BSB111 lecture notes wk 1 to 4.docx

5 Pages
Unlock Document

Queensland University of Technology
Management and Human Resources

BSB111 Lecture notes week 1 to 4 Lecture 1  Ethics is concerned with how we should behave. Theories describe the right way to make a decision.  Morality consists of what persons ought to do to conform whereas ethical theory concerns the philosophical reason for and against aspects of social morality  Some may say that business ethics is incompatible with the business' goal of making a profit  Law doesn't cover everything, it is impossible to predict all situations.  Kohlberg's Theory of Moral Development 1. Stage 1 - pre-conventional - avoid punishment, self centred 2. Stage 2 - pre-conventional - self centred, do things that bring about benefit. 3. Stage 3 - conventional - conforming to norms, immediate group of people 4. Stage 4 - conventional - conforming to norms, rules of the greater community 5. Stage 5 - post-conventional - motivated by moral/ethical principles, follow laws but question and evaluate them 6. Stage 6 - post-conventional - have no regard for law, base all decisions on ethical principles.  Ethical theory operates at Stage 5 and 6.  Approaches to Ethical Theory 1. Egoism - supreme principles is to promote one's well being. Would cause chaos and greed. 2. Utilitarianism - moral worth of actions is determined by their consequences. An action is right is if leads to the best possible balance of good consequences. 3. Kantian Ethics - actions are morally right or wrong independent of their consequences. For an action to be a moral action it must be:  Universal Acceptability - can the act be a rule performed by everyone without contradiction?  Respect - treating a person exclusively as a means to some ends fails to give them respect  Reversibility - would you like to be on the receiving end of such action. 4. Virtue Ethics - cultivation of a virtuous character is seen as morality's primary function. What would a virtuous person do in this situation? Lecture 3 Regulation is the control of corporate and commercial activities through a system of norms and rules which may be promulgated either by government agencies or private actors, or by a combination of the two. Law is just one means of regulation. Others include self-regulation, industry code of conduct (e.g. Australian medical association code of ethics, Australian institute of chartered accountant members’ handbook), regulatory bodies and the market (consumers). Three theories of regulation. Public Interest Theories Theories of regulation that are based on a view that those responsible for regulation do so with the objective of promoting the general welfare of the community. Can be further subdivided to welfare economics approach and political approach. Welfare economics approach suggests that regulation is a response to imperfections in the market, known as market failure and correcting market failure increases the community’s general welfare and is thus in public interest. Examples of market failure are ‘anti-competitive monopolies and public goods.’ Political approach suggests that values such as social justice and redistribution are what can justify regulation. Examples of regulation justified under a political public interest approach are income tax laws and social security, anti-discrimination law. These are different because the welfare economics approach considered the public good to be only increasing efficiency from an economic viewpoint. Private Interest Theories Recognises that regulation often benefits particular groups in society, and not always those it was seemingly intended to benefit. Private interest theories are sceptical of the purity of the public goals that those who regulate seek to pursue. It assumes that regulation emerges from individuals or groups motivated to maximise self interest. Private interest theories stress the ease in which regulatory failure and regulatory capture can occur. Regulatory failure is where the collective costs of regulation outweigh the benefits (eg. Jaywalking, although technically an offence, it would cost far more to enforce it regularly than the benefit it would bring). Regulatory capture is when officials within regulatory institutions who are charged with promoting collective welfare develop such close relationships with those they regulate that they promote the narrow interest of this group instead of broader community. Instititutionalist Theories. Broad term for a numbers of different theories. Tripartism is the focus on cooperation, suggests public interest groups become a legitimate 3 party in the regulation process between the regulating agency and the regulated. The public interest group has access to all information they have a seat at the negotiating table and has the right to take action to enforce the regulation just like the regulator. This avoids the problems of cooperation between only two parties leading to regulatory capture or corruption. Who Regulates? A statutory authority that is established by an A
More Less

Related notes for BSB111

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.