Chapter 1

Question 1

What is ethics?

Answer 1

The study of right and wrong, duty and obligation, moral norms, individual character, and responsibility.

Ethics deals with how we should live.

Question 2

What is business ethics?

Answer 2

The study of right and wrong, duty and obligation, moral norms, individual character, and responsibility – in the context of business.

Question 3

Nonmoral standards vs Moral standards

Answer 3

Nonmoral standards: Standards about behavior or practices with no serious or immediate effects upon human well-being.

Moral standards: Standards about behavior or practices with serious or immediate effects upon human well-being.

Moral standards take priority over nonmoral standards.
The soundness or validity of moral standards depend on the quality of the arguments or the reasoning that support them.

Question 4

Morals and Etiquette

Answer 4

• Rules of etiquette are nonmoral in character and are meant to serve as guidelines for socially acceptable behavior.
• Violations of etiquette can sometimes have moral implications.
• The strict observance of rules of etiquette can sometimes conceal serious moral issues

Question 5

4 kinds of law

Answer 5

Statutes: Laws enacted by legislative bodies such as the U.S. Congress and state legislatures.

Administrative Regulations: Laws enacted by special boards or agencies for various kinds of conduct.

Common law: The body of judge-made laws developed in English-speaking countries over the course of many centuries.

Constitutional law: Court rulings on the requirements of the U.S. Constitution and on the constitutionality of legislation.

Question 6

Relationship with law

Answer 6

Law codifies a society’s customs

Question 7

The distinction between morality and legality:

Answer 7

The distinction between morality and legality:
An action can be illegal but morally right.
An action can be legal but morally wrong.

Question 8

Professional codes

Answer 8

The rules that govern the conduct of the members of a given profession.

Individuals have the responsibility to critically assess the rules of their professions.

These rules are not always complete and reliable guides to adequate moral conduct.

Question 9

The claim that morality is based on religion:

Answer 9

• Religion provides incentives to be moral.
• Religion provides moral guidance.
• Moral norms are in essence divine commands.

Question 10

Ethical relativism:

Answer 10

The view that moral norms come from the customs of the society in which they occur.

This means that moral norms are not universal, but are dependent upon a particular cultural or social context.

Question 11

Implications of relativism:

Answer 11

• There is no independent standard by which to judge the rightness or wrongness of other societies.
• The idea of ethical progress loses its significance.
• It makes no sense to criticize the moral code of one’s own society or culture.

Question 12

Relativism and the “game” of business:

Answer 12

• The idea that business is a just game captures the thesis of Albert Carr.
• He argued that business professionals are expected to follow a code that has little or nothing to do with ethics.
• This view entails – incorrectly – that the practices of business professionals cannot (or should not) be evaluated from a moral standpoint.

Question 13

What it means to have principles:
Conscience:
Conscience and its limits:

Answer 13

Accepting moral principles is not just a matter of intellectual recognition, but of profound individual commitment to a set of values.

Conscience: The internalized set of moral principles taught to us by various authority figures – parents and social institutions.

Conscience and its limits: Conscience is not always a reliable guide because it can be (1) conflicted and (2) erroneous.(wrong)

Question 14

Moral principles and self-interest:

Answer 14

• The morality of an action can run counter to our self-interest.
• The moral point of view requires that we restrict our self-interest to satisfy social co-existence.
• In situations of conflict between moral principles and self-interest, it is important to appeal to shared principles of justification.

Question 15

Morality in the narrow sense vs Morality in the broad sense:

Answer 15

Morality in the narrow sense: The moral principles or rules that govern the conduct of individuals in their relations with others.

Morality in the broad sense: The values, ideals, and aspirations that influence the decisions and lifestyles of individuals and entire societies.

Business ethics are mainly concerned with morality in the narrow sense.

But values, ideals, and aspirations also affect the behavior and ethical choices of business professionals.

Question 16

Organizational norms

Answer 16

Employees of business organizations (especially corporations) are:

• Expected to further profit goals.
• Often pressured to compromise moral values and ignore or violate rules of ethical conduct.

Question 17

Conformity
Groupthink
Diffusion of responsibitlity

Answer 17

Conformity: Studies show that individuals are more prone to act unethically when they are a part of an organization or a group.

Groupthink: The pressure on group members to conform to morally questionable policies or strategies, often resulting in unethical conduct.

Diffusion of responsibility: The multiplicity, complexity, and distribution of tasks that can lead individuals to feel less responsibility or accountability for their actions.

Question 18

Argument:

Answer 18

A group of statements in which one statement (conclusion) is true and follows from the others (premises).
Example:
If Norman is bald, then Norman does not need a haircut.
It is the case that Norman is bald.
Therefore, Norman does not need a haircut.

Question 19

Requirements for a sound argument:

Answer 19

If its statements (premises and conclusion) are true and its form (or structure) is correct.
Validity: The correctness of an argument.
Invalid arguments: Those with incorrect form (or structure).
Determining whether an argument is valid or invalid requires familiarity with the rules of logic

Question 20

Moral arguments:

Answer 20

Those conflicting theories and beliefs whose conclusions are moral judgments, based on the premise of moral standards and statements of fact.
Example:
If an action violates the law, it is morally wrong.
Affirmative action on behalf of women and minorities in personnel matters violates the law.
Therefore, affirmative action on behalf of women and minorities in personal matters violates the law.

Question 21

What makes a moral judgment defensible?

3 steps to Evaluating moral arguments:

Answer 21

If it is supported by a moral standard that can be defended as well as relevant facts.

Evaluating moral arguments:

1) Clarifying the terms of the premises.
2) Examining the factual claims.
3) Assessing the moral standard.

Thus, an argument can be refuted by:
Uncovering ambiguity in the terms.
Questioning the factual claims.
Challenging the moral standards.

Question 22

Criteria for moral judgments

Answer 22

Criteria for moral judgments:

1) logical
2) based on facts.
3) based on acceptable moral principles

Question 23

Divine command code

Answer 23

If something is wrong then the only reason it is wrong is that God commands us not to do it

Question 24

To except a moral principle is not a purely intellectual act like accepting a scientific hypotheses or a mathematical theorem rather…

Answer 24

It also involves a desire to follow that principle for its own sake, the likelihood of feeling guilty about not doing so, and a tendency to evaluate the conduct of others according to the principle in question.

Question 25

By standard happy

Answer 25

The more people who are observing an event, the less likely it is of one of them to feel obliged to do something
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