Business Ethics Overview
48 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the relationship between business ethics and corporate social responsibility (CSR)?

  • CSR undermines the importance of business ethics.
  • Business ethics and CSR are completely unrelated.
  • CSR is business ethics concretized in corporate values. (correct)
  • Business ethics is a subset of CSR.

Which of the following is NOT considered an issue in CSR?

  • Bribery
  • Executive management
  • Fraud
  • Environmental sustainability (correct)

According to the content, how can ethical management contribute to a corporation?

  • By serving only shareholder interests.
  • By minimizing transparency in operations.
  • By promoting competition at all costs.
  • By supporting corporate excellence. (correct)

Which of the following best describes the goal of CSR?

<p>To engage more individuals in social development efforts. (B)</p> Signup and view all the answers

What is indicated as the consequence of increased engagement in ethical management?

<p>Improvement in corporate accountability. (B)</p> Signup and view all the answers

Which case exemplifies severe issues related to CSR?

<p>WorldCom (D)</p> Signup and view all the answers

What aspect of corporate behavior is CSR integrated into?

<p>Corporate code of conduct. (D)</p> Signup and view all the answers

In stakeholder theory, what is linked to CSR according to Philips?

<p>Organizational ethics. (C)</p> Signup and view all the answers

What is the primary concern regarding profit in business as outlined?

<p>Profit should be compatible with social needs. (C)</p> Signup and view all the answers

What negative consequences can arise without adherence to moral values in business?

<p>The rise of unethical practices. (D)</p> Signup and view all the answers

According to the discussion, which vice is particularly highlighted as morally unacceptable?

<p>Greed. (C)</p> Signup and view all the answers

What characteristic of moral values is highlighted as being permanent?

<p>They are universally applicable. (C)</p> Signup and view all the answers

How should managers approach the interests of stakeholders?

<p>Stakeholders are of intrinsic value and should be considered. (C)</p> Signup and view all the answers

What does the term 'Stakeholder theory' imply about business operations?

<p>Business must balance the interests of various stakeholders. (B)</p> Signup and view all the answers

What is considered generally morally wrong according to the implications of the text?

<p>Engaging in fraudulent dealings (A)</p> Signup and view all the answers

What is the contrasting view presented regarding greed and its role in business?

<p>Greed is beneficial as it fosters competition. (D)</p> Signup and view all the answers

According to Wu's study, what do business practitioners in China, Vietnam, and Indonesia primarily respect?

<p>Environmental conservation (D)</p> Signup and view all the answers

What does the text suggest about individual perceptions of moral standards?

<p>They are affected by sociocultural factors. (A)</p> Signup and view all the answers

What can result from allowing greed to influence corporate behavior?

<p>Social responsibility becomes secondary. (C)</p> Signup and view all the answers

What is the role of human nature in the permanence of moral values?

<p>It provides a constant foundation for moral values. (B)</p> Signup and view all the answers

What historical example is referenced to illustrate the consequences of disregarding moral values in business?

<p>The Enron scandal. (B)</p> Signup and view all the answers

How do cultural attitudes change according to the text?

<p>They shift with the passage of time. (A)</p> Signup and view all the answers

What conclusion can be drawn about global ethical principles?

<p>They are universally recognized (C)</p> Signup and view all the answers

Which aspect of ethical standards is emphasized by suggesting they should be universally valid?

<p>They should apply to all people and places. (D)</p> Signup and view all the answers

What is a key requirement for a law to be considered effective?

<p>It must be promulgated, broadcasted, and disseminated. (D)</p> Signup and view all the answers

Which of the following statements is true regarding the common good and law?

<p>The law is intended for the common good of society. (B)</p> Signup and view all the answers

Which feature makes a law morally acceptable?

<p>It does not impose illegal or immoral actions. (A)</p> Signup and view all the answers

What short-term benefit may advocates of the utilitarian principle prioritize during the construction of a cement plant?

<p>Increased employment opportunities (D)</p> Signup and view all the answers

Which aspect of utilitarianism is criticized in decisions involving basic rights?

<p>Its inadequacy in addressing human rights (C)</p> Signup and view all the answers

What is considered a rare exception to obeying laws?

