Business Ethics: North-West University Notes

• These notes cover business ethics and related themes according to the North-West University course "WVES ENG semester notes"

Introduction: Business and Context

• Understanding business ethics impacts personal and collective levels
• Existentialism focuses on individual freedom, meaning creation, and purpose
• Freedom is the individual entitlement to their purpose and meaning creation
• Meaning creation involves forming an understanding framework for life's purpose and direction
• Authenticity means living according to one's own meaning creation, not societal prescriptions
• Bad faith describes when an individual doesn't act according to their purpose and meaning
• Responsibility requires individual behavior to avoid negatively impacting others' freedom
• Liability involves agents reporting on the personal interpretation process's impacts
• Recognition necessitates inclusion of all citizens, avoiding marginalization through social, political, or other means
• Interconnection highlights society's influence on individuals, emphasizing collective understanding
• Physicality acknowledges context in meaning creation, allowing individual meaning construction
• Dialogue promotes open, inclusive meaning-making
• Justice advocates for free, fair meaning creation without coercion or harm for all society members

Understanding Ethics and Business

• Existentialism emphasizes free, purposeful individuals in meaning creation, connecting to individual existence
• Existentialism, traced back to the 19th century, is represented by thinkers like Søren Kierkegaard and Friedrich Nietzsche
• Philosophers Martin Heidegger and Jean-Paul Sartre focused on individual freedom in meaning creation
• Existentialism posits no fixed rules determining how to live/behave; individuals are responsible for authentic living
• Authenticity demands taking responsibility for one's existence, lest others dictate it (bad faith)
• Living authentically requires full accountability for one's behavior
• External factors like culture, society, and material reality influence existence (fact)
• Individuals are responsible for dealing with their circumstances authentically
• Martin Heidegger's "Being and Time (1927/1962)" focused on human capacity to live and discover authentic beings
• It involves raising awareness of life itself and the responsibility to be present and discover purpose in time and space
• Heidegger's work influenced Jean-Paul Sartre's "Being and Nothingness (1943/1956)"
• Sartre emphasized free will over the essence of existence; Heidegger focused on existence within a geographical space
• Sartre: individuals are "doomed to freedom", bearing a great responsibility to be authentic
• Freedom and meaning creation are embraced by classical economics and self-interest, as highlighted in Adam Smith’s "The Wealth of Nations"
• The role of self-interest is explained, suggesting actions are driven by self-interest rather than benevolence
• Business allows individuals to obtain necessary things with purpose and happiness, including food, clothes, and services
• Labor enables production for sale to fulfill others' happiness
• Smith emphasizes that sympathy and justice create morality by individuals who are involved with other people
• Sympathy involves awareness of others' experiences, adjusting behavior for social approval
• Laws and regulations are crucial for regulating matters like property and workers' rights
• Authenticity is about being true to oneself
• Dilemma arises when wanting to contribute to society through business, being torn between personal values and business culture
• Following business culture can lead to inauthenticity, affecting well-being/identity
• Working against value systems (e.g., overcharging clients) causes psychological distress
• Bad faith occurs when believing behavior is determined by external factors like social pressure/coercion
• Selfish organizational cultures can shape worker identity
• Workers may inflate bills and feel powerless, becoming victims that lose accountability and freedom
• "Hotlines" are available for businesses to report unethical behavior
• Factuality addresses limitations, such as lack of job options or family circumstances
• Existentialism focuses on responsibility from personal and social perspectives
• Emphasizes community living and not hindering others' freedom
• Taking responsibility avoids victimhood or inauthentic living
• Failure to confront bad faith is destructive personally and for the community
• Ignoring unethical behavior can lead to scandals and company failure
• Archie Carroll formulated 4 responsibilities: legal (compliance), financial (responsible management), ethical (values beyond regulations), and philanthropic (societal involvement)
• Liability originates from the Latin "accomptare" (to account) and relates to calculation
• Accounting and calculation connect liability to effects on others and implicit individual criminality Accountability highlights the necessity of a response to the failures of bodily existence
• Understanding can be personal/communal; it requires sharing lives (through communities/culture/society)
• Edward Freeman defines "stakeholders" as individuals in their workplace
• Charles Taylor’s work highlights the importance of recognition in diverse communities.
• According to Taylor, recognition and identity are closely linked, because recognition is critical to identity and community harmony.
• There are sensory activities which are disinterested and neutral, because we share bodies and are perceived by others.
• Creating meaning is interactive, requiring attentiveness and listening
• Communication isn't about data transferral; it promotes inclusivity and collective decision-making
• An example of communication failure is the 2012 Marikana Massacre
• Dialogue between management and workers regarding housing was one of the main talking points of the investigation
• Dialogue is an option where people recognise each other and try to understand the other's point of view
• In Smith's economic philosophy listening and empathy are important.

Ethical Theories: Business Ethics and Corruption

• Moral values underlie right/wrong behavior
• Ethics are systematized principles that govern behavior
• Values are the esteem that guides moral behavior
• Dialogue-critical framework requires critical discussion/evaluations
• Moral egoism dictates acting in one's own interest
• Altruism guides moral principle
• Moral relativism judges true or false judgments with particular judgements
• Moral absolutism imposes absolute judgment with action
• Stereotypes in business indicate productivity, profit
• These stereotypes inaccurately represent how one "should" act

Descriptive and Normative Perspectives

• Free market economists: economic values are only based on business
• Descriptive business ethics present uncritical actions; corruption and bribery are part of doing business in Southern Africa in their annual budget
• Normative business ethics question moral/corruption with moral courses of action
• Normative ethics dictate people behavior.
• The concept is based on psychological egoism
• Altruism is a factor that can weigh in on the needs within the decision making
• Adam Smith suggests that people are self-interested
• Philosopher Ayn Rand describes ethics by his happiness
• Thomas Hoobes argues that human nature is good

Moral Relativism and Moral Absolutism

• Moral relativism states the situation does not require ethical behavior
• In moral absolutism there must be social principles to regulate the society
• The idea from moral relativism is inspired by economics and ethical beliefs
• Kant tried to establish behavior without it depending on individual actions

Consequentialism and Nonconsequentialism

• Normative divided into the consequences to guide choices
• Consequentialism has a moral value itself
• One who is Consequentialism must maximize outcome/happiness

Ethical Theories: Business Ethics and Corruption

• Communistic is more emphasized than the individuals

Managing African Organizations

• It is said that some sources are from African philosophers
• For African sources, its said to be African inspired tales
• It describes the meaning of value and how the individuals related to other people within the society
• It describes how you view people and how they define the characteristics.
• People use proverbs as short ways to give advise and store knowledge
• It states the importance of the community and their interests
• It states in terms of the relationship of the individual to make decisions

Business Theories

• Attempts to explain the relationship between players

Ethical Culture

• There are beliefs shared amongst organizations