Ethical Decision Making Flashcards
What is ethics, also known as ‘moral philosophy’?
Ethics, or moral philosophy, is a branch of philosophy that defines and explains concepts of right and wrong values, good and bad conduct, and just and unjust decisions. It involves theories, concepts, and applications that help distinguish between what is right and wrong and guide behavior in cases of moral conflict.
How do Trevino and Nelson define ethical behavior in business?
Trevino and Nelson define ethical behavior in business as behavior consistent with the principles, norms, and standards of business practice agreed upon by society.
What does Step 1 of the AAA model involve?
Step 1 involves establishing the facts of the case by identifying what is known or needs to be known, and clearly defining the problem.
What does Step 2 of the AAA model focus on?
Step 2 focuses on identifying the ethical issues in the case by examining the facts and determining what ethical dilemmas are present.
What impact does a high ethical culture have on a business?
A high ethical culture can lead to increased profits, growth, and positive relationships with employees, customers, investors, and other stakeholders. It fosters trust and commitment, which can enhance overall business performance.
What is an ethical issue according to Fraedrich and Ferrell?
An ethical issue is a problem, situation, or opportunity that requires an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical.
What are the two models discussed for ethical decision making?
The two models discussed are:
The American Accounting Association (AAA) model
Tucker’s 5-question model
What does Step 3 require in the AAA model?
Step 3 requires identifying the norms, principles, and values related to the case, including professional codes of ethics and social expectations.
What is involved in Step 4 of the AAA model?
Step 4 involves identifying all alternative courses of action that could be taken in the situation.
What does Step 5 entail?
Step 5 involves matching the identified norms, principles, and values to the alternatives to determine which options align with ethical standards.
What is analyzed in Step 6?
Step 6 involves analyzing the consequences of each alternative, considering both short-term and long-term impacts.
What is the final step in the AAA model?
Step 7 is making the decision based on the analysis, ensuring it is well-informed and balances consequences against primary principles or values.
What is the purpose of Tucker’s 5-question model?
The purpose is to test ethical decisions by evaluating them against five questions to determine the best choice for shareholders and other stakeholders.
What does end-point ethics focus on in Tucker’s model?
End-point ethics, or utilitarianism, focuses on the likely consequences of an action to determine whether it benefits the greatest number of stakeholders.
What does rule ethics evaluate?
Rule ethics evaluates decisions based on laws, company policies, and professional codes, considering whether they adhere to established norms and principles.
