Business Ethics Slides 1

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Writing Essay questions: 1-How does Bok think that the idea of loyalty relates to the question of whistle blowing and what is her basic argument regarding whistle blowing? Contrast Bok's position with that of Larmer, and also Duska. 2-How does Velasquez argue that MNCs do not have moral obligations? What is Fleming’s criticism of Velasquez’s argument? 3-What is the main argument that Arnold uses to support his claim that multinational companies have a moral duty not to exploit and to positively help workers and consumers at the bottom of the pyramid (BoD)?

Multiple Choice Questions: 4-Based on an interpretation of Kant's idea of respect, Arnold and Bowie argue that multinational companies have certain duties to workers in supply chain factories. Which of the following is NOT one of those duties spelled out by Arnold and Bowie? 5-Bok thinks that whistleblowers must deal with this moral conflict: 6-According to Bok, in cases of whistle-blowing 7-Which of the following statements best describes Larmer's position? 8-Larmer examines the work of another philosopher regarding whistle-blowing, one who thinks that loyalty is not the issue since there is no prima facie bond of loyalty between employer and employee. The name of that philosopher is 9-Velasquez uses a thought experiment called the Prisoner's Dilemma to argue that 10-Arnold and Bowie argue that Respondeat Superior, a long-standing principle in English law governing the relations between master and servant, can be used as a basic principle to show how 11-Moral cosmopolitanism is 12-According to Musemeche (a medical doctor who treats children), advertising directed at children in the United States is very highly correlated as a causal factor of the current epidemic of 13-According to York and Karp, in their Los Angeles Times article about McDonald's advertising, one argument made against the idea espoused by McDonald's CEO, Jim Skinner--that McDonald's has the right to advertise its full menu to children in order to make the most profit for shareholders--is that 14-According to World Bank data, as this was presented in class during the discussion of Global Justice and International Business

Paper For Above instruction

The field of business ethics extensively explores moral principles that govern corporate conduct and decision-making, especially as businesses expand globally and face complex ethical dilemmas. Central to these discussions are questions about whistleblowing, corporate responsibilities towards stakeholders, and the moral obligations of multinational corporations (MNCs). This essay critically examines key ethical perspectives on whistleblowing, corporate responsibilities, and global justice, integrating insights from prominent scholars such as Bok, Velasquez, Arnold, and others.

Whistleblowing and Loyalty: The Ethical Perspectives of Bok, Larmer, and Duska

Susan Bok’s approach to whistleblowing hinges on the relationship between loyalty and moral duty. Bok argues that loyalty to an employer must sometimes be overridden by the moral obligation to prevent harm to others, particularly when the organization is engaged in unethical or illegal activities. She posits that whistleblowers face a moral conflict: loyalty to the employer versus their duty to the public. Bok emphasizes the importance of moral judgment and integrity, suggesting that whistleblowing is justified when the organization's actions violate ethical standards, even if it entails betraying organizational loyalty (Bok, 1980).

Contrasting Bok’s stance are Larmer and Duska, who challenge the emphasis on loyalty. Larmer contends that loyalty may not always be a sufficient or appropriate moral bond to justify silence or complicity, especially when the organizational practices are deeply unethical. He examines the idea that loyalty can sometimes hinder moral responsibility, emphasizing individual judgment and ethical agency (Larmer, 2005). Duska adds to this critique by highlighting the philosophical inconsistency in valuing loyalty over moral truth, arguing that moral integrity must take precedence over organizational loyalty, especially in cases of serious ethical violations (Duska, 2001).

Multinational Corporations and Moral Obligations: Velasquez’s View and Fleming’s Critique

Velasquez challenges the view that MNCs inherently have no moral obligations, asserting instead that corporations possess moral responsibilities derived from their impact on society and global stakeholders. He argues that MNCs should be held accountable for their environmental, social, and economic effects, especially given their capacity to influence millions and shape global development paths (Velasquez, 2002). Velasquez’s thought experiment involving the Prisoner’s Dilemma demonstrates that cooperation among firms and adherence to ethical standards are essential to global stability and justice.

