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All 8 Flashcards — Business ethics
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Question
Business ethics — the core question?
Answer
Can a firm chase profit AND be good, or is 'business ethics' a contradiction? Profit vs responsibility.
Question
Friedman's view?
Answer
A company's only social responsibility is to make a lawful profit for its owners; 'doing good' is for individuals and governments.
Question
Friedman's argument in one line?
Answer
Managers spend the owners' money, so giving it to causes taxes the owners without asking — the job is lawful profit.
Question
Stakeholders?
Answer
The people affected by what a company does — workers, customers, suppliers, communities.
Question
The stakeholder view?
Answer
A firm owes duties to everyone it affects, not just its owners — because 'legal' isn't the same as 'right'.
Question
Why do child labour and sweatshops matter here?
Answer
They were legal somewhere yet clearly wrong — showing obeying the law can't be the whole of business ethics.
Question
Fair trade vs business espionage?
Answer
Fair trade = paying producers fairly on purpose; espionage = secretly stealing a rival's confidential information.
Question
How does this link to 4.3.1?
Answer
Same clash in a suit: Friedman leans on duty/law; the stakeholder view leans on consequences (real harm) and virtue.
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Full study notes for Business ethics
Topic 4.3 hub
Applied ethics
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