EM 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

Reading Assessment 1 Notes 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

Reading Assessment 1 Notes Two big problems 1. 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

Reading Assessment 1 Notes Two big problems 2. 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

Reading Assessment 1 Notes “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

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 Agency YOU. BOUGHT 228 MILLION POUNDS OF RESPONSIBLY GROWN, ETHICALLY TRADE COFFEE LAST YEAR Everything we do, you do. You stop by for a coffee. And just by doing that, you let Starbucks buy more coffee from farmers who are good to their workers community 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 investorboard managerstaff

Corporate Responsibility arguments  utilitarian  rights

Corporate Responsibility  only profit maximization or  social responsibility “the social contract” “externalities” “social license to operate”

Corporate Responsibility “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 criticisms 1. 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 criticisms 1. persistence of 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

2000 Years of GDP per Capita $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 source: Angus Maddison, 1990 dollars

inflation-adjusted per capita GDP $0 $5,000 $10,000 $15,000 $20,000 $25, AD 1000 AD1500 AD 2000 AD Angus Madison, Historical Statistics of the World Economy: AD

inflation-adjusted per capita GDP world Angus Madison, Historical Statistics of the World Economy: AD Japan Canada $0 $10,000 $20,000 $30,

world India China Japan Nigeria Canada $ $2,000 $4,000 $6,000 $8,000

$0 $4,000 $8,000 $12,000 $16,000 $20, South Korea North Korea

Portugal Hungary world $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,

world per capita GDP The World Bank World Development Indicators & Global Development Finance $ $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 0% 25% 50% 75% 100% India China Nigeria Brazil Mexico % living on less than $2/day

Capitalism criticisms 1. persistence of inequality poverty 2. rise of oligopolies 3. implicit view of human nature 4. shortcomings of competition 5. employee’s alienation exploitation natural direction corporate welfare modern economy 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”

Multinationals & Child Labour 1.6b children 215m child labourers 53m under m 100m 150m 200m 250m under 15

Multinationals & Child Labour agriculture 129m services 55m industry 15m not defined 16m

Capitalism criticisms 1. persistence of inequality poverty 2. rise of oligopolies 3. implicit view of human nature 4. shortcomings of competition 5. employee’s alienation exploitation natural direction corporate welfare modern economy multinationals

Capitalism criticisms 1. persistence of inequality poverty 2. rise of oligopolies 3. implicit view of human nature no ideals to aspire to reinforces “natural” tendencies caricatures society

Capitalism criticisms 1. persistence of inequality poverty 2. rise of oligopolies 3. implicit view of human nature 4. shortcomings of competition  prevents cooperation

Capitalism criticisms 1. persistence of inequality poverty 2. rise of oligopolies 3. implicit view of human nature 4. shortcomings of competition 5. employee’s alienation exploitation

Capitalism criticisms 1. persistence of inequality poverty 2. rise of oligopolies 3. implicit view of human nature 4. shortcomings of competition 5. employee’s alienation exploitation

“Wealth” and “Happiness”

The Pew Global Attitudes Project Q.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 / Canada Japan India China Nigeria very goodsomewhat goodsomewhat badvery bad good bad

The Pew Global Attitudes Project Q.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 / Canada Japan India China Nigeria completely agreemostly agree agreedisagree mostly 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 2 All 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 agent principle 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

Corporate Downsizing 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?

Corporate Downsizing ownership ?=? investment  investors expect ethical behaviour?

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

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

Corporate Downsizing investors expect ethical behaviour  is this expectation voluntary?  obligations of agents responsibilities of principles agent principle

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.proposed 1. no intentional direct harm 2. more good than harm 3. contribute to host’s development 4. respect employee’s human rights 5. pay fair share of taxes 6. 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