PHIL201 Lecture Notes - Lecture 6: John Stuart Mill, Automobile Safety, Business Game
6 Jun 2018
School
Department
Course
Professor
WEEK 3
Milton Friedmans narrow view: The corporate executives is a fiduciary agent of the owners
(shareholders) of the firm and has an overriding moral obligation to act in the owners interests!
Response to Carr:
-Carr fails to recognize the differences between moral requirements and conventional rules!
-Rules that are conventionally accepted within a group may or may not be morally justified!
-We can see clearly if we replace Carrs reference to business ethics with another kind of special
ethics:#
—> Mafia Ethics!
-its a game to also sometimes shoot policeeofficers - other standards of right and wrong differ
from the prevailing traditions!
Relationship between ordinary morality!
Games in society must past the test of ordinary morality before we allow people to engage in
them!
Games are harmless!
-rough sport activities, its accepted!
-we wouldn’t allow sport that would be to dangerous (fight to death) !
#
But Is business really just a game or is it an important part of real life with real conesuences for
people !
Note of myself: manchmal ist etwas von der Gesellschaft accepted aber trotzdem
menschenverachtend !
Ordinary Morality and Game Rules
Carr accepts the following practices as part of the business game!
-deceptive and misleading food packaging!
-Neglect of automobile safety!
-Using ingenious devices to discriminate against certain minority groups!
-Poor quality and potentially dangerous ingredients in dental care products!
Do such practices pass the test ordinary morality?!
Responses to Friedman: Non-Consequentialism cuts both ways:#
- non-consequentialism permits executives to privilege their relateonship with shareholders and to
make decisions in the interests of shareholders even when doing so does not lead to the best
overall consequences for society !
-cuts both ways , makes it permissible to fail to maximize happiness, but it also imposes
obligations on people and these place limits on how they can pursue their goals and objectives
deontological constraints
-Role as a parent. I can prioritize my Childs interests but I am still required to meet my moral
duties to those outside this relationship!
Fiduciary and other moral duties:!
Conclusion:
The fiduciary duty corporate executive owe to shareholders does exempt executives from moral
obligations to people outside the fiduciary relationship!
Friedman
Markets don’t work effectively, rules for business not just legal restrictions also those embossdied
in ethical custom!
Just want maximize profits for shareholders ( priority before moral behavior ) !
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Milton friedmans narrow view: the corporate executives is a duciary agent of the owners (shareholders) of the rm and has an overriding moral obligation to act in the owners interests. Carr fails to recognize the di erences between moral requirements and conventional rules. Rules that are conventionally accepted within a group may or may not be morally justi ed. We can see clearly if we replace carrs reference to business ethics with another kind of special ethics: Its a game to also sometimes shoot policeeo cers - other standards of right and wrong di er from the prevailing traditions. Games in society must past the test of ordinary morality before we allow people to engage in them. We wouldn"t allow sport that would be to dangerous ( ght to death) But is business really just a game or is it an important part of real life with real conesuences for people.