<p>Civil disobedience. (D)</p> Signup and view all the answers

What may be a consequence of prioritizing beautification projects according to the utilitarian principle?

<p>Violation of the rights of marginalized communities (A)</p> Signup and view all the answers

Which characteristic must an ordinance possess to be recognized as a law?

<p>It must be morally and physically possible to comply with. (D)</p> Signup and view all the answers

What is the primary purpose of an ordinance according to the content?

<p>To serve the common good and public interest (B)</p> Signup and view all the answers

How are the poor viewed in the distribution of benefits according to the utilitarian principle?

<p>As deserving of a preferential option (D)</p> Signup and view all the answers

Which statement best describes the difference between ethics and law?

<p>Ethics involves internal conscience, while law requires external evidence. (A)</p> Signup and view all the answers

What is a potential consequence for violating an ordinance?

<p>Arrest, fines, or imprisonment. (B)</p> Signup and view all the answers

What happens to a law that is crafted solely for the welfare of a privileged few?

<p>It loses its moral authority and should not become a law. (B)</p> Signup and view all the answers

Which of the following is NOT a characteristic associated with criminal law?

<p>It urges immoral actions. (B)</p> Signup and view all the answers

What is a potential justification for government action in demolition of shanties for beautification projects?

<p>To promote economic growth through tourism (B)</p> Signup and view all the answers

What dilemma can arise from a law that is impossible to enforce?

<p>Lawmakers may need to reconsider or amend the law. (B)</p> Signup and view all the answers

According to the content, how should one respond to an unjust law?

<p>By engaging in civil disobedience. (A)</p> Signup and view all the answers

Which group is often adversely affected by projects inspired by the utilitarian principle?

<p>Indigenous tribes (D)</p> Signup and view all the answers

Which of the following is NOT recognized as a form of moral law?

<p>Fair competition practices (B)</p> Signup and view all the answers

What is a major criticism of utilitarian approaches to government decision-making?

<p>They can lead to unjust outcomes for disadvantaged groups (A)</p> Signup and view all the answers

What long-term benefit is often overlooked by advocates of the utilitarian principle in favor of short-term gains?

<p>Environmental health (B)</p> Signup and view all the answers

What should the law primarily impose according to ethical considerations?

<p>Universal values accepted by all (C)</p> Signup and view all the answers

In what way does ethics exceed the law?

<p>It examines internal dispositions beyond observable actions. (B)</p> Signup and view all the answers

Which of the following accurately describes the relationship between law and ethics?

<p>Law represents the minimum requirement of ethics. (B)</p> Signup and view all the answers

Flashcards

Profit within acceptable boundaries

Profits are acceptable as long as they are generated through fair competition, with no deception or fraud.

Stakeholder Theory

The idea that businesses have responsibilities to various groups, not just shareholders, such as employees, customers, and the community.

Greed

Intense desire for wealth or material possessions, often to the point of being unethical or harmful.

Stakeholders

People or groups who have an interest in and are impacted by a company's activities.

Signup and view all the flashcards

Profits as a Means, Not an End

The idea that profits are not the only goal of a business and must be balanced with other social and ethical considerations.

Signup and view all the flashcards

Social Responsibility in Business

The belief that businesses should be responsible for the impact they have on society and the environment.

Signup and view all the flashcards

Ignoring Moral Values in Business

The negative consequences of prioritizing profit over social responsibility, as exemplified by the Enron scandal.

Signup and view all the flashcards

Business in Context

The idea that businesses operate within a larger context and must consider their impact on stakeholders and society.

Signup and view all the flashcards

Corporate Social Responsibility (CSR)

A set of principles that guide a company's behavior and decisions to benefit society and its stakeholders.

Signup and view all the flashcards

Business Ethics

Refers to the ethical standards and principles that guide a company's operations and decision-making processes. It involves making choices that are morally sound and aligned with ethical values.

Signup and view all the flashcards

Corporate Citizenship

The commitment by an organization to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families, as well as of the local community and society at large.

Signup and view all the flashcards

Ethical Management

The application of ethical principles and values to the management of a company, ensuring that decisions align with moral principles and promote social responsibility.

