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Flashcards in Ch 2 Deck (38)
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4 sources of ethical values?

1 Legal regulation
2 professional codes of ethics
3 codes of ethics from business organizations
4 individual values

1

Property reflects moral values concerning the...

Allocation of resources among people

2

Ethics and the business cycle

When times are tough ethics improve

When businesses thrive and regulatory intervention remains
At status quo, ethics erode

3

Ethics and government

Business leaders promote business ethics to prevent the
Likelihood of additional government regulation

4

Internet and media: ethics

Exposé ethics more visibly than in any other time period

5

Economic interdependence

People are no longer self sufficient they depend on the market
Place

6

Public education and family values

Have declined as public school funding has declined and
Parents have less time to spend with children b/c work

7

Morality

Collection of values that guides human behavior

8

Shared moral values lead to...

Trust, cooperation and social harmony

9

Ethics

Systematic statement of right and wrong

Also a Philosophical system that justifies and necessitates
rules of conduct

10

Difference btw law and ethics

Legal system is an institution of the state, which enforces
Legal rules (civil + criminal sanctions, monetary damages etc.)

Ethical values aren't always enforced by the state

11

Formalism

Approach to ethics that affirms an absolute morality

A particular act is in itself right or wrong in every situation

Have duty or moral obligation not to lie

12

Categorical imperative

You have moral duty to act in way you believe everyone
Should act

13

Social contract theory, what does it concern itself with?

Concerns itself with how to construct a just society given
The many inequalities of wealth, knowledge and social status

14

Social contract theory, how is it implemented and why?

We should assume that we don't know our age, gender,
Wealth, race, intelligence, strength or social status

Vital b/c it keeps us from being self interested in values
We consider

15

Rawl's "veil of ignorance" means to...

To Think ethically you must lose the assumption that what
You personally need or want it necessarily morally correct

16

Social contract: rawls 1st ethical principle

Everyone is entitled to basic equal rights including liberty,
Freedom of association and personal security

17

Social contract Rawls 2nd ethical principle: although there might be social and economic inequalities...

These inequalities must be based on what a person does,

Not on who a person is, everyone must have an equal
opportunity for achievement (equal starting place)

18

Consequentialism,define, example

Concerns itself with moral consequences of actions rather
Than with morality of actions themselves

Lying itself is not unethical, it's the end result that should be
Evaluated, harm or loss of trust done by lying is unethical

19

Dominant form of consequentialism: Utalitarianism

Judges actions by usefulness, by whether they serve to
Increase the common good

20

Research shows that the best performing companies are led by...

Those who can promote moral principles throughout their organization

21

Protestant ethic

Human desire and indulgence should be bent to god's will
Through self denial, rational planning and productivity

A formalist approach: honesty and keeping promises were
Intrinsically good

22

Protestant ethic vs. capitalism

Protestant ethic eroded under capitalism with rising wealth

Supports bureaucratic managerial system

The part of Protestant ethic that supported hard work,
Success and rational planning continued without
Original absolute moral values

23

5 major ethical rules drawn form law

1 respect for liberty and rights of others
2 importance of acting in good faith
3 importance of exercising due care
4 importance of honoring confidentiality
5 avoidance of conflicts of interest

24

Law: liberty and rights

Legislation protects privacy, equal opportunity employment,
Guaranteed freedom of expression and due process of law

25

Law: good faith

Good faith is demonstrate in economic transactions

All sales must be made with honesty and intent

26

Due care AKA Due diligence

Derives from society's expectations about how fair and reasonable actions are

Promotes common good

27

Negligence cases, balancing test

Balancing test- likelihood that defendants conduct causes
Harmful consequences

Negligence cases use the balancing test

28

Confidentiality

It is malpractice for a professional agent to tell others
What a client told them in confidence

29

Conflict of interest

Occurs when person secretly serves 2 masters

Ex 2 When a judge owns stock in a company he makes a
decision on in a court case

30

Self regulation

Ethical codes that exist within industries And corporations

Aren't enforced by the state, but by the professional
Organization in the industry

31

Individual values: self assessment 5 questions?

1 have I thought whether the action I will take is right or wrong?
2 will I be proud to tell my family, employer, media about
This action?
3 am I willing for everyone to act as I'm thinking of acting?
4 will my decision cause harm to others or the environment?
5 will my actions violate the law?

32

Major obstacle for corporations ethics

Emphasis on profits

33

Top management and ethics

Top management must follow the code Of ethics as they
Are role models for employees throughout corporation

34

Openness in communication

Promotes trust

Important to have a willingness to openly talk about Issues
for employees throughout corporation to make ethical decision

35

Stakeholders

Interests of many different groups in society

They have something at risk when the company acts and
Thus have a stake in it

36

Stakeholder theory

Holds that ethical corporate behavior requires that directors
And managers take into account everyone whose interests
The corporation impacts called stakeholders

37

Capitalists

Owners who control large productive resources and
Employ others