Business Ethics Chapter 1 Quiz: Ethics and Morality

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

How do moral standards differ from legal standards in business?

Moral standards are not established or changed by legislative bodies, whereas legal standards are enforced by law.

What are the two primary components of moral standards in business ethics?

Moral norms and moral values

What is the primary focus of ethics in business?

Examining one's moral standards or the moral standards of a society.

What is the significance of impartial considerations in moral standards?

It means evaluating standards from a universal standpoint, where everyone's interests are counted as equal, beyond personal interests. Signup and view all the answers

What is the role of emotions in moral standards in business?

Moral standards are associated with special emotions. Signup and view all the answers

What is the relationship between self-interest and moral standards in business?

Moral standards should be preferred to other values, including self-interest. Signup and view all the answers

What is the moral obligation of citizens with regard to obeying the law?

Citizens have a moral obligation to obey the law as long as it does not require clearly unjust behavior. Signup and view all the answers

Why should ethics be brought into business activities?

Because ethics should govern all voluntary human activities, and business is a voluntary human activity, ethics should also govern business. Signup and view all the answers

What is the best outcome in a prisoner's dilemma?

The best outcome is for both parties to cooperate in their agreement. Signup and view all the answers

What is the relationship between ethical considerations and business pursuits?

Ethical considerations are consistent with business pursuits, including the pursuit of profit. Signup and view all the answers

What is the primary concern of rational self-interest in a prisoner's dilemma?

Rational self-interest suggests that people should not cooperate in keeping the rules or agreements. Signup and view all the answers

What is the primary issue with the loyal agent argument according to the text?

The loyal agent argument relies on several questionable assumptions, including unproved moral standards, unlimited duties to serve the employer, and the assumption that an agreement to serve a firm justifies any actions taken on its behalf. Signup and view all the answers

What is the role of minimal standards of ethics in business activities?

Business activities cannot exist unless the people involved in the business and its surrounding community adhere to some minimal standards of ethics. Signup and view all the answers

What is the relevance of the law of agency to the loyal agent argument?

The law of agency states that business or professional ethics must be considered in determining whether a manager's actions are reasonable, and an agent is not obligated to perform illegal or unethical acts. Signup and view all the answers

What is the limitation of the argument that obeying the law is sufficient for business ethics?

The law and ethics are not identical, and simply obeying the law does not guarantee ethical behavior. Signup and view all the answers

What is the role of moral standards in the loyal agent argument?

The loyal agent argument relies on assumed but unproved moral standards to justify a manager's actions. Signup and view all the answers

What is the implication of the loyal agent argument for corporate social responsibility?

The loyal agent argument suggests that a manager's primary duty is to serve the employer's self-interest, which may lead to a neglect of corporate social responsibility. Signup and view all the answers

How does the text relate to ethical decision-making in business?

The text highlights the importance of considering ethical standards and principles in business decision-making, rather than relying solely on legal compliance or self-interest. Signup and view all the answers

Study Notes

Business Ethics

Ethics is the study of morality, which involves the standards that an individual or group has about what is right and wrong, or good and evil.
Moral norms can be expressed as general rules or statements, such as "Always tell the truth".
Moral values can be expressed as statements describing objects or features of objects that have worth, such as "Honesty is good" and "Injustice is bad".

Characteristics of Moral Standards

Moral standards deal with matters that can seriously injure or benefit human beings.
Moral standards are not established or changed by the decisions of particular legislative bodies.
Moral standards should be preferred to other values, including self-interest.
Moral standards are based on impartial considerations, evaluating standards from a universal standpoint.
Moral standards are associated with special emotions and a special vocabulary.

Ethics and Law

Most ethicists agree that citizens have a moral obligation to obey the law, unless the law requires clearly unjust behavior.
It is immoral to break the law, except in cases of unjust behavior.

Ethics in Business

Ethics should govern business activities, as they govern all voluntary human activities.
Business activities require minimal standards of ethics to exist.
Ethical considerations are consistent with business pursuits, including the pursuit of profit.
A prisoner's dilemma is a situation where two parties must choose between cooperating or not cooperating, and rational self-interest suggests that people should not cooperate.

Objections to Business Ethics

The loyal agent argument assumes that a manager has a duty to serve their employer's self-interest, but this argument relies on questionable assumptions and ignores limits to duties.
The argument that obeying the law is enough for business ethics is incorrect, as law and ethics are not identical.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your understanding of the fundamental principles of business ethics, including morality, moral norms, and moral values. This quiz covers the basics of ethics and its application in business settings.