Etical Principles

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Business Ethics: Concepts & Cases: Chapter 2 Outline

Ethical Principles in Business

Introduction

Background

Apartheid

system of racial segregation & oppression

designed to maintain

the total subjugation of the black majority (80%)

and the supremacy of the white minority (20%)

Caltex, a jointly owned subsidiary of Texaco & Standard Oil

maintained extensive & growing refinery operations in South Africa

which greatly benefited the South African

economy: which relied on oil for 25% of its energy needs

& government

S.A. law required refineries to set aside some of their oil for the government

and profited from stiff corporate taxes on Caltex (& other corporations)

The Issue Raised: Should Caltex break off relations with the S.A. Government & even leave S.A. altogether?

PRO:

By continuing & even expanding operations in S.A. Caltex gives aid & support to the government and its oppressive system of apartheid.

Caltex has a moral duty to discontinue its S.A. operations

to cease activities that helped the regime with its unjust & repressive policy of apartheid

to bring pressure on the government to eliminate apartheid

CON:

The continued operation of Caltex brings income to both blacks and whites

If the company ceased operations the hardship & economic losses would be borne mainly by the companies black employees who would lose their jobs

The company has a responsibility for the well being of its black workers.

As an example of a moral debate: Considerations appealed to

considerations of justice: apartheid unfairly apportions burdens to blacks & benefits to whites

considerations of rights: black South African's rights to freedom & well-being were not being respected.

considerations of benefit or utility: Caltex's operation confers economic & other social benefits...