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    Definitions of Core Terms

    Ethics how you should live your lifeo The values and ideals that apply to our actions

    Nested in the definition of ethics is

    Morality how should you treat other people?

    Nested within morality is Justice how should social institutions be shaped?

    o Vital social institutions that have a huge impact on how we get treated:

    Legal system who gets to make all the decisions (decision makingprocess

    !overning process political process

    "ducation what should we teach

    #eligion some people include this$ some people don%t (howpowerful are religious institutions in modern day society? &'' yearsago but still today?

    ealth care how should it be structured and funded? )ree*market?

    "conomic +rgani,ation how the economy is organi,ed and itscore ground rules- .t has a lot to do with power and people%sopportunities

    ow should the economy be put together? /hould there befree market or regulation?

    Teleology/Virtue Ethics

    0efinition: the roots telos and logoso Logos * The study of something or an in1uiry into something (biology is the

    study of life$ psychology is an in1uiry into the human mindo

    Telos !oal$ end$ or purposeo 0efinition of teleology: An inquiry into purpose

    o 2ristotle: an ancient !reek philosopher-

    /aid that what makes human beings uni1ue from animals isRationalitythis gives us the capacity for reason which brings us toasking the 1uestion of ethics: how should . live my life-

    2ristotle believes that we should live our lives---

    #ationally

    Live a life according to reason

    To the fullest e3tent capable4o Teleologists believe there is a purpose of life and the point of life is to fulfill

    it to the best of your ability achieve a goal and reali,e an end-o 5hat is the rational life? #eason

    Theoretical doesn%t concern us in an ethics class

    /cience

    6athematics

    )ormal logic

    7ractical does concern us in an ethics class

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    7ersonal characters that you have to work at to achieve$ things thatare difficult to achieve-

    They are corrective of natural human tendencies. 5e are notalways naturally virtuous

    Beneficial to self and others

    2 characteristic that is worthyof moral praise !reek culture the Four Cardinal Virtues

    5isdom we would rather play than gain knowledge

    ;ourage we naturally are inclined to fight or flightresponse

    6oderation

    ustice

    ;hristian Virtues

    )aith

    ope

    ;harity we are not naturally generous

    Love

    !""lication of Theory

    ow to apply an abstract moral theory to a concrete problem in business ethics

    ow would each other these theories solve a moral dilemma in business

    Ethical #ssues in $usiness

    ;onflict of interest

    .ntellectual property who owns it if intellectual property is created

    2ffirmative action is it an appropriate hiring policy

    6andatory retirement ealth and safety what kind of health and safety issues does a business owner

    owe to their workers

    Teleology/Virtue Ethics Theory %ow would you solve a moral dilemma

    0ecision process

    1. 5hat would a virtuousperson do in my position?

    This is a short term solution that teleologist would recommend

    2. 5hat are the resources and education that . need to become such a personmyself?

    This is a long term solution

    /tress the importance of education-

    )or Teleologists$ it%s all about education and character- .t%s aboutbecoming a virtuous person$ a person of integrity one withwisdom$ faith$ hope love$ courage$ etc-

    Criticisms of this Teleology

    &- /elfish it%s too selfish to be a plausible perspective on morality

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    5hy?

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    o +ne ethical and moral code for everyone

    o 0iscoverable by reason

    o ;ultural diversity fallible

    o @niversality test * you have to think of every one having

    a veto over the action that you are considering- .f any

    one were to veto that action$ it is impermissible-o 5hy does Bant emphasis @niversality test so much?

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    o .t%s a results driven conception of morality

    o They are dismissive of sub8ective intent

    o +nly ob8ective results is important (it doesnFt matter what youFre intentions

    where$ itFs the ob8ective results of your actions that matter-

    "3ample of conse1uentialism: Utilitarianism

    o C!reatest happiness for the greatest numberDo 0eveloped in the &Gthcentury out of a reaction against Bant and ;hristians

    7eople thought both Bant and ;hristians based morality onun8ustifiable premises$ on premises that were metaphysical

    ;hristians!od @tilitarianism saw no proof

    Bant#ationality4#eason in either of these-o Jeremy Bentham(the founder of utilitarianism said he was going to found

    ethics and morality on a firm scientific basis- 'oal(The whole point ofacting is to make the world a better place in a demonstrable$ measurableway-

    ow do we measure the world becoming better? @tilityH

    @tility: appiness or pleasure from consuming somethingo #aw sensory pleasure

    ow should . live my life? ow should . treat other people? owshould we shape social institutions? 2ll in a way that produces thegreatest happiness for the greatest number of people-

    ow do . solve a moral dilemma? 5hat decision process do . haveto engage in to solve it? !oral Cost"#enefit analysis:

    &- ;onsider the options=- ;onsider the e3pected pleasures and pains that will result

    with taking each option

    9- 7ick the option with the highest net pleasure score "3ample: +ption 2 or < predict the pleasures and pains that would

    result from 2 and

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    ;onse1uencialism is predicated on us having reliable knowledge ofthe conse1uences of our actions however we can%t always knowwhat the conse1uences will be-

    ;alculus re1uires impossible foresight

    .t seems to run in to issues of Cends 8ustifying the meansD (acobs

    5hat is something that makes the greatest number happy but CsticksitD to minority group or individuals-

    istorical instances show that it has happened where it hascontributed to the greatest happiness but hurts the minority or anindividual and that is un8ust and immoral$ thereforeconse1uentialism can%t be the most authoritative perspective onmorality-

    Too demanding on an individual (Teleologists

    6oral obligation to the Cgreatest numberD

    Loss of personal priorities

    .ntent is important (0eontologists but in moral life don%t we still think thatintentions matter

    "3ample: Tourists want to gas Toronto$ however instead of their gaskilling people it doesn%t do anything bad but instead cures peoplewho have asthma- Their intent was to kill but the conse1uences weregood different conse1uences than they e3pected- 0eontologistswould use an e3ample like this to say to conse1uentialists that theyneed to pay attention to intention in moral life results are not allthat matter$ intention matters as well-

