Chapter 2 Flashcards
Resources flow more highly valued organizations
Profit maximization
Today investors look more at the “triple bottom line” which is the businesses profits, treatment of the planet
The rise of corporate citizenship
A company might decide to sell a defective product to increase profits
Short run
When the cost of lawsuit and bad publicity is considered unethical conduct with cause a business to suffer
Long run
Complying with the law is the minimum degree of ethics required by a business
The moral minimum
Application of morals and ethics to a five. Situation, can be duty based or outcome based
Ethical reasoning
Businesses have a duty of care to others
Duty based
The strongest duty is to the company’s stakehders
Outcome based
The best course of action is the one that promotes the greatest good for the greatest number of people
Utilitarianism
Weighing the pros and cons of an action and the side with more pros should be followed
Cost Benefit analysis
Companies must have confidential systems in place so employees can report potential unethical behavior
The sarbanes oxley act
Prohibits bribing for an official to obtain contracts
The foreign corrupt practices act
The study of what is right and wrong behavior; whether the action is fair right or just.
Ethics
