Consequentialism, as its name suggests, is the view that normative properties depend only on consequences. This general approach can be applied at different levels to different normative properties of different kinds of things, but the most prominent example is consequentialism about the moral rightness of acts, which holds that whether an act is morally right depends only on the consequences of that act or of something related to that act, such as the motive behind the act or a general rule requiring acts of the same kind.
Utilitarianism is a theory in normative ethics holding that the proper course of action is the one that maximizes utility, usually defined as maximizing total benefit and reducing …show more content…
suffering or the negatives.
It also makes classic utilitarianism subject to attack from many angles.
Persistent opponents posed plenty of problems for classic utilitarianism. Each objection led some utilitarians to give up some of the original claims of classic utilitarianism. By dropping one or more of those claims, descendants of utilitarianism can construct a wide variety of moral theories. Advocates of these theories often call them consequentialism rather than utilitarianism so that their theories will not be subject to refutation by association with the classic utilitarian theory.
Corporate social responsibility (CSR)
Corporate social responsibility (CSR), also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance, is a form of corporate self-regulation integrated into a business model.
Milton Friedman and others have argued that a corporation 's purpose is to maximize returns to its shareholders, and that since only people can have social responsibilities, corporations are only responsible to their shareholders and not to society as a whole. They assert that corporations have no other obligation to society. (Freeman, …show more content…
1984)
Corporate social responsibility (CSR) essentially requires companies to conduct business beyond compliance with the law and beyond shareholder wealth maximization. It suggests that companies should do more than they are obligated under applicable laws governing product safety, environmental protection, labor rights, human rights, community development, corruption, and so on; it also suggests that companies should consider not only the interests of shareholders but also those of other stakeholders (e.g., employees, consumers, suppliers, and local communities). CSR requires companies to provide not only the quantity of goods, services, and employment but also the quality of life for those whose interests are affected by corporate activities. (Carroll, 2008)
Facing the challenge, in order to protect and expand the market, on one hand improve the Sanlu milk purchase cost, on the other hand, through the continuous low prices, unfair competition and reduce the product quality. At the same time, Sanlu Company launched the infant formula milk powder or occupation of the rural market, adding excipient, is as high as 40%. If the production in accordance with national quality standards enterprises not only profits, but also serious losses. Vicious competition led to price higher than the cost, one of the value and price inversion phenomenon is the direct cause of "Sanlu milk powder" incident. (Wu, 2007)
Rethink of Corporate Social Responsibility by Sanlu Milk Incident
Ethic problems in Sanlu Incident have the following aspects:
(1) Ethic relationship between the enterprise and the government;
(2) Ethic relationship between the enterprise and the competitors;
(3) Ethic relationship between the enterprise and the consumers;
(4) Ethic relationship among the enterprise, consumers, and government.
The analysis is made step by step as follows:
(1) Undoubtedly, one the one hand, any enterprise shall comply with the laws. This is also the most basic ethic relationship between the enterprise and the government. However, Sanlu Group obviously violated this most basic rule, and arbitrarily used excessive melamine in the national inspection-free products, which damaged the consumers’ benefit. On the other hand, the country is entitled and obliged to monitor whether the enterprise’s business behavior is legal and reasonable. Or else, the quality inspection department is just a signboard, which is the meaning of the government’s existence? (Lou, 2003)
(2) Sanlu Group had many competitors in China. After China joined WTO, Sanlu faced the competition with various foreign companies. Thus, Sanlu made all efforts to occupy Chinese rural market by the cheap price to avoid the loss of initiative in the fierce market competition. (Cui, 2009)
(3) The problem of trust between the enterprise and the consumers is the most critical. Enterprise integrity is the foundation for the enterprise’s existence in the society, and is critical for the successful operation. However, Sanlu obviously violated the basic integrity rule and greatly damaged consumers’ benefit by deceiving consumers. Therefore, when its ugly behaviors were exposed, Sanlu must face the criticism of the social public opinions and the loss of various followers in the market.
