BAHRIA UNIVERSITY (KARACHI CAMPUS)

Midterm Assessment Assignment Spring 2020

Course Title: Business Ethics Course Code: SOC 350
Class: BBA 4 G & H Course Instructor: Zeeshan Ali
Submission: Latest by 31 May 2020 Max Marks: 15
Student’s Name: _Ali Bin Noor___________________ Reg. No: _________

Assignment Guidelines by the Teacher

 Assignment Submission: Computer Typed

Q1.A student incorrectly defined utilitarianism this way: “Utilitarianism is the view that so long
as an action provides me with more measurable economic benefits than costs, the action is
morally right.” Identify all of the mistakes contained in this definition of utilitarianism.
Q2.Contrast the views of Locke, Marx, Smith, Keynes, and Spencer on the nature and proper
functions of government and on its relationship to business. Which views seem to you to
provide the most adequate analysis of contemporary relations between business and
government? Explain your answer fully.
Q3.“There is a chance that ethics of care can degenerate into corruption”. Please discuss
keeping in view the practices in third world countries like Pakistan. You are encouraged to
share local examples.
Q4. “Ethics has no place in business.” Discuss this statement.
Q5. While in the restroom, you overhear your boss telling a colleague that Bob is going to be laid
off at the end of the quarter in about two weeks’ time. Bob is a good friend of yours. Do you
tell him? Explain your answer in the light of a theory of ethics.

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Question 1:

Utilitarianism is a part of ethical theory that distinguishes the right things from the incorrect
things by focusing on the consequences of one’s action. It does not focus on the interests of a
particular person but takes the interests of the whole group into consideration. So the choice that
brings the most benefits will be selected according to this theory.

There are several things wrong with the statement mentioned above in the question, the first this
is that as I mentioned above in the first paragraph that the concept of utilitarianism focuses on
the interests of the whole group rather than a single person as there was “me” mentioned in the
statement which is incorrect and it should be us as the considerations of the whole group is taken
into account.

Secondly, utilitarianism does not promote personal benefits. It focuses on the benefits of the
whole group and every decision and choice should be taken keeping that view in mind. Student
is focusing solely on the benefit he is getting that is wrong in this statement. Everyone’s benefit
should be considered. Lastly, the student is focusing on economic benefit that is not a part of the
theory and not realizes the greater good.

Question 2:

The second question focuses on the views of Locke, Marx, Smith, Keynes and Spencer in
relationship to the business and proper functions of the government.

Locke stated that all the people living in this world are free and are equal to each other. Every
human being on this planet has equal rights and is free to do whatever he wants and can select
any profession he wants to. He also stated that that Governments have made the lives, liberty and
property of people unsafe and all of the of the people should unite and overthrow the government
to keep their lives, liberty and property safe and secure. There were some flaws in this theory
that free markets can be unfair and could treat people with inequality who can’t afford the goods.
The second flaw is that all of the rights mentioned above are natural rights given to a human
when he is born into this world, Locke does not assume this but insists on it. He thinks that the if
the government is unstable, it should be taken over.

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On the other side, Marx is someone who believed that the capitalism isolated and alienated the
workers when they do not have the control of their own lives can’t complete their needs. He was
against capitalism and believed that everyone should have control of their lives and should not
succumb to alienation as it destroyed their relationship with others and themselves. In terms of
Private property, Marx believed that the concept of owning a private property was absurd instead
of one person owning it, everyone should have a share in it. Marx was strictly against the social
groups created by the society as they were doing things that were only benefitting them. His
solution was to have a society that was free of these social groups. Adam Smith believed in the
ideology where he said that everyone will succeed if countries are able to produce goods at a
lower cost than the other countries. It was a labor focused theory and the one that emphasized
more on the cost of production. He believed that everyone will benefit if we all produce and
export goods. Market competition was something that all consumers will benefit from and was
essential for the society as stated by Adam smith is a correct statement but Governments
involvement in the market can cause problems sometimes leading to shortages. In view of
private ownership, he believed that it was better to own privately as it lead to more attention by
the owner as compared to the public ownership. Herbert Spencer was also a firm believer of the
Market Competition as he believed that competition was essential for the improvement of the
human race. Government intervention in the market was also considered as something wrong
because due to the government’s involvement, the people who are unequipped will survive.
Spencer assumed that people who survive tend to better than those who do not.

Keynes assumed that increasing the demand can boost the growth the economy if the
governments are willing to do so. He urged that the Governments should spend more in order to
have strong economy. His theory soon got challenged when high inflation struck leading to high
unemployment causing problems in the economy. Keynes argued that spending is the only way
to maintain full employment but that was incorrect. All his policies increased inflation.

In my opinion, Adam smith’s theory provides the most adequate analysis of contemporary
relationship between business and the government due to the fact that he believed in the theory
that a country can prosper if the produce the goods that they have specialized in. He was also a
firm believer in ownership of private property which is better than public ownership.
Competition is essential for the public as it promotes the welfare of the consumer as said by
Adam smith which is true.

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Question 3:

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