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ACCT 316 > Exam 1 > Flashcards

Exam 1 Flashcards

1
Q

What is the role of ethics in a business environment?

A
  • Guides interactions with others
  • Customers/clients, employees, co-workers, partners, shareholders, etc.
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2
Q

Integrity:

A
  • Become a professional of integrity by achieving success while acting ethically
  • Stakeholders value leadership that acts ethically to succeed; there are various ways to succeed (earning a profit, respecting employees/customers, giving back to the community)
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3
Q

Short-term Perspectives of Profitability:

A
  • Important because it makes sure you’re on the right track
  • One quarter or one year of success does not ensure the company’s future
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4
Q

Long-term Perspectives of Profitability:

A
  • Gives a more balanced view of profits
  • Can better tell how good ethical practices affect business (good customer service & social responsibility)
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5
Q

Corporate Social Responsibility (CSR)

A

Business views itself as a member of society with social obligations and environmental responsibilities

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6
Q

Intellectual virtues

A
  • Served as guides to behavior
  • Acquired through learning
  • Ex: Knowledge and prudence (practical wisdom)
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7
Q

Junzi

A

Confucius stressed a virtuous life in his ethical system with the goal of creating

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8
Q

Comparing the Virtue Ethics of Aristotle and Confucius (2):

A
  1. Both Aristotle and Confucius share the theme of self-control
  2. Both ethical beliefs integrate personal and professional life
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9
Q

Consequentialism
- Utilitarianism is a consequential theory

A
  • Actions are judged solely by their consequences, regardless of character, motivation, or understanding of good or evil
  • Differs from Aristotle’s or Confucius’s virtue ethics which says there can be many acceptable outcomes as long as the character of the actor is dignified by virtue.
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10
Q

Role of utilitarianism is modern day business:

A
  • It is often used by business leaders to make decisions regarding expansion, store closings, hiring, and layoffs.
  • Can motivate individuals within the organization to take initiative, become more responsible and act in ways that enhance the organization’s reputation rather than tarnish it.
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11
Q

Justice Theory

A
  • American philosopher John Rawls offered the justice theory as a alternative to utilitarianism.
  • Built with social contract theory in mid (act for the better of society)
  • Universal system of fairness and a set of procedures for achieving it
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12
Q

Ethics

A

Builds on the baseline to reveal principles of individuals/organizations

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13
Q

Normative Ethical Theories

A

Focus on considering and determining ethical behavior; grounded in reason

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14
Q

What are the normative ethical theories? (3)

A
  • Utilitarianism, Deontology, Virtue ethics
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15
Q

Utilitarianism

A
  • The greatest good for the greatest number of people
  • Make a decision based upon what result will benefit the majority
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16
Q

Why is utilitarianism not a great reasoning for decision making? (2)

A
  • Can’t focus on just the outcome
  • Need to consider the means to get there
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17
Q

Deontology
- “Deon” is Greek for “duty”

A
  • Everyone owes certain duties to others & certain universal rules apply to all; people are ethical if these are followed
  • People are “duty-bound” to make decisions that respect others’ rights and treat them with dignity
  • Focus on the actions to carry out the decision
  • Many believe this is the strongest model for ethical decisions
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18
Q

Integrity

A

Unity in what we say and what we do; adhering to a code of ethics

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19
Q

Legal

A
  • Based upon law
  • Known as the baseline minimum or minimum behavior allowed
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20
Q

Virtue ethics

A
  • Consider what virtues/characteristics make a good person
  • Our ethical analysis of a decision is intimately connected with the person we choose to be
  • This character typically reflects the training we receive growing up
  • Instead of asking what’s the right action now, asks what kind of person should one be in order to get it right all the time; develop those actions into habits
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21
Q

Stockholders

A

Someone who owns stock in the business

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22
Q

Stakeholders

A

Anyone who has a stake in the business

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23
Q

Companies enter into social contracts

A
  • “Society” allows businesses to exist; in exchange, business does what’s best for as many of society’s members as possible
  • Includes: Offer fair prices, Volunteer in community projects, Sponsor kids’ sports teams, Hiring local people
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24
Q

Corporate Social Responsibility (CSR):

A
  • Ensures the company has sound ethical practices and policies in accordance with the company’s culture and mission, above and beyond any mandatory legal standards
  • A business the practices CSR cannot have maximizing stockholder wealth as its sole purpose because this goal infringes on the rights of other stakeholders in the broader society
  • Leaders should opt to do good at the same time that they do well
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25
Q

