- Definition & Theory, Factors that Affect Ethical Behavior in the Workplace, Types of Planning: Strategic, Tactical, Operational & Contingency Planning, What Is Business Environment? It was big money—in the millions—channeled to dedicated researchers hot on the trail of a remedy for lymphoma, a deadly cancer. The duty to promote others’ welfare so far as it is possible and reasonable. The goals you want to reach, as distinct from what you need to do to reach them. The unanswered question here is whether the CD being copied is copyright protected, in other words, whether this is a piracy case. The three leading normative theories of business ethics are the stockholder theory, the stakeholder theory, and the social contract theory. In the late 19th century, a time period called the Gilded Age by Mark Twain, businesses grew incredibly powerful based on what we may now see as unethical practices. A Ponzi scheme—named after the famous perpetrator Charles Ponzi—makes suckers of investors by briefly delivering artificially high returns on their money. Just imagine that. And if no one’s listening, is it possible to lie to them? Visit the Introduction to Humanities: Help and Review page to learn more. Stubbornly, he has refused to cooperate with prosecutors interested in determining the extent to which the children may have been involved. As far as the law goes, Lepp really had no leg to stand on. Theories of rights: There are compelling theories of rights offered by several theorists. At his sentencing, the crowd (chanting “free Eddy!”) spilled out into the courthouse hallways. Another possible source for the duties is humanity in the sense that part of what it means to be human is to have this particular sense of right and wrong. On the other hand, if the ends justify the means—if your ethical interest focuses on the consequences of an act instead of what you actually do—then the ethics change. The same would go in the real world if everyone lied all the time. Can a libertarian ethics be used to show that Banerjee did the right thing? No it doesn't. He threw in technical words like “put” and “call” and left everyone thinking he was either crazy or a genius. Should the government make sure that businesses remain ethical? Across the entire field of traditional ethics, this is a foundational distinction. For more information on the source of this book, or why it is available for free, please see the project's home page. In the case of Madoff, he may like things as they are, but would he stick with the idea that everything’s fair if he were told that a rearrangement was coming and he was going to get stuck back into the business world at random? Duties include responsibilities to oneself and to others. Madoff’s case of direct theft is clear cut, but others aren’t quite so easy. I have a right to freedom and to do what I want but that right clashes with larger, society-level protections put into place to assure everyone a reasonable shot at pursuing their happiness. All the receivers opted, finally, to respect the victims. Still, two commonly cited sources of duties can be quickly noted. Duties do not exist in isolation but in a network, and they sometimes pull against each other. The same goes for Sheryl Weinstein as she wonders whether she should keep the lid on her family-wrecking affair. (contingency, clause, agent),” City-Data, accessed May 11, 2011. That explains why a duty-based ethics coheres more easily with a scene like the one Madoff provoked, a situation that involves winners and losers, criminals and victims. These perennial duties leave room for wealth redistribution. The Club Adonis group worked for Chippendales before splitting to do the same thing elsewhere. It sounds like Clone CD is specifically made to help pirates get around the copyright protections manufacturers put on their discs. Would you leave yourself an out in case both answers were yes? People making the big bucks, the suggestion could follow, should get hit with bigger taxes and the money used to provide educational programs allowing guys from the cleaning crew to get a better chance at climbing the income ladder. This level of clarity and solidity is the main strength of an ethics based on duties. In either case, the important point is that fairness doesn’t mean everyone gets the same treatment; it means that rules for treating people must be applied equally. While it would seem strange to say that we have a duty of gratitude or fidelity to ourselves, it clearly makes sense to assert that we should be fair to ourselves. One more point about the universalization of acts: even if you insist that a world could exist where everyone lied all the time, would you really want to live there? Many of those employees’ family members are in other countries; AA has a very large immigrant workforce. The duty to tell the truth and not leave anything important out. Rights, then, play a central role in ethics. I have negative rights to life, freedom, and my possessions but they infringe on. Madoff’s son Andrew was stricken and so was Lepp’s wife. So does she keep up the false story or does she turn the truth into a profit opportunity? The English philosopher John Locke subscribed to this view when he called our rights “natural.” He meant that they’re part of who we are and what we do and just by living we incarnate them. Lepp fought the law by maintaining that his medical gardens business and church operations involved his land and his religion. On the morning of the hearing, Banerjee