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What is the primary distinction between normative and descriptive morality?

Normative morality focuses on individual perspectives, while descriptive morality focuses on collective outcomes.

Normative morality is a universal code of conduct, while descriptive morality is the conduct of specific groups. (correct)

Normative morality is based on societal codes, while descriptive morality refers to individual codes.

Normative morality is context-dependent while descriptive morality is not.

What does ethical absolutism imply about moral principles?

Moral principles are unchanging and universally applicable across situations. (correct)

Moral principles depend entirely on societal consensus.

Moral principles can be derived from emotions and personal experiences.

Moral principles are opinion-based and vary according to individual beliefs.

Which of the following correctly characterizes utilitarianism?

It prioritizes individual rights over collective welfare.

It is primarily concerned with the motives behind actions.

It is a purely subjective approach to ethics.

It judges actions based on their outcomes for the greatest number. (correct)

What is the process called when publicly owned companies are sold and move out of the public sector?

Privatisation Signup and view all the answers

Which of the following is NOT a common criticism of utilitarianism?

Utilitarianism requires a rigid adherence to rules. Signup and view all the answers

In a global context, what type of power do companies have when they can threaten governments regarding relocation?

Political Signup and view all the answers

Which two theories are considered duty-based ethical theories?

Ethics of duty and Ethics of rights and justice. Signup and view all the answers

Which area is least associated with the principles outlined in the UN Global Compact?

Commercial performance Signup and view all the answers

What is attributed to the rise in business-led private regulation?

Proactive approach from industry Signup and view all the answers

What is a key feature of egoism in ethical theory?

It promotes the idea of self-interest as the appropriate foundation for moral reasoning. Signup and view all the answers

Which of the following business-government relations phenomena is largely due to globalisation?

Increased scrutiny in authoritarian regimes Signup and view all the answers

Which statement accurately reflects the nature of relativism in ethics?

Relativism holds that moral judgments are primarily based on cultural context. Signup and view all the answers

Which standard is associated with a trend towards deliberation and collaboration in the global governance space?

ISO 26000 Signup and view all the answers

Which concept is NOT associated with the ethics of duty?

Actions are judged according to their consequences. Signup and view all the answers

What term refers to a company's ability to influence government through the possibility of relocation?

Political power Signup and view all the answers

What does the ISO 26000 standard emphasize more, process or specific norms?

Process Signup and view all the answers

What is characterized as a dynamic and relational framework producing certain commodities or products?

Global production network, Dynamic, Relational Signup and view all the answers

Which describes the conflict of interest arising from individuals and their employers?

Professional, Organizational, Personal, Organizational Signup and view all the answers

Which tactics in negotiation can raise ethical concerns?

Distracting an opponent Signup and view all the answers

What risks do businesses face when using unethical negotiation practices?

Damaged relationships and sullied reputation Signup and view all the answers

When do ethical questions regarding intelligence gathering and industrial espionage typically arise?

The information sought is private or confidential Signup and view all the answers

What is a significant challenge in enforcing corporate privacy?

Corporate structures are boundaryless Signup and view all the answers

What term encompasses negative advertising and predatory pricing strategies?

Competitive tricks Signup and view all the answers

Which system guarantees fair wages and decent working conditions in developing countries?

Fair trade Signup and view all the answers

What enhances focus on waste management and redesign in supply chains?

Supply loops Signup and view all the answers

What concept refers to a balanced network of interdependent organisms in business?

Industrial ecosystems Signup and view all the answers

What includes approval of a company's activities by society and local communities?

Social licence to operate Signup and view all the answers

What tactic combines research and communication with activism in corporate social responsibility?

Non-violent direct action Signup and view all the answers

What is the primary aim of CSO tactics in influencing corporate behavior?

Rewarding beneficial corporate actions Signup and view all the answers

What term best completes the sentence regarding campaigns that facilitate a company in achieving increased sales?

Boycotts, Digital technology Signup and view all the answers

Which statements reflect criticisms often associated with Civil Society Organizations (CSOs)?

CSOs prioritize donor interests over beneficiaries' needs. Signup and view all the answers

What is a recent trend in business-civil society engagements?

Philanthropy, CSOs, Social enterprises Signup and view all the answers

Which combination represents the factors driving CSOs to form partnerships with businesses?

Access to more resources, Disenchantment with government aid Signup and view all the answers

What are the identified risks in business-CSO collaborations?

Power imbalance, Unfair resource distribution Signup and view all the answers

Which broad categories are included in social enterprise models?

The Entrepreneurial Non-Profit Model, The Social Cooperative Model Signup and view all the answers

Which term describes the regulation that encompasses more than just business-CSO relations?

Civil regulation Signup and view all the answers

In which regions is civil society notably less developed compared to others?

Russia and China Signup and view all the answers

What defines corporate political activity?

Any business effort to sway government or public policy Signup and view all the answers

What are the means of influence businesses use toward government?

Direct lobbying, Campaign contributions, Information dissemination Signup and view all the answers

What condition contributes to the facilitation of public corruption?

The close ties between elites and citizens Signup and view all the answers

What is a limitation of having feedback mechanisms for beneficiaries concerning CSOs?

Beneficiaries can be reluctant to provide negative feedback. Signup and view all the answers

Which statement about performance measures used by CSOs is accurate?

CSOs often prioritize their measures over openly communicating outcomes. Signup and view all the answers

Which country and governance mechanism combination correctly reflects the recent trend towards more __________-based mechanisms?

China, Relationship Signup and view all the answers

Which factors are significant when discussing national corporate governance regimes?

Heterogeneity in governance systems Signup and view all the answers

What recommendations are suggested to ensure the independence of non-executive board members?

Non-executives drawn from outside the company Signup and view all the answers

How are executive directors and senior managers incentivized to align their interests with shareholders?

Through share options made available Signup and view all the answers

What ethical issues are associated with insider trading?

Inherent unfairness in trading with superior knowledge Signup and view all the answers

Which attributes correctly describe cryptocurrencies in the context of financial crime?

Cheap and Secure Signup and view all the answers

What are the key differences between Islamic finance and conventional finance regarding the treatment of interest?

Requirement for all products to be backed by tangible assets Signup and view all the answers

What is the term used to describe individuals being hired for specific tasks rather than long-term employment?

Gig economy Signup and view all the answers

Which elements contribute to the definition of modern slavery according to Crane (2013)?

Physical constraint or restriction in movement Signup and view all the answers

Which obligations describe the duties of workers towards their employers?

Employee duties Signup and view all the answers

What actions are related to affirmative action attempts in workforce management?

Increasing the representation of women and minorities Signup and view all the answers

What characterizes the flexibility of gig work arrangements?

Ability to choose work hours Signup and view all the answers

Which of the following correctly describes characteristics of insider trading?

It can be legal in certain jurisdictions Signup and view all the answers

What is a key issue related to employee redundancy that pertains to their rights?

Down, Involvement, Remuneration, Compensation Signup and view all the answers

Which right has historically been a significant ethical concern for employees?

Healthy and safe working conditions Signup and view all the answers

What term describes working practices that involve adaptability in tasks and locations?

Flexible Signup and view all the answers

What does the 'race to the bottom' refer to in the context of foreign investment?

Bottom, Globalisation, Social, Environmental Signup and view all the answers

What term is used to describe the process of empowering employees through job enrichment or enlargement?

Rehumanizing Signup and view all the answers

What concept describes an employee's ideal balance between work and personal life?

Work-life balance Signup and view all the answers

The evolution of consumer rights moved from caveat emptor to which concept due to regulation?

Caveat emptor, Buyer beware, Regulation, National Signup and view all the answers

Which factors relate to consumer rights issues in pricing?

Price fixing; Slotting fees Signup and view all the answers

What do regulatory bodies suggest should not be encouraged in advertisements?

Unsafe practices, Distress, Fear, Serious Signup and view all the answers

What ethical concern regarding marketing communications is associated with creating consumer needs?

Intrusive, Artificial, Consumerism, Insecurity, Social Stereotypes Signup and view all the answers

What term describes the act of obscuring the true cost of an item?

Deceptive pricing Signup and view all the answers

What describes the condition where a consumer cannot make informed purchasing decisions?

Consumer vulnerability Signup and view all the answers

Which right allows consumers to control how their information is used by companies?