    Rights $ased Theory

    /imilarities to 0eontologyo #ights and 0uties are two sides of the same coin- Iou don%t have a right

    to something without some institution or someone else having a duty todo something else- 0eontology duties-

    Heroesin the #ights

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    Level "!5e want a certain kind of minimally decent treatmentfrom other people

    The reason we want free speech is because we don%twant people interfering with our speech or we don%t wantthe government mandating what to say in public-

    $ow is decent treatment defined%o #ights based theory is at the opposite of the spectrum than

    Teleology4Virtue "thics ma3imally optimistic- "3cellence$ flourishing$optimality-

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    5e can think about how to treat people$ how to live your life and put togetherinstitutions$ etc- in a micro and macro way-

    )or e3ampleo 6icro ;onte3t the !overnment passes new standards based on effluence

    coming out of a pulp and paper mill it has lots of effluence4polluting by

    products- .t%s a personal choice of ethics whether the manager adhere%s tothe new regulation or not-

    5hat is my duty?

    5hat are the conse1uences to myself and society

    5hat would a virtuous person do4 5ould the adhere to or violatethese standards

    o 6acro conte3t

    .ssue of 8ustice

    2re the standards set by the government good in the firstplace?

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    These three theories are comprehensive world views and traditions of thought abouthow social institution should be put together-

    o This is slightly at odds with certain trends in contemporary politics- .t%s very

    common in contemporary politics that people don%t really care aboutcomprehensive views or about how social institution should be put together

    as a whole- They only care about their pet issue their one issue (e3ample:abortion$ the environment$ animal rights$ ta3 cuts$ government subsidies fortheir business$ etc-: these are all non*comprehensive views one issue anddoesn%t come as a theory of 8ustice-

    5orld views since the )rench revolution there%s 9 prominent successful andinfluential and comprehensive theories in the 5est (5estern "urope and countriesthat have developed from the coloni,ation-

    o 5arning: These words and how

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    down by our ancestors and needs to be preserved for futuregenerations-

    o They are comfortable with ine1uality in society

    Those who know the moral truth should have more power

    Logical conse1uence of the world view that there be considerable

    ine1ualities 7olitically$ socially$ legally$ and economically

    o !eneral concept of (usticethat the conservatives have in mind is that the

    conservative images a group of elite members of society who are genuinelymotivated by a sense of public good (preserving heritage and a way of life-"lites who are in charge of the state and social institutions and who runthem in accord with a given way of life-

    istorically the trend has been against conservatism

    .ndustrial #evolution

    5omen entering the workforce between the two 55%s

    7re*)rench #evolution * it used to be dominant (Bings andJueens$ the decor$ Louis the K.V

    2t the same time though$ we can see how conservatism has heavilyinfluenced aspects of social institutions-

    .n certain facets of life$ governments are mainly concerned8ust with preserving the status*1uo and not necessarily aboutpursuing change-

    The role of the /tate in educationo The Cculture warsD what should be taught

    .ssues of marriage and se3

    .ieralism 2 direct reaction to ;onservatism$ Liberalism is broken down into two kinds-

    5hat%s the root meaning of liberalism?

    .t%s all about personal freedom- Liberals would look at aconservative system as oppressive$ hostile to change$ they want aregimented hierarchy$ they want elite$ self selected few runninginstitutions- Liberals would want nothing to do with this way of life they would want more freedom for themselves-

    Liberalism all about!a(imi)in personal freedom

    Two waves of Liberalism

    Classical Liberalism the first wave that appears historically

    0o not like government intervention- They want minimalgovernment intervention (shrink the state to as small as possible

    o The CNight 5atchmanD /tate they do believe that

    the government has some legitimate function

    The government keeps the peace

    6aintains law and order

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    0efends the country from e3ternal attacks(national defense

    "nforces contracts that people freely enterinto

    Liberals does not view morality as conservative do- )or the liberals$

    6orality allows for different defensible ways of life- They are more morally sceptical about claims to know the

    ob8ective moral truth- Iou can do whatever you want$ aslong as it doesn%t affect me

    o 7refer to be agnostic about which way of life is true

    or noto #ole of the state is to let people pursue the life they

    want$ provided peace is not violated-

    ;lassical liberalism wants ma3imum economic freedom

    )ree trade

    )ree market

    6inimal government intervention

    6inimal ta3ation

    ;L * .n e1uality is acceptable

    7eople are going to have different want$ interests$ andcapacities which will lead to different results and differentrewards (socially$ economically$ politically$ legally

    .ne1ualities are the price individuals pay for freedom

    ;L is not nationalistic at all

    )or them Cit%s all about meDo 0oes my society work for me? .f it does then . care

    about it$ if it doesn%t then .%m out of here- )or the conservative it%s about preserving

    shared heritage and working for public good this isnotthe liberals

    o Liberals have an atomistic conception of society

    5e%re all 8ust atoms$ 8ust a collection ofindividuals

    The conservatives see life as a shared way oflife that we all sort of participate in-

    6argaret Thatcher prime minister of

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    Those who call themselves conservative today may actuallybe a mi3 of classical liberalism when it comes to economicissues and social conservative when it comes to social issues(se3$ marriage$ education- Thatcher is a part of theconservative party but is a ;L$ #eagan is the combined

    figure economically ;L$ but socially 1uite conservative-7rogressive ;onservative-

    There%s a split in liberalism around the time of the .ndustrial#evolution

    /ummary of ;lassical Liberalism

    6orally sceptic

    ;ore Value M individual freedom

    /tate plays minimal role

    7ro free market

    Socialism *' years

    2s a result people flooded into the cities looking for 8obs- oweverthe cities could not handle that massive population increase

    This resulted in slums- Tons of people in a tight space$

    working &= hours a day in a factory with no showerso No public sanitation

    o No public housing

    o 0isease was rampant

    #esult is disease$ mental illness$ violence$crime$ and s1ualor (bickering

    *his is not a +ust way to orani)e society,

    )ssence of %ocialism

    o 7rime Valuemore e1uality

    o The goal of socialism is e1uality

    ow do you achieve e1uality?

