Ethics in Business - Assignment Example

Question Both theories exemplify the evidence of self-interest in the decision-making process of individuals. Rational Choice Theory maintains thatpeople base their actions guided by the influence of their predilections which is calculated between gains and loss. Adam Smith, on the other hand, greatly influenced the teaching of Moral Philosophy today. Starting with his theory of how people achieve a uniformed language and how they come to terms on the rules of its usage, he developed a theory on the mutuality that arises from the interaction between one person to another. The interdependence of people in society in accordance to the services they provide and that they accrue (Kennedy, p.33). The case of HB Fuller in Honduras and other parts of Central America is deeply rooted on the call for social responsibility among corporations. The effects of solvent-based glue among children were dubbed as worst than heroin by some articles. HB Fuller’s failure to comply with regularity standards suggests their Rational Choice methodology utilized in their usage of raw materials which they are aware could be harmful to health. The primary basis of this chain of actions was due mainly in their desire to earn more profit and using solvent would advance this interest further and rapidly. The basic point of the theory is the end and will it be worth the effort. In this case, their plan backfired as it met dissent from people when they discovered what was included in the ingredients of the glue. As what Smith suggests, conscience arises from social relationships. HB Fuller, an American-based company must heed the calls for ensuring the safety of the public in their purchase of their products. Otherwise, not only will they lose their clientele but they will also gain a stigma of a for-profit only business and not as an organization that works closely with the community in the fulfillment of a greater challenge that goes beyond the means for monetary exchange. Question 2 Milton Friedman called for the necessity of a free market and the freedom of consumers to choose. Not exactly a new concept and based largely on Adam Smith’s work, he divulges on the parallelism between political freedom and market freedom which consists the greater part of economic activity. In his book, ‘Capitalism and Freedom,’ he argues that it is necessary to let capitalism dominate to give the people autonomy and stimulating competition in the business sectors involved in a free market society.“Because we live in a largely free society, we tend to forget how limited is the span of time and the part of the globe for which there has ever been anything like political freedom: the typical state of mankind is tyranny, servitude, and misery” (Friedman, p.9). Utilitarianism resembles a correspondence to Friedman’s free market economy. The upholding of the benefits and cost in the decision-process is thus applied. In consequence to a free market, utilitarian would suggest a different approach depending on position of a company in a market. For example, if I have a monopoly in a certain product a utilitarian approach would demand that I do not adhere to Friedman as it would be disparaging to my own interests while if I were the owner of a company that is just starting out and is yet to build a rapport with my clientele then I would welcome free market with open arms. It would become a matter of where a certain company would gain most benefits from accordingly. Question 3 The empirical and the rational is the main argument for Kant’s philosophy. The difference between the acquisitions of knowledge, whether by experience or by reason yields ones moral philosophy. Human’s rationality is based on ‘Categorical Imperatives’ and its violations result to immorality. Immanuel Kant puts much emphasis on the value of autonomy speaking of it as the foundation of human dignity that follows the moral laws that conducts human behavior. The impact of people as rational beings is a primary basis in his arguments and this is where autonomy, for its most significant part rules us. Modern day capitalism without a doubt enhances our autonomy. The concept of our rationality guided by our own ‘Categorical Imperatives’ manifests itself in the value of capitalism. The free market economy that is apparent gives the people the freedom to choose for themselves without any external factors that may influence them arbitrarily. In concept, a free market economy is the realization of full and tangible economy as no one dictates people to buy, the do so according to their own free will and comparative to the prerequisite that they view hierarchically. In some ways it is not the power of the consumer that is delineated because of this concept but the capacity of the manufacturers to subjugate morality for quick profit through less than moral means. But it prevails that through the adherence to vital business ethics, businesses and society will grow at a similar pace. Loyalty is subordinated when the good of the public is at risk. Such famous whistleblowers like Jeffrey Wigand who exposed tobacco company executives is an example of how capitalism subjects companies into dire actions to favor their businesses at the expense of public knowledge and public trust. Wigand exposed that executives knew that tobaccos were addicting and that they are carcinogenic but they did not divulge this imperative piece of information to the public because it will cause their sales to fall. Such is perhaps the irony why even a ‘Marlboro’ man died of lung cancer from cigarette smoking. The equation of capitalism equals profit results to abandonment of basic moral principles in order to gain. Question 4 Kasky vs. Nike was a controversial legal battle where Marc Kasky filed a law suit against giant shoe manufacturing corporation Nike under “California’s Unfair Competition Law and False Advertising Law.” Kasky stated that Nike subjects its workers abroad to poor working conditions. Nike retaliated by stating that these accusations were false and that its overseas suppliers were the ones who misinformed them. The Supreme Court later ruled the case with a $1.5 million settlement wherein Nike must ‘strengthen workplace monitoring and factory worker programmes’ (Business and Human Rights Resource Centre, par. 1). One of the main issues involved here was the extent of Nike’s responsibility due to the fact that they contracted third-party companies that oversee the manufacturing of their merchandise offshore. On the basis of Kant’s ‘Categorical Imperatives’ and acquisition of knowledge, it would have to be that Nike holds responsibility over the conditions of the sweat shops that manufacture their garment abroad. They do not need to experience it to be aware that it is happening. Furthermore, they should have ensured first that these contractors were at par with the legal standards as carried out in any particualr country for which they are conducting business in. I remember a story when Michael Jordan was holding a press conference in the 1990s promoting Nike and a journalist asked him about the working conditions of minors who work in sweat shops and he was dumbfounded. To be upfront about it, Nike saw the minimal manufacturing cost as an opportunity to take advantage of a sure way to gain more profit at less expense. Such is the usual scenarion among profit greedy corporations that overlook comappasion for economic gain. Question 5 Kant’s Rational Choice Theory presupposes the good of man prevails above all else. The moral demands of one must stem out from the rational will of every person. A person’s rationality concomitantly wills him to the moral demands that are already inherent to him. Rationality and will is intrinsically good and leads to autonomy of the will and thus becomes the authority of morality that governs thinking (Stanford Encyclopedia of Philosophy, section 11 par. 8). The absolute good which predetermines itseld is god will which closely equates to a person of good will. This is grounded on the idea that a person makes decisions on the basis of what one holds morally worthy that are personally considered which propelled them to their decisions and concurrent behavior (Section 2 par. 1). Through this we can say that HB Fuller violated the ‘Categorical Imperatives’ for which the company should have held on to. This can conclude that the conpany was morally bankrupt in selling the solvent-infused glue which is used mostly by children. The executives of the company disregarded rationality as demonstrated by Kant and followed a Rational Choice line of reasoning founded on monetary profit. They neglected corporate social responsibility which must always be a guiding principle in their decision-making process. In the end, they were exposed for it which resulted to a bad publicity for the company that extended toward an entire continent. This had been the case for many ethical dilemmas of large corporations which make them subject to ethical discussions. The stigma that their capitalist agenda prevails above all else makes them a target for scrutiny. Bibliography Business and Human Rights Resource Centre. Case profile: Nike lawsuit (Kasky v Nike, re denial of labour abuses). 2003. 14 May 2010 . Friedman, Milton. Capitalism and Freedom. Chicago: The University of Chicago Press, 1982. Kennedy, Gavin. Adam Smith: A Moral Philosopher and his Political Economy. New York: Palgrave MacMillan, 2008. Stanford Encyclopedia of Philosophy. Kants Moral Philosophy. 6 April 2008. 14 May 2010 . Read More