Consumer privacy Signup and view all the answers

What are key benefits associated with micro-finance?

Financial inclusion; Poverty alleviation; Economic growth Signup and view all the answers

What cognitive model attempts to explain consumer behavior through oversimplification?

Decision, Planned behaviour, Rationality Signup and view all the answers

Which strategies are considered means of achieving more sustainable consumption?

Product recapture; Service replacement for products; Product ownership; Demand reduction Signup and view all the answers

What describes the hypothetical agreement between members of society and those who govern it, establishing inter-relationships, rights, and responsibilities on a fair basis?

Social Contract Signup and view all the answers

Which criticisms of Western modernist ethical theories highlight their limitations?

They are too objective and elitist. Signup and view all the answers

Which statements accurately describe virtue ethics and ethics of care?

Virtue ethics focus on individual character. Signup and view all the answers

Which ethical theory posits that morality is found in an emotional 'moral impulse'?

Postmodern ethics Signup and view all the answers

What is the correct order of the four stages of ethical decision making from a rationalist perspective?

4, 2, 1, 3 Signup and view all the answers

What reasoning is prevalent within society and businesses, often termed as a specific analysis?

Consequentialist, Cost-benefit analysis Signup and view all the answers

How can factors impacting ethical decision making be categorized?

Individual, Situational Signup and view all the answers

What theory posits the existence of three levels of moral reasoning based on cognitive capacity?

Cognitive moral development Signup and view all the answers

What term describes the extent to which individuals feel they control their lives?

Locus of control Signup and view all the answers

Which option accurately describes stable individual beliefs that influence decision making?

Personal values Signup and view all the answers

How is the ability to consider consequences and issues related to moral decisions characterized?

Moral imagination Signup and view all the answers

Which factors are considered in assessing moral intensity?

Social consensus, Temporal immediacy, Proximity Signup and view all the answers

What is the term for using language to either mask or expose the ethical nature of decisions?

Moral framing Signup and view all the answers

Which strategies justify or deny unethical behavior?

Denial of injury, Appeal to higher loyalties, Metaphor of the ledger Signup and view all the answers

Who are managers primarily entrusted to benefit in a company?

Shareholders, Care and Skill, Diligence Signup and view all the answers

What describes the relationship between shareholders and the company in terms of roles?

Agency relation, Principal, Agents Signup and view all the answers

Study Notes

Ethical Theories and Decision Making

Normative theory is a code of conduct for all rational beings, contrasting with descriptive morality, which is a group or society's code.
Ethical absolutism, based on universal principles, contrasts with ethical relativism, which is context-dependent.
Utilitarianism prioritizes outcomes for the greatest number, a consequentialist theory. Egoism focuses on the decision-maker's benefit. Duty ethics, attributed to Kant, is a principle-based theory.

Criticisms of Utilitarianism

Quantification and calculation of outcomes are problematic.
Assessing actions is subjective.
Distribution of utility needs consideration.
Utilitarianism's complexity is a concern.

Additional Ethical Theories

Principle-based theories (like duty ethics and ethics of rights and justice) derive morality from universal principles. Social contract theory outlines a hypothetical agreement for societal rights & responsibilities.
Virtue ethics focus on individual character and virtuous traits for a good life. Postmodern ethics posit context-specific ethics based on internal morality (moral impulse).

Ethical Decision-Making Process

Rationalist ethical decision-making stages (Rest, 1986), follow a particular order.
Consequentialist reasoning (e.g. cost-benefit analysis) is prevalent.
Ethical decision-making is influenced by individual (e.g. values, locus of control) and situational (context) factors.

Cognitive Moral Development

Cognitive moral development theory proposes three levels of moral reasoning based on cognitive capacity.
Personal values are stable beliefs which influence decisions.
Moral imagination involves creatively considering consequences arising from moral decisions.

Justification Strategies for Unethical Behaviour

Justifications include appealing to higher loyalties, denial of injury, and the metaphor of the ledger (where actors feel owed something).

Corporate Governance & Ethics

Managers are responsible for shareholder benefit and act with care, skill, and diligence.
Agency relation exists between shareholders (principals) and managers (agents) in a company.
Many BRIC countries (Brazil, Russia, India, China) have relationships-focused corporate governance (e.g., based on mutual, long-term relationships); this is shifting toward market mechanisms.

