Business Ethics Flashcards
6 steps of resolving ethical dilemma
- Gather all the facts and familiarize yourself with them
- List information you would like to have and list any assumptions
- List each person involved and any concerns they may face
- Develop list of resolutions
- List costs, legalities, and impacts of each resolution
- Make a recommendation
Divine Command Theory
Making a decision based on religion
Natural Law
Certain rights and conduct controlled by God and no one else
Ethical Egoism Theory
Making a decision that is in the best interest of one’s self
Utilitarian Theory
Making a decision that is the greatest good for the greatest number of people. Cost/benefit analysis
Categorical Imperative
Making a decision on the thought of what would be the consequences if everyone in society acted this way
Contractarians and Justice
What rules would you impose if you were prince or pauper? Veil of ignorance
Rights Theory
Everyone has a set of rights and it’s the governments job to protect them
Moral Relativists
Derived subjectively from the individual experiences of each person
Virtue Ethics
An acquired set of virtues used to make decisions
Peter Drucker
Above all do no harm
Laura Nash 12 questions
Used to evaluate an ethical dilemma
Peale and Blanchard
Is it legal? Is it balanced? How does it make me feel?
Warren Buffett
What would you do if your actions was on the front page on the newspaper for everyone to see
Wall Street
Am I in compliance with the law? How does it affect shareholders? What are the short and long term consequences?
Adelphia Case
Cable company who went bankrupt in 2002 for internal corruption. Warren Buffett, Utilitarian theory
Beechnut Case
Claimed their apple juice was made with real apples but it was really made with syrup to save money for the company. Warren Buffett, Wall Street Journal
NASA Challenger Case
Sent students and teachers up then the ship exploded because they refused to wait for a warmer day. Virtue ethics, ethical egoism, Wall street journal
Enron Case
Engaged in earnings management that bankrupted the company
Penn State Case
Officials and administration acted inappropriately when knowledge of child abuse was received
Ice T Case
Time Warner signed Ice-T who released an album with “cop killer” on it. At first Time Warner backed him but then later they decided to split ways with him
Guns and safety Case
Mass shootings began then safety and gun regulations started to be a topic
Fannie Mae and Freddie Mac Case
Would give high risk loans and then fudge accounting
Employer Control Case
A debate of whether or not employers are getting too much access into employees lives
Bad Apples Case
IDEK. Just look over the powerpoint
WorldCom Case
Bought long distance phone network access at wholesale price then sell it to consumers at a cheaper price
Arthur Anderson Case
An auditor for many major companies at the time. Performed Mark to Market accounting which is valuing assets based off predictions of future prices rather than previous ones
HealthSouth Case
Employee was being bullied into manipulating financial reports to reflect the numbers they promised to investors
Tyco Case
Key Employee Loan Program which would allow employees to take out little to no interest loans which were easy to manipulate. They would take out more than needed to truly help with what they needed then would use the rest for personal wants
Ann Hopkins Case
Ann was trying to become partner of Price Waterhouse. Was first put on hold then was told to act more feminine. She was then told she would not become a partner, resigned, then filed a discrimination complaint. Contractarians and justice, Rights theory, Peter Drucker
Tylenol Case
Tylenol was leading to liver damage. The number of pediatric poisonings from Tylenol has more than tripled. McNeil knew but did nothing to change it. Utilitarian Theory, Contractarians and Justice, Peter Drucker
Ford Pinto Case
Had to place gas tank behind the rear axel which did not meet the tests they performed but other models did so they continued with production. There was an option to fix it at $4 per car but they declined. Ford would end up having to pay $50 million for deaths and injuries caused by their car. Moral relativism, utilitarian, ethical egoism
Frozen Cake Case
Frozen coke was being offered in a Burger King in VA. Was not doing well so Fischer told employees to buy the value meals and then Berryman gave cash to boys and girls clubs saying if they did their homework they could go get a value meal. They saw sales increase and Burger king invested then failed. Utilitarian, Wall Street Journal
Protected Classes of Title VII
Forbids discrimination in employment because of race, color, religion, sex, or national origin
On the Job Fetal Injuries
Johnson Controls is battery manufacturer which contained lead. Policy there said pregnant women can not be placed in a position around this lead. Was found discriminatory
Religious Accommodations
An employer must take reasonable steps to prevent harassment however bear de minimis cost to accommodate religious differences
National Origin Discrimination
Most cases are based on language and/or appearance
Minimum to show national origin discrimination
Disparate treatment and disparate impact
Disparate Treatment
Exists where an employer intentionally treats people less favorably than others based on race, gender, religion, or national origin
Disparate Impact
Exists where an employer uses legitimate employment standards that work a heavier burden on a protected class than others
ADA/ADAA
Forbids discrimination in employment public accommodations, public services, transportation, and telecommunications against the disabled
ADA/ADAA Protected
Blindness, hearing loss, anatomical loss, alcoholism, drug use, disfiguring scars, HIV/AIDS, obesity
ADA/ADAA Not Protected
homosexuality, bisexuality, gambling, exhibitionism, kleptomania, pyromania
ADEA Claim
Plaintiff must show they are above 40 years older, qualified for the position, and not hired or terminated/demoted while a younger person received more favorable treatment
Who should develop code of ethics?
President, board of directors, CEO, legal counsel
Codes of Conduct Forms
- Code of ethics
- Code of conduct
- Statement of values
BFOQ (Bona Fide Occupational Qualification) Defense
- Proof of nexus between the classification and job performance, and will the classification affect the job performance?
- Necessity of the classification for successful performance and mere customer preference
- That the job performance affected by the classification is the essence of the employer’s business operation
Confronting a Situation
- Determine facts
- If you don’t know the facts, or can’t know the facts, present the issue to those involved and affected
- Always give the opportunity for self remedy
- Don’t fear the fallout and the hassle
Product Liability
- Product defective
- Because of defect, product unreasonably dangerous
3.Defect proximate cause or substantial factor in injury