    2ccording to /ocialists we need the state to counteractforces of the free market

    6assive government intervention (like the conservatives

    They want government intervention utthey want it to beaccessible to everyone

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    o 5ants everyone to have a shot at becoming part of

    government and having their say and serving theinterests of everybody

    ;onserve the heritage for its own sake is incomprehensible tosocialists- /ocialists look at the past and see a litany of crimes

    racism$ intolerance$ elitist e3clusion$ etc- The past is something to beovercome- )or the socialists (and liberals it%s all about the future-

    The effects of government intervention cannot be unfair- .t has to beinvolved in peoples% lives to mitigate all the ine1ualities that wouldresult from a free market-

    /ocialists like public housing$ public education$ public health care-

    Welfare lieralism

    -elfare li#eralism is an attempt to mediate between classical liberalism and socialism-

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    5elfare Liberalism is the attempt to mediate between classical liberalism andsocialism and it is very influential throughout the western world-

    Canadian .aw and the Regulations of +rofit1See2ing

    ;riminal ;ode restricts profit*seeking from criminal enterprises

    o Narcotics criminalising profit seeking activityo /e347rostitution is prohibited for profit seeking activities

    o )raud- /cams

    )raud involves deceit$ deception$ falsehood

    6aking false promises

    Not fulfilling contractso 5here does fraud occur?

    /tock market

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    To maintain public confidence it must be believed that thereis a certain fairness in the trading of a stock

    #egulation have been placed on corporate insiders$otherwise they have privileged access about their company%sstock

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    The directors and the managers are usually ma8or shareholdersthemselves and often have a controlling interests

    They have so many shares that they can control the direction ofthe company

    2ppoint the board of directors

    o /ometimes these roles can be integrated- /hareholders can be managers andboard of directors- .f they are the ;hairman and the ;"+ that person has a lotof power-

    Corporation Facilitate the Pursuit of Profit

    o 5hy are corporation effective instruments of business activity?

    They have Climited liabilityD for their actions

    The company is treated as a separate person from all the people whowork for it and compose it

    2da Ltd- the company

    Legal construct (fictitious entity

    "nables corporation to take big risks for big profit because they don%thave to fear the down si,e and if down si,e does happen it falls on 2da

    o ualifications on /imited /ia#ility

    ;riminal 2ctivity directors and managers are held personallyresponsible

    They do not float above the law

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    o 2 7eaceful society (if you%re gonna have any kind of economic activity at all

    o Law and order (hard to have a business if you%re constantly dealing with theft

    o "nforcement of contracts can%t engage in business where signed contracts

    mean nothingo 7rivate property rights be respected you want your ownership to your car or

    house to be respected because you worked hard to buy themo

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    /ome shareholders may purchase a stock with a socially responsible agenda inmind

    o 6aybe shareholder aren%t profit ma3imi,ers

    o 6aybe shareholders invest in a company if they are socially responsible and

    they don%t mind if the company gives up some of their money and gives it

    to a charity (instead of to themselves as the shareholders .nstead of profit ma3imi,ers$ businesses are profit satisficers

    o /atisfies with a certain threshold of profit

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    o .n his view the economy should be about *uality of life$ which is not

    necessarily the standard of living

    /tandard of living M wealth in the economy

    !07 per capita

    7ersonal income

    o There%s more to life than money and incomeo 5e need wealth so that we are not a poor society---

    o 5e need a society of reasonable affluence

    To pursue further affluence come at a cost of 1uality of life-"3ample: 7ollution

    Trade*off between amount of time worked and income (leisure vs-money

    o 7rofit ma3imi,ation isn%t desirable because it cuts against 1uality of life and

    our en8oyment of life and acobsen says we are naturally satisficers$ notma3imi,ers-

    o 7sychologically we are satisficers$ not ma3imi,ers

    /atisfied with a certain level of income

    .f additional income comes at the cost of 1uality of life$ we are notwilling to make it

    e agrees with )riedman%s argument that---o

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    "3: Las Vegas when you go here and gamble you aretaking a risk this doesn%t mean you deserve anything-

    #aw idea of taking a risk doesn%t imply anything about a moraldesert

    /uccessful handlers of risk is deserving

    /how prior acts of successfully managing risks in a sociallyuseful way

    6ore of a argument about superior skill and conse1uences tosociety$ not so much that you took a risk

    0ifferent kinds of risk

    )inancial risks

    "mployee risks they too are taking a risk with their healthand safety by working for the entrepreneur

    o %uperior %+ill

    "ntrepreneurs should be told they are morally deserving of theirprofit no matter how profit was made-

    5hy?

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    it%s worth$ the buyer makes tons of profit$even though it%s not their idea-

    7rocedural 2rgument: /ome profits have been produced in amorally unob8ectionable way-

    2 profit created through a freely contractual process without

    violation to another%s rights is procedurally 8ustified andmorally unob8ectionable-

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    Licensing e3ams must be passed before one gains entry intothe profession

    9- "ach of the professions has a distinctive culture

    "3: Lawyers are argumentativeQ all have gray hair$ etc-0octors have cra,y working hours$ etc-

    >- 7rofessionals are recogni,ed by the community as having authorityin a certain field of e3pertise that everyone else lacks

    o

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    5hen we talk about corporate codes of conduct we are 8ust talking about the forprofit sector-

    o The fundamental distinction for the profit sector is between public and

    private

    There is a distinction between who can own shares in those

    companies 7ublic corporation means that the shares of that company

    can be bought by members of the public

    7rivate company means share cannot be sold to the publico +ften these companies are family run affairs

    o The ma8ority of private companies are small

    businesses (fewer than &' employees

    B76! survey is referring to public corporations publically listedcompanies whose shares are publically traded- Not necessarily themost profitable but do receive the most attention

