Ethics

Question 1

Values:

Answer 1

Truth
Freedom
Integrity
Fairness
Generosity
Courage

Question 2

Norms:

Answer 2

Honesty
Respect
Equality
Loyalty
Privacy

Question 3

Beliefs

Answer 3

Liberty
Collectiveness
Sanctity
Spirituality

Question 4

What are Terminal Values?

Answer 4

Ends/purposes we should strive for

Question 5

What are Personal values

Answer 5

Peace of mind

Question 6

What are Social values

Answer 6

World peace

Question 7

What are Instrumental values

Answer 7

How one should live/behave

Question 8

What are moral values?

Answer 8

Being honest

Question 9

What are competence values?

Answer 9

Behave imaginatively

Question 10

Examples of moral foundations:

Answer 10

(intuitive ethics <-> unique moralities)
1. Care <-> Harm
2. Fairness <-> Cheating
3. Loyalty <-> Betrayal
4. Authority <-> Subversion
5. Sanctity <-> Degradation
6. Liberty <-> Oppression

Question 11

The principal agent theory

Answer 11

Principal is client and the agent is the service provider e.g:
- Employes vs employee
- Stockholder vs manager
- Consumer vs manager
- Society vs industry

Question 12

(Non-) alignment within the principal agent theory

Answer 12

2 factors:
- Moral hazard: (of the principal) is the difference of interests between the principal and the agent
- Information asymmetry is an example of the inequal situation of principle and agent, ensure clear contracts, strict external supervision, reliable reporting, self regulation

Question 13

Importance of trust:

Answer 13

• Incontrollable situations
• Agreements can’t seal all aspects
• Increase in gap between information and consumer society
• Decentralisation in companies
• Growing specialisation

Question 14

Integrity:

Answer 14

o Moral management is not only about the role model

o Integrity management is essential to promote integer, moral behaviour, requires backbone

o Debate about integrity is a communal search for an applicable moral framework,
comparable to a judicial decision making

o Personal dimension
- Integrity is closely bound up with business ethics and
forms of social responsibility
- Moral management will be willing to give account for
their actions
- Moral self-worth means moral pride

Question 15

Two types of reasoning in business ethics

Answer 15

Moral reasoning:
1. Can be along the lines of outcomes of your actions
2. The motivations for your acting

Question 16

2 streams in ethics

Answer 16

• Consequentialism
  Locates morality in the consequences of an act
• Deontology
  Locates morality in certain duties and rights

Question 17

Theories of Consequentialism (Utilitarianism)

Answer 17

« Teleological ‘goal’ oriented
« Intended outcome based

Question 18

Theories of non-consequentialism (Deontology)

Answer 18

« Deontological ‘source/duty’
« Principle based

Question 19

Utilitarianism

Answer 19

Jeremy Bentham (1748-1832)
« The greatest happiness principle.
« The greatest good for the greatest number of people.
« Doing what is ‘right’ means doing what achieves that (pleasure over pain) for as many
people as possible.
« Cost-benefit analysis.

Question 20

Egoism

Answer 20

Adam Smith (1723-1790)
« Individual desires or interests.
« Maximization of desires.
« Man is actor with limited knowledge and objectives.

Question 21

Ethics of duties / Kantianism

Answer 21

Emmanuel Kant (1724-1804)
Categorical imperatives/maxims
« Man always treated as an end, no means.
« ‘… the right has priority over the good’.
« A deed is morally right if the motive is just doing the right things for the right reasons.

Question 22

Ethics of rights and justice

Answer 22

John Locke (1632-1704)
« Duty to respect ‘natural’ rights of men such as right to life, freedom & property.
« Human dignity is at the center.

Question 23

What is an ethical dilemma?

Answer 23

A situation in which a difficult choice must be made between two courses of action, either of
which entails transgressing a moral principle.

Are situations where persons who are called ‘moral agents’ in ethics, are forced to choose
between two or more conflicting options, neither of them resolves the situation in a morally
acceptable manner

Question 24

Conditions for moral dilemmas

Answer 24

1. The person or agent of a moral action is obliged to decide about which course of action
   is best.
2. There must be different courses of actions to choose from.
3. No matter what course of action is taken some moral principles are always
   compromised.

There is always a loss!