Disagreewith stakeholder paradiam: Firmshasimportant social responsibilities
Thereasonwe haveto haveabusinessethics, thesocial ethicsis too broader for business
Theprefessional role of manager
-helpsallay thesuspicion that businessethicsis somealiencode, which ethicistsseekto imposeu
Hedoesnot think put you ontheposition of amanager makesyou conflict with morality.
Moral practice: what hewantsthemanager to do, market failuremodel (on theendof thisessay)
Hedistinguishesapersonwork with job, from work with aprofession.
Whenyou work with job, you havetheobligation to work onyour shift, beat thepostiion in time.
So, theobligationsarespecificiedin acontract, in termsof employment.
Whenyou work with aprofession, certain degreeof trust is implict, becausetheresponsibilities
maycannot becompletely statedout in thecontract. That, thecompany must trust this profession
al people.That distinguishiesapersonwith ajob from apersonwith aprofession.
Example: car mechanic, thepersonrunshisown small shop.What putsthemin responsible?
Wordsof mouth makesthemtakecertain responsibility (thereputation).
Example: alawer/engineer, certain associations/codeof ehicsmakesurethereis prevent irrespons
ible actions, thereforeholdsthemaccountable.
A manager,what holdsthemaccountable?
-Reputation -what contract areyou having?
-how dowe articulatethat theresponsibility ....
Owners: profit--moral hazard
Manager: duty of careandduty of loyalty towaradsshareholder
They haveto trust managers, becausemanagersaremoral (page115)
owners-profit + manager ==>moral obligaton
Owner ownsprofit, managershaveobligation to giveownerswhat they want. Managersact like s
Who saysthat ownersareentitled to profit?
Shareholders: justify theprofit
justification of profit
managersgivewhat ownerswhat they want, nevertheless,what ownerswantedneedto bejustifie
dwith 1)property rights, 2) paratocriteria.
Just fication of profit
1) profit rights: Locke: legal righs/morality (page116)
-our legal rightsdoesnot exosit our morality
2) Paretocriterion: social --morality (it benefitseveryonein themarket)
-Pareto-optimal (it will beimpossibleto improveanyone'sconditionswithout worsening someoneelse's.--it is not what pareto-optimal saying)
-best expressedin theinvisible handtheoremof welfareeconomics
BalancingAct: to introduceamulti-fiduciarary act, it is not possible, not imposedby thelaw.
Narrow VS Wide:
-Thenarrow conception linesalot of problem, it is arbitrary
-Thewideceonception, thesocalled professional ethics, clapsinto thegeneral ethic, which hesu
ggestedis not appliedin businessworl