Chapter 42 Flashcards
set of moral principles or values that governs the conduct of an individual or group.
ethics
that which must be obeyed and followed by citizens, subject to sanctions or legal consequences.
law
A theory of ethics in which a person looks to an outside source for ethical rules or commands
ethical fundamentalism
A theory of ethics stating that people must choose the action or follow the rule that provides the greatest good to society
utilitarianism
A theory of ethics stating that people owe moral duties that are based on universal rules, such as the categorical imperative “Do unto others as you would have them do unto you.”
Kantian ethics
2 important principles of Kantian ethics
consistency and reversibility
federal statute that allows a competitor to sue another competitor for engaging in unfair competition, including false advertising and misleading labeling
Section 43 of the Lanham Act
A theory of ethics asserting that fairness is the essence of justice. The theory says that each person is presumed to have entered into a social contract with all others in society to obey moral rules that are necessary for people to live in peace and harmony
Rawl’s social justice theory
A theory of ethics stating that individuals must decide what is ethical based on their own feelings about what is right and wrong.
ethical relativism
Theory in which rules are established from an original position of a “veil of ignorance.”
Rawl’s social justice theory
4 theories of the social responsibility of business
maximize profits
moral minimum
stakeholder interest
corporate citizenship
A theory stating that corporations and businesses should act with awareness of the consequences and impact that their decisions will have on others
social responsibility of business
A theory of social responsibility stating that a corporation owes a duty to take actions that maximize profits for shareholders.
maximize profits
A theory of social responsibility stating that a corporation’s duty is to make a profit while avoiding causing harm to others
moral minimum
act which makes certain conduct illegal and establishes criminal penalties for violations
Sarbanes-Oxley Act of 2002
A section of the act that requires a public company to disclose whether it has adopted a code of ethics for senior financial officers.
Section 406 of the Sarbanes-Oxley Act
A theory of social responsibility stating that a corporation must consider the effects that its actions have on persons other than its shareholders.
stakeholder interest
A theory of social responsibility stating that a business has a responsibility to do good.
corporate citizenship
The practice of a U.S. company hiring an independent third-party company in another country to produce a good or service.
outsourcing
means that the U.S. company has relocated a business function to another country, retains ownership of the division or unit, but hires foreign workers to do the work.
offshoring
A corporation that requires directors and officers to make decisions to accomplish general public benefits and stipulated specific public benefit purposes stated in the articles of incorporation and to consider stakeholders other than shareholders, such as employees, customers, suppliers, and the community, when making corporate decisions.
public benefit corporation