Signup and view all the flashcards

Corporate Excellence

The pursuit of excellence in all aspects of a company's operations, including product quality, customer service, employee satisfaction, and social responsibility.

Signup and view all the flashcards

Code of Conduct

A crucial component of a company's culture that outlines expected behaviors and ethical standards for employees. It serves as a guide to maintaining ethical conduct and promoting responsible behavior.

Signup and view all the flashcards

Value-Based Management

The integration of ethical considerations into every aspect of a company's operations, reflecting its commitment to ethical values and responsible behavior.

Signup and view all the flashcards

Utilitarianism

An ethical principle focusing on maximizing overall happiness and well-being for the greatest number of people, even if it means sacrificing the interests of a smaller group.

Signup and view all the flashcards

Short-term Benefits (Utilitarian Perspective)

The potential consequences of a choice that benefit a larger group, even if it negatively impacts a smaller group.

Signup and view all the flashcards

Long-term Consequences (Utilitarian Perspective)

The potential long-term consequences of a choice that may not be immediately apparent, but are detrimental to overall well-being.

Signup and view all the flashcards

Human Rights

Ethical principles that protect fundamental human rights and freedoms, regardless of the potential benefits for a majority.

Signup and view all the flashcards

Preferential Option for the Poor

The idea that ethical decisions should prioritize the needs of the most vulnerable or disadvantaged members of society.

Signup and view all the flashcards

Pragmatic Decisions

Choices made by individuals or governments that seem beneficial but may come at the expense of fairness and justice, particularly for marginalized groups.

Signup and view all the flashcards

Social Costs

The violation of human rights or freedoms for the sake of perceived societal benefits, often involving forceful displacement of marginalized groups.

Signup and view all the flashcards

Widening the Gap

The potential for certain initiatives to create unequal outcomes and widen the gap between the wealthy and the poor.

Signup and view all the flashcards

Common good

A law must be just and fair, aiming to benefit everyone in society, not just a select group or individual.

Signup and view all the flashcards

Promulgation of laws

Laws must be clearly communicated to the public through publication or dissemination. Everyone should be aware of the existing laws.

Signup and view all the flashcards

Physically possible law

A law must be practically achievable and not impose impossible tasks or actions.

Signup and view all the flashcards

Morally acceptable law

The law cannot force individuals to perform acts that are considered criminal, immoral, or unethical.

Signup and view all the flashcards

Fair competition

The law should aim to ensure a fair and competitive environment.

Signup and view all the flashcards

Not urging illegal actions

A law must not encourage or condone illegal or immoral actions.

Signup and view all the flashcards

Moral obligation to obey laws

Civil disobedience is a rare exception, and generally we should follow all laws that are just and fair.

Signup and view all the flashcards

Culture vs. good practices

Good practices should be distinguished from cultural norms. Just because something is common in a culture, doesn't mean it's a good practice.

Signup and view all the flashcards

Law for the Common Good

A law that promotes the well-being and interests of everyone, not just a select group.

Signup and view all the flashcards

Just Law

A law that is morally just and does not violate ethical principles.

Signup and view all the flashcards

Civil Disobedience

The act of intentionally and peacefully disobeying a law that is considered unjust.

Signup and view all the flashcards

Ethics

Principles that guide human behavior, encompassing both external actions and internal values.

Signup and view all the flashcards

Law

Rules established by authority and enforced by legal institutions.

Signup and view all the flashcards

Law as Minimum Ethics

Ethics and law are connected, but law represents the minimum ethical standards expected in society.

Signup and view all the flashcards

Universality of Ethics

Ethical values are universal and apply to everyone, regardless of their location or background.

Signup and view all the flashcards

Conscience

The internal sense of right and wrong that guides ethical decisions.

Signup and view all the flashcards

Universally Valid Ethical Standard

An ethical standard that applies to all people in all places, regardless of cultural differences.

Signup and view all the flashcards

Human Nature as Foundation for Ethics

The idea that the basis of moral values is human nature, which remains constant across time and cultures.

Signup and view all the flashcards

Permanence of Moral Values

Moral values are stable and unchanging, rooted in human nature, not influenced by temporary societal shifts.

