Contents
Lecture 1 - Chapter 1 and 2 ........................................................................................................................... 2
Tutorial 1 ....................................................................................................................................................... 9
Lecture 2 – Chapter 3 .................................................................................................................................. 10
Part 1: introduction ................................................................................................................................. 10
Part 2: relativism and absolutism ............................................................................................................ 12
Part 3: utilitarianism ................................................................................................................................ 13
Part 4: ethics of duty ............................................................................................................................... 15
Tutorial 2 ..................................................................................................................................................... 18
Lecture 3 – Chapter 3 .................................................................................................................................. 19
Part 5: ethical egoism .............................................................................................................................. 19
Part 6: rights and justice .......................................................................................................................... 21
Part 7: virtue ethics. ................................................................................................................................ 23
Lecture 4 – Chapter 4 .................................................................................................................................. 25
Lecture 5 – Chapter 5 .................................................................................................................................. 32
Lecture 6 – Chapter 6 and 7 ........................................................................................................................ 37
Part 1 ....................................................................................................................................................... 37
Part 2 ....................................................................................................................................................... 40
Preparation tutorial 3 .................................................................................................................................. 43
Tutorial 3 ..................................................................................................................................................... 44
Writing an opinion piece – final assignment structure ........................................................................... 44
Recap ....................................................................................................................................................... 45
Lecture 7 – Chapter 8 and 9 ........................................................................................................................ 47
Tutorial 4 ..................................................................................................................................................... 50
Overzicht begrippen .................................................................................................................................... 51
Lecture 1 .................................................................................................................................................. 51
Lecture 2 .................................................................................................................................................. 51
1
,Lecture 1 - Chapter 1 and 2
Business ethics
What’s the right thing to do?
What is morally right and what is morally wrong?
Example:
Is tax avoidance morally permissible?
Can employers force their employees to take the coronavirus vaccine?
Business ethics = the applied ethics discipline that addresses the moral features of commercial activity.
Theoretical component > concepts and principles.
Application > how to think about issues and what to do about them. Judgement, empathy and
imagination.
Morality = concerned with the norms, values and beliefs embedded in social processes which define
right and wrong for an individual or a community. Morality changes over time.
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. It takes the theoretical
perspective.
Two types of ethical theory:
Ethical theories = the rules and principles that determine right and wrong for any given situation.
Normative ethics > prescribes morally correct way of acting. How ethics should be.
Descriptive ethics > describes how ethics decisions are actually made in business. How ethics are
in real life right now. Example: Hofstedes cultures (masculinity, femininity).
Business ethics can take different perspectives, different types of scope.
Systematic ethical issues > concern the social, political, legal or economicsystems within which
companies operate.
Corporate ethical issues > concerning corporations and their policies, culture, climate, impact or
actions.
Individual ethical issues > concern a particular individuals’s decisions, behavior or character.
Challenges to the idea of business ethics
2
, 1. Moral relativism = there are no ethical standards that are absolutely true and that apply to
people and companies of all societies.
Points: accept social obligations that are not unethical, tolerance of difference, take opportunity
for self-scrutiny.
‘When you’re in Rome, do as the Romans’
This perspective privileges whatever moral standards are widely accepted in a certain society.
They go before the moral standards of other cultures.
2. Egoism = all that matters is to advance your own interests.
This doesn’t work > no one trusts a pure opportunist.
You are not the corporation.
What interests should you maximize? Is the good life about money or virtue?
3. The market will take care of everything
‘Market actors are rational’.
= Customers, suppliers etc. will only do business with companies with a reputation for integrity >
corporations that do not act morally will suffer economically. This causes that companies will
prevent acting in an unethical way.
Adam Smith > we are very well aware of reasoning and understanding. This is the basis of this
thought.
Failures in this perspective:
Ignorance of long-term consequences via reputation.
Failure of self-command > unable to resist short-term gains versus long-term
consequences.
Prudence isn’t enough for moral behavior
4. Ethics in the law
What if the law is unreasonable? What would be your obligation then, should we stick to that
law or stick to moral obligations?
Lots of things are legal, but that doesn’t make them morally right.
Why is business ethics so important?
Business has a huge power in society
Business can potentially provide major contributions to society.
3
, Business malpractice can inflict enormous harm.
Demands placed on business are becoming more complex and challenging.
Employees may face pressure to compromise ethical standards.
Businesses face a trust deficit.
Sustainable development = 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 and rapid economic development.
Triple bottom line
Economic factors
Social factors
Environmental considerations
Corporate social responsibility = refers to a corporation’s responsibility or obligations toward society.
Business ethics is both a part of CSR and part of the justification for CSR.
Two main accounts: shareholders vs. stakeholders.
Economic reasons for CSR
Firms have business reasons for CSR
Extra and/or more satisfied customers.
Employees may be more attracted/committed
Forestall legislation
Longer term investment which may beneficial.
In sum: enlightened self-interest.
Moral reasons for CSR
All corporate activities have social impacts > the power argument: companies are powerful social
actors.
Corporations cause social problems > the externalities argument: problems like pollution.
Corporations rely on the contribution of a wide set of stakeholders in society, not just
shareholders > the dependency argument: corporations and societies are mutually dependent.
Corporation =
Legally independent of people > they just need to find new ones, when the current ones
are leaving for example.
Corporation owns its own assets.
Can a corporation have social responsibilities?
Written in an article:
Only human beings have a moral responsibility for their actions.
It is managers’ responsibility to act solely in the interests of shareholders > making profit is the
key goal. Otherwise, you’re ‘stealing’ from the shareholders.