Ethical Issues in Corporate Governance

Executive directors are the link between managers and shareholders. Their role is ensuring the company's actions align with shareholder interests. Non-executive directors provide oversight, not operational management. -Share options for senior managers align their interests with shareholder interests.
Issue of insider trading highlights conflicts of interest and undermines trust with fiduciary relationship.
Cryptocurrencies pose ethical challenges, such as potentially facilitating financial crime. Islamic Finance typically prohibits interest and certain transactions and requires assets to underpin these financial products.
Ethical concerns of downsizing include employee involvement, remuneration/compensation.

Issues in the Gig Economy

The gig economy, based on short-term contracts, offers flexibility for businesses but creates risk, uncertainty, and potential social welfare challenges for workers.

Modern Slavery

Modern slavery involves forced work (through threat), ownership/control (not just abuse), and emotional exploitation.

Employee Rights and Issues

Employee duties & responsibilities exist by contract and employment laws.
Affirmative action targets underrepresented groups within organizations (e.g., increasing the proportion of women or minorities in leadership).
Downsizing issues concern employee involvement, severance packages, and a right to know.
Right to healthy & safe working conditions is a key employee right addressed by regulations.
Flexible work practices involve dynamic patterns of work (temporal, spatial, task-related).

Consumer Rights and Issues

Historically, consumer rights are based on “buyer beware.”
Recently, regulation has increased at international levels in reaction to these issues. Pricing & advertising issues (e.g., price fixing, bait and switch, predatory pricing) are examples of ethical concerns impacting consumer rights.
Ethical concerns in marketing communications include intrusive advertising that may encourage unsafe practices, distress, and perpetuation of consumerism and stereotypes.
Deceptive pricing is when the true cost is obscured. Consumer vulnerability arises when individuals lack the competence to make informed purchasing decisions. Consumer privacy concerns control over personal data stored and shared.
Microfinance can positively impact financial inclusion and poverty alleviation.

Global Production Networks, Negotiations, and Supply Chains

Global production networks are dynamic relationships exceeding linear functions for commodity/product creation.
Business-to-business conflicts can arise from professional/organizational conflicts alongside personal/organizational conflicts.
Unethical negotiation tactics include lying about material information, distracting opponents, and withholding vital information. These tactics can damage relationships and reputation.
Ethical concerns in intelligence gathering & industrial espionage relate to the source and purpose of the information. Protection of personal information in a business setting concerns companies' ability to maintain control.
Dirty tricks, like negative advertising, stealing/poaching customers, and predatory pricing, are unethical business strategies.

Fair trade and Sustainable Sourcing.

Fair trade aims to provide producers with fair compensation and working conditions while sustainable sourcing offers an alternative to traditional supply chains (that can prioritize product recapture, supply loops, and redesign of production activities).
Industrial ecosystems reflect interdependence of companies and industries.

Civil Society Organizations (CSOs) and Business

Social license to operate involves ongoing society approval of a company's activities.
CSO tactics include indirect action, violent action, non-violent direct action (e.g. boycotts).
Businesses increasingly partner with CSOs to address social/environmental issues, often engaging in "buy-cotts" and social enterprises.
Potential limitations/risks of business-CSO collaborations include power imbalances, benefit distribution issues, and issues of co-option.

Government Regulations and Business

Imperative regulation is backed by government, whereas private regulation arises from companies, industries, and civil society.
Corporate political activity involves influence on government policy (e.g., lobbying, campaign contributions).
Globalisation has influenced business-government relations, leading to varied national legislation, potentially undermined by companies' ability to threaten governments in face of undesirable regulations.
Private regulation, inspired by industry participation and collaboration, seeks faster achievement of objectives.
UN Global Compact aims to promote companies' social responsibility (in Human rights, Labour, and anti-corruption).

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Description

Explore various ethical theories that guide decision making, including normative theories, utilitarianism, and virtue ethics. Understand the distinctions between ethical absolutism and relativism, and examine the critiques of utilitarianism. This quiz will enhance your grasp of fundamental concepts in ethics.