Deck 3: Laboratory Techniques and Instrumentation

Question 1

How appropriate is the theory of laissez-faire in today's world?

Answer 1

As indicated in the chapter, Milton Friedman contends that it is very appropriate. The quote from his classic article, "The Social Responsibility of Business Is to Increase its Profits" does suggest a certain modification, however, to pure laissez-faire. He states that business should work to increase its profits "so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud." These "rules of the game" form the crux of the argument. What should these rules be and who should communicate and enforce them? This leads directly into Archie Carroll's contention that there are four responsibilities of business corporations: economic, legal, ethical, and discretionary. Pure laissez-faire argues for economic responsibilities only. Friedman modifies laissez-faire by presumably adding legal responsibilities. One could make the point that the "rules of the game" should include ethical responsibilities as well. The problem, of course, is what happens to the concept of laissez-faire when one adds all these responsibilities to it and then expects businesspeople at all levels to accept them without outside force? Does laissez-faire as proposed by Adam Smith and argued by others include only economic responsibilities? If legal and ethical responsibilities are also expected by society of business corporations, is it still "free enterprise" laissez-faire or some other kind of system?

Question 2

Why do some employees of an organization behave unethically? Why is it necessary for an organization to develop employees' ethics?

Answer 2

Unethical behavior in employees is due to three factors. First, employees may manipulate others for their personal gains. Second, they may fail to see the connection between their actions and the outcomes of those actions. Third, they may believe that ethical choices are driven only by circumstance and that there are certain occasions or situations in which ethics may not apply. By addressing and recognizing these factors that shape employees' ethical intentions and behaviour, organizations can establish an environment that encourages ethical behaviour.
Unethical behavior increases when employees feel that their actions will not harm a potential victim and that their peers will not condemn their actions. They will engage in more unethical behaviour when the company promotes a selfish atmosphere instead of an environment that focuses employee attention on the company's stakeholders. Through direct action that prohibits unethical behaviour and encourages ethical activities through positive incentives, organizations can improve their chances of accomplishing organizational objectives and achieving outstanding performance.

Question 3

Given that people rarely use a company's code of ethics to guide their decision making, what good are the codes?

Answer 3

The chapter states that managers tend to ignore codes of ethics and try to solve ethical dilemmas on their own. To combat this tendency, corporations should not only develop a comprehensive code of ethics, but also communicate the code in their training programs, performance appraisal systems, and policies and procedures. Developing codes of ethics can be a useful way to promote ethical behavior, especially for people who are operating at Kohlberg's conventional level of moral development. A code of ethics (1) clarifies company expectations of employee conduct in various situations and (2) makes clear that the company expects its people to recognize the ethical dimensions in decisions and actions. If nothing else, developing and communicating a comprehensive code of ethics can help protect a company from lawsuits.

Question 4

How does a company ensure that its code of ethics is integrated into the daily decision-making process of the company and is not just a symbolic trophy or plaque hanging on the wall?

Question 5

Why should a for-profit organization be socially responsible to its various stakeholders?

Question 6

What is your opinion of Apple having a code of conduct for its suppliers? What would Milton Friedman say? Contrast his view with that of Archie Carroll's.

Question 7

What is the relationship between corporate governance and social responsibility?

Question 8

How has moral relativism led to criminal activities by some employees in companies?

Question 9

Using Carroll's list of four responsibilities, should a company be concerned about discretionary responsibilities? Why or why not?