treatment of others the obligations of a role in a society

Moral Agency

Can corporations make decisions? Are moral decisions different than others?

Moral AgencyYOU.

BOUGHT 228 MILLION POUNDS OF RESPONSIBLYGROWN, ETHICALLY TRADE COFFEE LAST YEAREverything we do, you do. You stop by for a coffee.

And just by doing that, you let Starbucks buy morecoffee from farmers who are good to their workerscommunity and planet. It’s using our size for good.

And you make it all possible Well done, you.

Moral Agency

vanishing individual responsibility individuals

• refuse

groups• diffuse

structure gives distance• investor board

• manager staff

Corporate Responsibility

arguments utilitarian rights


only profit maximization• or

social responsibility

“the social contract”

“externalities”

“social license to operate”


“the promissory relationship” what does it

? require

? forbid

? permit

Broadening Responsibility

the arguments against invisible-hand role-of-government inept-custodian materialization-of-society

Institutionalizing Ethics

Should they exist?

What should be in them?

How should they be developed?

How should they be enforced?

“settled economic life”

Capitalism

today’s challenges productivity short term focus manufacturing decline attitudes towards work instability unsustainability

Capitalism Now

criticisms1. persistence of

• inequality

• poverty

2. rise of oligopolies• reduced competition

• reduced social mobility

3. competition• encourages conflict• gives people what they

want

4. destroys traditions

5. unstable

6. drives globalization

7. implicit view (and shaping) of human nature• greed• short-term focus

8. employee’s• alienation• exploitation

9. excessive political, legal & social power• “corporations are not

people”

Capitalism


• inequality inequality of opportunity

• poverty

responses government causes poverty capitalism can be softened benefits outweigh harms

• better than the alternatives

Dickens

GDP

source: World Bank

inflation-adjusted per capita GDP

$0

$5,000

$10,000

$15,000

$20,000

$25,000

0

500

AD

1000

AD

1500

AD

2000

AD

Angus Madison, Historical Statistics of the World Economy: 1-2008 AD http://www.ggdc.net/maddison/Historical_Statistics/horizontal-file_02-2010.xls

inflation-adjusted per capita GDPworld

Angus Madison, Historical Statistics of the World Economy: 1-2008 AD http://www.ggdc.net/maddison/Historical_Statistics/horizontal-file_02-2010.xls

Japan

Canada

$0

$10,000

$20,000

$30,000

1820

1840

1860

1880

1900

1920

1940

1960

1980

2000

world

India

China

Japan

Nigeria

Canada

$0

1820

1840

1860

1880

1900

1920

1940

1960

1980

2000

$2,000

$4,000

$6,000

$8,000

$0

$4,000

$8,000

$12,000

$16,000

$20,000

1950 1960 1970 1980 1990 2000

South Korea

North Korea

Portugal

Hungary

world

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

1900 1920 1940 1960 1980 2000

world per capita GDP

The World Bank World Development Indicators & Global Development Finance http://data.worldbank.org/data-catalog/world-development-indicators

$0

1820

1840

1860

1880

1900

1920

1940

1960

1980

2000

$2,000

$4,000

$6,000

$8,000

20%

40%

60%

% of GDP derived from trade

world trade in goods

Effects (?) of Globalization

% living on less than $2/day

World Bank World Development Indicators http://data.worldbank.org/data-catalog/world-development-indicators

0%

25%

50%

75%

100%

1980 1990 2000

India

China

Nigeria

BrazilMexico

% li

ving

on

less

than

$2/

day

Capitalism


• inequality

• poverty

2. rise of oligopolies3. implicit view of human nature4. shortcomings of competition5. employee’s

• alienation

• exploitation

natural direction

corporate welfare

modern economy

multinationals

Multinationals

Multinationals

Multinationals

Multinationals

Multinationals & Sweatshops




The Economist Jul 29, 2010 “The Next China”

Multinationals & Child Labour

International Labor Organization International Programme on the Elimination of

Child Labour• 2010 report:

“Accelerating action against Child Labour”

http://www.ilo.org/ipec/lang--en/index.htm



1.6b children

215m child labourers

53m under 15 0

50m

100m

150m

200m

250m

2000 2004 2008

under 15



agriculture 129m

services 55m

industry 15m

not defined 16m

Capitalism


• inequality

• poverty

2. rise of oligopolies3. implicit view of human nature4. shortcomings of competition5. employee’s

• alienation

• exploitation

natural direction

corporate welfare

modern economy

multinationals

Capitalism


• inequality

• poverty

2. rise of oligopolies3. implicit view of human nature

• no ideals to aspire to

• reinforces “natural” tendencies

• caricatures society

Capitalism


• inequality

• poverty


4. shortcomings of competition prevents cooperation

Capitalism


• inequality

• poverty


4. shortcomings of competition

5. employee’s• alienation

• exploitation

Capitalism


• inequality

• poverty


4. shortcomings of competition

5. employee’s• alienation

• exploitation

“Wealth” and “Happiness”

The Pew Global Attitudes ProjectQ.20 What do you think about the growing trade and business ties between [survey country] and other countries. Do you think it is a very good thing, somewhat good, somewhat bad or a very bad thing for

our country?

Pew Research Center 2007 World Publics Welcome Global Trade - But Not Immigration http://www.pewglobal.org/files/pdf/258.pdf /

Canada

Japan

India

China

Nigeria

very good somewhat good somewhat bad very badgood bad

The Pew Global Attitudes ProjectQ.18a Please tell me whether you completely agree, mostly agree, mostly disagree or completely disagree with the following statements:

a. Most people are better off in a free market economy, even though some people are rich and some are poor.

