ch 3- ethics Flashcards
ethics
study of what constitutes right and wrong behavior
Business ethics
Looks at the decisions businesses make/have to make and if they are right or wrong and overall how business ppl apply moral principles in decision making
The Fraud Reduction and Data Analytics Act
identify and assess fraud risks and used to prevent, detect, and respond to fraud in fed govt agencies.
Dodd-Frank Act
Strengthens oversight of financial institutions to prevent economic crises and protect consumers.
Gray areas in the law
Laws can be difficult to interpret bc of broad language making it hard to determine how provisions apply to specific situations
and how courts will interpret/ enforce a law in specific cases
Sarbanes-Oxley Act (SOX)
Enhances corporate accountability and prevents fraud through stricter financial reporting and internal controls
Laws intended to address one situation can also be applied to other situations too (T or F)
T
The moral minimum
The minimum level of ethical behavior expected by society which is just merely compliance with the law
Failure to meet the moral minimum does not have consequences (T or F)
F - It does have consequences
Industry ethical codes
Specific codes for industries
ex : ANA
business as a pure profit max
- yes if bus stick to profit max things can move to where they are highly valued but business can actually benefit from behaving ethically and be hurt by not behaving ethically
businessess as corporate citizens
- people started do dislike profit maximization theory and investors and others began to look past profits and dividends and look more closey at triple bottom line
- companies are now viewed as citizens expected to participate in communities
triple bottom line
-profit people planet
Four part analysis
when making a decison bus shoudl think about
The legal impactions
The public relations impact
The safety risks
The financial implications
Ethical issues in business
Businesses must develop integrity and trust by being honest, treating people fairly, and fostering diversity and equal opportunity in the workplace.
They must comply with federal and state laws on environmental, financial reporting, and safety standards.
Attitude of top management
Top management must demonstrate commitment to ethical decision-making, as their behavior sets the tone for an ethical workplace.
Immediate corrective action against unethical conduct is key to fostering and maintaining good business ethics.
ethical reasoning
A reasoning process in which individuals link their moral ethical standards to the situation(applies to business and ppl)
2 categories of ethiscs
- duty based
-outcome based
duty based
idea that every person/bus has duties to others including humans and planet
outcome based
determining what is ethical by looking at consequences or outcomes of any action
religious ethical principles
Every religion has beliefs or principlas on how one should treat others
Christianity - bible
principal of rights
beleif that humans have fundamental rights
when determining if a business decision is ehtical - must look at how it impacts the rights of the ppl
principal of rights theory issue
Rights theory faces challenges when prioritizing conflicting rights, such as choosing between employees’ and shareholders’ interests or deciding layoff criteria (e.g., tenure vs. salary).
Firms must balance the rights of various stakeholders, including customers, employees, the community, and society as a whole.
Resolving conflicts
theorists believe that whichever right is stronger in a particular circumstance takes precedence.
Categorical imperative
Individuals should evaluate their actions in the light of the consequences that would follow if everyone acted the same way
Can be applied to any action
People are not a means to an end
when people are treated merely as a means to an end, they are being treated as the equivalent of objects and are being denied their basic humanity.
utilitiarianms - outcome
Actions are judged by their consequences, aiming to achieve the greatest good for the greatest number of people.
A “good” action maximizes overall benefit for those affected.
Cost benefit analysis
A determination of which individuals will be affected by the action in question.
A cost-benefit analysis, which involves an assessment of the negative/ positive effects of alternative actions
A choice among alternative actions that will produce maximum societal utility (the greatest positive benefits for the greatest number of individuals).
