Chapter 3 -- Overview

Question 1

What are the 6 modes of social control?

Answer 1

1. ethics
2. laws
3. formal & informal groups
4. self-regulation
5. the media
6. an active civil society

Question 2

What are ethics?

Answer 2

Moral principles or values that generally govern the conduct of an individual or a group

Question 3

What are codes of conduct in formal and informal groups?

Answer 3

They prescribe acceptable and desired behaviors of their members.

Question 4

What are formal and informal groups?

Answer 4

Businesses, professional organizations, clubs, and professional associations

Question 5

Define deontological theory.

Answer 5

People should adhere to their obligations and duties when analyzing an ethical dilemma.

Question 6

What does it mean to follow deontological theory when interacting with friends?

Answer 6

A person will follow their obligations to an individual or society; keep promises to friends and follow the law

Question 7

What is one drawback of deontological theory?

Answer 7

Not necessarily concerned with the welfare of others

Question 8

What is utilitarian ethical theory?

Answer 8

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 9

What are the two types of utilitarianism?

Answer 9

Act utilitarianism and rule utilitarianism

Question 10

What is act utilitarianism?

Answer 10

a person performs acts that benefit the most people, regardless of personal feelings or societal constraints such as laws

Question 11

What is rule utilitarianism?

Answer 11

takes into account the law and is concerned with fairness; seeks to benefit the most people through the fairest and most just means available

Question 12

What are the two flaws in utilitarianism?

Answer 12

1. flaws associated with predicting the future

2. assumes that they can compare the various types of consequences against each other on a similar scale

Question 13

What is casuist ethical theory?

Answer 13

compares a current ethical dilemma with examples of similar ethical dilemmas and their outcomes

Question 14

What is one drawback of casuist ethical theory?

Answer 14

There may not be a set of similar examples for a given ethical dilemma

Question 15

What is moral relativism?

Answer 15

Belief in time-and-space ethics, that ethical truths depend on the individuals and groups holding them

Question 16

Moral relativists believe that:

Answer 16

there are no absolute rules and the proper resolution to ethical dilemmas is based upon weighing competing factors at the moment and then determining to take the lesser of the evils as the resolution

Question 17

What is a virtue?

Answer 17

a character trait valued as being good

Question 18

What is preconventional morality?

Answer 18

childlike, self-centered, selfish, based on what will immediately be punished or rewarded

Question 19

What are the three ways to develop a personal set of ethics?

Answer 19

1. Examine the consequences of a particular act
2. Stress the importance of rules
3. Personal ethics emphasizes the development of moral character within individuals

Question 20

What is conventional morality?

Answer 20

Moves from egocentric viewpoint toward the expectations of society; loyalty and obedience to the organization (or society) become paramount

Question 21

What is postconventional morality?

Answer 21

Morality of a mature adult; people are less concerned about how others might see them and more concerned about how they see and judge themselves over the long run

Question 22

What are factors that influence ethical decision making and judgements?

Answer 22

1. extent of ethical problems within the organization
2. top management’s actions on ethics
3. potential magnitude of consequences
4. social consensus
5. probability of a harmful outcome
6. length of time between the decision and the onset of consequences
7. number of people to be affected

Question 23

What are the advantages of a code of ethics?

Answer 23

1. helps employees identify what their firm recognizes as acceptable business practices
2. effective internal control of behavior, which is more desirable than external controls such as govt. regulation
3. written code helps employees avoid confusion when determining whether their decisions are ethical
4. process of formulating code of ethics facilitates discussion amongst employees

Question 24

What is corporate social responsibility?

Answer 24

A business’s concern for society’s welfare

Question 25

What is stakeholder theory?

Answer 25

Social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm’s operation

Question 26

What are examples of stakeholders?

Answer 26

employees, management, customers, the local community, suppliers, owners

Question 27

What is the pyramid of corporate social responsibility (CSR)?

Answer 27

See chart…

Includes: economic responsibilities, legal responsibilities, ethical responsibilities, philanthropic responsibilities

Question 28

Why do some analysts believe that a business should not focus on CSR?

Answer 28

A business should focus on making a profit and leave social and environmental problems to nonprofit organizations and government

Question 29

Why do people support CSR for businesses?

Answer 29

1. it’s the right thing to do
2. if businesses do not act responsibly, then the government will create new regulations and perhaps levy fines against them
3. can be profitable

Question 30

What is cause-related marketing?

Answer 30

The cooperative efforts of a for-profit firm and a nonprofit organization for mutual benefit. Any marketing effort for social or other charitable causes can be referred to as cause-related marketing. Cause marketing differs from corporate giving (philanthropy), as the latter generally involves a specific donation that is tax deductible, whereas cause marketing is a marketing relationship not based on a straight donation.