Ch 2

Question 0

Property reflects moral values concerning the…

Answer 0

Allocation of resources among people

Question 1

4 sources of ethical values?

Answer 1

1 Legal regulation
2 professional codes of ethics
3 codes of ethics from business organizations
4 individual values

Question 2

Ethics and the business cycle

Answer 2

When times are tough ethics improve

When businesses thrive and regulatory intervention remains
At status quo, ethics erode

Question 3

Ethics and government

Answer 3

Business leaders promote business ethics to prevent the

Likelihood of additional government regulation

Question 4

Internet and media: ethics

Answer 4

Exposé ethics more visibly than in any other time period

Question 5

Economic interdependence

Answer 5

People are no longer self sufficient they depend on the market
Place

Question 6

Public education and family values

Answer 6

Have declined as public school funding has declined and

Parents have less time to spend with children b/c work

Question 7

Morality

Answer 7

Collection of values that guides human behavior

Question 8

Shared moral values lead to…

Answer 8

Trust, cooperation and social harmony

Question 9

Ethics

Answer 9

Systematic statement of right and wrong

Also a Philosophical system that justifies and necessitates
rules of conduct

Question 10

Difference btw law and ethics

Answer 10

Legal system is an institution of the state, which enforces
Legal rules (civil + criminal sanctions, monetary damages etc.)

Ethical values aren’t always enforced by the state

Question 11

Formalism

Answer 11

Approach to ethics that affirms an absolute morality

A particular act is in itself right or wrong in every situation

Have duty or moral obligation not to lie

Question 12

Categorical imperative

Answer 12

You have moral duty to act in way you believe everyone

Should act

Question 13

Social contract theory, what does it concern itself with?

Answer 13

Concerns itself with how to construct a just society given

The many inequalities of wealth, knowledge and social status

Question 14

Social contract theory, how is it implemented and why?

Answer 14

We should assume that we don’t know our age, gender,
Wealth, race, intelligence, strength or social status

Vital b/c it keeps us from being self interested in values
We consider

Question 15

Rawl’s “veil of ignorance” means to…

Answer 15

To Think ethically you must lose the assumption that what

You personally need or want it necessarily morally correct

Question 16

Social contract: rawls 1st ethical principle

Answer 16

Everyone is entitled to basic equal rights including liberty,
Freedom of association and personal security

Question 17

Social contract Rawls 2nd ethical principle: although there might be social and economic inequalities…

Answer 17

These inequalities must be based on what a person does,

Not on who a person is, everyone must have an equal
opportunity for achievement (equal starting place)

Question 18

Consequentialism,define, example

Answer 18

Concerns itself with moral consequences of actions rather
Than with morality of actions themselves

Lying itself is not unethical, it’s the end result that should be
Evaluated, harm or loss of trust done by lying is unethical

Question 19

Dominant form of consequentialism: Utalitarianism

Answer 19

Judges actions by usefulness, by whether they serve to

Increase the common good

Question 20

Research shows that the best performing companies are led by…

Answer 20

Those who can promote moral principles throughout their organization

Question 21

Protestant ethic

Answer 21

Human desire and indulgence should be bent to god’s will
Through self denial, rational planning and productivity

A formalist approach: honesty and keeping promises were
Intrinsically good

Question 22

Protestant ethic vs. capitalism

Answer 22

Protestant ethic eroded under capitalism with rising wealth

Supports bureaucratic managerial system

The part of Protestant ethic that supported hard work,
Success and rational planning continued without
Original absolute moral values

Question 23

5 major ethical rules drawn form law

Answer 23

1 respect for liberty and rights of others
2 importance of acting in good faith
3 importance of exercising due care
4 importance of honoring confidentiality
5 avoidance of conflicts of interest

Question 24

Law: liberty and rights

Answer 24

Legislation protects privacy, equal opportunity employment,

Guaranteed freedom of expression and due process of law

Question 25

Law: good faith

Answer 25

Good faith is demonstrate in economic transactions

All sales must be made with honesty and intent

Question 26

Due care AKA Due diligence

Answer 26

Derives from society’s expectations about how fair and reasonable actions are

Promotes common good

Question 27

Negligence cases, balancing test

Answer 27

Balancing test- likelihood that defendants conduct causes
Harmful consequences

Negligence cases use the balancing test

Question 28

Confidentiality

Answer 28

It is malpractice for a professional agent to tell others

What a client told them in confidence

Question 29

Conflict of interest

Answer 29

Occurs when person secretly serves 2 masters

Ex 2 When a judge owns stock in a company he makes a
decision on in a court case

Question 30

Self regulation

Answer 30

Ethical codes that exist within industries And corporations

Aren’t enforced by the state, but by the professional
Organization in the industry

Question 31

Individual values: self assessment 5 questions?

Answer 31

1 have I thought whether the action I will take is right or wrong?
2 will I be proud to tell my family, employer, media about
This action?
3 am I willing for everyone to act as I’m thinking of acting?
4 will my decision cause harm to others or the environment?
5 will my actions violate the law?

Question 32

Major obstacle for corporations ethics

Answer 32

Emphasis on profits

Question 33

Top management and ethics

Answer 33

Top management must follow the code Of ethics as they

Are role models for employees throughout corporation

Question 34

Openness in communication

Answer 34

Promotes trust

Important to have a willingness to openly talk about Issues
for employees throughout corporation to make ethical decision

Question 35

Stakeholders

Answer 35

Interests of many different groups in society

They have something at risk when the company acts and
Thus have a stake in it

Question 36

Stakeholder theory

Answer 36

Holds that ethical corporate behavior requires that directors
And managers take into account everyone whose interests
The corporation impacts called stakeholders

Question 37

Capitalists

Answer 37

Owners who control large productive resources and

Employ others