Chapter 3

Question 1

Relationship of Law and Ethics

Answer 1

law cannot codify all ethical relationships

Question 2

Moral Minimum

Answer 2

lowest degree of ethical behavior expected of a business firm aka compliance with the law.

Failure to meet can have significant consequences in context of litigation.

Question 3

Private Company Codes of Ethics

Answer 3

Rules of company sets forth and can enforce (terminate employee, etc)

Question 4

Industry Ethical Codes

Answer 4

Gives guidance to decision makers facing ethical questions.

American Bar Association, American Nurse Association, etc

Question 5

Triple Bottom Line

Answer 5

corporation profits, impact on people, and impact on planet.

Question 6

4 Part Analysis of Triple Bottom Line

Answer 6

used to maximize profits and good citizenship (corporate)

• Legal implications of each decision
• Public relations impact
• Safety risks for consumers and employees
• Financial implications

Question 7

Ethical Issues in Business

Answer 7

difficult in decision making, recognizing it, get pertinent facts, evaluate alternatives and then make decision.

Question 8

Importance of Ethical Leadership

Answer 8

 Attitude of top management
 Unrealistic goals for employees
 Fostering of unethical conduct

Question 9

Duty Based Ethics

Answer 9

rooted in the idea that every person has certain duties to others and planets. May be derived from religious principles or other reasoning

Question 10

Outcome Based Ethics

Answer 10

focuses on the impacts of decision on society or key stakeholders

Question 11

Utilitarianism

Answer 11

greatest good for the greatest number of people affected.

Question 12

Cost-Benefit Analysis

Answer 12

assessment of the negative and positive effects of alternative actions on these individuals.

Question 13

Corporate Social Responsibility (CSR)

Answer 13

combines commitment of good citizenship with making ethical decisions, improving society and minimizing environment impact.

• Environmental affairs
• Ethical labor practices
• Charitable donations
• Volunteer work

Question 14

Sources of Ethical Issues in Business Decision

Answer 14

 Short Term Profit Maximization
 Social media
 Awareness
 Rationalization
 Uncertainty

Question 15

Systematic Approach : IDDR (I desire to do right)

Answer 15

• Inquiry
• Discussion
• Decision
• Review

Question 16

Business Ethics on a Global Level

Answer 16

 World Religions, Cultural Norms and Ethics
 Outsourcing
 Avoiding Corruption
 Monitoring the Employment Practices of Foreign Suppliers.

Question 17

Business Ethics

Answer 17

consensus of what constitutes right or wrong behavior in the world of business and applications of moral principles to situations that arise in a business settings.

Question 18

Categorical Imperative

Answer 18

concept developed by IMMANUEL KANT as an ethical guide. Deciding whether wrong or right, desirable or undesirable, evaluate what outcome would be

Question 19

Ethical Reasoning

Answer 19

reasoning process which an individual links their moral convictions or ethical standards to the particular situation at hand

Question 20

Ethics

Answer 20

moral principles and values applied to social behavior.

Question 21

Outsourcing

Answer 21

practice by which a company hires an outside firm or individual to perform work rather than hiring employees.

Question 22

Principle of Rights

Answer 22

right to fundamental rights (life, freedom, and pursuit of happiness). Key factor in determining whether a business decision is ethical.

Question 23

Stakeholders

Answer 23

groups, other than shareholders, that are affected by corporate decisions such as employees, customers, creditors, suppliers, and the community the corporate operates in