Transcript EM5
EM 213.32 5 Winter 2015 ch 4 cases pick 1 • The Downsizing of America • Hucksters in the Classroom • Licensing & Laissez Faire • An Internet Parasite • One Nation Under Wal-Mart • A New Work Ethic? • Casino Gambling on Wall Street ch 4 articles pick 1 • Buddhist Economics • Markets and the Role of Ethics in Capitalism • The Great Non-Debate over International Sweatshops a.k.a.: In Defense of Internaional Sweatshops • Globalization and Its Discontents Cases groups decide today meet this week pick case from either ch 4, ch 5 or ch 6 • 1st choice • 2nd choice Cases ch 5 ch 6 Exxon Burger Beefs asbestos Breast Implants infant formula Hot Coffee at McDonalds Levi Strauss Sniffing Glue Could Snuff Profits Nike – Free Speech or Closing the Deal False Advertising? Charity to Scouts? Yahoo in China Drug Dilemmas The Rise and Fall of Four Loko AIDS in workplace web porn at work malt liquor 2nd hand smoke union discrimination ch 4 text your thoughts? ch 4 text the nature of capitalism not modern corporations next week • capitalism can exist w/o modern corporations (OK, well, sort-of) Capitalism definition “the major portion of production and distribution is in private hands” “a profit or market system” owners decide assets accrue • surpluses dispersed to owners Capitalism key features companies profit motive competition private property • use • investing money • disposal assumptions Capitalism Haslet’s key features what’s produced market price production “enticed” people’s “dollar votes” “to each according to their productivity” Capitalism major historical stages pre • guilds • breakdown capitalisms • mercantile • industrial • financial • welfare • consumer • debt • ? Capitalism moral justifications 1. the right to property 2. the “invisible hand” people tend to assume their society is • natural • effective • fair Capitalism moral justifications 1. the right to property not a utilitarian argument Locke “when people mix their labour with the natural world, they are entitled to the results” Capitalism moral justifications 1. the right to property • misunderstood • complex • constructed Capitalism moral justifications 1. the right to property Smith 2. the “invisible hand” “Every individual is continually exerting himself to find the most advantageous employment for whatever capital he can command.” Capitalism moral justifications 1. the right to property Smith 2. the “invisible hand” “By pursuing his own interest he frequently promotes that of society more effectually than when he intends to promote it.” “the law of unintended consequences” Capitalism moral justifications 1. the right to property 2. the “invisible hand” 3. lifts billions of people out of poverty 2000 Years of GDP per Capita $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 0 source: Angus Maddison, 1990 dollars 500 1000 1500 2000 world $8,000 Canada $6,000 Japan $4,000 China $2,000 India Nigeria 2000 1980 1960 1940 1920 1900 1880 1860 1840 1820 $0 % living on less than $2/day % living on less than $2/day 100% Nigeria India 75% 50% China 25% Brazil Mexico 0% 1980 1990 2000 World Bank World Development Indicators http://data.worldbank.org/data-catalog/world-development-indicators “Wealth” and “Happiness” Criticisms of Capitalism persistence of • inequality • poverty employee’s • alienation • exploitation rise of oligopolies productivity implicit view of human short term focus nature shortcomings of competition manufacturing decline attitudes towards work ch 5 articles Cassidy The Greed Cycle Orlando Ethics of Corporate Downsizing De George Ethical Dilemmas for Multinational Enterprise Camenish Business Ethics: On Getting to the Heart of the Matter The Greed Cycle interesting Adam Smith quote “Negligence and profusion, therefore, must always prevail, more or less, in the management of the affairs of such a company [in which the owners aren’t also the managers].” The Greed Cycle a pretty good blow-by-blow repeat of the 1920’s cycle “corporate raiders” became + • as if pirates became the navy rewards & punishment • truth, lies & spin The Greed Cycle role of politics & accounting options accounting dodges • recording dubious revenue • not recording liabilities • shifting revenues or expenses through time between capital and operating The Greed Cycle the focus on shareholder value no discussion of what “value” is • becomes = to current stock price The Greed Cycle “impersonal” forces supposedly driven to actions • focus on motives = exoneration Corporate Downsizing ? moral primacy of shareholder risk $ vs. time Corporate Downsizing fiduciary duties not same in all situations not absolute “unstated contracts” • who decides what they are? • which has primacy? • how are they changed? • what if parties unequal? Corporate Downsizing ownership ?=? investment investors expect ethical behaviour? Corporate Downsizing utilitarian does it really benefit company? should this be the only consideration? Corporate Downsizing legitimate? survival of firm if uncontrollable, result can’t be fair actual situations owner’s risk Corporate Downsizing investors expect ethical behaviour is this expectation voluntary? obligations of agents • responsibilities of principles principle agent Business Ethics: On Getting to the Heart of the Matter Heart of the Matter not specific to business constraints “charitable” responsibilities Heart of the Matter what does business actually do? provision goods & services profit Camenisch asserts: moral of provision > moral profits • Are they really goods? • Are they really services? Heart of the Matter business as custodian natural resources Heart of the Matter business as dominator culture freedom creativity individuality Heart of the Matter Camenisch limits business only to • provision of goods & services • creation of profits Heart of the Matter Camenisch ignores • work • saving/borrowing • communal activity • generator of social wealth • creativity • potential of support for the poor • passing on to children • brake against war Heart of the Matter Camenisch ignores • debt