Ethics

Question 1

Shareholders vs Stakeholders

Answer 1

Shareholder- company should be made as profitable as possible while complying with the law

Stakeholder-company should consider all those affected by activities
Ex)employees, customers, society, shareholders

Question 2

Theories of ethics 2 types of approaches

Answer 2

1. Right reason- focus on the values underlying the decision (“do the right thing”)
2. Right result-focus on the outcome of the decision. (“End up in the right place”)

Question 3

Utilitarianism

Answer 3

1. Book by John Stuart Mill
2. Greatest good for greatest number of people
   a) maximize happiness minimize pain
   b)”the ends justify the means”
   Ex) cost benefit analysis

Question 4

Deontological ethics

Answer 4

1. Must always do what is morally right, regardless of outcome. Reasons>results

Question 5

Immanuel Kant

Answer 5

1. Categorical imperative- an act is only ethical if it would be acceptable for everyone to do the same
2. Kantian evasion/palter= a truthful statement that is nonetheless misleading
3. Criticism- reasons are important but so are results

Question 6

Distributive Justice (“Rawism Ethics”)

Answer 6

1. John Rawls American philosopher
2. Life prospects= specific circumstance into which a person is born a hard worker is important, but cannot realistically discount the role of luck.
3. “veil of ignorance”-what rules would we propose for society if we did not know how lucky we would be in the lift lottery?
   a) different principle= society should reward behavior that provides the most benefit to the community as a whole

Question 7

Moral universalism

Answer 7

1. Existence of certain universal moral truths-some type of behavior are always right or wrong, regardless of what others think

Question 8

Moral revlavtism

Answer 8

1. Cultural relativism- a society’s culture defines what is right or wrong, ethical rules vary from one society to another’s
2. Individual relativism- each person must develop their own ethical rules

Question 9

Moral licensing

Answer 9

Many people are more likely to do something unethical after doing something ethical

Question 10

Conflict of interest

Answer 10

When one’s vested interests raise question of whether their actions or judgment can be unbiased

Question 11

Conformity

Answer 11

“ the five most dangerous words in business may be “everyone else is doing it.”

Question 12

Blind obedience

Answer 12

“JUST FOLLOWING ORDERS”
a) fear of punishment
b)belief/trust in authority figures
c) ability to rationalize

Question 13

Euphemisms and Reframing

Answer 13

1. Ethical decisions require accurate terminology
   a) the way info is presented affects people’s response

Question 14

Diffusion of Responsibility

Answer 14

1. Bystander effect- prob to help is related to the number of bystanders
   a) much more likely to intervene if alone

Question 15

Short term perspective

Answer 15

a) optimism bias- people are overly confident in their own success

Question 16

Blind spots

Answer 16

Confirmation bias- people subconsciously notice/accept evidence that supports their existing beliefs

Question 17

Front page test

Answer 17

When faced with a difficult ethics decision, think about if that action went viral

Question 18

Does an organization have a responsibility to take care of its workers when doing what is best for employees does not lead to higher profits?

Answer 18

Shareholder model-no
Stakeholder model-yes