Business Ethics Test #3

Question 1

What is Catholic Social Teaching? What is its overall point? Why is it referred to as the Church‘s ―best kept secret?

Answer 1

CST refers to the body of writings that the Catholic Church maintains concerning important social, economic, and political issues. The overall point is to demonstrate the communal dimension of Christian faith. BKS because most American Catholics are unaware that the writings even exists.

Question 2

What are mishpat and tsedaqah? Why are they important for understanding the Hebrew Scripture message?

Answer 2

M: justice, T: righteousness. They mean avoiding violence, fraud, or any other actions that undermine communal life while at the same time pursuing that which sustains the life of the community. Hebrew Scriptures not only describe how people should live in relation to one another they also demonstrates what happens when justice and righteousness are lacking

Question 3

What two ―great values concerning social life are emphasized in the Old and New Testaments? What relevance do these values have for Christians today?

Answer 3

Faith- is not simply a private affair between the Christian and god. Demonstrate solidarity with the poor, powerless, and outcasts of society.
Contrast society- true human worth is not by how much wealth or power one possess but in the fact that we were created in gods image and likeness and true human power is exercised through the practice of love, justice, and service

Question 4

What three ―conclusions‖ about material wealth can be drawn from the teachings of the early church Fathers?

Answer 4

1: Christians are called to renounce wealth and power as the ultimate values in their lives
2: all material goods are bestowed by god for the benefit of all
3: while there is nothing inherently wrong with the possession of material goods, problems inevitably arise in terms of their use

Question 5

If the principles of CST do not tell us exactly how to act in a specific situation, what is their purpose?

Answer 5

CST offers a moral guide for how to live the Christian faith in the world. The principles offer a framework for moral decision making regarding how to live as individuals in society and how to formulate public policy.

Question 6

. What is the principle of human dignity? What is its theological basis? What does this principle mean in practice?

Answer 6

Human dignity is all people are created in the image and likeness of God, and because God became human through the person of Jesus Christ, each individual maintains an inherent dignity and infinite worth. In practice this means one cannot exploit others, treat them as a means to one’s own end, or ignore the consequences of one’s actions on them

Question 7

What are the principles of community and the common good? How is the common good defined by the Second Vatican Council and Pope Benedict XVI?

Answer 7

Community- we humans are one family and that we need one another. Physically our basic material needs and socially we fulfill ourselves only in relationship with one another. Common Good- because all people live, work, and fulfill themselves in community with one another they must look to fulfill not only their individual good but work to build a society that benefits all people. Second- the sum of those conditions of social life which allow social groups and the individual members relatively thorough and ready access to their fulfillment. Benedict- the good of “all of us”. A good that is sought not for its own sake but for the people who belong to the social community and who can really and effectively pursue their good within

Question 8

What are the principles of participation and subsidiarity

Answer 8

P: at all levels of society people have the right to participate in the decision making process concerning issues that affect them directly. S:as much as possible, public policy decisions should be made on the local level because the people who have the best knowledge of what needs to be done in a particular location are the ones who live their

Question 9

What is the principle option for the poor? How do the US bishops say it must be ―applied‖ in terms of economic policy decisions?

Answer 9

Jesus championed the cause of the poor (materially and spiritually) so also his followers are called to do the same.it be done “at the service of all people, especially the poor.

Question 10

What is the principle of stewardship? What makes stewardship distinct from care taking?

Answer 10

Right of the individual to own property. Which serves as a means to meet basic needs and that people are more diligent with their own property than with property commonly held. Caretaking means watching over something for someone during an absence but stewardship means accepting full responsibility for that which is in your care

Question 11

What is the principle of solidarity? How does Pope John Paul II define solidarity?

Answer 11

The conscious decision to form community with the one for whom we have compassion, the one who is suffering.it is a firm and preserving determination to commit oneself to the common good.

Question 12

What does it mean to say that CST is grounded in practical reality?

Answer 12

Does not arise from speculative theology or from technical theological arguments but from the reality of people’s lives

Question 13

Why are the principles of CST morally binding on all people, not just Catholics?

Answer 13

They can be understood both philosophically (through human reason) and theologically (through gods revelation

Question 14

Why does CST not tell us exactly how we should act in a given situation?

Answer 14

The church does not usually propose single concrete teachings on social issues which means faithful Catholics and non-Catholics can disagree as to how the principles of CST should be applied in specific situation

Question 15

How did Pope John Paul II respond to the question of whether capitalism should be the “model” for nations seeking to move toward sustained economic development?

Answer 15

What John Paul II was saying here is that, yes, capitalism can be a vehicle to foster economic development, but only if it operates within a defined legal and ethical framework.

Question 16

How did the Second Vatican Council and the United States Catholic bishops link faith with business? What practical implication follows from this linkage?

Answer 16

The overall point here is that the moral precepts recognized by the Church apply to actions performed in the corporate name in the same way they apply to those performed in the individual’s private life. There is no distinction between the two. In a practical sense, this means that business people are not immune from the duty to act ethically.

Question 17

According to the principle of human dignity, what is the primary goal of business? How did Pope Leo XIII and the United States Catholic bishops speak to human dignity in their writings?

Answer 17

Primary goal of any business enterprise should be the well-being of the human person, not the pursuit of profit. According to the pope, “Each requires the other; capital (understood as owners) cannot do without labor nor labor without capital.”.

Question 18

For what three specific reasons does CST maintain that human work has an inherent dignity? What specific implications does this teaching have for American corporations?

Answer 18

First, work is the principal means by which we satisfy our material needs. Second, work is a means to participate with God in the continual re-creation of the world. Third, CST maintains the dignity of work because individuals “become who they are,” in part, through their work activity (who we are as a person).
First, it means that corporations have a moral obligation to pay employees a just or living wage, one that is sufficient to meet the basic needs of the employee’s family and to allow for future investment. Corporations also need to reevaluate their levels of executive compensation. Corporations should offer employees health care and disability benefits as well as a retirement or pension program. Corporations to examine the practice of outsourcing. Support of labor unions

Question 19

How has CST traditionally viewed labor unions? What are the rights and duties involved with union membership?

Answer 19

Catholic Church has upheld the right of every worker to join a union if he or she chooses, as well as the duty of management to recognize and respect this right.
According to the pope, workers maintain a “natural right” to join these associations, and they cannot be prevented by anyone from becoming members of them. Workers may legitimately resort to calling a strike when this is the only means of justice available to them.

Question 20

How did Popes John XXIII and John Paul II uphold the principle of community in speaking about business activity?

Answer 20

Pope John Paul II echoed his predecessor by stating that a business must not be viewed solely as a “society of capital goods.” Instead, it must be viewed as a “society of persons” within which individuals “participate in different ways and with specific responsibilities” to achieve an overall good. Pope John XXIII insisted that regardless of their size, corporations must offer workers the opportunity to purchase shares of stock. By offering workers opportunities for ownership, businesses would “assume the character of true human fellowship whose spirit suffuses the dealings, activities and standing of all its members.”

Question 21

7. How did the U.S. Catholic bishops uphold the principle of the common good in speaking about business activity?

Answer 21

Speaking specifically to the business community, they maintained that the degree to which economic activity fulfills the demands of justice is contingent upon how its resources are managed by owners, managers, and “investors of financial capital.”

Question 22

8. What is shareholder theory? What is stakeholder theory? According to CST, which is primary?

Answer 22

shareholder theory maintains that because the shareholders actually own the corporation, management’s primary responsibility is to them. Stakeholder theory, on the other hand, recognizes that many constituencies are affected by the corporation’s actions. Stake is primary.

Question 23

9. Concerning stewardship of resources, what two implications follow from the teaching that no one owns resources absolutely?

Answer 23

no one can control their use without regard for the needs of others. “resources created by human industry” do not belong to the corporation alone, because in gaining these resources the corporation benefited from the earlier progress of others

Question 24

10. What arguments have companies historically used to defend their pollution? What is the difference between having dominion over the created order and having domination over it?

Answer 24

it is far less costly to release pollutants into the environment than it is to deal with them in other ways. Contributing to this were the beliefs that the environment’s carrying capacity is so large that each firm’s contribution of pollution is relatively insignificant, and that the environment is a “free good” that can be used without reimbursing anyone for its use. dominion over the earth, which means that they are fully responsible for how they treat it and for how they use its abundance.

Question 25

11. What did John Paul II and the U.S. bishops say about corporate pollution? About the use of natural resources?

Answer 25

Regarding pollution, John Paul II specifically identified industrial waste, the burning of fossil fuels, and the use of herbicides, coolants, and other propellants as environmental risks that demand greater care from those who use them. He claimed that many of the environmental problems we face today are the direct result of business activities in which individual interests have taken priority over the common good

Question 26

12. In what specific ways can corporations uphold the option for the poor in the United States? Internationally?

Answer 26

corporations have a moral duty to do what they reasonably can to meet the needs of the most vulnerable members of the community. Corporations are called to produce quality goods and services that meet authentic human needs. They are called, when appropriate, to offer employment opportunities for at-risk individuals through job training or apprenticeship programs. They are called, when appropriate, to locate in low income areas and, if possible, not to abandon these areas when profits are marginal. They are called to help the poor in securing loans for educational advancement or for starting new businesses. They are also called to enter into partnerships with organizations that work to alleviate poverty and suffering, and to donate money or products to worthy causes in times of need.
In establishing new business entities, corporations must first recognize the needs of the local populations and assure that their own objectives do not frustrate those of the local communities. to the greatest extent possible, managerial and staff positions in these new businesses must be offered to locals, and workers must be offered shares of ownership. corporations must not turn a blind eye to human rights violations.

Question 27

13. How can a corporate act be an expression of social solidarity?

Answer 27

those who are charged with its planning, formulation, and execution must look beyond the fiduciary responsibility they have to their shareholders and judge to the best of their ability how the proposed action will both respect the dignity of others and promote the societal common good

Question 28

14. How, specifically, did McDonnell Douglas fail to uphold the principles of human dignity, common good, and solidarity in the DC-10 case?

Answer 28

Human dignity demands that people are recognized as created in the image and likeness of God, possessing infinite value and worth. Particularly in terms of product safety, it demands that a manufacturer do everything it reasonably can to protect the user of its product from harm
Through their actions (or more precisely, their inactions), these executives demonstrated that they valued the success of their company over the health and well being of their customers. Their primary concern was the “good” of the corporation and its shareholders, not the good of the individuals they knew would be using their products
The principle of solidarity, in turn, calls us to willingly and consistently commit ourselves to acting for the common good

Question 29

15. How did Johnson & Johnson uphold the principles of human dignity, common good, and solidarity in the Tylenol case?

Answer 29

Its actions demonstrated a great concern for the dignity of its customers as well asfor the societal common good. Its voluntary recall was an act of social solidarity, directed toward the good of stakeholders rather than the corporate bottom line. Johnson & Johnson was not responsible for the poisonings, but it did take responsibility for protecting the public from the terrible misuse of its product

Question 30

Catholics in the US

Answer 30

All people of goodwill

Question 31

our faith calls us to measure this economy…

Answer 31

not by what it produces but also how it touches human life and whether it protect or undermines the dignity of the human person

Question 32

Economic decisions have human consequences and moral content

Answer 32

affects peoples lives

subject to ethical evaluation=> we can and should jusge economical decisions

Question 33

Catholics to use the resources of our faith

Answer 33

democracy to shape a society that better protects the dignity and basic rights of our sisters and brothers

Question 34

Followers of Christ must avoid a tragic separation between faith and everyday life

Answer 34

Sunday-Monday divide

“Its not personal, its business”

Question 35

Act, Choices

Answer 35

morality=free choice

how one spends $ = moral choice

Question 36

who practice their faith in the world

Answer 36

not proselytizing

offering good example to other

Question 37

Our faith is not just a weekend obligation

Answer 37

We cannot separate what we believe from how we act in the marketplace and the broader community

Question 38

Human Dignity

Answer 38

foundation principle of CST

Question 39

reflection of God

Answer 39

humans are only creatures created in Gods image and likeness (reason and free will)

Able to make moral decisions

accountable for actions

Question 40

Community/ Common Good

Answer 40

obligation to “love our neighbor”

Commitment to common good- love our neighbor- Jesus greatest commandment

Question 41

Solidarity

Answer 41

best interest of the community as a whole

Question 42

Participation

Answer 42

Employment

it is through employment that most individuals and families meet their material needs, exercise their talents

contribute to the larger community

God’s creative activity