    -hat is the function of this code of ethics%

    2 code of ethics is essentially deontological in structure and motivationo The whole idea behind a code of ethics is to set out a general set or rules or

    directives that are to guide employee behaviour

    ow you should behave on company time

    ow you should spend company money

    ow you should interact with customer or supplierso .f the rules aren%t followed there is some type of disciplinary action

    ;ertain results are being sought after by having a code of conducto ;ynical interpretation improvement in the company%s reputation

    o !enerous interpretation improve the behaviour of the employees

    The Common Elements of Code of Ethics

    ;ommon "lements that are shared by all:&- ave to obey all the relevant laws that apply=- .ntegrity

    o CIou%re conduct cannot bring disgrace upon this business or profession

    9- Norm of competenceo .t%s an ethical duty to maintain profession knowledge and keep it updated

    you owe it to your clients4patient4etc->- Norm of honesty and full disclosure

    o #ichard Ni3on C.t%s not the deed that gets you$ it%s the lie afterwards-D

    - Norm of confidentiality and trustworthinessA- Norm of professionalism towards colleaguesO- 0uty towards the public good

    o This applies to 7rofessional ;odes only

    o )or e3ample$ doctors have the ippocratic oath$ lawyers have 8ustice$

    accountants have the reliability of accounting statementsG- 0uty to help mentor future members of the profession

    o This applies to 7rofessional ;odes only

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    - Norm of loyalty to the company or industryo This applies only to

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    Disci"linary Mechanisms ) $usiness vs5 +rofessional

    - /ome do care though and in those cases in which the industry cares the

    following could happen:

    #ecommendation for education4seminar

    ;ould be re1uired to pay a fine

    )ine may involved covering the costs of the hearing

    ;onduct may be noted on employment record

    "3treme cases could involve being fired

    )ormal apology

    #e1uired to take a leave$ with or without pay$ depending on theseverity

    7rofessional&- "ach professional has an independent professional body which is in charge

    of licensing and supervising all of its members=- The government recogni,ed the control of this self*regulating body

    )or e3ample$ in +ntario for doctors it%s the +ntario 6edical2ssociation$ for lawyers it%s the Law /ociety of @pper ;anada

    9- 5hen an alleged ethics violation has occurred$ a formal process is set inmotion

    )ormal fact finding

    2lleged will be given the opportunity to make their cases with alawyer present

    5ith the assistance of a lawyer$ a case will also be made by the onewho wishes to see the disciplinary action

    ;ase is usually heard in front of a tribunal three senior members ofthe profession

    #uling is decided which cannot be appealed

    )or minor infringement$ individual is re1uired to rewrite the

    CprofessionsD ethics e3am 6ore serious$ may be re1uired to pay for the cost of the

    hearing (which can be 1uite costly$ especially if lawyers areinvolved

    Tribunal can also decided on what will happened with theindividual%s licence to practice

    o Licence can be temporarily or permanently

    suspended

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    o ;an add Ctraining wheelsD to the licence

    #estrict practice to one limited field

    /upervision by a senior member of theprofession

    Iour signature isn%t sufficient$ after

    you finish your work you have tosend it out to someone else to reviewit and sign off on it

    o 2ll the details of these ethics cases heard by the

    tribunals$ are published in professional newsletters

    This can be really humiliating for someprofessionals and can have a big detrimentaleffect on ones career

    John .add ) Criticisms of Code of Ethics

    Ladd%s ;riticisms will be similar to the criticisms of deontology&- Too rigid$ too artificial$ and are constructed by rule*worshippers-

    The product of litigious 2merican culture run amok .t must be left to freedom of choice

    =- #ules are too general

    -hat e(actly does this norm of competence imply%

    -hat does a code of ethics add%

    Ladd doesn%t believe that there is a need for this kind of in*betweensolution (in between morality and legality

    "ither it is a matter of ordinary morality allowing for freedom ofchoice$ or it is important enough to make it law and have legalramifications for violation

    9- #ules are either e3tremely vague or far too specific Vague e3ample reference to image of the profession$ what kind

    of advertising is beneath the profession (2ds that does not solicitnew business but merely informs people about the nature of yourservices

    Too specific e3ample an attempt to legislate behaviour- .t eitherfalls into the law or into ordinary morality there%s no sustainablemiddle ground it with falls in to law or morality$ not both on amiddle ground

    >- ;odes are useless

    5hy?

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    #n Defence of Codes of Ethics

    &- Iou can think of the various 7rofessions as clubs within society (clubs thatdemand certain skills

    #ules of conduct have been freely chosen by those who have

    entered into the profession you can%t enter into these clubs withoutknowing these rules

    2sk Iourself: -hat is wron with +udin someoneaccordin to the clu# rules%

    .f we want to freely chose these clubs$ and people want tofreely 8oin$ then we are 8ustified with holding people up tothese principles and kicking them out if they don%t followthem-

    =- 7rotects the public by giving them an understanding of what to e3pect frompeople in that profession

    !ive the public a clear understanding of the values of the

    professions -hy is this important%

    There is a doctrine of thought that hypocrisy is a particularlystinging moral accusation to make

    o 2ccusing someone of not living up to their own

    idealso 5hen sub8ected to such criticism people are much

    more likely to change their behaviour

    Think of it in terms of successful historicalmorali,ers

    6artin Luther Bing

    !handio 5hen you hold mirrors up to people it can move

    them to action much more 1uickly than holding themto ob8ective standards

    9- 7rofessional are in a position to do greater harm to people in the course oftheir activities$ than your ordinary business person-

    ;ode of ethics for professional captures that additional sense ofobligation that people thus empowered owe society