Signup and view all the flashcards

Subjectivity of Moral Perceptions

The subjective views of people on moral standards are temporary and can change based on cultural and societal factors.

Signup and view all the flashcards

Evolving Behavior, Stable Human Nature

The idea that individuals' behaviors and attitudes towards ethics can change over time due to cultural evolution, but the fundamental human nature underlying those ethics remains unchanged.

Signup and view all the flashcards

Universally Condemned Ethical Violations

The study of corporate governance in China suggests that common unethical practices like corruption and fraud are generally considered morally wrong.

Signup and view all the flashcards

Globally Recognized Ethical Principles

Respect for the environment and human rights are seen as widely recognized ethical principles, even in business practices across different cultures.

Signup and view all the flashcards

Converging Ethical Practices in Business

Research suggests that business practitioners in various countries are inclined to uphold ethical principles such as respecting the environment and human rights, indicating a potential convergence of values.

Signup and view all the flashcards

Study Notes

Business Ethics

  • Business ethics is a form of applied ethics that examines ethical rules, theories, and principles in a business context. It includes correct understanding of moral duties or obligations in commerce. It's a normative discipline; advocating specific ethical standards and applying them.
  • Business ethics are about ethical decision-making in accordance with moral concepts. This encompasses questions like fairness, honesty, and responsibility towards customers, environment, and employees.
  • Managers balance profits for shareholders with ethical conduct like paying taxes.
  • Ethical management is a foundation of corporate social responsibility (CSR). This covers preventing discrimination, sexual harassment, and ensuring fair treatment of workers based on age, gender, or religion.
  • Ethical management concerns intellectual property rights, like bioprospecting, biopiracy, copyright, patent, and trademark infringement, etc.
  • Aspects include ethical management in: sales, advertising, marketing, production, finance, accounting, and auditing.

Ethical Management in Specific Areas

  • Sales, advertising, and marketing: Addresses pricing, anti-trust, deceptive advertising, and ethical issues in marketing techniques.
  • Production: Focuses on ensuring products and processes do not harm consumers, the public, and the environment, including issues like mobile phone radiation, genetically modified food, and environmental hazards.
  • Finance, accounting, and auditing: Encompasses accurate financial reporting, ethics of executive compensation, manipulation of financial markets, bribery, fraud, and false reporting.

Business Ethics and CSR

  • Business ethics is a branch of professional ethics.
  • CSR (corporate social responsibility) is about corporate excellence, alongside ethical conduct of individual actors.
  • Business ethics is linked to CSR. It's a basis for corporate citizenship, including issues of preventing unethical behaviour, employee volunteerism, and social investment.
  • A CSR department should not be headed by a lawyer because ethical management goes beyond legal compliance, it should involve all employees.

Ethical Management and Profit

  • Profit, in its original meaning, is considered as "to make progress, to advance, to to move forward, making things better"
  • Economists define profit as the difference between the value of output and costs like labour, wages, property (rent), capital (interest), and raw materials.
  • Profit is related to social costs. A company's social costs can impact profit in a positive or negative way.
  • Companies should consider profits alongside societal and environmental factors.
  • Economic Value Added (EVA) is an after-tax profit, calculated by exceeding the average cost of capital. It's a measure of total cost for operational capital.

Shareholder Value Maximization

  • Shareholder value is the primary goal of a business, where stakeholders benefit by paying dividends.
  • Shareholders benefit when stock price goes up.
  • Valuations are about estimating the market value of assets.
  • This is done for various business transactions.
  • Value-based management (VBM) is required for shareholder value maximization.

Utilitarianism

  • Focuses on the result of an action rather than the motive.
  • Considers all foreseeable consequences, future costs and benefits.
  • Aims for greatest good for the greatest number.

Ethical Relativism

  • Moral values are relative to a given situation.
  • Ethical standards vary across cultures.
  • There are no absolute moral truths.

Studying That Suits You

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

Quiz Team

Related Documents

WWEK-1-5_CM_MDL_SEM2_ENT5 (1) PDF - Business Ethics

Description

Explore the fundamental principles of business ethics in this quiz. Delve into ethical decision-making, corporate social responsibility, and the balance between profit and morality. Test your understanding of ethical management practices in a business context.

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser