2.2: Influences on Ethical behavior Flashcards
What is ethical relativism?
Ethical relativism is the belief that ethical answers depend on the reference point and that no universal standards or rules exist to guide or evaluate morality.
It implies that ethics are relative, with individuals and organizations setting their own standards for judging behavior.
What is the main critique of ethical relativism?
The main critique is that it lacks rigorous analysis of circumstances, consequences, and consistency of outcomes.
Why is self-regulation encouraged in the context of government influence on business ethics?
Self-regulation is encouraged because it allows corporations to act responsibly without always relying on legal enforcement, promoting social responsibility.
How do government and legal systems influence ethical behavior in business?
Governments influence business ethics by enacting legislation and regulations that set basic rules of conduct, such as the Competition Act, which makes certain unethical practices illegal and encourages businesses to self-regulate.
What are some limitations of using law as the minimum moral standard for ethical decisions?
Laws cannot cover all aspects of morality, and some laws may be arbitrary or unethical, so ethical behavior may require going beyond legal compliance.
What is the role of economic efficiency in ethical decision-making?
Economic efficiency encourages managers to make decisions that maximize output and profitability, often guided by the belief that self-interested actions benefit society by fostering economic prosperity.
What are some criticisms of economic efficiency as an ethical influence?
Criticisms include the risk of excessive profits, inequality, and market domination, especially in non-competitive markets where stakeholders may feel excluded.
How does organizational culture influence ethical behavior?
Organizational culture shapes the expected norms of conduct, with leadership, policies, codes, and cultural symbols guiding managers’ ethical decisions.
What role do industry organizations play in promoting ethical conduct?
Industry organizations, such as the Better Business Bureau, set codes of conduct and standards that members are expected to follow, sometimes enforcing these through expulsion for breaches.
What is the mission of the Better Business Bureau (BBB)?
The BBB’s mission is to lead in advancing marketplace trust by creating a trustworthy business community, setting marketplace standards, and promoting integrity and transparency.
What is one key value emphasized by the BBB, and how is it reflected?
The BBB values integrity, reflected in promoting honest advertising, transparency, safeguarding privacy, and honoring commitments.
How do social relationships influence ethical standards?
Social relationships, including family, friends, and community, shape individuals’ personal values, which influence their ethical decision-making.
In what ways do societal influences such as education and culture affect business ethics?
Education in ethics, cultural traditions, and societal values impact how managers perceive and approach ethical issues in business.