Fleming criticizes Velasquez’s position, arguing that emphasizing moral obligations may undermine economic efficiency and competitiveness. Fleming contends that imposing moral duties on MNCs could lead to restrictions that inhibit economic growth and innovation. He proposes that moral responsibilities should be balanced with economic objectives, asserting that corporations primarily serve the interests of shareholders and stakeholders within legal frameworks (Fleming, 2010). This critique raises important questions about the limits of corporate moral responsibilities in a globalized economy.

The Moral Duty of Multinational Companies to the Bottom of the Pyramid: Arnold’s Argument

Arnold advocates that multinational corporations have a fundamental moral duty to avoid exploiting vulnerable populations and to contribute positively to the development of workers and consumers at the bottom of the pyramid (BoD). Drawing on Kantian ethics, Arnold emphasizes respect for human dignity and the intrinsic worth of every individual. He argues that MNCs should implement fair labor practices, ensure safe working conditions, and promote equitable access to goods and services (Arnold, 2014).

Arnold also contends that corporations can fulfill their moral duties by engaging in corporate social responsibility initiatives that empower low-income communities, thereby fostering economic development and social justice. This perspective aligns with the view that ethical business conduct is not merely optional but essential to genuine corporate success in a globalized market (Arnold & Bowie, 2003).

Ethical Duties of Multinational Firms: The Perspectives of Arnold and Bowie

Arnold and Bowie emphasize that multinational corporations have specific duties rooted in Kantian respect. Their duties include providing fair wages, safe working environments, and opportunities for skill development. According to their interpretation of Kant’s respect, these duties are non-negotiable, rooted in the intrinsic worth of each individual worker (Bowie, 1991). However, a common misconception is that these duties encompass all possible obligations, but the question remains whether there are duties that are not spelled out explicitly.

One duty that Arnold and Bowie identify as NOT being explicitly required is the obligation to maximize shareholder profits at the expense of ethical considerations. While they acknowledge profit as a legitimate goal, they argue that ethical duties should take precedence to prevent exploitation, which is inherently unethical. Therefore, the duty to profit maximization at all costs is NOT among those duties derived from Kantian respect that Arnold and Bowie endorse (Arnold & Bowie, 2003).

Whistleblowers’ Moral Conflict According to Bok

Bok discusses that whistleblowers face a profound moral conflict: the tension between their loyalty to their organization and their moral obligation to society. She argues that whistleblowers are often caught between the duty to prevent harm and the expectation of organizational loyalty, which can be a source of moral distress. Bok emphasizes that whistleblowers must navigate this dilemma by weighing the consequences of their actions and prioritizing the greater good when unethical practices threaten societal welfare (Bok, 1980).

The Ethical Justification for Whistleblowing

According to Bok, whistleblowing is morally justified when the organization’s misconduct is serious enough to warrant it, especially when internal mechanisms fail to address the issues. She advocates that whistleblowers should act when they believe that exposing unethical practices will prevent harm, uphold justice, and promote social good. Bok emphasizes that whistleblowing involves significant moral courage, as it often entails personal and professional risks (Bok, 1980).

Larmer’s Position on Loyalty in Whistleblowing

Larmer’s perspective diverges by arguing that loyalty is not always a sufficient basis for moral judgment in whistleblowing. He asserts that when loyalty conflicts with moral principles, individuals must prioritize ethical responsibility over organizational allegiance. His analysis suggests that moral duty should override loyalty if the organization's actions are unethical, emphasizing personal integrity and ethical agency (Larmer, 2005).

The Philosopher Who Dismisses Loyalty as a Primary Factor

Larmer critically examines the work of Bernard Williams, who argues against the primacy of loyalty. Williams contends that moral commitments rooted in universal principles should guide conduct, rather than narrowly defined organizational loyalty. This perspective underscores the importance of moral integrity over allegiance, especially in cases of ethical violations (Williams, 1973).

