Chapter 3 & 4 Flashcards
Deontology Theory
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
Utilitarian Ethical Theory
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.
Casuist Ethical Theory
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.
Moral Relativism
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)
Pre-conventional Morality
Childlike. This is calculating, self-centered, and selfish, based on what will be immediately punished or rewarded.
Conventional Morality
Teenager. Moves from an egocentric viewpoint toward the expectations of society. How do we look to others?
Post conventional Morality
The morality of the mature adult. Less concerned with how we look to others and more concerned with how we see ourselves.
Foreign Corrupt Practices Act (FCPA)
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.
CSR (Corporate Social Responsibility)
is a business’s concern for society’s welfare.
Stakeholder Theory
This theory says that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm’s operation.
Pyramid of Corporate Social Responsibility
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.
Problems against CSR & Sustainability
Some people believe that a business should focus on making a profit
American Values
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
Americas Ranking of Core Values
Influence of values on buying habits ranked characteristics of product quality
Reliability Durability Easy Maintenance Ease of Use Trusted Brand Name Low Price
Demography
The study of people’s vital statistics, such s age, race, and ethnicity, and location.
Three types of Important Generations
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.
Purchasing Power
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.
Applied research vs Basic Research
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
Consumer Product Safety Commission (CPSC)
Federal agency established to protect the health and safety of consumers in and around their homes
Food and Drug Administration (FDA)
Another powerful agency is charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products.’
Federal Trade Commission (FTC)
Federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce
Competitive Environment
Encompasses the number of competitors a firm must face, the relative size of the competitors, and the degree of interdependence within the industry