4
Lecture 1 - Chapter 1 and 2 ........................................................................................................................... 2
Tutorial 1 ....................................................................................................................................................... 9
Lecture 2 – Chapter 3 .................................................................................................................................. 10
Part 1: introduction ................................................................................................................................. 10
Part 2: relativism and absolutism ............................................................................................................ 12
Part 3: utilitarianism ................................................................................................................................ 13
Part 4: ethics of duty ............................................................................................................................... 15
Tutorial 2 ..................................................................................................................................................... 18
Lecture 3 – Chapter 3 .................................................................................................................................. 19
Part 5: ethical egoism .............................................................................................................................. 19
Part 6: rights and justice .......................................................................................................................... 21
Part 7: virtue ethics. ................................................................................................................................ 23
Lecture 4 – Chapter 4 .................................................................................................................................. 25
Lecture 5 – Chapter 5 .................................................................................................................................. 32
Lecture 6 – Chapter 6 and 7 ........................................................................................................................ 37
Part 1 ....................................................................................................................................................... 37
Part 2 ....................................................................................................................................................... 40
Preparation tutorial 3 .................................................................................................................................. 43
Tutorial 3 ..................................................................................................................................................... 44
Writing an opinion piece – final assignment structure ........................................................................... 44
Recap ....................................................................................................................................................... 45
Lecture 7 – Chapter 8 and 9 ........................................................................................................................ 47
Tutorial 4 ..................................................................................................................................................... 50
Overzicht begrippen .................................................................................................................................... 51
Lecture 1 .................................................................................................................................................. 51
Lecture 2 .................................................................................................................................................. 51
1
,Lecture 1 - Chapter 1 and 2
Business ethics
What’s the right thing to do?
What is morally right and what is morally wrong?
Example:
Is tax avoidance morally permissible?
Can employers force their employees to take the coronavirus vaccine?
Business ethics = the applied ethics discipline that addresses the moral features of commercial activity.
Theoretical component > concepts and principles.
Application > how to think about issues and what to do about them. Judgement, empathy and
imagination.
Morality = concerned with the norms, values and beliefs embedded in social processes which define
right and wrong for an individual or a community. Morality changes over time.
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. It takes the theoretical
perspective.
Two types of ethical theory:
Ethical theories = the rules and principles that determine right and wrong for any given situation.
Normative ethics > prescribes morally correct way of acting. How ethics should be.
Descriptive ethics > describes how ethics decisions are actually made in business. How ethics are
in real life right now. Example: Hofstedes cultures (masculinity, femininity).
Business ethics can take different perspectives, different types of scope.
Systematic ethical issues > concern the social, political, legal or economicsystems within which
companies operate.
Corporate ethical issues > concerning corporations and their policies, culture, climate, impact or
actions.
Individual ethical issues > concern a particular individuals’s decisions, behavior or character.
Challenges to the idea of business ethics
2
, 1. Moral relativism = there are no ethical standards that are absolutely true and that apply to
people and companies of all societies.
Points: accept social obligations that are not unethical, tolerance of difference, take opportunity
for self-scrutiny.
‘When you’re in Rome, do as the Romans’
This perspective privileges whatever moral standards are widely accepted in a certain society.
They go before the moral standards of other cultures.
2. Egoism = all that matters is to advance your own interests.
This doesn’t work > no one trusts a pure opportunist.
You are not the corporation.
What interests should you maximize? Is the good life about money or virtue?
3. The market will take care of everything
‘Market actors are rational’.
= Customers, suppliers etc. will only do business with companies with a reputation for integrity >
corporations that do not act morally will suffer economically. This causes that companies will
prevent acting in an unethical way.
Adam Smith > we are very well aware of reasoning and understanding. This is the basis of this
thought.
Failures in this perspective:
Ignorance of long-term consequences via reputation.
Failure of self-command > unable to resist short-term gains versus long-term
consequences.
Prudence isn’t enough for moral behavior
4. Ethics in the law
What if the law is unreasonable? What would be your obligation then, should we stick to that
law or stick to moral obligations?
Lots of things are legal, but that doesn’t make them morally right.
Why is business ethics so important?
Business has a huge power in society
Business can potentially provide major contributions to society.
3
, Business malpractice can inflict enormous harm.
Demands placed on business are becoming more complex and challenging.
Employees may face pressure to compromise ethical standards.
Businesses face a trust deficit.
Sustainable development = 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 and rapid economic development.
Triple bottom line
Economic factors
Social factors
Environmental considerations
Corporate social responsibility = refers to a corporation’s responsibility or obligations toward society.
Business ethics is both a part of CSR and part of the justification for CSR.
Two main accounts: shareholders vs. stakeholders.
Economic reasons for CSR
Firms have business reasons for CSR
Extra and/or more satisfied customers.
Employees may be more attracted/committed
Forestall legislation
Longer term investment which may beneficial.
In sum: enlightened self-interest.
Moral reasons for CSR
All corporate activities have social impacts > the power argument: companies are powerful social
actors.
Corporations cause social problems > the externalities argument: problems like pollution.
Corporations rely on the contribution of a wide set of stakeholders in society, not just
shareholders > the dependency argument: corporations and societies are mutually dependent.
Corporation =
Legally independent of people > they just need to find new ones, when the current ones
are leaving for example.
Corporation owns its own assets.
Can a corporation have social responsibilities?
Written in an article:
Only human beings have a moral responsibility for their actions.
It is managers’ responsibility to act solely in the interests of shareholders > making profit is the
key goal. Otherwise, you’re ‘stealing’ from the shareholders.
4
