Chapter 5

Question 1

business ethics

Answer 1

Ethics in a business context; a consensus of what constitutes right or wrong behavior in the world of business and the application of moral principles to situations that arise in a business setting.

Question 2

categorical imperative

Answer 2

A concept developed by the philosopher Immanuel Kant as an ethical guideline for behavior. In deciding whether an action is right or wrong, or desirable or undesirable, a person should evaluate the action in terms of what would happen if everybody else in the same situation, or category, acted the same way.

Question 3

corporate social responsibility

Answer 3

The concept that corporations can and should act ethically and be accountable to society for their actions.

Question 4

cost-benefit analysis

Answer 4

A decision-making technique that involves weighing the costs of a given action against the benefits of the action.

Question 5

ethical reasoning

Answer 5

A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand.

Question 6

ethics

Answer 6

Moral principles and values applied to social behavior.

Question 7

moral minimum

Answer 7

The minimum degree of ethical behavior expected of a business firm, which is usually defined as compliance with the law.

Question 8

principle of rights

Answer 8

The principle that human beings have certain fundamental rights (to life, freedom, and the pursuit of happiness, for example). Those who adhere to this rights theory believe that a key factor in determining whether a business decision is ethical is how that decision affects the rights of others. These others include the firm’s owners, its employees, the consumers of its products or services, its suppliers, the community in which it does business, and society as a whole.

Question 9

utilitarianism

Answer 9

An approach to ethical reasoning in which ethically correct behavior is not related to any absolute ethical or moral values but to an evaluation of the consequences of a given action on those who will be affected by it. In utilitarian reasoning, a good decision is one that results in the greatest good for the greatest number of people affected by the decision.