    5hat is the thinking here? They are licensed because theyare involved in activities that carries with it the potential for

    great harm to people than the vast range of ordinary businessactivity

    There%s a lot of power involved in these professions-

    !gency ) $ayles4 Models of the +rofessional1Client Relationshi"

    > different ways of modelling the relationship between a professional and a client&- 2gency=- ;ontract

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    9- 7aternalistic>- )iduciary

    The distribution of decision making power between professional and client

    !gency

    6orally $ this is the most important thing about the relationship betweenprofessional and client

    The professional should be the Rhired gun% of the client

    The client has all of the decision making power and authority

    The reason they think this way is because the client is paying theprofessional

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    "3ample: 6edicine

    There%s a large gap between the professional and the client here-0octors are very educated in their field and the client muse rely ontheir knowledge

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    o /ub8ective .ncentive

    )inancial gaino +b8ective incentive

    7ublic official * To behave in a way that is in accord with thepublic good

    7rofessional * To behave in a way that secures its primepublic good value

    o "3: 0octor* health$ Lawyers 8ustice$ engineers

    health and safety$ accountants accurate reporting

    Thus defined$ conflict of interests only applies to the professions and the publicsector

    o 'oes that mean that there are no conflicts of interests in #usiness%

    &- +ne school of thought

    "ndorses the belief that there is no conflict of interest inbusiness

    o .n business$ the overriding incentive is money

    o

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    The ;"+ you are in conversation with is the ;"+ of K (they are currently biddingto win a contract that you have partial power over

    The conversation continues and you find out that K can only afford an individuallike you if they win this contract

    !s2 yourself(

    o -hat do you do%o -hat is the ethical issue here%

    o -hat would you do and why%

    o -hat options do you have%

    o -hat2s a ood decision% -hy%

    o -hat2s a #ad decision% -hy%

    The situation

    Iou are a government engineer on a committee with two other people$ 2 and o 6artin Luther Bing

    o Lyndon ohnson

    o /ubset of the act "1ual +pportunity 7rovisions

    o 2ffirmative action stronger and more robust in @-/- than in ;anada

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    o 6ore court based in @/

    6ain sites of disputes and activity

    6ost aggressive defenders of affirmative action rights

    ;anada has a softer4weaker processo 5hat happens when one feels violated?

    e-g- bank employees visible minority who does not believe bankhas a large enough representation of minorities- They could use:

    .nternal appeal

    6ore aggressive action file complaint with the )ederalhuman #ights ;ommission

    #esult

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    o 6ost stringent as there is no way to avoid giving the benefit to people from

    the protected groups

    "mployment e1uity or affirmative action does notmean hiring someone who is not&ualified

    o .t could mean giving such a benefit to someone who is not as 1ualified as

    someone else

    Em"irical !ffects of Em"loyment E&uity and !ffirmative !ction

    6ost "mpirical /tudies about the effects of affirmative action come out of the@nited /tates they have a bolder policy of action than ;anada

    'o these prorams do what they are intended to do%

    o -hat is the nature of the law%

    o -hat have #een its effects%

    ;onsensus among 2merican studies that there seems to be ameasurable benefit to target groups

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    2boriginals and disabled appear to have difficultiesbenefiting

    Considering the Morality and Justice of These "rograms( +ros and Cons of

    Em"loyment E&uity

    #eading: C2ffirmative 2ction and "mployment "1uity in ;anadaD by /usan0imock and ;hristopher Tucker

    o ;riticism of 2ffirmative 2ction and "mployment "1uity

    o -hat do you thin0 of these aruments%

    o -hat aruments did it ive%

    o -ere you offended #y it%

    o 'id you aree with it%

    The .ssue of ;ompensatory ustice: The Level /laying .ieldo 6ain argument affirmative action is re1uired to redress historical

    in8usticeso ;ons

    Victims of discrimination are not the ones being compensated

    Their children are the beneficiaries (generational 8ustice

    Those who carried out or profited from discrimination are not beingpenali,ed penali,ing their children or grand children

    ave to in1uire more deeply

    5hat is meant in terms of a level playing field

    5hat is meant by e1uality of opportunity and faircompetition in society

    o 7ros

    Necessary to ensure a level playing field in the present

    2ccumulated benefit in favour of the white man 2ccumulated suffering due to obstacles on part of target

    groupso 2 concern behind employment e1uity programs is always the degree of

    entrenchment that these programs are going to have

    Are these prorams meant to #e a temporary measure only%

    Tendency for government programs to entrench themselvesfor good

    /ays law once you have established any kind ofbureaucracy$ it has an intrinsic impulse to grow and itusually takes e3ceptional political action to stop that growth

    +ne way to challenge this argument is to ask:

    -hen are we oin to 0now that we have this level playin

    field%

    'oes it ensure a level playin field if +ust on individual is

    losin a position to someone in one of the four taretedroups%

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    -ill this policy have to #e used systematically over the ne(t

    couple of enerations%

    -hat a#out my rihts%

    -hy should my rihts #e sacrificed to the pursuit of wide

    scale social reform that was not of my creation%

    The 7otion of 8erito ;ons

    7art of notion of merit means that a spot cannot be reserved for aspecial category of people

    6erit is individual you deserve it or you don%to 7ros

    2ny inefficiencies are worth the cost of any of the benefits ofaffirmative action

    #edressing historical in8ustice

    7romoting social harmony in ethnically diverse societies

    6erit is defined in terms of past established paradigms

    5hat is standard of merit being employed?

    /elf*referential definition of merit

    5ho gets to decide what is merit?

