Ethics

Ethics: In Business Now brings to first-level students, as well as to others preparing for business studies courses, a comprehensive and readily understandable explanation of the place and role of values in business life. This short book catches the tide

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In Business Now Series Ethics Francis P. McHugh Graphs and Charts Renee Huggett Markets Renee Huggett Retailing Peter Jones and Steve Baron

IN BUSINESS NOW

Ethics Francis P. McHugh

M

MACMILLAN

©Francis P. McHugh 1991 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 33-4 Alfred Place, London WC1E 7DP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First edition 1991 Published by MACMILLAN EDUCATION LTD Houndmills, Basingstoke, Hampshire RG21 2XS and London Companies and representatives throughout the world Typeset and illustrated by TecSet Ltd, Wallington, Surrey

British Library Cataloguing in Publication Data McHugh, Francis P. Ethics.- (in business now) 1. Business enterprise. Ethical aspects I. Title II. Series 174.4 ISBN 978-0-333-54446-4 ISBN 978-1-349-12149-6 (eBook) DOI 10.1007/978-1-349-12149-6

Contents Acknowledgements 1 2 3 4 5 6 7 8 9 10 11 12

What Business Ethics is about A Fair Deal Markets, Freedom and Responsibility Does a Business have a Conscience? Managers and Leadership Ethics and the Consumer Employers and Employees Business as a Friend of the Universe The World of Money Fraud, Regulation and Business Ethics Credit and Debt Using Ethical Reasoning

Index

Vll

1

8 14 20 25 32 39 46 53 63 70 77

84

Acknowledgen1ents The author wishes to thank Ruth Maskery for invaluable help with research in the preparation of this book. The support and encouragement of Von Hugel Institute, St Edmund's College, Cambridge, and Christian Social Ethics Research Unit are also gratefully acknowledged. The author and publishers wish to thank the following who have kindly given permission for the use of copyright material. The Advertising Standards Authority Ltd for material sourced to their publications; Barclays Bank pic for their logo; Birds Eye Wall's Ltd for advertising material; Collins Publishers for a figure from Credit and Debt; Sorting it Out by Schluter and Lee, Marshall Pickering, 1989; Corning Ltd, on behalf of Grey Ltd, for advertising material; ECOTEC Research and Consulting Ltd for figure, 'Gross annual cost of pollution control by private sector industry 1988'; The Controller of Her Majesty's Stationery Office for Crown copyright material; Hobsons Publishing pic for figure from Finding Out . .. About the City, 1989; Holden Meehan for table, 'Investment with Conscience'; Jubilee Centre Publications Ltd for data from the Jubilee Centre Debt Study Survey; Charles Letts & Co. Ltd for material from Business Studies by David Floyd, 1989; Lloyds Bank for their logo; McGraw-Hill Inc. for table from Business and Society by K. Davis and W. Frederick, 5th