Read the summary and the most important questions on Business Ethics | Crane & Matten

• 1 Introducting business ethics

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• Explain the relationship between Morality, ethics, and ethical theory.

  First box: Morality
  - ethics rationalizes morality
  Second box: Ethics
  - to produce an ethical theory
  Third box: Ethical theory  
  - that can be applied to a situation
  Fourth box: Potential solutions to the ethical problem

• What is Business ethics?

  is the study of business situations, activities, and decisions where issues of right and wrong are addressed.
  
  Wernaart: Ethics is the structured analysis and evaluation of morality.

• why business ethics is so important:

  * businesses have great power and influence over society

  * business has major potential to help society

  * malpractices can harm individuals

  * ethical decision-making can be done better

  * ethical violations still occur

  * it provides knowledge outside the regular frame of business studies

• Civil Society Organizations

  * major responsibilities >> constituenties and donors

  * focused on mission and values 

  * informal approach

• Figure 1.6 page 24Who is key actor in business ethics?

  Europe: Government, trade unions, corporate associations
  NA: The corporation
  Asia: government, Corporations

• Figure 1.6 page 24What are the key guidelines for ethical behavior?

  Europe: Negotiated legal framework of business
  NA: Corporate codes of ethics
  Asia: Managerial  descretion

• Figure 1.6 page 24What are the key issues in business ethics?

  Europe: Social issues in organizing the framework of business
  NA: Misconduct and immorality in single decisions situations
  Asia: Corporate governance and accountability

• Figure 1.6 page 24What is the dominant stakeholder management approach?

  Europe: Formalizing multiple stakeholder approach
  NA: Focus on shareholder value
  Asia: Implicit multiple stakeholder approach, benign managerialism

• 2 Framing business ethics

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• corporation itself wons its assets

  * seen as artificial persons for the law

  * shareholders have limited liability

  * managers are responsible for protecting shareholders' investments

• Milton Friedman says corporations do not have social responsibilities:

  * only human beings can have moral responsibility

  * managers should only act in the interests of shareholders ( not to be social responisble)

  * the state should pursue social responsibility