(4) When the enterprise, the government, and the consumers are placed in the same platform, we can see that Chinese government and enterprise neglect the critical consumers’ benefit in certain degree to achieve the constant GDP growth. This is a very terrible vicious circle. (Liao, 2008)
Cost–benefit analysis theory
Cost–benefit analysis is often used by governments and other organizations, such as private sector businesses, to appraise the desirability of a given policy. It is an analysis of the expected balance of benefits and costs, including an account of foregone alternatives and the status quo. CSR helps predict whether the benefits of a policy outweigh its costs, and by how much relative to other alternatives (i.e. one can rank alternate policies in terms of the cost–benefit ratio). (Cellini and Kee)
Cost-benefit analysis using rule/qualitative/ordinal utilitarianism
Sanlu 's shareholders are mainly concerned with the Sanlu milk powder profit growth. In the enterprise, the shareholder first focus on profitable growth. Under the pressure of competition, prices are down; Sanlu was to complete the competition. Check need milk protein content in milk. Add three chlorine cyanotypes can increase the protein content. Melamine is a chemical raw material, low cost, and can ensure the protein content. Melamine can create more profits for the enterprise; melamine mixing are hard to be found. Therefore, the shareholder support adulterated melamine to increase short-term profits.
Compared with safety problems, and the mortality of Sanlu, the interest is more important, they are willing to spend some money to compensate victims, because pay few. As long as good control of Sanlu melamine best combination of volume and mortality on it. This approach had to worry about us, the morality of the enterprise to go there, our security to go there.
The ethics of Sanlu 's strategy
In fact, the relationship between the ethical problems in the powdered milk event together are as follows: (1) the ethical relationship between business and government; (2) the ethical relationship between competing commercial enterprises; (3) the ethical relationship between commercial enterprises and consumers; (4) the ethical relationship between commercial enterprises, consumers and the government.
We carry on the analysis of the following:
(1) There is no doubt that, on the one hand, any enterprise should be legitimate business, the most basic ethical relationship which is between the enterprises and government. Sanlu Group is clearly contrary to the basic standards, melamine is the poisonous articles prohibited by the state, but Sanlu by the national inspection free products banner, and do what one wishes without restraint, the use of excess melamine, so that harm the interests of consumers. On the other hand, countries have the rights and obligations of commercial behavior supervision enterprises are legitimate and reasonable, otherwise the establishment of quality supervision department is just a pretext. What is the significance of the existence of the government.
(2) the Sanlu at home this there are many competing enterprises, since the Chinese after joining the WTO, foreign companies are faced with the competition, therefore, it try various devices to a low price to occupy the Chinese most broad market, rural market, to avoid the loss of the initiative in the fierce market in the competition, while the low price to obtain, the answer is self-evident.
(3) There is a question of trust between enterprises and consumers, this is the most critical problem. The integrity of the enterprise is essential to its foothold in the community, but also the key to the success of an enterprise. But in this case, the Sanlu Group is clearly contrary to the honor code, basic to deceive consumers, the gorgeous advertising, celebrity effect, to induce consumers to buy their products, greatly damaged the interests of consumers, therefore, when the exposure the ugly behavior, the necessary of public opinion is the pen to punish mouth cutting and large wholesale market audience loss.
(4) When the enterprise, government, consumers three is placed in the same platform, we can see China government and business in some way in order to realize the GDP annual growth, neglect the core interests of consumers, for which ignore. This is a vicious spiral
terrible.
Such a socialist market economic system of the country, let the people to believe in social justice exists?
Stakeholder theory
Stakeholder theory is a theory of organizational management and business ethics that addresses morals and values in managing an organization. It was originally detailed by R. Edward Freeman in the book Strategic Management: A Stakeholder Approach, and identifies and models the groups which are stakeholders of a corporation, and both describe and recommends methods by which management can give due regard to the interests of those groups. In short, it attempts to address the ‘Principle of Who or What Really Counts.’ (Freeman, 1984)
In the traditional view of the firm, the shareholder view, the shareholders or stockholders are the owners of the company, and the firm has a binding fiduciary duty to put their needs first, to increase value for them. Stakeholder theory argues that there are other parties involved, including employees, customers, suppliers, financiers, communities, governmental bodies, political groups, trade associations, and trade unions. Even competitors are sometimes counted as stakeholders - their status being derived from their capacity to affect the firm and its stakeholders. The nature of what is a stakeholder is highly contested. (Miles, 2012)
company
Internal Stakeholders external Stakeholders
Employees ,Manager ,owners
Suppliers, society, government, creditors, shareholders, customers
Stakeholders
Stakeholder 's concerns (Pearson,2005)
Government
Taxation, VAT, legislation, employment, truthful reporting, diversity, legalities, externalities.
