EM Winter 2015

ch 4 cases  pick 1 The Downsizing of America Hucksters in the Classroom Licensing & Laissez Faire An Internet Parasite One Nation Under Wal-Mart A New Work Ethic? Casino Gambling on Wall Street

ch 4 articles  pick 1 Buddhist Economics Markets and the Role of Ethics in Capitalism The Great Non-Debate over International Sweatshops  a.k.a.: In Defense of Internaional Sweatshops Globalization and Its Discontents

Cases groups  decide today  meet this week  pick case from either ch 4, ch 5 or ch 6 1st choice 2nd choice

Cases ch 5  Exxon  asbestos  infant formula  Levi Strauss  Nike – Free Speech or False Advertising?  Charity to Scouts?  Yahoo in China  Drug Dilemmas ch 6  Burger Beefs  Breast Implants  Hot Coffee at McDonalds  Sniffing Glue Could Snuff Profits  Closing the Deal  The Rise and Fall of Four Loko  AIDS in workplace  web porn at work  malt liquor  2 nd hand smoke  union discrimination

ch 4 text your thoughts?

ch 4 text the nature of capitalism  not modern corporations  next week capitalism can exist w/o modern corporations  (OK, well, sort-of)

Capitalism definition  “the major portion of production and distribution is in private hands”  “a profit or market system”  owners decide  assets accrue surpluses dispersed to owners

Capitalism key features  companies  profit motive  competition  private property use investing money disposal assumptions

Capitalism Haslet’s key features  what’s produced  market price  production “enticed” people’s “dollar votes” “to each according to their productivity”

Capitalism major historical stages  pre guilds breakdown  capitalisms mercantile industrial financial welfare consumer debt ?

Capitalism moral justifications 1. the right to property 2. the “invisible hand” people tend to assume their society is natural effective fair

Capitalism moral justifications 1. the right to property  not a utilitarian argument  Locke  “when people mix their labour with the natural world, they are entitled to the results”

Capitalism moral justifications 1. the right to property misunderstood complex constructed

Capitalism moral justifications 1. the right to property 2. the “invisible hand” “Every individual is continually exerting himself to find the most advantageous employment for whatever capital he can command.” Smith

Capitalism moral justifications 1. the right to property 2. the “invisible hand” “By pursuing his own interest he frequently promotes that of society more effectually than when he intends to promote it.” Smith “the law of unintended consequences”

Capitalism moral justifications 1. the right to property 2. the “invisible hand” 3. lifts billions of people out of poverty

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

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

% 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

“Wealth” and “Happiness”

Criticisms of Capitalism  persistence of inequality poverty  rise of oligopolies  implicit view of human nature  shortcomings of competition  employee’s alienation exploitation  productivity  short term focus  manufacturing decline  attitudes towards work

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