    6erit is based on prevailing paradigm

    7revailing paradigm is in 1uestion here

    2ffirmative action is a way for people to show that they meet theprevailing paradigm

    %ocial Cohesion in a Diverse %ociety

    o ;ons

    2ffirmative action might actually aggravate social divisions

    ;ause bitterness and resentment on part of the non*targetgroups who are passed over

    o 7ros

    2ffirmative action is an important part of cementing social cohesionin a diverse society

    "-g- North 2mericano 2merica first country in world to think about

    affirmative actiono .ncredibly diverse set of societies

    o 2ffirmative action re1uired to help keep it together

    The 5ssue of 5rrelevant %tandards

    o ;ons

    6oral beliefs are different than they were at implementation ofprograms

    7eople now acting out of different sociali,ed andinternali,ed set of values

    0on%t re1uire a bureaucratic solution

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    o "ducated differently

    o 6ore tolerant and inclusive environment

    o 7ros

    ;onsistent standards may not be relevant for determining merits ofthose from different background

    6embers of certain culture 6embers of similar background

    0ifficult to come up with a metric by which merit can be ranked onthe same scale of value

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    o 7rograms keep forcing us to focus on irrelevant differences

    o .n other spheres$ things like gender and race don%t matter at all

    Mandatory Retirement and the .aw

    .n ;anada$ considered age discrimination and hence violates the charter

    2ge is specifically referred to as prohibited grounds for discrimination 6any sectors in the economy to which mandatory retirement does apply legally

    5hy? .t happens as a result of a number of court cases on the part of bothemployers and employees regarding mandatory retirement

    The program of 6andatory #etiremento /upreme court has developed two tests$ which if met$ allow a program of

    mandatory retirement to take place legallyA5

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    /how me how their age is not connected to developmentalcapacity and skill level

    )airness

    6andatory retirement is not unfair because everyone in therelevant 8ob chosen is sub8ected to e3act same rules

    .rrelevant to compare oneself to someone in a completelydifferent line of work

    -hat do you thin0 a#out that%

    o 5hat if these rules treat everyone in a terrible way?

    Treat everyone e1ually$ but in a way that restrains their right tofreedom

    )airness: .nsufficient basis for what 5edeking wants to establish

    Em"irical !ffect of Mandatory Retirement

    Study of 3ederal De"artment of Justice in Canada

    The /tudy:o .ndustries in which mandatory retirement applies

    7ublic sector

    6@/ sector with e3ception of doctors

    5hy?o 6oney and power

    o "normous social investment in the training of each

    doctor

    Very few predominately private sector 8obs

    7ilots

    7rivate industries where there is a great deal of federal

    regulations The findings:

    o 6orally works against personal freedom and may count as form of

    discriminationo !overnment suggests empirical reasons for not having policy

    /ome evidence that this policy increases poverty in old ageespecially with women and recent immigrants

    /ubstitutability isn%t as plausible the older one gets

    5hy? +n average$ women take some years out of workforcein connection with child*raising responsibilities

    o 5age differential

    o

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    o 7ositions get: retired$ technologically replaced$ redundant

    =- 5hat kind of 8obs are we talking about and who is 1ualified to do these 8obs?o .f this is referring to younger people more substitutable

    o Ioung people vs- retirees most would not have the 1ualification for some

    of the positions

    o There is no evidence to prove that mandatory retirement decreasesopportunities for young workers

    9- 5ith few e3ceptions$ there is apparently very little empirical connection betweenage and performance in most 8obs

    o 0epends on what is meant by Cfew e3ceptionsD and how few is defined

    >- 2ging populationo .n most developed economies$ with the e3ception of the @/$ there is a

    definite trend toward an older workforceo Need more$ not fewer workers

    o Need less$ not more retirees

    o ave as many workers as possible to keep funding of social programs on

    even keel

    Module B

    The Diversity of Jurisdictions

    .nternational

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    "-g 2ccountants making profit by advising companies onhow to move their assets around

    Take advantage of the difference in ta3 lawso !rand ;ayman

    o .sle of 6ann

    o 6onacoo ;osta #ica

    o

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    #ational for political integration of "urope is to create strongereconomic integration

    o The .ssue with N2)T2 is that there is a party with disproportionate power

    +ne of the reasons for "urope%s success is that there is relativee1uality of power and si,e of economies

    ;ooperative arrangements do not work as well when you have oneparty who has incredible advantage in terms of finance andpopulation

    ;anada

    2s 2merica%s neighbour and because our economy is closelytied$ we don%t like it when 2merica acts in unilateral andunpredictable ways

    o #eason to advocate 2merica%s entry into multilateral$

    global institutionso

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    Tariffs have not come down

    Tariffs reduction is unbalancedo 2gricultural sector

    0eveloped world subsidi,es its farmers and agricultural produce

    6ore concerned about tariffs in "urope and 2merica on basic

    staples 5heat

    ;orn

    ;attle

    7oultry

    "3isting international trading regime fell apart

    #econstruction did not take place until after 55.. in &>

    .nstitutions 6ake 2ll the 0ifferenceo Theories of ustice

    ;onservatism

    Liberalism

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    /ocialismo Vital to understand that they are about a set of institutions

    o 5hat kinds of institutions should guide or shape society and the relations

    between each other?

    !lobali,ation product of definite set of institutions put in place following 55..

    that are largely dominated by @/ and are at the instigation of @/ 2mericans wanted this set of globali,ing .nstitutions

    o and since end of ;old 5ar in &G*&'

    !lobali,ation is /ector /pecifico 7op culture

    o 6arket for news

    o

    .nvestment flows /ectors are not !lobal

    o 2griculture

    o No genuine free trade between developing and developed world

    o 0eveloping world developed world talks about globali,ation only when it

    involves sectors that it is in their interest to globali,e

    6ay actually limit the e3tent to which economy truly becomesglobali,ed

    6ight ask ethical 1uestionso 1s that hypocrisy%

    o 1s that ood for the whole world%

    0emystifying !lobali,ation&- ave historical and realistic perspective=- #ecogni,e the globali,ation is supported by definite set of institutions9- That set of institutions makes it a trend>- Nothing natural or inevitable about it- Largely sector specificA- "thical controversy about degree to which developed world actually supportsfree trade

    $riery and 'ift 'iving

    %y"othetical Case

    .n a foreign developing country

    ;ompeting for a lucrative government contract

    6eeting with government official to discuss how to go about bidding

    !overnment official demands &''$'' from your firm$ payable to him$ to passalong contract

    !overnment official makes it known to you that this is common business practicein his part of the world

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    Note that he is not promising success$ but if you don%t pay you are guaranteedfailure

    -hat do you do and why%

    o 0o research and find that it is indeed business practice in this country to pay

    bribes

    o Iou are personally against ito .t%s illegal in North 2merica to engage in bribery

    Tools for 1naly9ing

    ;onse1uentialismo 5hat are the costs and benefits?

