Chapter 3: Business Ethics

Question 1

Ethics

Answer 1

a branch of philosophy dealing with values that relate to the nature of human conduct

Question 2

Business Ethics

Answer 2

balancing the goal of profits with the value of individuals and society

Question 3

Positive Law

Answer 3

law enacted and codified by governmental authority

standard for ethical behavior

Question 4

Natural Law

Answer 4

imposes higher standards of behavior than those required by positive law and they must be followed even if those higher standards run contrary to codified law.

Question 5

Civil Disobedience

Answer 5

the term used when natural law proponents violate positive law.

Question 6

Kant’s categorical imperative

Answer 6

a standard of ethics that requires that we avoid one-sided analysis of ethical issues.

you cannot use others in a way that gives you a one-sided benefit.

basically just be a good person and if something happens to you don’t do the same to someone else, be better

Question 7

Theory of Justice / social contract

Answer 7

John Locke and John Rawls as to what our ethical standards should be

they disagree with Kant’s categorical imperative

Question 8

Rights Theory / Entitlement Theory

Answer 8

Nozicks theory of ethics that we all have certain rights that must be honored and protected by the government

Question 9

Ethical Egoism

Answer 9

theory of ethics that we should act in our own self-interest

the Ayn Rand theory that separates guilt from acting in our own self-interest.

Question 10

Utilitarian

Answer 10

doing the most good for the most people

Question 11

Moral Relativists

Answer 11

resolve ethical dilemmas according to time and place

Question 12

Stakeholders

Answer 12

those who have a stake, or interest, in the activities of a corporation; stakeholders include employees, members of the community in which the corporation operates, vendors, customers, etc.

Question 13

Stakeholder Analysis

Answer 13

measures the impact of a decision on various groups and then asks whether public disclosure of that decision is defensible.

Question 14

Capitalism succeeds because of

Answer 14

trust

Question 15

Why do investors pour capital into a business

Answer 15

because they believe they will get a return on the investment

Question 16

How does a breach of ethics affect a business

Answer 16

-it’s costly and affects their financial performance
-reputation

Question 17

Social forces

Answer 17

protection of the state
protection of the person
protection of Public Health, Safety , and Morals
Protection of Property- Its use and title
Protection of Personal Rights
Protection from Exploitation, Fraud, and Oppression

Question 18

Categories of Ethical Behavior

Answer 18

-Integrity and truthfulness
- promise-keeping
-loyalty, avoiding conflicts of interest
- fairness
- doing no harm
- maintaining confidentiality

Question 19

Integrity

Answer 19

the adherence to one’s values and principles despite the costs and consequences.

Question 20

Conflict of Interest

Answer 20

conduct that compromises loyalty

Question 21

Quid pro quo

Answer 21

a favor or advantage granted or expected in return for something.

Question 22

primum non nocere

Answer 22

above all do no harm

Question 23

Blanchard and Peale Three Part Test

Answer 23

ask the following three questions:
Is it legal?
Is it balanced?
How does it make me feel?

Question 24

Front Page of the Newspaper Test

Answer 24

helps a manager visualize the public disclosure of the proposed conduct

Contemplating any business act, an employee should ask himself whether he would be willing to see it immediately described by an informed and critical reporter on the front page of his local paper, there to be read by his spouse, children, and friends. At Salomon, we simply want no part of any activities that pass legal tests but that we, as citizens, would find offensive.

Question 25

Nash Model

Answer 25

requires an examination of a dilemma from all perspectives

12 questions

Have you defined the problem accurately? How would you define the problem if you stood on the other side of the fence? How did this situation occur in the first place? What is your intention in making
this decision? How does the intention compare with the probable results? Whom could your decision or action injure? Can you discuss your decision with the affected parties? Are you confident that your position will be as valid over a long period of time as it seems now? Could you discuss your decision with your supervisor, coworkers, officers, board, friends, and family?