Business Ethics: Freeman vs Friedman

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Questions and Answers

What is the main critique of Rhodes regarding justice?

Justice is only about how others treat me (correct)

Justice is only about applying the law

Justice is a moral concept

Justice is a socializing concept

Why should we think more about the social context of fairness?

Because it is a moral concept

Because it is a juridical concept

Because it violates ethics

Because it allows the concept of fairness to flourish (correct)

What does the concept of governmentality refer to?

Practices that define, organize, and instrumentalize individual strategies in freedom (correct)

A principle of capitalism

A form of social justice

A system of laws and regulations

What is the main idea behind the concept of herd instinct?

Human beings uncritically follow the morality set by those in power Signup and view all the answers

What is pleonexia according to the content?

A desire for more than what is good for you, even if it means stealing from others Signup and view all the answers

What is the result of pleonexia according to the content?

A form of happiness called hedonism Signup and view all the answers

What is the etymological origin of the concept of fairness?

The notion of harmony, order, and beauty Signup and view all the answers

Why is it important to ask questions about the nature of capitalism?

Because it allows for huge income gaps Signup and view all the answers

According to Nietzsche, what is the issue with universal claims of truth?

They are not fixed or absolute Signup and view all the answers

What is the primary focus of Foucault's ideas on power and knowledge?

How individual autonomy is maintained despite power interests Signup and view all the answers

What is the main question that the author is asking regarding excessive rewards?

Would you be able to resist excessive rewards? Signup and view all the answers

What is justice considered more as, according to the content?

A socializing concept Signup and view all the answers

What is the main idea behind the concept of the 'care of the self'?

How certain activities influence our view of ourselves and others Signup and view all the answers

What is the relationship between ethics and freedom according to the text?

There is no ethics without freedom Signup and view all the answers

What is the primary influence on our perception of fairness according to the concept of contextual awareness?

Our background and upbringing Signup and view all the answers

What is the main issue with blaming the rich for our own insufficiencies according to the concept of resentment?

We are acting as if the rich are to blame for our own shortcomings Signup and view all the answers

According to Serres, why do we need a natural contract?

Because we need to reframe from violence with respect to nature Signup and view all the answers

What is the reason we are not afraid of nature, according to Serres?

Because nature does not punish us Signup and view all the answers

What is the relationship between humanity and nature, according to Serres?

Humanity is involved in a deadly struggle with worldwide nature Signup and view all the answers

What does Serres think about science?

Science has problems with the way it has developed itself Signup and view all the answers

What is nature, according to Serres?

A value in and for itself, deeply intertwined with culture Signup and view all the answers

What is the current situation, according to Serres?

Humans are standing at a crossroads, with one road leading to extinction Signup and view all the answers

What is the relationship between humans and nature, in terms of power?

Humans are not above nature, despite their impact Signup and view all the answers

What will happen if we take too much from nature, according to Serres?

Nature will take back from us Signup and view all the answers

What is the main difference between Freeman's and Friedman's approaches to business?

Freeman wants to prescribe actions, while Friedman wants to let businesses do their own thing. Signup and view all the answers

What is the underlying spirit of philanthro-capitalism?

Richesse oblige Signup and view all the answers

What is a limitation of the stakeholder theory, according to the text?

It is too focused on powerful stakeholders. Signup and view all the answers

What is a criticism of the stakeholder theory, as mentioned in the text?

It is not concerned with the 'human face'. Signup and view all the answers

What is the implication of the philanthrocapitalist project, according to the text?

It is undemocratic and potentially antidemocratic. Signup and view all the answers

What is the focus of Freeman's approach, according to the text?

Firms Signup and view all the answers

What is the limitation of the stakeholder theory, as mentioned in the text?

It is overly rational and bureaucratic. Signup and view all the answers

What is the significance of the debate about what we expect from businesses, according to the text?

It is both theoretically and pragmatically relevant. Signup and view all the answers

What is the main issue with CSR2?

It lacks a clear perspective on the future Signup and view all the answers

What is the foundation of the pyramid of corporate responsibilities?

Economic responsibilities Signup and view all the answers

What is the primary concern of CSR2?

The importance of practice Signup and view all the answers

What is the third level of the pyramid of corporate responsibilities?

Ethical responsibilities Signup and view all the answers

What is the goal of Donna Woods' nine-step model for CSR?

To create a measurable and determinate identity for CSR Signup and view all the answers

What is the relationship between employment and citizenship in CSR?

They are intertwined and inseparable Signup and view all the answers

What is the main problem with the moral underpinnings of CSR?

They are unclear and not agreed upon Signup and view all the answers

What is the ultimate goal of CSR, according to Donna Woods' perspective?

To gradually move to a better world Signup and view all the answers

Study Notes

Stakeholder Theory and Criticisms

Freeman's approach to stakeholder theory is prescriptive, emphasizing the need for businesses to adopt a plural perspective.
This approach can lead to complexity and clashes of interests, but Freeman is optimistic about capitalistic agents' willingness to adopt reasonable pluralism.
In contrast, Friedman's approach is non-prescriptive, advocating for businesses to operate independently without interference.

Moral and Political Perspectives

The stakeholder theory has a moral perspective, centered on "reasonable pluralism" and "richesse oblige" (philanthro-capitalism).
Philanthro-capitalism can be seen as undemocratic, as it allows powerful stakeholders to influence decisions without democratic oversight.
Theoretical flaws in stakeholder theory include an overemphasis on powerful stakeholders, firm-centric models, and a lack of consideration for ethical implications.

Fairness and Justice

The concept of fairness is influenced by etymology, tracing back to the idea of harmony, order, and beauty.
Fairness is context-dependent, and what is considered fair in one situation may not be in another.
The notion of "truth" is not fixed and can be influenced by social manipulation.
Individual autonomy is maintained within a network of relationships and power interests, shaping our conception of ourselves and others.

Organizational Justice

Justice implies something more than just applying the law, and is grounded in ethics.
Justice is not equivalent to ethics, but rather a moral concept that can violate ethics.
Rhodes argues that justice is not about how others treat us, but about how we treat others; it is a socializing concept rather than an egocentric one.

CSR and Performance

The moral underpinnings of CSR are unclear, and responsiveness (CSR2) has limitations.
Moving from responsiveness to performance, CSR should provide clear outlines for practitioners.
The pyramid of CSR consists of economic, legal, ethical, and philanthropic responsibilities.

Natural Contract and Humanity's Impact on Nature

The concept of a social contract allows us to reframe from violence with respect to each other.
The natural contract, proposed by Serres, would allow us to reframe from violence with respect to nature.
Humanity's impact on nature has become significant, and we need to find a way to live together with nature.
Nature is not just an instrumental source, but has value in and for itself, and is deeply intertwined with culture.

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Description

Compare and contrast the approaches of Freeman and Friedman in business ethics, including their perspectives on pluralism and capitalism.