Business 303 Sheppard

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Business 303 Sheppard

• Business Society Ethics, Week 11
• Unfinished Business
• Nepotism Bribery

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BUSINESS ETHICS WEEK 11 MAIN QUESTIONS

1. What makes nepotism undesirable?
2. What is bribery why should we worry?
3. Who is Heinz why is he stealing drugs?
4. What is the impersonalization argument?
5. If the numbers for costs exceed benefits how can
   we still economically justify CSR?

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1. Unfinished Business Applications

• U.N. Compact
• Human Rights
• 1. Respect internationally proclaimed human
  rights
• 2. Do not comply with others in human rights
  abuses 
• Labour Standards
• 3. Freedom of association 5. Abolish child
  labour
• 4. Eliminate forced labour 6. End employ.
  discrimination
• Environment
• 7. Precautionary approach to environmental
  challenges
• 8. Promote greater environmental responsibility
• 9. Development / diffusion of enviro-friendly
  technologies
• Anti-Corruption
• 10. Work against corruption, including extortion
  bribery.

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1. Unfinished Business Applications

• Yahoo in China
• Nestle infant formula
• The latest version of Wal-Mart
• What else ?

Wk. 11-4
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2. Reciprocity Conflicts of Interest

• Nepotism. 512
• Merit principle vs. economic burden 515.

3. Gift versus Bribe 513

• And the notion of Reciprocity 517.
• And cultural relativism 517
• And oppression 519
• And moral neutrality 520

Wk. 11-5
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4. Whats all this?

• Some points that arent covered elsewhere.
• At least theres no reading.
• The Impersonalization Argument (ala Milgram)
• The tools of Business and Impersonalization.
• If we follow the mindless tool argument to its
  logical conclusion we can use these tools for
  good.
• Yea, I could put them on the exam.
• The exam will be
• 48 Multiple Choice (1.5 each)
• 14 fill-in (or possibly very short answer) (2
  each).

Wk. 11-6
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5. Defining Issues Test Heinz the Drug

• In Europe, a woman was near death from a
  special kind of cancer.
• There was 1 drug doctors thought might save
  her. It was a form of radium that the druggist in
  the same town had recently discovered.
• The drug was expensive to make, but the
  druggist was charging 10 times what the drug cost
  to make. He paid 200 for the radium and charged
  2,000 for a small dose of the drug.
• The sick womans husband, Heinz, went to
  everyone he knew to borrow the money but could
  only get together about 1,000, which is half
  what it cost. He told the druggist and that his
  wife was dying, and asked him to sell it cheaper
  or let him pay later.
• But the druggist said, No, I discovered the
  drug and Im going to make money from it. So
  Heinz got desperate and began to think about
  breaking into the mans store to steal the drug
  for his wife. Should Heinz steal the drug?

Wk. 11-7
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5. Defining Issues Test (Part 2a)

• ? He should steal it
• ? Cant decide
• ? He should not steal it.

? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
1. Whether a communitys laws are going to be
upheld. 2. Isnt it only natural for a loving
spouse to care so much for his wife that hed
steal? 3. Is Heinz willing to risk getting
shot as a burglar or going to jail for the chance
that stealing the drug might help? 4. Whether
Heinz is a professional wrestler, or has lots
of influence with professional wrestlers. 5.
Whether Heinz is stealing for himself or doing
this solely to help someone else.
Wk. 11-8
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5. Defining Issues Test (Part 2b)

• 6. Whether the druggists rights to his
  invention have to be respected.
• 7. Whether the essence of living is more
  encompassing than the termination of dying,
  socially individually.
• 8. What values are going to be the basis for
  governing how people act towards each other.
• 9. Whether the druggist is going to be allowed
  to hide behind a worthless law which only
  protects the rich.
• 10. Whether the law in this case is getting in
  the way of the most basic claim of any
  member of society.
• 11. Whether the druggist deserves to be robbed
  for being so greedy and cruel.
• 12. Would stealing in such a case bring about
  more total good for the whole society or not?

? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
? ? ? ? ? ? ? ? ? ? ?
Wk. 11-9
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5. Defining Issues Test (Part 2c)

• The idea then is to pick your top four.
• There are six stories in all.
• You get points for using Post Conventional
  reasoning.

• 1 - Obedience Punishment
• 2 - Individualism Reciprocity
• 3 - Interpersonal Conformity
• 4 - Social System/Law Order
• 5 - Social Contract
• 6 - Universal Ethical Principles

Post-conventional reasoning counts
Wk. 11-10
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6. A Word on Cost / Benefit Analysis
Savings GLOBAL INC. Flame Safety Improvements CONFIDENTIAL GLOBAL INC. Flame Safety Improvements CONFIDENTIAL GLOBAL INC. Flame Safety Improvements CONFIDENTIAL GLOBAL INC. Flame Safety Improvements CONFIDENTIAL GLOBAL INC. Flame Safety Improvements CONFIDENTIAL GLOBAL INC. Flame Safety Improvements CONFIDENTIAL GLOBAL INC. Flame Safety Improvements CONFIDENTIAL GLOBAL INC. Flame Safety Improvements CONFIDENTIAL
180 burn deaths _at_ 180 burn deaths _at_ 1,000,000 each 1,000,000 each 1,000,000 each 1,000,000 each 1,000,000 each 1,000,000 each 180,000,000 180,000,000
180 serious injuries 180 serious injuries _at_ 335,000 each _at_ 335,000 each _at_ 335,000 each _at_ 335,000 each _at_ 335,000 each _at_ 335,000 each 60,300,000 60,300,000
2100 burned vehicles 2100 burned vehicles _at_ 3,500 each _at_ 3,500 each _at_ 3,500 each _at_ 3,500 each _at_ 3,500 each _at_ 3,500 each 7,350,000 7,350,000
(incident 1 per 1000 Flames) (incident 1 per 1000 Flames) (incident 1 per 1000 Flames) (incident 1 per 1000 Flames) (incident 1 per 1000 Flames) (incident 1 per 1000 Flames) (incident 1 per 1000 Flames) 247,650,000 247,650,000 247,650,000
Costs (for the Global fleet) Costs (for the Global fleet) Costs (for the Global fleet) Costs (for the Global fleet) Costs (for the Global fleet)
12.5 million vehicles 12.5 million vehicles 12.5 million vehicles _at_ 55 each _at_ 55 each _at_ 55 each _at_ 55 each _at_ 55 each 687,500,000 687,500,000

• The Cost of life?
• Learning how to Multiply.

• Whats after net cost?
• Importance of Intangibles.

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7. Economically / Responsible Analysis

• A Socially Responsible Effort.
• Economic Justifications.
• Are Intangible Impacts worth the Cost?
• Theory in Practice
• Wal-Mart Stocking Example.

Wk. 11-12
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8. Cost / Benefit MiniMax Regret (1/2)

• Minimize your Maximum Regret
• Alternately Maximize your Minimum Regret
• http//philosophy.hku.hk/think/strategy/decision.p
  hp
  

Do not install Extra Pollution Controls (0 investment) Install Extra Pollution Controls (10 mil investment)
Current standards are applied into the future (No Fines)
Law Changes to hold you liable for past damages (Fines Legal of 30 Mil. NPV)
Regret 10 mil.
Regret 10 mil.
Regret 20 mil.
Wk. 11-13
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8. Cost / Benefit MiniMax Regret (2/2)

• Inconvenient Truth
• Its not all true (e.g. CO2 Heat Correlation)
  But
• What is the cost of being a refugee?
• Ranting and checking your facts .
  

Do nothing about Global Warming (0 investment) Install Extra Pollution Controls (650 bil. investment)
Its not really happening / its not our fault (No Problem)
Its really happening and its our fault (Billion Refugees _at_ 25K ea.)
Regret 650 bil.
Regret 650 bil.
Regret 24.35 trillion
Wk. 11-14
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B y e B y e