Prefi Flashcards
(51 cards)
What are some ethical issues in consumer relations?
Issues related to honesty, safety, fairness, and transparency in business dealings with consumers.
What’s the difference between customer and consumer?
A customer purchases a product or service but might not be the end user; a consumer is always the end user but might not have purchased it.
When does a customer become a consumer?
When they purchase and use the product or service themselves.
What are the four approaches related to business firms’ duties to consumers?
- Market Approach 2. Contractual Theory 3. Due Care Theory 4. Social Cost Theory
What does the Market Approach to Consumer Protection claim?
Safety is a commodity provided through the market, not mandated by the government.
According to the Market Approach, how is safety determined?
By the costs of providing it and the value consumers place on it.
What does government intervention in consumer markets cause, according to the Market Approach?
Makes markets unfair, inefficient, and coercive.
What are the four main moral duties of businesses under the Contractual Theory?
- Comply with sales contract 2. Disclose nature of product 3. Avoid misrepresentation 4. Avoid duress and undue influence
According to the Due Care Theory, what is a manufacturer’s duty?
Deliver a product and exercise due care to prevent injury, even with disclaimers.
What are problems with Due Care Theory?
Does not limit producer expenses, does not address unforeseen injuries, makes producers paternalistic.
What does the Theory of Social Cost state?
Firms should pay for any injuries from product usage, even if unforeseen.
What is strict liability under the Theory of Social Cost?
Manufacturers must pay costs related to product design defects causing harm.
Why is marketing to children an ethical issue?
Children are vulnerable, easily persuaded, and can be exploited or manipulated by advertisers.
Why is the government considered a stakeholder of businesses?
Because it influences business activities in various ways.
What is bribery?
Offering, giving, receiving, or soliciting something of value to influence an official’s actions.
Is bribery a voluntary act?
Yes, both parties have mutual interest.
What is extortion?
Coercing someone to give up money, goods, or services through threats, intimidation, or force.
What differentiates extortion from bribery?
Extortion uses pressure or threats, unlike bribery which is mutual.
What are some ethical issues in relation to the natural environment?
Environmental crisis, interconnectedness, consumerism critique, social justice, call to action, spirituality and ecology, global dialogue, hope and renewal.
What environmental crises are addressed in Laudato Si’?
Climate change, pollution, and biodiversity loss.
What is emphasized about interconnectedness in Laudato Si’?
Harm to nature ultimately harms humanity.
What culture does Pope Francis critique in Laudato Si’?
The throwaway culture and excessive consumerism.
How does Laudato Si’ link social justice and environmental issues?
Environmental crises disproportionately affect the poor and marginalized.
What call to action does Laudato Si’ promote?
Individual, community, and systemic change for environmental protection.
