Podcast
Questions and Answers
Under which ethical theory does a person rely on an outside source for ethical guidance, potentially overlooking individual judgment?
Under which ethical theory does a person rely on an outside source for ethical guidance, potentially overlooking individual judgment?
- Ethical Relativism
- Ethical Fundamentalism (correct)
- Utilitarianism
- Kantian ethics
Which ethical theory is criticized for potentially treating morality as an impersonal calculation, disregarding individual circumstances?
Which ethical theory is criticized for potentially treating morality as an impersonal calculation, disregarding individual circumstances?
- Ethical Relativism
- Utilitarianism (correct)
- Kantian Ethics
- Rawl's Social Justice Theory
What is a main critique of Kantian Ethics related to the establishment of universal rules?
What is a main critique of Kantian Ethics related to the establishment of universal rules?
- Treating morality as an impersonal mathematical calculation
- Difficulty in practical application
- Challenges in reaching agreement on universal principles (correct)
- Disregard for individual feelings in ethical decision-making
Which theory of social responsibility asserts that a company's duty involves making a profit while simultaneously avoiding harm to others?
Which theory of social responsibility asserts that a company's duty involves making a profit while simultaneously avoiding harm to others?
What is the main emphasis of Rawl's Social Justice Theory regarding fairness?
What is the main emphasis of Rawl's Social Justice Theory regarding fairness?
What is the primary criticism of Ethical Relativism?
What is the primary criticism of Ethical Relativism?
What is the traditional perspective on the social responsibility of businesses?
What is the traditional perspective on the social responsibility of businesses?
Which Act encourages senior officers of public companies to act ethically in their dealings with shareholders and employees?
Which Act encourages senior officers of public companies to act ethically in their dealings with shareholders and employees?
What is the key feature of a Public Benefit Corporation (B Corp) in addition to profit?
What is the key feature of a Public Benefit Corporation (B Corp) in addition to profit?
Which theory of social responsibility is most concerned with balancing the needs and interests of various groups, even if those interests conflict?
Which theory of social responsibility is most concerned with balancing the needs and interests of various groups, even if those interests conflict?
A company decides to donate a portion of its profits to environmental conservation efforts. Which theory of social responsibility aligns with this action?
A company decides to donate a portion of its profits to environmental conservation efforts. Which theory of social responsibility aligns with this action?
What action does Section 406 of the Sarbanes-Oxley Act require public companies to take regarding ethics?
What action does Section 406 of the Sarbanes-Oxley Act require public companies to take regarding ethics?
A company argues that its sole responsibility is to increase profits, as long as it stays within legal boundaries. Which of the following views does this align with?
A company argues that its sole responsibility is to increase profits, as long as it stays within legal boundaries. Which of the following views does this align with?
What real-world challenge complicates the application of Utilitarianism in ethical decision-making?
What real-world challenge complicates the application of Utilitarianism in ethical decision-making?
How does the concept of 'reversibility' apply within Kantian ethics?
How does the concept of 'reversibility' apply within Kantian ethics?
What is a key challenge in implementing the stakeholder interest theory of social responsibility?
What is a key challenge in implementing the stakeholder interest theory of social responsibility?
What is the central idea behind 'corporate citizenship' as a theory of social responsibility?
What is the central idea behind 'corporate citizenship' as a theory of social responsibility?
Which ethical theory puts emphasis on an individual's feelings of what is right and wrong?
Which ethical theory puts emphasis on an individual's feelings of what is right and wrong?
Rawl's Veil of Ignorance suggests that in order to choose principles of justice, one must ignore which of the following?
Rawl's Veil of Ignorance suggests that in order to choose principles of justice, one must ignore which of the following?
What impact did the Sarbanes-Oxley Act of 2002 have on the adoption of codes of ethics within public companies?
What impact did the Sarbanes-Oxley Act of 2002 have on the adoption of codes of ethics within public companies?
When we consider that a law may permit an action that is ethically wrong, what does this indicate about the relationship between law and ethics?
When we consider that a law may permit an action that is ethically wrong, what does this indicate about the relationship between law and ethics?
