What do corporate social responsibility, globalisation and whistleblowing demand of business, and how do Friedman's shareholder view and the ethical theories answer?
Component 02 Applied ethics (business ethics): corporate social responsibility, globalisation and whistleblowing, Friedman's shareholder view, and the application of Kantian ethics and utilitarianism to business.
An OCR A-Level Religious Studies Component 02 guide to business ethics. Covers corporate social responsibility, globalisation and whistleblowing, Friedman's view that the social responsibility of business is to increase profits, the stakeholder alternative, and how Kantian ethics and utilitarianism apply to business, with the AO2 evaluation the exam rewards.
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What this dot point is asking
OCR Component 02 requires you to apply the normative theories to business ethics, its second named applied issue. The specification picks out three areas, corporate social responsibility (CSR), globalisation and whistleblowing, and names Friedman. The central debate is whose interests a business serves: only its shareholders (Friedman), or a wider set of stakeholders? You must show how Kantian ethics and utilitarianism apply. The exam rewards explaining the issues and Friedman precisely and then evaluating the competing views.
The answer
Corporate social responsibility and globalisation
Whistleblowing
Friedman: the shareholder view
The ethical theories applied
Examples in context
Try this
Q1. "Kantian ethics offers the best approach to business ethics." Discuss. [40 marks]
- What the marker wants. An AO2 essay weighing Kant (dignity, no exploitation, universalisable maxims) against utilitarianism (welfare, flexibility) and Friedman's shareholder view, judging which best guides CSR, globalisation and whistleblowing. AO1 out of 25, AO2 out of 15.
Q2. Assess whether globalisation has made ethical business behaviour harder to achieve. [40 marks]
- Cue. Globalisation spreads wealth but enables low-wage labour, environmental harm and multinational power beyond national control. Weigh the gains against the new harms and judge using the theories.
Exam-style practice questions
Practice questions written in the style of OCR exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
OCR H573/02 2018 (style)20 marksAssess whether the only responsibility of a business is to make a profit. (The full OCR tariff for this essay is 40 marks; the worked answer below is scaled to a 20-mark exemplar.)Show worked answer →
A 40-mark Component 02 essay on the six-level scheme (AO1 out of 25, AO2 out of 15). Explaining the positions earns AO1; the higher levels reward judging the claim.
Explain (AO1). Friedman argues the social responsibility of business is to increase its profits within the rules of the game (law and ethical custom); managers are agents of shareholders and should not spend their money on social causes. The stakeholder view replies that a business owes duties to employees, customers, suppliers, communities and the environment, not only shareholders.
Evaluate (AO2). For Friedman: profit drives efficiency and wealth, and unelected managers should not impose social agendas. Against: pure profit-seeking can harm stakeholders and the environment, and Kant forbids treating workers merely as means; CSR can also serve long-term profit.
Judge. A top answer decides whether profit is the sole responsibility or one duty among several, and defends the verdict.
OCR H573/02 2021 (style)20 marksCritically assess the view that whistleblowing is always the right thing to do. (The full OCR tariff for this essay is 40 marks; the worked answer below is scaled to a 20-mark exemplar.)Show worked answer →
A levels-of-response essay testing AO1 understanding of whistleblowing and AO2 evaluation of it.
Explain. Whistleblowing is exposing wrongdoing within an organisation. It pits loyalty to the employer against duties to the public and to truth. Kant would test whether concealing wrongdoing could be universalised and whether silence treats the public merely as a means; utilitarianism weighs the harm prevented against the costs to the firm and the whistleblower.
Evaluate. For: it protects the public and upholds honesty. Against: it can breach confidentiality and loyalty, damage innocent colleagues, and may be motivated by malice or be mistaken; the harm caused can outweigh the harm exposed.
Judge. A high-level answer weighs whether whistleblowing is a duty, a permission or sometimes wrong, and reaches a justified conclusion.
Related dot points
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Sources & how we know this
- OCR A Level Religious Studies (H573) specification — OCR (2016)
- Milton Friedman, The Social Responsibility of Business Is to Increase Its Profits (The New York Times Magazine) — The New York Times (1970)