Ch 5 Ethics

Question 1

Most efficient way to turn a dollar

Answer 1

Profit maximization

Question 2

Triple bottom line

Answer 2

Profits, impact on people, impact on planet

Question 3

Duty based ethics

Answer 3

Derived from revealed truths, religious and philosophical principles

Question 4

Principle of rights (rights theory)

Answer 4

Ethicality of an action is judged by how the consequences of the action will affect the rights of others

Question 5

Kantian ethics

Answer 5

Belief that general guiding principles for moral behavior is derived from human nature (people not means to an end)

Question 6

Categorical imperative

Answer 6

Central postulate of kantian ethics; rightness or wrongness of an action will be judged by estimating consequences of everyone in a society acting that way

Question 7

Outcome based ethics

Answer 7

Consequences of an action and how it maximizes benefits while minimizing harms

Question 8

Utilitarianism

Answer 8

Premier theory for outcome based; greatest good for greatest number of people

Question 9

Corporate social responsibility

Answer 9

Combines good citizenship with making ethical decisions, improving society & minimizing environmental impact

Question 10

Stakeholder

Answer 10

Groups impacted by corporate decisions

Question 11

Systematic approach

Answer 11

Five step process by Bucklin:

• inquiry
• discussion
• decision
• justification
• evaluation

Question 12

Sarbanes oxley

Answer 12

Companies must set up confidential systems to find red flags about suspected illegal and unethical auditing