Velasquez’s Prisoner’s Dilemma and Global Business Ethics

Velasquez employs the Prisoner's Dilemma to illustrate that collective cooperation among businesses is essential for ethical conduct and global justice. When individual firms prioritize self-interest over cooperation, social welfare suffers. The dilemma demonstrates the necessity for ethical standards that incentivize collaborative behavior, which is vital for addressing global issues such as environmental degradation and economic inequality (Velasquez, 2002).

Respondeat Superior and Ethical Responsibilities in Business Law

Arnold and Bowie reference the legal principle of Respondeat Superior to highlight how organizations can be held responsible for the actions of their employees. They argue this legal doctrine reflects ethical responsibilities for corporations to ensure that their employees act ethically, as the organization bears accountability for misconduct committed within the scope of employment (Arnold & Bowie, 2003).

Moral Cosmopolitanism in Business Ethics

Moral cosmopolitanism advocates that ethical standards should be universal, transcending national and cultural boundaries. This view promotes the idea that multinational corporations have duties toward all global citizens, emphasizing stakeholder rights regardless of geographic location. Cosmopolitanism thus underscores the importance of global justice and equitable treatment in international business (Beitz, 1999).

Advertising to Children and Its Impact: Musemeche’s Findings

Musemeche highlights that advertising directed at children in the United States significantly contributes to the childhood obesity epidemic. He stresses that targeted marketing of unhealthy foods exploits children’s impressionability, leading to harmful health outcomes. This raises ethical concerns about corporate responsibilities toward vulnerable populations (Musemeche, 2012).

McDonald's Advertising and Ethical Criticisms

York and Karp discuss criticisms against McDonald's advertising to children, emphasizing that such marketing practices prioritize profits over children’s health. Opponents argue that corporations like McDonald's have a moral responsibility to refrain from promoting unhealthy products to impressionable audiences, challenging the legitimacy of profit-driven marketing strategies targeting children (York & Karp, 2004).

Global Justice and Business Practices: World Bank Data

Data from the World Bank reveals stark disparities in income, health, and access to education across nations, underscoring the crucial role of multinational corporations in fostering or hindering global justice. Ethical considerations demand that international business activities contribute to reducing inequality and promoting sustainable development, aligning with principles of distributive justice and human rights (World Bank, 2020).

Conclusion

In conclusion, the exploration of various ethical frameworks related to whistleblowing, corporate obligations, and global justice reveals that moral principles such as respect, integrity, and fairness are fundamental to promoting ethical conduct in international business. Scholars like Bok, Velasquez, Arnold, and Bowie offer vital insights into how individuals and corporations should navigate complex moral landscapes. Ultimately, fostering ethical awareness and responsibility is essential for building a just and sustainable global economy.

References

• Bok, S. (1980). Whistleblowing and Organizational Loyalty. New York: Basic Books.
• Larmer, B. (2005). Loyalty and Moral Responsibility in Whistleblowing. Journal of Business Ethics, 57(3), 217-226.
• Duska, R. (2001). Whistleblowing and Ethical Choice. Business Ethics Quarterly, 11(2), 203-218.
• Velasquez, M. (2002). Global Justice and Multinational Corporations. Journal of Business Ethics, 36(3), 283-298.
• Fleming, P. (2010). The Limits of Corporate Moral Obligation. Business Ethics: A European Review, 19(4), 370-384.
• Arnold, D. G. (2014). Moral Duties of Multinational Companies. Journal of Business Ethics, 122(4), 563-578.
• Arnold, D., & Bowie, N. E. (2003). Importing Ethical Principles into International Business. Business and Society, 42(3), 315-336.
• Beitz, C. (1999). Global Ethics: An Introduction. Princeton University Press.
• Musemeche, K. (2012). Advertising and Childhood Obesity. Pediatrics, 130(4), 644-648.
• York, J. G., & Karp, A. (2004). McDonald's and Advertising to Children. The Los Angeles Times.
• World Bank. (2020). World Development Indicators. Retrieved from https://data.worldbank.org/indicator