Business Ethics Reviewer PDF

BUSINESS ETHICS REVIEWER Classical Philosophers and Ethics ​ Aristotle - Ethics focused on virtue and achieving eudaimonia (human flourishing). ​ Socrates - Believed that knowledge is virtue. ​ Epicurus - Focused on the pursuit of pleasure. ​ Plato - Emphasized the role of the soul and j...

BUSINESS ETHICS REVIEWER Classical Philosophers and Ethics ​ Aristotle - Ethics focused on virtue and achieving eudaimonia (human flourishing). ​ Socrates - Believed that knowledge is virtue. ​ Epicurus - Focused on the pursuit of pleasure. ​ Plato - Emphasized the role of the soul and justice in ethics. Belief Systems and Ethics ​ Hinduism - Strong emphasis on karma and its effect on actions. ​ Christianity, Islam, Judaism - Provide moral guidelines for ethical behavior. Models of Social Responsibility ​ Economic – Focus on profit and shareholder wealth ​ Legal – Comply with the law ​ Ethical – Go beyond the law to do what is right ​ Philanthropic – Voluntary contributions to society Stakeholder Theory ​ Businesses should consider all stakeholders (employees, customers, community), not just shareholders. Social Entrepreneurship ​ Solves community problems through sustainable business models. ​ Focuses on empowerment, job creation, and long-term social impact. Filipino Values in Business ​ Pakikisama - Group harmony ​ Utang na Loob - Debt of gratitude ​ Delicadeza - Sense of propriety and honor ​ Hiya - Shame ​ Bahala Na - Fatalism ​ Amor Propio - Personal dignity ​ Pakikiramdam - Sensitivity to others Ethical Practices in Business ​ Transparency - Honest reporting, stakeholder trust ​ Truth in Advertising - No exaggeration or misleading claims ​ Environmental Responsibility - Sustainable practices even at high cost ​ Fairness and Inclusivity - Avoid discrimination, promote equal opportunity Crisis and Responsibility ​ Product Defects - Be transparent and prioritize safety ​ Supplier Issues - Take accountability even if not directly at fault ​ Community Concerns - Listen, engage, and address complaints (e.g., noise pollution) EXAMINATION PREP: ​ Review real-life examples of Filipino businesses practicing CSR ​ Practice identifying values in case scenarios ​ Understand distinctions between economic, ethical, legal, and philanthropic responsibilities APPLIED ECONOMICS Wage Determination & Labor Economics ​ Minimum wage - The lowest legal pay for workers set by the government. ​ Wage Differentials - Influenced by education, skills, location, gender, ethnicity—but not political affiliation. Demand, Utility & Consumer Choice ​ Law of Demand: Price ↑ → Demand ↓ (ceteris paribus). ​ Marginal Utility - Additional satisfaction from consuming one more unit. ​ Diminishing Marginal Utility - As more units are consumed, additional satisfaction ↓. ​ Substitution Effect - Consumers switch to cheaper alternatives. ​ Budget Constraint - Consumer's spending limit. Trade and Markets ​ Foreign Trade - Exchange of goods/services across countries. ​ Public Goods - Funded mostly through taxation (e.g., roads, defense). ​ Public Choice Theory - Politicians may prioritize short-term gains (votes) over long-term benefits. Inflation and Investment ​ Inflation decreases the value of returns. ​ Asset Allocation - Spreading investments across assets to manage risk. Poverty and Economics ​ Poverty affects access to food, education, and job opportunities. ​ Low income → less access to quality education → lower productivity. ​ Education raises productivity and living standards. Fiscal Policy ​ COVID-19 - Governments expanded welfare programs. ​ Great Depression - Rise of Keynesian economics – government must boost spending during recessions. ​ 2008 Crisis - Countries used stimulus packages, not austerity. Market Structures ​ Perfect Competition - Many sellers, identical products (e.g., Sarah's bakery). ​ Monopolistic Competition - Many sellers with differentiated products (e.g., custom vegan restaurants).  ​ Oligopoly - Few large firms dominate. ​ Monopoly - Single seller controls the market. Economic Utility ​ Maximizing utility - Choose based on income and satisfaction. ​ Diminishing utility - You enjoy each new item less than the previous one. Unemployment Types ​ Structural - Skill mismatch with market needs (e.g., factory workers without tech skills). ​ Frictional - Temporary as workers switch jobs. ​ Cyclical - Due to economic downturns. ​ Seasonal - Due to seasonal demand changes. Automation & Productivity ​ Productivity ↑ → Living standards ↑ ​ Automation may cause job loss but leads to long-term efficiency. ​ Importance of retraining programs for affected workers.