Which of these scenarios is most similar to Kant's emphasis on consistency?
Which of these scenarios is most similar to Kant's emphasis on consistency?
A small business owner makes the choice to pay their employees slightly above minimum wage, stating, "I want to contribute to the economic well-being of my community." Which theory of social responsibility best describes this action?
A small business owner makes the choice to pay their employees slightly above minimum wage, stating, "I want to contribute to the economic well-being of my community." Which theory of social responsibility best describes this action?
Which concept is most closely associated with Utilitarianism?
Which concept is most closely associated with Utilitarianism?
What is a potential consequence of adhering strictly to Ethical Fundamentalism?
What is a potential consequence of adhering strictly to Ethical Fundamentalism?
Flashcards
Ethics
Ethics
Moral principles or values that govern the conduct of an individual or group.
Ethical Fundamentalism
Ethical Fundamentalism
A theory where one looks to an outside source for ethical rules or commands.
Utilitarianism
Utilitarianism
A moral theory that dictates that people must choose the action or follow the rule that provides the greatest good to society.
Kantian Ethics
Kantian Ethics
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Rawl's Social Justice Theory
Rawl's Social Justice Theory
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Ethical Relativism
Ethical Relativism
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Social Responsibility of Business
Social Responsibility of Business
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Maximize Profits
Maximize Profits
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Moral Minimum
Moral Minimum
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Stakeholder Interest
Stakeholder Interest
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Corporate Citizenship
Corporate Citizenship
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Sarbanes-Oxley Act of 2002
Sarbanes-Oxley Act of 2002
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Public Benefit Corporation
Public Benefit Corporation
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Study Notes
- Ethics are moral principles or values that govern the behavior of individuals or groups.
- Ethics and the law frequently align, however law can allow acts that are ethically wrong.
Moral Theories of Business Ethics
- Ethical fundamentalism dictates a person looks to an outside source for ethical rules, it does not allow people to determine right from wrong for themselves.
- Utilitarianism is a moral theory where people choose actions that provide the greatest good to society.
- It is difficult to estimate the "good" that will result from different actions
- Application is difficult in an imperfect world
- Morality is treated as an impersonal mathematical calculation.
- Kantian ethics are moral duties based on universal rules, also known as duty ethics.
- All cases are treated alike
- An actor must abide by the rule used to judge the morality of someone else's conduct
- Reaching consensus of universal rules can be difficult
- Rawl's social justice theory asserts fairness is the essence of justice.
- Each person has entered into a social contract to obey moral rules
- Establishing a blind "original position" for choosing moral principles may be impossible
- People may not choose to maximize the benefit to the least advantaged persons.
- Ethical relativism dictates individuals must decide what is ethical based on their feelings about what is right and wrong.
- Actions thought to be unethical would not be unethical if the perpetrator thought it was in fact ethical
Social Responsibility of Business
- Corporations and companies should be aware of the effects their decisions will have on others.
- Maximizing profits means businesses should strive to maximize profits for shareholders.
- This dominated business during the 19th century
- Interests of other constituencies are not important
- Moral minimum dictates a corporation's duty is to make a profit while avoiding causing harm to others.
- Stakeholder interest means a corporation must consider the effects its actions have on persons other than its shareholders.
- Must consider the effects of its actions on other stakeholders such as employees
- Harmonizing conflicting interests of stakeholders is difficult
- Corporate citizenship means business has a responsibility to "do good".
- Corporations are duty-bound to promote the same social goals as individual members of society
- Corporations owe a debt to society to make it a better place
Sarbanes-Oxley Act of 2002
- Enacted by the U.S. Congress
- Makes certain conduct illegal and establishes criminal penalties for violations
- Prompts companies to act ethically with shareholders, employees, and other constituents
- Section 406 requires public companies to disclose whether it has adopted codes of ethics for senior financial officers
- Resulted in public companies adopting codes of ethics for their senior financial officers
Public Benefit Corporations
- Most states have passed legislation creating a new form of corporation, a public benefit corporation
- Often referred to as a “B corporation” or “B corp”
- A for-profit corporation but with missions additional to profit
- Generate benefits for society
- Create general-public benefits
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