exam 1 Flashcards
Pure free market approach( capitalist, democratic approach to life)
Permits operation of business system and society free from all but foundational legal mechanisms
Individual judgments and consciences regulate life
Ayn Rand’s philosophy
Objectivism
free market principles is necessary for a rational, moral life
Purpose of government is to protect individual rights
necessary components of government are the police, armed services, and law courts
Market forces and charity would replace government in providing social security, education, welfare, and housing
Collectivism
Feature economic cooperation and varying degrees of centralized ownership and control of means of production
Contrast with capitalism
Communism
Emphasizes economic justice
Contends that pursuit of wealth and self-interest erodes society’s moral core
Centralized government decision making
government controls production and employment
Socialism
Rejects communist totalitarianism and embraces democracy
Calls for government intervention to correct economic and social ills
Associated with democratic governments and peaceful change
Aims to retain the benefits of industrialism
Socialist Goals
- Liberty
- Social welfare
- Fulfilling work
- Community
- Equality
- Rationality
The Third Way
social democracy
Provides healthy economic growth
Emphasizes collective welfare over individual preferences
Democratic capitalism
Favors business to create wealth and government to regulate as needed
State capitalism
Employs the market to build wealth, which is then controlled and distributed by the state for its sociopolitical purposes
Libertarianism
Ethical theory rooted in personal liberty
Justice and fairness measured not by equality of results for all, but from ensuring equal opportunity for all to engage in informed decisions about their own welfare
Teleology
Concerned with the consequences of an act rather than the act itself
(Utilitarianism)
Utilitarianism
Good is to be weighed against evil to reach an ethical decision
Act-utilitarianism
To identify the act that results in the greatest good or utility
Rule-utilitarianism
To follow rules that generate the greatest good or utility
Deontology
Principle is primary
Consequence is secondary or irrelevant
(formalism)
Formalism
Measured by the rightness of rules and not by consequences
Every person should act on principles that he or she would prescribe as universal laws
trends in business towards ethics
been repositioning its mission to include purpose, community work, and values
FCPA
Foreign Corrupt Practices Act
Chief federal weapon against bribery abroad
Considers bribery criminal conduct
Requires rigorous internal accounting controls and careful record keeping
Does not forbid payments for securing the performance of a routine governmental action
Lobbying-
Essential ingredient in big business strategy
Educates politicians about issues they must address but cannot master without assistance
Lobbying-
Educates politicians about issues they must address but cannot master without assistance
95 of 100 highest spending lobbying organizations in 2012 represented business interests
Corporate Social Responsibility
People launch nonprofits and businesses or take up jobs using entrepreneurial and managerial skills to address social problems
Profit-seeking remains central and essential, but social responsibility must be considered
Profit maximization
Dominant concern is to maximize shareholders’ interests
Responsible and moral course of behavior is to reap high returns, within the law
Long-term company interest
Some managers believe that a strong bottom line requires considerations beyond profit-maximizing interests
Triple bottom line/sustainability
Approach that produces a sustainable, enduring global community
Employs free-market principles
Recognizes the necessity for financial success
Gives importance to social and environmental responsibilities
Corporations that give attention to social and economic duties have a competitive advantage