Pew Research Center 2007 World Publics Welcome Global Trade - But Not Immigration http://www.pewglobal.org/files/pdf/258.pdf /

Canada

Japan

India

China

Nigeria

completely agree mostly agree agree disagreemostly disagreecompletely disagree

Capitalism

my cricitisms utilitarian?

• really?

instability disposability consumer-only debt all-encompassing works against

• work as sacred

• generosity

• Year of Jubilee

my view Hindu gods Maddison constructed

• freedom and norms

• changeable

• responsible

All-Encompassing

Roman Empire all of society

• authority

• relationships

• work

• commerce

• belief

understood within the idea of “the empire”

All-Encompassing

Medieval Europe all of society

• authority

• relationships

• work

• commerce

• belief

understood within the idea of “the church”

All-Encompassing

Fascism all of society

• authority

• relationships

• work

• commerce

• belief

understood within the idea of

“the state” or “the nation”

All-Encompassing

modern capitalism all of society

• authority

• relationships

• work

• commerce

• belief

understood within the idea of “the market”

the church as consumer item

All-Encompassing

empire

medieval Europe

fascism

modern capitalism

all of life captive to an overarching idea of what a society is

so, saying “Render unto Caesar what is Caesar's and unto God what is God’s” remains an outsider’s position

“My kingdom is not of this world.”

Capitalism

works against• work as sacred

The LORD God took the man and put him in the Garden of Eden to work it and take care of it.

Genesis 2All hard work brings a profit…

Proverbs 14

So I saw that there is nothing better for a man than to enjoy his work...

Ecclesiastes 3

Capitalism

works against• generosity

Give, and it will be given to you. They will pour into your lap a good measure--pressed down, shaken together, and running over. For by your standard of measure it will be measured to you in return.

Luke 6

a generous God a generous response

Capitalism

works against• Year of Jubilee

This fiftieth year is sacred—it is a time of freedom and of celebration when everyone will receive back their original property, and slaves will return home to their families.

Leviticus 25

My View

Lakshmi

Kali

Shiva

Hindu gods

Agency agentprinciple

If an ox gores a man or a woman to death, the ox shall surely be stoned and its flesh shall not be eaten; but the owner of the ox shall go unpunished.

If…an ox was previously in the habit of goring and its owner has been warned, yet he does not confine it and it kills a man or a woman, the ox shall be stoned and its owner also shall be put to death.

Exodus 21

servants in parables

I think we’re responsible for the actions of our money.

ch 5 articles

Cassidy The Greed Cycle

Orlando Ethics of Corporate Downsizing

De George Ethical Dilemmas for Multinational Enterprise

Camenish Business Ethics: On Getting to the Heart of the Matter

The Greed Cycle

interesting Adam Smith quote “Negligence and profusion, therefore, must

always prevail, more or less, in the management of the affairs of such a company [in which the owners aren’t also the managers].”

The Greed Cycle

a pretty good blow-by-blow repeat of the 1920’s cycle “corporate raiders” became +

• as if pirates became the navy

rewards & punishment• truth, lies & spin

The Greed Cycle

role of politics & accounting options accounting dodges

• recording dubious revenue

• not recording liabilities

• shifting revenues or expenses through time between capital and operating

The Greed Cycle

the focus on shareholder value no discussion of what “value” is

• becomes = to current stock price

The Greed Cycle

“impersonal” forces supposedly driven to actions

• focus on motives = exoneration

Corporate Downsizing

? moral primacy of shareholder risk $ vs. time


fiduciary duties not same in all situations not absolute “unstated contracts”

• who decides what they are?

• which has primacy?

• how are they changed?

• what if parties unequal?


ownership ?=? investment investors expect ethical behaviour?


utilitarian does it really benefit company? should this be the only consideration?


legitimate? survival of firm if uncontrollable, result can’t be fair actual situations owner’s risk


investors expect ethical behaviour is this expectation voluntary? obligations of agents

• responsibilities of principles

agentprinciple

Business Ethics: On Getting to the Heart of the Matter

Heart of the Matter

not specific to business constraints “charitable” responsibilities

Heart of the Matter

what does business actually do? provision goods & services profit

Camenisch asserts: moral of provision > moral profits

• Are they really goods?

• Are they really services?

Heart of the Matter

business as custodian natural resources

Heart of the Matter

business as dominator culture freedom creativity individuality

Heart of the Matter

Camenisch limits business only to

• provision of goods & services

• creation of profits

Heart of the Matter

Camenisch ignores

• work

• communal activity

• creativity

• passing on to children

• saving/borrowing

• generator of social wealth

• potential of support for the poor

• brake against war

Heart of the Matter

Camenisch ignores

• debt

Multinationals

both hope & scourge

Multinationals

1. can’t simply equate US norms = ethical standards

but don’t have to abandon idea of norms

text

Multinationals

2. proposed1. no intentional direct harm2. more good than harm3. contribute to host’s development4. respect employee’s human rights5. pay fair share of taxes6. respect cultural norms if…7. just background institutions

text

Multinationals

3. valid critiques specific fact-based

4. lack of adequate “background institutions”

make ethical norms more relevant

5. host governments not absolved

text

Multinationals

how to implement?

text

Documents

213.32 6 Winter 2013