12+

Question 1

Financial Statements

Answer 1

Key mechanism through which firms convey information to stakeholders

Trust they are “true and fair”

Can be high quality or low quality

Error – unintentional misstatement

Fraud – intentional misrepresentation in financial statements

By commission – contain intentionally false information

By omission – fail to contain information that should be disclosed

Question 2

Wells Fargo Case

Answer 2

• sales culture

- go for gr-8 campaign

Question 3

fraud triangle

night in the museum -> the ROM

Answer 3

= rationalization + opportunity + motivation

Question 4

rationalizations

Answer 4

Shifting the blame (“everyone does it”)

Advantageous comparison (“They had it coming…”)

Moral justification (“I’m just protecting…”)

Euphemistic labelling (“I’m leveling the playing field”)

Pleading ignorance (“I don’t see that I'm hurting anyone”) 
 PLUS GVV

Question 5

ethical leadership related to ethical culture

Answer 5

Unethical culture is unsustainable – it will eventually cost the firm

Create one by

• Tone at TOP
• Detailed CODE of conduct
• ACT when behavior occurs
• Ethics TRAINING for employees
• have effective WHISTLE-BLOWER SYSTEM in place
• Be TRANSPARENT about performance, pay, and promotion
• DETERRENCE– make unethical conduct visible & show employees how its treated
• Must PERMEATE every area of firm

Question 6

disability

Answer 6

the negative aspects of the interaction between an individual (with a health condition) and that individual’s contextual factors (environment and personal)

Barriers: attitudinal, accessibility, individual-level

How to Break Glass -> the 3-legged stool (career self-management strategies, social networks, organizational and societal factors)

Question 7

ESG

Answer 7

sustainbility & ethical investment

• environmental
• societal
• governance

Question 8

Triple Bottom Line

Answer 8

How can businesses be more sustainble?

• economy -> profit
• society -> people
• environment -> planet

Question 9

Ethics of Care

Answer 9

Humans are feeling & relational being – we are caring by nature

Relationships provide meaning and purpose, and this we prioritize, given special attention to, feel accountable to and care for those within our circle

Truth: we do not treat everyone equally

It is ethical to treat particular people with care -> theory values particularism over universalism

Question 10

Critical Elements of Ethics of Care

Answer 10

1. CIRCLE OF CARE
2. come people are more VULNERABLE
3. CONTEXT MATTERS when deciding how to best care for those in our circle

Question 11

Ethics of Care questions to guide action (tie to critical elements)

Answer 11

What is my relationship to this person?

Does a need for care exist?

Will the relationship be harmed? Or will trust/harmony in the relationship be compromised?

Can I provide care?

Question 12

Ethics of Care vs Other Ethical Theories

Answer 12

Emphasis relationships vs. autonomy

Directed by context vs. By rule and Principle

Appeal to particular or special treatment vs. Just, right, or universal treatment

Question 13

Strengths of EoC

Answer 13

Explains our concern and behavior around people close to us

Brought a female perspective to ethical philosophy

Provides answers where other perspectives fail (I.e. Kant – never lie)

Question 14

Weaknesses of EoC

Answer 14

Danger of parochialism (narrow view), nepotism, cronyism

May encourage lack of concern for others outside of one’s circle

May reinforce male/female stereotypes

Question 15

Virtue Ethics compared to Other Traditions

Answer 15

Three major ethical traditions in Western World are

• Virtue ethics – Aristotle; the Stoics (Teleology – ends based)
• Kantian ethics (Deontology – means based)
• Utilitarianism (Teleology – ends based)

Aristotle’s Virtue Ethics is Agent (PERSON)-Oriented
> Emphasizes being
> Focus on what is a good person – how to become a good person?

Kantian & Utilitarianism are Action (RULE)-governed
> Emphasize doing
> Focus on right action – what is right to do?

Question 16

Eudaimonia

Answer 16

Aristotle’s answer to “what is the purpose of a human being?”

We should strive to be a good soul, to flourish, and to achieve lasting happiness

Look back and see we lived a good life

“We are what we repeatedly do. Excellence, then, is not an act, but a habit” - Aristotle

Question 17

how do we become a good person?

Answer 17

1. Know yourself
2. Practice virtues & the golden mean
   > Virtues are a gold mean between excess and deficiency
   > Guide to social intelligence

Question 18

Strengths of Virtue Ethics

Answer 18

Logical that a good person will make the right decisions

Develop as a good person & right action will follow

Some ethical decisions or actions are taken in a fraction of a second -> perhaps good people will be more likely to react ethically

Unlike Kant, Aristotle encourages us to recognize & enjoy the satisfaction of acting well

Question 19

Weaknesses of Virtue Ethics

Answer 19

Even the most virtuous person can make wrong decisions

Virtues are initially taught by family, teachers, communities, etc. -> but what if these are bad?

“methods” for developing virtue are too general (practice)
I.e. how do you practice courage if you do not have it to begin with?

Question 20

Confucius

Answer 20

Teachings were collected in Analects

Certain similarities to ethics of care – emphasis on particular relationships

 Brief Overview of teachings 
> Strong focus on the collective 
> You are inseparable from your relationships 
> Emphasizes social order & harmony 
> Key concepts: Ren, Li, Yi, Xiao