BA 3340 Study Guide - Summer 2018, Comprehensive Midterm Notes - Australia, Root Mean Square, Common Law
BA 3340
MIDTERM EXAM
STUDY GUIDE
Fall 2018
Hoorcollege 1 (Globalisation & Sustainability & CSR).
Business ethics is the study of business situations, activities and decisions where issues of right
and wrong are addressed.
Ethics and law verschil: grijs gebied.
Morality: concerned with the norms, values and beliefs embedded in social processes which define
right and wrong for an individual or community.
Ethics: concerned with the study of morality and the application of reason to elucidate specific rules
and principles that determine right and wrong for any given situation
Ethical theory: these rules and principles.
Introduces basics of business ethics:
1. Globalisation, sustainability.
2. Corporative social responsibility.
3. Normative theories.
4. Descriptive theories.
5. Ethics management.
Uses basics of business ethics in the context of:
6. Shareholders.
7. Employees.
8. Customers.
9. Suppliers & Competitors.
10. Civil Society.
11. Government & regulation.
Globalisation is not internationalisation, westernisation, liberalisation.
Maar globalisation is deterritorialistion.
Globalisation: process which diminishes the necessity of common and shared territorial basis for
social, economic, and political activities, processes and relations.
Why is globalization central to business ethics?
-Moral values: how do we go about moral values that differ across countries?
-Legal issues: to which legal framework should a company abide to? To the one of its own country
or the one of the countries where they commerce?!
-Accountability issues: multinationals are becoming economically as powerful as government.
Should they become also more accountable as governments are.
Sustainable development is development that meets the needs of the present without
compromising the ability of future generations to meet their own needs.
It becomes crucial because of: explosive population growth, rapid economic development of
emerging countries.
Triple Bottom Line: Sustainability refers to the long-term maintenance of systems according to:
1. Economic factors (i.e. stable markets).
2. Social factors (i.e. affluent consumers).
3. Environmental considerations (i.e. resources).
Friedman: Nobel for important contributions to theory of freedom and capitalism.
Social responsibility of business is to increase its profits.
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Interests: Corporate Social Responsibility (CSR).
Firms have business reasons for CSR:
-Extra and more satisfied customers.
-Employees may be more committed.
-Forestall legislation.
-Long-term investment which benefits corporation.
In sum: enlightened self-interest.
Firms have moral reasons for CSR:
-All corporate activities have social impacts.
-Corporations cause social problems.
-Corporations rely on the contribution of a wide set of stakeholders in society, not just
shareholders.
Carrol’s model for interests CSR:
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