Chapter 3 & 4

Question 1

Deontology Theory

Answer 1

People should adhere to their obligations and duties when analyzing dilemma. This means that a person will follow his or her obligations to another individual or society because upholding duty is what is considered ethically correct

keeps promises & follows the law

Question 2

Utilitarian Ethical Theory

Answer 2

Founded on the ability to predict the consequences of an action. The choice that yields the greatest benefit to the most people is the choice that is ethically correct.

Question 3

Casuist Ethical Theory

Answer 3

Comparing a current ethical dilemma with examples of similar ethical dilemmas and their outcomes. This allows one to determine the severity of the situation and to create the best possible solution according to other’s experiences.

Question 4

Moral Relativism

Answer 4

A belief in time-and-place ethics, that is, that ethical truths depend on the individuals and groups holding them.

burning down a meth lab or assaulting someone who raped your daughter (ethical justification)

Question 5

Pre-conventional Morality

Answer 5

Childlike. This is calculating, self-centered, and selfish, based on what will be immediately punished or rewarded.

Question 6

Conventional Morality

Answer 6

Teenager. Moves from an egocentric viewpoint toward the expectations of society. How do we look to others?

Question 7

Post conventional Morality

Answer 7

The morality of the mature adult. Less concerned with how we look to others and more concerned with how we see ourselves.

Question 8

Foreign Corrupt Practices Act (FCPA)

Answer 8

Law enacted because Congress was concerned about U.S. corporation’s use of illegal payments and bribes in international business dealings. This act prohibits U.S. corporations from making illegal payments to public officials of foreign government to obtain business rights or enhance business dealings.

Question 9

CSR (Corporate Social Responsibility)

Answer 9

is a business’s concern for society’s welfare.

Question 10

Stakeholder Theory

Answer 10

This theory says that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm’s operation.

Question 11

Pyramid of Corporate Social Responsibility

Answer 11

Model that suggests corporate social responsibility is composed of economic legal, ethical, and philanthropic responsibilities and that the firm’s economic performance supports the entire structure.

Question 12

Problems against CSR & Sustainability

Answer 12

Some people believe that a business should focus on making a profit

Question 13

American Values

Answer 13

Self-Sufficiency- Every person should stand on his or her own two feet

Upward mobility- success would come to anyone who got an education, worked hard, and played by the rules.

Work ethic- hard work, dedication to family, and frugality were moral and right

Conformity- uno one should expect to be treated differently from anybody else

Question 14

Americas Ranking of Core Values

Answer 14

Influence of values on buying habits ranked characteristics of product quality

Reliability
Durability
Easy Maintenance 
Ease of Use
Trusted Brand Name
Low Price

Question 15

Demography

Answer 15

The study of people’s vital statistics, such s age, race, and ethnicity, and location.

Question 16

Three types of Important Generations

Answer 16

Generation Y- Milennial Generation, is made up of people born between 1979 and 1994.

Generation X- People born between 1965 and 1978–consists of 50 million U.S. consumers.

Baby Boomers- People born between 1946 and 1964–in the United States.

Question 17

Purchasing Power

Answer 17

Measured by comparing income to the relative cost of a standard set of goods and services in different geographic areas, usually referred to as the cost of living.

Can think of purchasing power as income minus cost of living. If income is higher than the cost of living, than people can spend more on non-essential items.

Question 18

Applied research vs Basic Research

Answer 18

Research that attempts to develop new or improved products vs pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon

Question 19

Consumer Product Safety Commission (CPSC)

Answer 19

Federal agency established to protect the health and safety of consumers in and around their homes

Question 20

Food and Drug Administration (FDA)

Answer 20

Another powerful agency is charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products.’

Question 21

Federal Trade Commission (FTC)

Answer 21

Federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce

Question 22

Competitive Environment

Answer 22

Encompasses the number of competitors a firm must face, the relative size of the competitors, and the degree of interdependence within the industry