hung himself in his cell. Bermie Madoff was a very good—though obviously not a perfect—fraudster. Or maybe she was hoping to hold on to more of the money and real estate they’d accumulated. With respect to the ethics of duties, is Chippendales a respectable company in terms of how it treats its clients? Besides high pay, the company provides workers with considerable freedom to set their own work pace and schedule. I have the right to launch a gardening business or a church enterprise or both on my property, and you’re not allowed to simply storm in and ruin things. Now, one of the reasons this debate is so intractable is that both sides find equally strong support within the same basic ethical framework. I’ve been having problems with copying cds and trying to burn them…when the copy process gets to 4% the used read buffer will go down to zero and continue fluctuating…will someone let me know the procedures on fixing this. “Except for hunting rifles, the sole purpose of weapons is to kill people.” Getting rid of gun shops, the logic follows, is a public welfare concern. Ethical behavior must recognize and respect a series of rights that belong to each person, animal or society. So, in the interest of maintaining a strong economy, businesses have many ethical obligations to the consumer. What is a libertarian argument against imprisoning Lepp? “They don’t see this side,” she says, “because they don’t try to.” Further, she asserts, over the years gun owners have told her that they own guns to defend themselves. With respect to the law, the case is clear: Lepp was growing massive amounts of marijuana on his farm and growing it for distribution. In both cases, however, the reality is already there; we’re just trying to understand it. Earn Transferable Credit & Get your Degree, Business Ethics & Social Responsibility: Definition & Differences, Environmental Ethics & Human Values: Definition & Impact on Environmental Problems, Unethical Behavior in Business: Definition & Examples, What is Utilitarianism? Within a rights ethical theory, obligations society holds to provide minimal conditions allowing individuals their free pursuit of happiness. Ethically, are these two activities recommendable or not? The case of his wife is blurrier, though. The pursuit gives final direction and meaning to the broad theory. With an eye on the concept of fairness, form an argument in favor of the drastically higher taxes imposed on gun shops. Absolutely not. Unfortunately, there’s no hard-and-fast rule for deciding which duties should take precedence over the others. Kant reappears here, especially his imperative to treat others as ends and not as means to ends. How would Kant respond to these questions? The first expression of the categorical imperative—act in such a way that the rule for your action could be universalized—is a consistency principleIn ethics, the requirement that similar people in similar situations be treated in similar ways.. Like the golden rule (treat others as you’d like to be treated), it forces you to ask how things would work if everyone else did what you’re considering doing. This is “Theories of Duties and Rights: Traditional Tools for Making Decisions in Business When the Means Justify the Ends”, chapter 2 from the book Business Ethics (v. 1.0). Is being a Chippendale’s dancer honorable work? In the end, the question about Muslim workers leaving the work floor to pray isn’t about one kind of religion or another; it’s not Christians against Muslims or something similar. Again, I am asking, if you do not—. Should CEO and upper management salaries be subject to ethical consideration? So even though Madoff was sleeping with one of his investors, this shouldn’t allow him to treat her account distinctly from the ones belonging to the rest. True or False: Expecting ethical business behavior reflects our culture. Because the trial was never completed, the plea deal never went into effect. What’s the difference between hiring a hit man and hiring a beefcake dancer? Lepp’s messages to his Rasta flock may have provoked skepticism in some listeners, but no one doubts that he had a right to voice his ideas. Madoff gave up most of his money and possessions and went to jail for his crimes. If Kant decided to make a contribution to this discussion board, what do you think he would write? So if an individual with a rights-based philosophy and an individual with a duty-based philosophy both arrive on a crash scene, they’ll do the same thing—just for different reasons. Tracy Salkowitz says yes to both. Elizabeth Larson, “Lepp Sentenced to 10 Years in Federal Prison for Marijuana Case,”. Madoff sits in jail now. Amid the winners and losers, Mara Siegle certainly got the rottenest part of the deal. Pretty soon, wouldn’t you just give up listening to what people say? Ethical Theories Of Business. People can’t be tools or instruments, they can’t be things you employ to get to what you really want. For details on it (including licensing), click here. flashcard set{{course.flashcardSetCoun > 1 ? An ethics based on duties is one where certain rules tell us what we ought to do, and it’s our responsibility to know and follow those rules. USA TodayEmily Bazar, “Prayer Leads to Work Disputes,” USA Today, October 16, 2008, accessed May 11, 2011, http://www.usatoday.com/news/nation/2008-10-15-Muslim_N.htm. In what way could the argument be made that the employees at AA are being treated as. Under this clause, Madoff could find justification for allowing two