Employees
Rates of pay, job security, compensation, respect, truthful communication.
Customers
Value, quality, customer care, ethical products.
Suppliers
Providers of products and services used in the end product for the customer, equitable business opportunities.
Creditors
Credit score, new contracts, liquidity.
Community
Jobs, involvement, environmental protection, shares, truthful communication.
Trade Unions quality, worker protection, jobs.
Owner(s)
Profitability, longevity, market share, market standing, succession planning, raising capital, growth, social goals.
Investors
Return on investment, income.
Introduction and discussion on the non-consequentialism
Recently, several outstanding discussions of the structure of non-consequentialism have appeared. Two of these are Shelly Kagan 's The Limits of Morality and a pair of articles by Warren Quinn, "Actions, Intentions, and Consequences: the Doctrine of Doing and Allowing" and "Actions, Intentions, and Consequences: the Doctrine of Double Effect." I would like to examine several related issues discussed by these authors. Another outstanding work to which I will refer in this article, but not discuss at great length, is Judith Jarvis Thomson 's The Realm of Rights. The general topic with which I shall be concerned is the structure of a non-consequentialist moral theory. Non-consequentialism has two important features. In a non-consequentialist moral theory, (1) there is a permission not to maximize overall best consequences (this is sometimes referred to as an option), and (2) there are constraints on promoting overall best consequences (for example, we must not kill one innocent, non-threatening person for his organs to save five others).
Virtue theory and its application within Sanlu Milk case
Enterprise morality responsibility by enterprises voluntarily and by other means of national compulsory force other than as the performance guarantee, is the enterprise must fulfill their social responsibility. The domestic dairy industry into a crisis of confidence in the "Sanlu milk powder" incident is not accidental, is part of the enterprise for a long time the moral responsibility consciousness caused by. Therefore, enterprises in the production and business activities, in addition to strictly abide by the laws and regulations, it is also necessary to strengthen staff training, reward and behavior restraint, enhance their ability to consciously fulfill the moral responsibility. The government should regulate the system of corporate moral responsibility, moral responsibility of enterprise performance evaluation and supervision. In addition to public opinion supervision of corporate moral responsibility. We have reason to believe, will be the full realization of corporate moral responsibility, the domestic dairy industry will turn crisis into opportunity, reshape the image of the industry, to win the trust of consumers.
What would you recommend to Chinese milk industry
Sanlu Group is so well-known manufacturers to provide consumers with such a poor quality product so that the whole community can not help but panic. From this we can see that China 's food safety regulatory system still has many loopholes , resulting in China 's food safety industry confusion.
1. Strengthening food safety legislation
In the Sanlu milk powder incident spawned, the Standing Committee of the Seventh Session of the Eleventh National People 's Congress passed the " People 's Republic of China Food Safety Law" February 28, 2009, by the law of food safety risk monitoring and assessment food safety standards, food production, food inspection, food safety incident handling, supervision and management provides a legal guarantee, regulate the behavior of food manufacturers and food markets, providing a legal basis for dealing with food safety incidents, strengthening the external environment food from production to market all aspects of supervision and management.
2. Strengthening corporate social responsibility and integrity education
"Good faith" really said is true. Do not ignore the corporate culture simply must, from concept, to hold a full range of mechanisms and behavioral integrity, conscience bottom line, otherwise humanity will surely be tortured, consumers have been cast aside. A strong sense of social responsibility to enhance self-discipline behavior.
3. Strengthen enterprise quality supervision to prevent substandard food production .
Sanlu enterprises are able to produce it, the lack of perfect quality supervision from milk to various aspects of the end product. In the choice of milk, have a clear quantitative standards, have reliable detection technology, open and transparent testing procedures, testing information, accountability and other issues. In production processes, strengthening quality management, equipment testing, sample testing, standardization of operating procedures, accountability issues investigated. In the part of the end product, to strengthen the sampling and testing.
4. Multi-sectoral coordination to strengthen food safety management to prevent substandard food into the market.
Sanlu milk can circulate in the market can not be excluded with the relevant administrative departments of the "absence" related. Food and drug supervision, industry and commerce, health form, inspection and quarantine departments in food safety management should have coordination mechanisms to prevent the production and circulation of substandard food.
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