    0eontologyo 5hat are the relevant rules?

    o 5hose rules do you obey?

    Teleologyo 5hat would a virtuous person do?

    o 0oes a virtuous person bribe?

    o 5hat does it matter if it is e3cepted practice and legal in that country?

    o 5ould a virtuous person say it is up to you?

    o ;an your choices survive the glare or publicity?

    o 5hat if you choice became public back home?

    o ow would others think of you?

    What is 'ift1'iving

    !ift giving is a more acceptable North 2merican

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    ;offee mugs

    ;ups

    5atches

    7ens

    2lmederWs 2rguments 2gainst

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    2nywhere in the world even where bribery is legal

    Reasons to Engage in $riery and 'ift1'iving

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    /ports eventso 0oesn%t matter whether gift lasts or not$ it is the value of the gift that

    matters

    The Thinking

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    'o we have a responsi#ility to find out where the oods we are

    #uyin are #ein manufactured%

    'o we have a responsi#ility as consumers to do some #asicresearch to ma0e sure child la#our has not produced our oods%

    The other side of the debate

    "conomic activity that market supports in those countries Legal

    7rovides economic benefit to families

    The trade in !arbageo 2uthors take strong 5estern moralistic tones

    o #obust$ thriving trade in developed world of shipping garbage to be stored

    at sites in developing worldo ;ons

    #ich dumping by*products of processes whereby they get rich$ ontothe poor

    .magine the outrage in our community if rich dumped their garbageinto the backyards of the poor

    +vertones of abuse of power and e3ploitationo 7ros

    Legitimate business activity which is legal in those countries

    Very easy business for them to get into

    5hy? 2ll they need is a piece of land that can be designatedas a dump and then they fill it up

    0oesn%t have nearly the barriers to entry as other sectors do

    2griculture

    Technology

    7harmaceuticals +ne of the ways that they can compete in global economy

    "asy access earnings for them

    -ho are we to ta0e that away from them #ecause of our

    moral values%

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    5on%t get suckered by claims that something is customary practice

    -ho actually decides what is customary in that society%

    -ho are these people who set themselves up as the

    authoritative spo0espeople for their entire culture%

    o ;ost of doing due diligence can be considerable

    o ;annot necessarily accept the assurances of thosepeople who are going to profit from that activity

    There are going to be real business risks when doing this

    #efusal to bend to local custom might be costly as well

    1s it disrespectful and arroant to insist on usin own values%

    o CThe @gly 2mericaD

    Notion of being

    7arochial

    Narrow minded

    Not knowing about rest of world and how it operates

    .nsisting that the world bends to your values 5esterners are always open to charge when engaging in any kind of

    activity in developing worldo ow do you make the decision?

    .n the case of business$ it would depend on what kind of deal youare talking about

    The #ssue of Moral niversalism vs5 Moral Relativity

    5hose Values should . follow?

    5hose values are true?o 6oral @niversalism

    5hat is morally right is what is morally right

    5hat is morally right does not change when you cross a border

    5hether those universal moral standards get recogni,ed by the lawsof individual countries is irrelevant from the moral point of view

    )ollow those values which you believe on the basis of best evidenceto be right

    2nti*;hild labour activistso 6oral relativist

    /kepticism about

    5hether there is a universal ob8ective moral truth

    .f there is such a thing$ do we obviously know what it is? 6oral codes and rules do alter between every culture

    ;onsensus within 5estern world about moral values

    Not the same degree of consensus about what is right andwrong especially in connection with economic activity

    o 5estern vs- .slamic

    o 5estern vs- /outheast 2sia

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    o 5estern vs- /ub*/aharan 2frica

    o 0eveloped world vs- 0eveloping world

    Talking about economic production role of ethics inconnection with economic production is disputed betweendifferent cultures

    5hen .n #ome you should do as the #omans do There is variability in ethical value

    5ant to respect the culture that you are in

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    o 2nswer depends on how e3ploitation is defined and conceived

    5hat is demanded by labour market in ;anada

    .n developing world employees get paid more than fellow countrypeople

    ;an it be e3ploitation if they are paid better than standards of that

    labour market They freely seek employment

    "3ploitation has connotation of coercion

    5rong to 8udge issue of e3ploitation by 5estern standards=- "ncourage @rbani,ation

    o .s that good or bad?

    0epends on your valueso 7ro

    ;ity life is liberating compared with rural life

    .ncreasingly cities and city regions seem to be the main engines in

    global economy 5ant to develop a thriving city*state region

    .ncreasingly seeing cities as being generator of economic growthand change in modern world

    "-g Toronto$ New Iork ;ity$ Los 2ngeles$ ouston$Vancouver$ 6ontreal$ 7aris$ London

    o ;on

    7ollution

    ;rime

    0ecline family values9- .ncrease class divisions

    o ;on !rowing wage gap

    /tandard of living gap

    Juality of life gap>- ;learly seems to contribute to growth and strength of a small elite$ which e3ercisesdisproportionate power in that society

    o ;on

    ;ompanies support the governments that allow them to come in

    #elationship between multinational corporation and government andmultinational corporation and employees

    ;reates an elite over that country

    o 5hat is 1uestionable is not so much that it is une1ual but that it gives so

    much power to such a small group of people

    .ncentives in favour of:

