Ch 3

Question 1

Business ethics

Answer 1

ethics is a branch of philosophy that deals with values relating to the nature of human conduct and values associated with that conduct
business ethics balances the goal of profits with values of individuals and society

positive law: if an act is legal, then it is moral
natural law: higher standards of conduct that positive law
-must be followed even if against codified law
-a law can be legal but unethical

the contractarians and justice/social contract, universal standards developed that result in fairness

rights theory: also known as entitlement theory - everyone has a set of rights, and it is up to the government to protect them

Question 2

ethical egoism theory

Answer 2

we should act in our own self-interest and only judge ourselves

Question 3

utilitarian theory

Answer 3

we should do the good for the most amount of people

Question 4

moral relativists

Answer 4

standards should be based upon the circumstances and there should not be predefined standards

Question 5

stakeholder analysis

Answer 5

measures the impact of a decision on various groups and asks whether public disclosure of that decision is defensible

Question 6

The business stakeholder standard of behavior

Answer 6

1. define the problem from the decision maker’s point of view
2. Identify who could be injured by the contemplated action
3. define the problem from the opposing point of view
4. would you (as the decision maker) be willing to tell your family, your supervisor, your CEO, and the board of directors about the planned action
5. would you be willing to go before a community meeting, a congressional hearing, or a public forum to describe the action
6. with full consideration of the facts and alternatives, reach a decision about whether the contemplated action should be taken

Question 7

Why is business ethics important

Answer 7

the importance of trust
financial performance
the importance of a good reputation
business regulation: public policy, law, and ethics
protection of: the state, the person, public health, safety, and morals, property, personal rights
enforcement of individual intent
protection from: exploitation, fraud, and oppression
furtherance of trade
protection of creditors and rehabilitation of debtors
stability and flexibility

Question 8

how to recognize and resolve ethical dilemmas

Answer 8

categories of ethical behavior
-integrity and truthfulness
-promise keeping
-loyalty: avoiding conflicts of interests
-doing no harm
-maintaining confidentiality

blanchard and peale three-part test
uses three questions to evaluate situations
-is it legal?
-is it balanced?
-how does it make me feel?
the front-page-of-the-newspaper test
evaluate whether you’d want your decision published to everyone
laura nash model
requires examination of the dilemma from all perspectives, defining the problem helps avoid the dilemma again, ask for the perspective of family and friends