Business Ethics Chapter 7

10 Questions

What is the main feature of socialism?

Distribution of wealth based on the amount of work done

Which economic system allows for private ownership of property and a large government?

Social democracy

What is the term for the concentration of wealth among the rich and the increase in the number of poor people?

Bimodal distribution of wealth

Which economic system is based on the assumption that individuals will make rational decisions to maximize their utility?

Rational economy

What is the term for the study of how psychological, social, and emotional factors influence economic decisions?

Behavioral economy

What is the main characteristic of a multinational corporation?

Operating in multiple countries

Which economic system is based on the idea that individuals will make decisions based on their self-interest?

Capitalist economy

What is the term for the process of redistributing wealth from the rich to the poor?

Wealth redistribution

Which economic system is characterized by a high level of government intervention in the economy?

Social democracy

What is the main goal of socialism?

To create a classless society

Study Notes

Falsafah Moral

Teleology: philosophy that stipulates acts are morally right or acceptable if they produce a desired result, such as realization of self-interest or utility
Egoism: defines right or acceptable actions as those that maximize a particular person's self-interest as defined by the individual
Utilitarianism: defines right or acceptable actions as those that maximize total utility or the greatest good for the greatest number of people
Deontology: focuses on the preservation of individual rights and on the intentions associated with a particular behavior rather than on its consequences
Relativist: evaluates ethicalness subjectively on the basis of individual and group experiences
Virtue ethics: assumes what is moral in a given situation is not only what conventional morality requires but also what the mature person with a "good" moral character deems appropriate
Justice: evaluates ethicalness on the basis of fairness: distributive, procedural, and interactional

Perspektif Relativis

Relativisme deskriptif: relates to the observation of other cultures
Relativisme meta-etika: suggests that people naturally view situations from their own perspective, and there is no objective way to resolve ethical conflicts between different value systems and individuals
Relativisme normatif: assumes that one person's opinion is just as good as another person's opinion
Recognizes that people have many different perspectives
Observes the actions of group members involved
Attempts to determine group consensus on certain behaviors
Basic problem with relativism is that it emphasizes individual differences while ignoring common human values

Budaya Organisasi

Four classification of organizational culture:
- Budaya apatis: minimal concern for people and performance
- Budaya penyayang: high concern for people but minimal concern for performance
- Budaya yang tepat: minimal concern for people but high concern for performance
- Budaya integratif: high concern for people and performance
Audit budaya: an evaluation of an organization's values

Contoh Syarikat Empat Budaya

Caring Culture: Ben & Jerry's (embraces community causes, treats employees fairly, and expends numerous resources to enhance customer well-being)
Apathetic Culture: Countrywide Financial (showed little concern for employees and customers, encouraged unethical conduct for profits)
Integrative Culture: Starbucks (looks for ways to expand and improve performance, exhibits high concern for people through community causes, sustainability, and employee health care)

Audit Etika

An ethic officer is a professional in compliance who evaluates the use of ethics and governance within a company
Tasks may involve evaluating various business processes and determining how effectively they comply with company values and industry regulations