Ethics and Biases

Question 1

unconstrained vision

Answer 1

improve social conditions - remove artificial constraints

Question 2

constrained vision

Answer 2

need external constraints (laws, institutions, traditions) to behave well

Question 3

ethics

Answer 3

a set of moral values or principles which underlie all decisions and actions taken by an individual and by which a person judges the acceptability of specific behavior

Question 4

IFAC code of ethics

Answer 4

• integrity
• objectivity
• professional competence
• confidentiality
• professional behavior

Question 5

utilitarianism

Answer 5

involves making decisions that will increase the benefits to some while doing no harm to others

Question 6

golden rule

Answer 6

involves making decisions that result in treating others in a way the individual making the decision would like to be treated

Question 7

theory of rights

Answer 7

suggests that the rights of a decision maker and other parties should be equally balances in deciding

Question 8

theory of justice

Answer 8

suggest that decisions should treat all stakeholders fairly, impartially and equitable

Question 9

enlightened self-interest

Answer 9

involves pursuing long-term self-interests and avoiding a short-term focus that might harm others

Question 10

judgment biases

Answer 10

• availability heuristic
• representativeness heuristic
• anchoring and adjustment heuristic
• other biases (hindsight, conformation)

Question 11

availability heuristic

Answer 11

ease of recall, retrievability

Question 12

representative heuristic

Answer 12

insensitive to base rates, insensitive to sample size

Question 13

anchoring and adjustment heuristic

Answer 13

insufficient anchor adjustment, overconfidence

Question 14

improve judgment biases

Answer 14

• improve expertise
• training
• group decision making
• justification of decisions
• use of decision aids
• consultations with other experts
• internal quality review
• rewarding ehtical conduct