PHIL201 Lecture Notes - Lecture 7: Golden Rule, Vending Machine, Market Failure
6 Jun 2018
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WEEK 4!
recap:
Businesses had quite limited obligations to society and shareholders!
Managers have a prime olligation to shareholders!
Staying in the rules of a game!
Few morals!
The narrow view morally permissible!
Its required to their own moral considerations!
—> conflicts with utilitarian view!
One of the most important principles is not to having others !
Business doesn’t want to maximize utility for society!
Broader approaches:
!
stakeholder theory:
-corporations should be entirely reconciled and restricted to be run in the interests of all
stakeholders!
-Its not correct to say it would not have an effect on society!
-Businesses should be restricted by moral restrictions!
-Business has broader to different shareholders and not to society!
-Theory: should run into the interests of stakeholder!
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Kantian respect for persons:
Kant is probably the most well known moral philosopher!
-act in such a way that you always treat humanity, whether in your own person or in the person
of any other, never simply as a means, but always at the same time as an end, !
-Golden rule!
-We must be respected and don’t treat people instrumentally like they are objects!
-Treating people as it where you self!
-We are rational, we need to respect!
-Dont treat the shop keeper as a vending machine!
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The Legal Argument against the narrow view
The Economic Argument against the narrow view
Evan & Freeman:encourgaging business to ignore the public good and focus exclusively on profits
does not produce the best outcomes for society!
—> Market failure!
Smith: concentrate on your own business this has the best outcome for society ( invisible hand
works because of competition) !
Criticism of stakeholder theory!
Questions for stakeholder theory:#
is it possible for a manager to have fiduciary relationships with a large number of principles, many
of whom have competing interests?!
Will a corporation magaed to benefit all its stakeholders to be competitive!
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Businesses had quite limited obligations to society and shareholders. One of the most important principles is not to having others. Business doesn"t want to maximize utility for society. Corporations should be entirely reconciled and restricted to be run in the interests of all stakeholders. Its not correct to say it would not have an e ect on society. Businesses should be restricted by moral restrictions. Business has broader to di erent shareholders and not to society. Theory: should run into the interests of stakeholder. Kant is probably the most well known moral philosopher. Act in such a way that you always treat humanity, whether in your own person or in the person of any other, never simply as a means, but always at the same time as an end, We must be respected and don"t treat people instrumentally like they are objects. Treating people as it where you self. We are rational, we need to respect.