Ethical relativism

A
  • There’s no right/wrong; ethics depends on context
  • People gain trust when acting ethically consistent in all settings
26
Q

Why have one ethical standard for everything? (3)

A
  • Consistence, Transparency, Trustworthiness
27
Q

What does choosing one ethical standard not account for? (3)

A
  • Different cultures, industries, and generations
28
Q

Aristotle developed the ancient concept of

A

Virtue

29
Q

Study that attempts to describe things in terms of their apparent purpose (“everything exists for a purpose”)

A

Teleology

30
Q

Happiness - through human beings flourishing, thriving in life (Aristotle)

A

Eudaimonia
- Aristotle believed that the purpose of humans are eudaimonia
- Humans must often learn to be happy/achieve eudaimonia

31
Q

2 types of virtue:

A
  • Intellectual and Moral virtues
32
Q
  • Have to do with character
  • Acquired through practice
  • Ex: Courage, self-control, patience
A

Moral virtues

33
Q

Aristotle believed the primary way to change character was (2):

A
  • Consistent, intentional, behavior in the direction of virtue
34
Q

Business encouraged those engaged in it to be virtuous (or risk failure)

A

Association
- Ethically sound association required prudence which led to honorable business practices (honor was utmost among people at that time)

35
Q

Honor is still important among today’s businesses:

A
  • Reputation plays an impact on business
  • Reputation is no accident - comes from intentional and ongoing effort
36
Q

Business’s ends and means must be aligned:

A
  • Use ethical practices, then, have ethical outcomes
37
Q

Proper order of the universe; everyone has a role; when all roles are played, harmony exists (Confucius)

A

“Return to Li”
- Prior to Aristotle, Confucius was pondering how to resolve social division in China

38
Q

Who was Junzi?

A

A flourishing human being (same thing as Aristotle, but Confucius)

39
Q

What did Confucius believe?

A

People were inherently good and the way to stop inhuman behavior was to make people more human

40
Q

What are the ways of humanity according to Confucius? (3)

A
  • Wholehearted sincerity and truthfulness, constant mean, expediency
41
Q
  • No blind loyalty
  • Be loyal to the truth
  • Ex: Whistleblowers - loyal to truth instead of to the company
A

Wholehearted sincerity and truthfulness

42
Q

Follow the middle path

A

Constant mean

43
Q
  • Righteousness is the virtue that allows people to live peacefully and justly
  • AKA Quan
A

Expediency

44
Q

Allows people to align what they do with who they are

A

Quan

45
Q

Overall, Confucius was concerned with the

A

Person making the decision instead of the decision itself

46
Q
  • Manifested in different ways, but still required control by individual
A

Both Aristotle and Confucius share the theme of self-control

46
Q

In today’s society, control is needed to make ethical decisions:

A
  • Be disciplined and patient to find best solutions
  • Want to benefit all stakeholders, if possible
47
Q

4 characteristics of Utilitarianism:

A
  • Universality, objectivity, rationality, quantifiability
47
Q

Both ethical beliefs integrate personal and professional life:

A
  • Act same way in all areas of life - not necessarily accepted in modern society
  • A virtuous individual was one who concentrates on the means used to achieve an end so that the means become a way of life more important than the end itself
48
Q

Applies to all aspects of behavior

A

Universality

48
Q

Created by philosopher Jeremy Benthan and refined by Stuart Mill, it emphasizes the consequences of an act

A

Utilitarianism

49
Q

Goes beyond individual thought, desire and perspective

A

Objectivity

50
Q

What are the assumptions of justice theory? (2)

A
  • Human’s natural state is freedom, but humans willingly submit to restrictions on their freedom to secure mutual safety and benefit
  • Do so willingly without the control of their rulers
51
Q

Based upon logic and reason

A

Rationality

52
Q

Can be reduced to a numerical or even monetary value

A

Quantifiability

53
Q

What are the principles of justice theory? (3)

A
  • Original position, veil of ignorance, unanimity of acceptance
54
Q

People ignore their characteristics that may cause bias (gender, race, etc.)

A

Veil of ignorance

55
Q

Rational people can agree on a contract regarding how resources should be distributed fairly

A

Original position

56
Q

Requirement that all agree to the contract before it goes into effect

A

Unanimity of acceptance

57
Q

What are some problems with justice theory? (4)

A
  • Many disagree with redistribution - taking from one to give to another
  • Justice could guarantee housing education, medical care, food and more, but who would pay for it all?
  • Can we remove all bias natures? ( gender, race, financial status)
  • Justice theory requires agreement - is it realistic to expect full agreement?

ACCT 316 (2 decks)

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