    ;orruption

    @ndemocratic government

    /ocio*economic ine1ualities

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    6ay not be intent$ but it is the socio*economic conse1uences of thatactivity

    o +n the grounds of ;onse1uentialism

    There should be additional measures in those societies to make surethat the gap does not become too great that it becomes morally

    offensive /trong anti*corruption and democracy laws that limit the e3tent to

    which there will be a small cli1ue that controls the society in a waywhich offends peoples values

    Module A

    Ethics of !dvertising

    The .aw1 Cases and +rinci"les

    3hat should be prohibited4

    )raud and 0eceptiono )raud understood as an intention falsehood

    0one for the purpose of making a profito Types of )raud

    Telemarketing scams

    6isleading advertising

    ;ommercial )raud

    -ould the averae consumer misunderstand this ad as presented%

    1s the ad #ein constructed in such a way to #e misunderstood%

    1s this #ein done for profit%

    3hat +inds of things fall under these categories of fraud and deception4

    o 7roduct !uarantees No intention to carry through on durability and 1uality guarantees

    o 6oney back 7romises

    o Testimonials

    "3perts or use of 1uotes to sell productso ;ontests

    #ules of legitimate contest can be complicated and are oftencontested by the average consumer (when it%s unclear it results in alot of litigation-

    o /ales

    There are legal limits for length of sales a sale cannot last for morethan &49 of a year

    ;losing sale ha to be a closing sale

    .rwin Toy 0ecision (&Go .mportant: it starts out in a promising way for advertising

    o The freedom of speech guaranteed in the charter applies not only to political

    e3pression$ but also to advertising$ e,cept when it comes to advertising forchildren

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    o 5hy?

    Law views children as irrational

    0eemed to be more susceptible and less discriminating to their8udgement

    @ni1uely influenced by advertising

    "ntitled to more protection from the tools that advertisers andmarketers are allowed to use on adults

    o -hat 0ind of speech should still #e o0ay for 0ids%

    o Are there certain ways of advertisin to children that you clearly thin0 are

    wron%

    o 5hat things are illegal to advertise to children?

    ;igarettes and alcohol

    )irearms

    !ambling

    7ornography

    7rovincial 2dvertising ;ouncils

    o /elf*regulation on the part of the advertising industry

    o 2ct as ombudspersons who

    #eceive complaints from public

    .f complaints has merit$ they take it up with advertiser

    "-g-

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    The ;ampaigno Nestle advertised e3plicitly that the infant formula was better than breast

    milk for infantso @sed iconography to suggest that breast feeding was primitive

    6odern mothers use formula

    o "ven though they could not get doctors to endorse their claims$ they placepeople in white 8ackets with doctor paraphernalia in their ads

    To people in a mostly illiterate culture$ the capability to make thatdistinction is not readily there

    The ;aseo Lyndon ohnson vs- O&*>G

    The 2.0/ ;risis: @nethical 6arketing Leads to Negligent omicide-

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    o The failure to advertise

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    Not as affluent as you want to be

    Not as se3ually potent

    Not as non*balding

    Not as well*dressed

    "-g- people involved with eating disorders in young girls

    argue that the standards of beauty in our culture$ confirmedby advertising$ leads to an unnatural degree of femalethinness

    o -hat do you thin0 a#out that%

    o 'oes the advertisin community live off human

    unhappiness%

    o 'oes it set impossi#le e(pectations which 0eeps us

    #uyin the product in the attempt to reach the oal%

    =- 2ds contribute to a commercial and non*rational public culture

    Bey part of dumbing down of public discourse for the lastthirty to forty years

    7ublic debate used to be more serious and thoughtful

    Techni1ues of advertisingo TV$ 7olitical parties$ 6aga,ines$

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    2dvertising encouragesQ

    Non*rational decision making

    2c1uisitiveness

    .ndulgence in fantasy

    /uccumbing to deception

    These are not the kinds of character traits that we should becultivating in people

    - 0eontological criticism Bant (

    @niversality Test rules out lying in every instance

    2ct$ assuming that everyone has a veto on your action$ and itis only if no one vetoes that your action is morallypermissible

    o 7ros

    &-

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    7art of common life e3perienceo 0esire for security$ e3citement$ passion $ and

    adventure

    5hat is alternative?o ;ensorship

    o !overnment sponsorshipo 2dvertising pays for many things

    News$ television$ sports programs

    Ethical #nvesting ) read te*t

    :egative vs5 +ositive Screening

    5orld of finance and investments and the capital market are vitally important forthe structure of the entire economy

    o #elevance of ethical investing is two fold

    ow money should be invested

    5hat you should buy

    5hat characteristics$ or criteria should be used

    "thical mutual funds available

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    o There are difficulties in knowing all the details

    o "thical funds

    6arket up M good return on investment

    )urther analysis M vast ma8ority of investments in banks and hightech

    o $ow ethical is it to invest in the #an0s #ecause #an0s ma0e controversialloans to:

    Tobacco companies

    Nuclear industry

    5eaponso But what is wron in investin in a #an0 and #an0 stoc0s%

    2ttractive shares to buy based on return of investment

    They give to charity

    !ive loans to those in need of assistanceo Can one ma0e an overall +udement a#out the effects of a company or

    sectors2 activity that can #e definitively pronounced ethical or not%

    #rvine on the +rinci"les of Ethical #nvesting

    0egree of Bnowledge Necessary to

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    o .rvine says that this is not ob8ectionable

    =- "nablement 7rinciple

    .n making this investment$ am . enabling other to do harm

    .rvine agrees with this principle

    ;hild labour 7ollution

    The 0ifference between primary and secondary marketso /econdary 6arket

    .nvolves the stock market and those who own stock

    ow am . enabling them to do harm if the stock is boughfrom another?

    5here is the connection?o 7rimary market

    ;ompany in initial public offering first decides to issue its stocks