Chapter 3: Ethics in Business

Question 1

Ethics

Answer 1

Study of what constitutes right / wrong behavior.

Question 2

Business Ethics

Answer 2

How business persons apply moral principles to their decisions.

Question 3

Moral minimum

Answer 3

Compliance w/ the law.

Acting at the lowest possible ehtical level.

Question 4

Business persons must remember, an action that is ____________ is not necessarily ______________.

Answer 4

legal; ethical

Question 5

Triple-Bottom Line

Answer 5

1) Corporation’s Profits.
2) Its impact on people.
3) Its impact on the planet.

Question 6

People grew tired of the Profit Maximization Theory of _______________, and thought ____________ and moral virte of corporations should also be taken into account, beyond their financial returns. _______________ have now been ranked based on their ______________ impact and ___________ decisions

Answer 6

businesses; ethical; Businesses; environmental; ethical

Question 7

ethical reasoning

Answer 7

applying moral conviction & ethical standards

Question 8

Duty-based Ethics

Answer 8

people / businesses has duty to others, (i.e. humans and planet).

Question 9

Outcome-based Ethics

Answer 9

What would be the ethical thing to do given consequences / outcome an action?

Question 10

Principle of Rights

Answer 10

Belief that humans have fundamental rights

(i.e. life, liberty, pursuit of happiness)

Question 11

Categorical Imperative

Answer 11

Everyone should think about their actions in light of what would happen if everyone acted the same way.

Question 12

Utilitarianism

Answer 12

A good action is one that results in the “greatest good, for the greatest number” of people.

Question 13

The utilitarian approach says, an action is __________ when it produecs the _______________ amount of good (the ___________ harm). However, an action that produces a greater amount of harm among the majority is ________.

Answer 13

good; greatest; least; bad.

Question 14

Cost Benefit analysis

Answer 14

assessment of positive and negative effects of alternative in specific set of individuals.

Question 15

Corporate Social Responsibility (CSR)

Answer 15

Corporations should act ethically and be accountable to society for their actions.

Question 16

Stakeholders are a ________________ of people affected by a ________________’s decisions. These people include ______________, _____________, ______________, ______________, and _____________ wherein the business operates.

Answer 16

group; business’s; employees; customers; creditors; suppliers; residents

Question 17

Outsourcing

Answer 17

Process of hiring outside firm or individual to perform work, instead of hiring employees to do it.