Chapter 5

Question 1

Traditional View of Capitalist System

Answer 1

• businesspersons are less ethical than others
• alleges that profits are the only motivating force for business
• business activity requires and rewards deception
• business evades the law
• businesspersons and managers manipulate others
• business activity leads to materialism

Question 2

Business Ethics

Answer 2

the rules, standards, codes, or principles that provide guidelines for morally right behaviour and truthfulness in specific situations.

Question 3

3 Levels of Assessing Ethical Implications

Answer 3

• Awareness
• Assessment based upon influences
• Assessment based upon ethical principles

Question 4

Level 1

Answer 4

assumes an awareness of moral or ethical implications of business decisions or actions.

Question 5

Level 2

Answer 5

the one most commonly used by managers, and most individuals

Question 6

Level 3

Answer 6

represents a more systematic analysis or assessment of ethical implications.

Question 7

Value Judgments

Answer 7

Subjective evaluations of what is considered important; based on how managers intuitively feel about the goodness or rightness of various goals.

Question 8

Influences of Individuals

Answer 8

Managers often make ethical decisions based on the morals they acquire while growing up.

The family or home environment is a major influence, making the personal convictions of individuals managers a source of ethical standards

Question 9

Corporate or Organizational Influences

Answer 9

The culture of a corporation or organization influences how a manager behaves.

The behaviour of superiors and colleagues sets the tone or standard by which ethical decisions are made.

Question 10

Better Business Bureau (BBB)’s mission to be the leader in advancing marketplace trust is accomplished by:

Answer 10

• Creating a community of trustworthy businesses
• Setting standards for marketplace trust
• Encouraging and supporting best practices
• Celebrating marketplace role models
• Denouncing substandard marketplace behaviour

Question 11

Economic Efficiency Influences

Answer 11

Some managers assess the moral implications of a decision by its economic consequences, and a moral justification is based on the workings of a market system.

Question 12

Government and the Legal System Influences

Answer 12

In order to maintain fair competition, fair treatment of stakeholders, and a set of laws governing business transactions, there has to be a central authority that has the power to enforce basic rules of conduct

Question 13

Societal Influences

Answer 13

Members of society form social relationships with those of similar interests, customs, beliefs, or values. These relationships can be based on the views of a particular community - for example, a town’s reaction to a plant closure

Question 14

Ethical Relativism

Answer 14

The belief that ethical answers depend on the situation and no universal standards or rules exist to guide or evaluate morality.

Question 15

Value Judgments, Moral Standards, Ethical Principles

Question 16

Self-Interest Ethic (Ethical Egoism)

Answer 16

Individuals or corporations set their own standards for judging the ethical implications of their actions; that is, only the individual’s values and standards are the basis for actions.

Question 17

Personal Virtues Ethic

Answer 17

An individual’s or corporation’s behaviour is based upon being a good person or corporate citizen with attitudes and character traits such as courage, honesty, wisdom, temperance, courage, fidelity, integrity, and generosity. People should act in ways to convey a sense of honour, pride and self-worth.

Question 18

Ethic of Caring

Answer 18

Gives attention to specific individuals or stakeholders harmed or disadvantaged and their particular circumstances.

Question 19

Utilitarian Ethic

Answer 19

Focuses on the distribution of benefits and harms to all stakeholders with the view to maximizing benefits.

Question 20

Universal Rules Ethic

Answer 20

ensures that managers or corporations have the same moral obligations in morally similar situations. An example is the right to privacy, which most respect.

Question 21

Individual Rights Ethic

Answer 21

Relies on a list of agreed upon rights for everyone that will be upheld by everyone and that becomes the basis for deciding what is right, just, or fair. Examples are guarantees against arbitrary actions of government, the reinforcement of freedom of speech and religion, security against seizure of property, access to due process, and protection of privacy.

Question 22

Ethic of Justice

Answer 22

Considers that moral decisions are based on the primary of a single value: justice which will result in an outcome that is fair.

Question 23

Forms of justice/fairness

Answer 23

Procedural - impartial application of rules or procedures

Compensatory - stakeholders are compensated appropriately for wrongs or injustices that they have suffered, which can involve providing monetary payments.

Retributive - this form is concerned with punishing an individual or corporation in a way that fits the offence but will be just and fair.

Distributive - there is concern for how all stakeholders are treated.

Question 24

Ethical Dilemmas

Answer 24

a situation or problem where a person has to make a difficult choice between 2 alternatives, neither of which resolves an issue or problem in an ethically acceptable fashion.

Question 25

Moral Reasoning

Answer 25

Systematic approach to thinking or reasoning through the implications of a moral problem or issues.

Question 26

Kohlberg’s Stages of Moral Development

Answer 26

• Pre-conventional level (stage 1 & 2)
• Conventional level (3 & 4)
• Post-conventional (5 & 6)