Business Ethics Slide

Costs and Benefits of Ethics Lecturer: Mr John Andre Student: Nguyen Thi Kieu Anh – Snow ID number: F05-014 Class: F05A CONTENTS Different ethical perspectives Business objectives from ethical perspective Theoretical ethical approaches Western modernist ethical theories Consequentialist ethics Egoism Utilitarianism Non-consequentialist ethics Ethics of duties Rights and justice (Crane & Matten, 2010 Theoretical ethical approaches Utilitarianism - John Stuart Mill (1806 – 1873) – a British philosopher - Based on the consequences of action - Do the most good for the most people Categorical Imperative - Immanuel Kant (1724 – 1804) – a German philosopher - Right is right, wrong is wrong, no matter what consequences are (Crane & Matten, 2010) Compare and Contrast Absolute ethics Relative ethics Similarities The standard to determine rightness and wrongness of action Rules are consistent universal and Judgment of right or wrong depends on different situation Differences A situation is always right or Nothing is inherently right or wrong, always wrong, whatever results ethics is just to give some advantages or reasons (social, economic,…) Objective sense Subjective sense Example Kill patient to save the other patients who are waiting for life-saving transplants If not, all patients will die - Absolute ethics: Killing is always wrong, whatever the circumstances (everyone has right to live) - Relative ethics: Kill patient to save is the best choices for this situation (do the most good for the most people) Development of theoretical ethical approaches • Virtue ethics: Moral characters Ex: Telling the truth or doing the good deed and not for any reward • Feminist ethics: Care for others and relationship Ex: Share some food or little money for beggar Business ethics of Vedan Vietnam VEDAN PROFILE • Vedan Vietnam is a MSG (monosodium glutamate) plant • Established in 1991 • Located in Dong Nai Province ETHICAL ISSUES Vedan factory Vedan Vietnam has polluted the Thi Vai River • Vedan dumped nearly 110,000cu.m of untreated wastewater every months • Contributed 82.9% to the pollution of Thi Vai River The head of Vedan (Tuan, 201 Impacts and reasons of ethical issue ENVIRONMENT IMPACT COMMUNITY REASON Cutting down the cost of waste-processing • Complicated stages • Specialized techniques • High cost Thi Vai River Impacts on operational activities of Vedan Vietnam Reaction from external stakeholders Resident (Complaint letter) • • Government Suspending Vedan’s license Imposing administrative penalty Financial damages - Pay fine: VND267.5 million (current US$15,030) - Environmental fee: VND127 billion (current $7.14 million) - Compensation for farmer: VND569 billion ($31.970 million) - The cost of restoring Thi Vai River - Decline the revenue Impacts on objectives of Vedan Vietnam OBJECTIVES “As a foreign-invested company in Vietnam, apart from business objectives, Vedan Vietnam pursues the purpose of making a positive contribution to socioeconomic development of Vietnam” (An, 2013) Objective  Unattainable Implication for Vedan and its stakeholders Customers DECISION Cutting down the cost of waste-processing  Reduce cost of products  Gain more profit to satisfy shareholders IMPACT ON STAKEHOLDER - Shareholder - Community - Government LESSON - Changes wrong perspectives - Realizing the link between running Shareholders Lesson for business GOOD ETHICS IS GOOD BUSINESS NO ETHICS , NO BUSINESS ETHICAL BUSINESS IS PROFITABLE ETHICAL BUSINESS GENERATES GOODWILL UNETHICAL BUSINESS LEADS TO EXPLOITATION OF CONSUMERS AND SOCIETY AT LARGE (Rupani, 2014) References An, A., 2013 Vedan Vietnam: Integrating Business Activity with Social Contribution [Online] Available at: http://www.vccinews.com/news_detail.asp?news_id=29590 [Accessed 23 March 2014] Crane & Matten, 2010 Business Ethics 3rd ed Oxford: Oxford University Press Inc., New York Rupani, A., 2014 Business Ethics [Online] Available at: http://www.scribd.com/doc/211439389/Business-Ethics [Accessed 20 March 2014] Tuan, L.T., 2011 CSR Lessons from Vedan Deeds [Online] Available at: www.macrothink.org/journal/index.php/ber/./1604 [Accessed 11 March 2014] Vedan, n.d Vedan (Vietnam) [Online] Available at: http://vedan.com.vn/vedan/?q=en/node/385 [Accessed 11 March 2014] [...]... perspectives - Realizing the link between running Shareholders Lesson for business GOOD ETHICS IS GOOD BUSINESS NO ETHICS , NO BUSINESS ETHICAL BUSINESS IS PROFITABLE ETHICAL BUSINESS GENERATES GOODWILL UNETHICAL BUSINESS LEADS TO EXPLOITATION OF CONSUMERS AND SOCIETY AT LARGE (Rupani, 2014) References An, A., 2013 Vedan Vietnam: Integrating Business Activity with Social Contribution [Online] Available at:... [Online] Available at: http://www.vccinews.com/news_detail.asp?news_id=29590 [Accessed 23 March 2014] Crane & Matten, 2010 Business Ethics 3rd ed Oxford: Oxford University Press Inc., New York Rupani, A., 2014 Business Ethics [Online] Available at: http://www.scribd.com/doc/211439389 /Business- Ethics [Accessed 20 March 2014] Tuan, L.T., 2011 CSR Lessons from Vedan Deeds [Online] Available at: www.macrothink.org/journal/index.php/ber/./1604...Impacts on objectives of Vedan Vietnam OBJECTIVES “As a foreign-invested company in Vietnam, apart from business objectives, Vedan Vietnam pursues the purpose of making a positive contribution to socioeconomic development of Vietnam” (An, 2013) Objective  Unattainable Implication for Vedan and its stakeholders