Lecture 10 - Ethics

Question 1

Mention 2 reasons why ethics matter

Answer 1

1. Not always a business case (short run)
2. Gaps between laws and ethics

Question 2

Mention 3 normative ethical theories

Answer 2

1. Utilitarianism
2. Ethics of duty - Kant
3. Virtue ethics

Question 3

Mentions 2 criticism of utilitarianism

Answer 3

1) Difficult to measure happiness and pain
2) Neglects the role of minorities or people that deserve special recognition

Question 4

Mention the 2 aspects of Kant’s Categorical Imperative and 1 criticism

Answer 4

1. Universalize your maxim
2. Treat people as ends

*Assumes we do not reason based on our own interests, desires or preferences as there are not moral principles

Question 5

Mention the 2 categories of descriptive theories and 3 theories

Answer 5

1. Individual factors
   -Individual moral development
2. Situational factors
   -Issue-related
   -Context-related

Question 6

Descriptive - individual factors
Mention and describe the 3 levels of Kohlberg’s stages of cognitive moral development

Answer 6

1. Pre-conventional
   -Concern with self-interest and external rewards
2. Conventional
   -Individual does what is expected of others
3. Post-conventional
   -Individuals develops autonomous decision-making

Question 7

Mention 2 issue-related and 5 context-related situational factors that influence ethical decision-making

Answer 7

Issue-related
- Moral intensity
- Moral framing

Context-related
-Reward systems
-Authority
-Structure
-Culture
-National culture

Question 8

Mention 3 reasons why good people can make bad decisions and 3 potential explanations for each

Answer 8

1. Moral resistance: influenced by decision biases:
   -Overconfidence
   -Groupthink
   -Optimism bias
2. Moral muteness
   -Threat to harmony
   -Threat to efficiency
   -Threat to power
3. Ethical blindness
   -Cognitive overload
   -Social proof
   -Bias

Question 9

What does virtue ethics ask you about and how can it be translated to the corporate context?

Answer 9

1. What kind of person should I be
2. Compliance vs. integrety

Question 10

Which 3 factors can help build integrity in a corporate context?

Answer 10

1. Address ethics openly
2. Reward systems
3. Hiring practices