distinct rates of return for his clients. Basic rights include those to life, freedom, and the pursuit of happiness. So many people handed over so much cash, and the paper trail of fake stock-purchase receipts and the rest grew so complicated that it’s impossible to determine exact numbers of victims and losses. Closing was inevitable, according to owner Mara Siegle, after Oakland residents passed Measure D, which levied a huge tax on gun dealers. Andrew, it should be noted, wasn’t only a cancer altruist; he was also a victim, and the charitable money started flowing to the researchers soon after he was diagnosed. Happy client A recommends friends, who become clients B, C, and D. They bring in a total of $300, so it’s easy to make good on the original promise to send a $50 return the next year to client A. Brian Ross, Anna Schecter, and Kate McCarthy, “Bernie Madoff's Other Secret: His Hadassah CFO Mistress,”. What challenges may this firm have encountered (or is likely to encounter) in terms of (a) incorporating ethics into financial ma, Is there a conflict between maximizing shareholder wealth and never paying bribes when doing business abroad? It’s also clear that Lepp was doing it since you could see the crop from the public highway passing by his fields. Examples of rights-based ethics at work include the Universal Declaration of Human Rights, the Geneva Conventions and the United States' Declaration of Independence, Bill of Rights and Constitution. No one got the chance to testify. They filed a lawsuit claiming their right to religious expression had been violated. Wall, “Jewish Gunshop Owner Closing Store; Cites Unfair Taxes,” Jweekly, July 21, 2000, accessed May 11, 2011, http://www.jweekly.com/article/full/13657/jewish-gunshop-owner-closing-store-cites-unfair-taxes. It is the only moral … What was Eddy Lepp the gardener and minister up to on his twenty-acre property near a lake in California, about a hundred miles north from San Francisco? English philosopher John Locke (1632–1704) maintained that rights are. A deranged addict storms into your office announcing that he’s just received a message from the heavens. The first is a legal point, it’s the question about whether the officer has a warrant. 2. The company features a generous stock options program to help workers buy shares in the enterprise. Welfare, in this context, doesn’t mean government handouts but minimal social conditions that allow the members to fully use their intrinsic liberty and pursue happiness with some reasonable hope for success. One day Betty calls you and informs you abou. In a traditional laissez-faire economy, government does not regulate business. The answer is no. According to the article, “The problem with the Muslim prayer request is that it’s not one day or annual, it’s every day and multiple times. A similar question comes up between Madoff and his investors. Emily Bazar, “Prayer Leads to Work Disputes,”. Then the problem gets worse. Why might the premise that the ends justify the means lead you to steal the pills? Imagine Madoff lied to attain his clients’ money as he did, but instead of living the high life, he donated everything to charity. The other side of fairness is the requirement to treat unequals unequally. Which rights trump the others, the negative right to freedom or the positive right to oversee medical substances? Moreover, the two appear not only separate but also incompatible; it’s difficult to see any way to bring them together. Lying is about as primary as issues get in ethics, and the Madoff case is shot through with it: What does Kant say about all this? Those rights that require others to not interfere with me and whatever I’m doing. The company also provides a stock purchase program. What’s the Kantian case for condemning Clone CD for their project? Here, we will consider two distinct expressions of Kant’s categorical imperative, two ways that guidance is provided. In the clip, police have been called to Lepp’s Medicinal Gardens. is to never use anyone to get something else. In this lesson, explore the concept of business ethics and discover how this dictates the ways that businesses interact with each other and with consumers. Within a rights ethical theory, the responsibility to respect the life of all individuals. Many of those immigrants are in the country illegally, which partially explains why the company has been on the forefront of amnesty campaigns, organizing public rallies and media events of all kinds for the undocumented. Currently, the stockholder theory is somewhat out of favor with many members of the business ethics community. Again here, however, a broader view of rights theory answers that in the complex world of finance and investment, the right to the pursuit of happiness is also a right to some governmental oversight designed to make sure that everyone involved in the financial industry is playing by a single set of rules, ones prohibiting Ponzi schemes and similar frauds. When we receive them, they come with the duty to develop them, to not let them go to waste in front of the TV or on a pointless job. Since he was apparently making money, “genius” seemed the more likely reality. One argument is that providing someone with a job is not treating them as a means to your ends; instead, by allowing them the opportunity to earn a living, you’re actually supporting their projects and happiness. The duty to keep our promises and hold up our end of bargains. 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