exam 4 Flashcards
Robert Nozick
Said the distribution of goods should be made, not by principle, but by a validity based upon antecedent events
John Kenneth Galbraith
In a 1958 work titled “the affluent society” called attention to dependence creation through marketing
John Rawls
Said that one should promote a society in which he or she would want to live regardless of his or her status at birth
Adam Smith
Argued the collective good is maximized when each individual is allowed to pursue his or her own self-interest within the law
Milton Friedman
____ said corporate officials, who do not try to make as much money for their shareholders as possible, within the law, undermine the foundation of our free society
Passive Unethical Behavior
This involves the deliberate hiding of material financial or product information.
This involves not saying anything and taking advantage of someone’s assumptions
Integrity
This involves the willingness to conduct oneself in accord with principles that promote fairness.
This involves one of the five principles in the CIMA code of professional conduct.
Deception
This involves the creation of illusions.
This involves misleading language.
Market failure
This involves the inability of a sales transaction to include the full cost of a good or service.
Awareness of this is one of the five forces behind contemporary model for CSR.
Special purpose entity
This involves a limited partnership or company created to fund or manage risks.
Awareness of this helps us understand Enron’s downfall.
This related to one of the basic ways one can violate the provisions of GAAP
The failure to follow guidelines defining professional procedures.
The failure to be accurate in categorizing assets, incomes, and expenditures.
This relates to our discussions on corporate social responsibility
Pursuit of profit is constrained by an obligation to not do harm to others.
Producers are best viewed as social creations organized to serve social goals.
This relates to financial market manipulation
Distortion of claims about a product’s demand or market price to encourage investment.
Timing the release of information so as to create a short term influence on price.
This relates to a common unethical marketing strategy
The obscuring of disadvantages.
The hiding of costs.
This relates to key issues in the ethics of accounting
Conflicts of interest.
Creative bookkeeping techniques.
The marginal utility of money
The increased quality to life, or financial return, brought on by the last dollar spent
Pareto improvement
Any free market exchange of goods which makes both parties better off
The marginal utility of a good
The value to a consumer created by the last incremental unit of consumption
Pareto optimality
That point where one or more exchange would make someone feel worse off
zero- sum game
The exchange of goods which makes one party better off and one worse off
The problem of agency
In this, one uses one’s decision making power to direct organization resources one’s personal use
Churning
In this, a broker increases commissions by buying and selling client’s assets more than needed
Planned obsolescence
In this marketing strategy, a product’s usage time is deliberately shortened
Chinese firewall
In this, one division in a firm cannot ethically reveal “material” information to another division
Mosaic analysis
In this, stock market analysts gather information about a corporation’s character and finances
Dependence creation
In this, companies create a market instead of servicing an existing market
Unsuitability
In this a financial product is sold even though the seller knows it will not meet the buyer’s needs
Discriminatory pricing
In this, an industry lobbies for laws allowing them to sell products to some buyers at higher costs
Underpricing
In this, a large company seeks to drive a smaller competitor out of business
Price fixing
In this, a company conspires with a competitor to divide a market
