Final Flashcards

Question

What is: are John Stuart Mill beliefs?

Answer 1

John Stuart Mill's central principle is that individuals should have the freedom to do as they please as long as they do not harm others. The government should not restrict individual liberty to protect individuals from themselves or enforce majority beliefs. People are only accountable for actions that affect others. Mill believes in maximizing utility in the long run, and respecting individual liberty will lead to the greatest human happiness. Upholding individual liberty promotes the welfare of society in the long run as dissenting views can offer a corrective to prevailing opinion and prevent it from becoming dogma. Additionally, a society that forces conformity may stifle social improvement. Mill believes that individuality reflects character and that it is possible to distinguish between higher and lower pleasures. He proposes a simple test to assess the quality of desires without relying on moral ideas other than utility itself.

Answer 2

Stakeholder theory proposes that companies should consider the interests and relationships of all groups involved with their activities, and arrive at a settlement or integration of these interests. It is based on a pluralism of interests and relationships, and managers are responsible for the impacts of their policies and practices on each group. Communication and dialogue with stakeholders are crucial to ensure the company's survival. However, the theory poses two major problems: choosing which stakeholders to consider and resolving the sometimes incompatible interests of the stakeholders.

Answer 3

2 definitions of stakeholder: 1. Narrow: a stakeholder comprises “any identifiable group or individual on which the organization is dependent for its continued survival”, e.g. employees, customer segments, certain suppliers, key government agencies, shareowners, certain financial institutions, as well as others. Stakeholders in the narrow sense are also often called “internal groups”. 2. Broader: a stakeholder is “any identifiable group or individual who can affect the achievement of an organization’s objectives or who is affected by the achievement of an organization’s objectives” 3 . That includes the stakeholders as defined in the narrow sense of the term, but might also apply to the overall industry, public interest and protest groups, local communities, government agencies, competitors, unions, non-governmental organizations, media, and so on. Stakeholders in the broader sense are also often called 4 “external groups”.

Answer 4

Primary stakeholders: are those whose continued participation in the company’s activities is vital, that is, without whom the survival of the company would be threatened. As developed in the model above, these groups include shareholders, employees, suppliers and customers, as well as the governmental authorities that supply the infrastructure within which the company evolves.

Answer 5

Secondary stakeholders: are groups with some influence, and who affect or are affected by the activities of the company, but are not involved in daily transactions with it, and are therefore less vital to the company’s survival. These may include NGOs, local communities, activist groups, media, associations, and so on.

Answer 6

How to prioritize and balance the interests, sometimes divergent, of different stakeholders? 1. Static considerations a. Power of the groups concerned: measured by a stakeholder’s ability to influence a company’s decisions, sometimes even to impose its will on it. b. Legitimacy of the groups concerned: measured by the level of consensus in a given society as to the nature of the interests a stakeholder is defending. 2. Dynamic consideration: a. Urgency: extent to which a stakeholder’s claim is perceived as absolutely having to be addressed in the short term.

Answer 7

Latent stakeholder groups (1,2,3): These groups are considered to have little influence and may, using this model, be excluded as stakeholders. Expectant stakeholder groups (4,5,6): more likely to be acknowledged as stakeholders with significant expectations of the company. Definitive stakeholder groups (7) How the different, sometimes incompatible, interests of the stakeholders considered are to be resolved: ultimately it belongs to management, but there needs to be a communication between the company and its stakeholders:

Answer 8

Limits of stakeholder theory: * Tends to be operationalized * Struggles for power and control and leading a politization of relations between the company and stakeholders * Urgency can have the effect of accentuating a short-term vision * Nothing guarantees that it will lead to an increase in ethical behavior * Does not guarantee that the divergent interests of stakeholders will be resolved * Business is the center of decisions and not society * Neglects individual considerations

Answer 9

Libertarians (John Locke): favor unfettered markets and oppose government regulation, not in the name of economic efficiency but in the name of human freedom. Their central claim is that each of us has a fundamental right to liberty— the right to do whatever we want with the things we own, provided we respect other people’s rights to do the same.

Answer 10

Minimal state: one that enforces contracts, protects private property from theft, and keeps the peace—is compatible with the libertarian theory of rights. Any state that does more than this is morally unjustified.

Answer 11

The libertarian philosophy rejects laws that protect people from harming themselves, laws that enforce morality, and laws that redistribute wealth. Libertarians argue that individuals have the right to make their own decisions regarding their actions and lives, and the state should not intervene unless there is harm to others. This includes opposition to laws prohibiting activities such as prostitution and homosexuality, and laws that require the redistribution of wealth through taxation.

Answer 12

Robert Nozick POV:Robert Nozick believes that only a minimal state, limited to enforcing contracts and protecting people against force, theft, and fraud, is justified. He argues that there is nothing inherently wrong with economic inequality and rejects the idea that a just distribution consists of a certain pattern. Nozick believes that distributive justice depends on justice in initial holdings and justice in transfer, and if both requirements are met, a person is entitled to what they have, and the state may not take it without their consent.

Answer 13

Initial holdings: asks if the resources you used to make your money were legitimately yours in the first place.

Answer 14

Justice in transfer: asks if you made your money either through free exchanges in the marketplace or from gifts voluntarily bestowed upon you by others.

Answer 15

2 problems of distributive justices from Robert Nozick perspective: 1.Liberty upsets patterns - meaning that any attempt to enforce economic equality would require constant intervention in the free market, which would violate individual liberties. 2.Redistributive policies violate individual rights - taking someone's earnings through taxation violates their freedom and makes them a partial property of the state. It forces individuals to work for purposes and activities decided by others, rather than their own choices.

Answer 16

Self-ownership (libertarian view): If I own myself, I must own my labor. (If someone else could order me to work, that person would be my master, and I would be a slave.) But if I own my labor, I must be entitled to the fruits of my labor. (If someone else were entitled to my earnings, that person would own my labor and would therefore own me.)

Answer 17

Objections to libertarians about taxation: 1. Taxation is not as bad as forced labor, but the objection is why the state forces people to make that choice. 2. The poor needing more money is not a reason to steal from the rich and give to the poor. It's still stealing, whether done by Robin Hood or the state. 3. Michael Jordan doesn't owe his teammates and coaches or anyone else a portion of his earnings, and it's hard to see how this debt justifies taxing his earnings to provide public services. 4.Democratic consent is not enough as it does not guarantee an individual's rights, and by living in a society, citizens do not write the majority a blank check and consent in advance to all laws, however unjust. 5.Jordan's talents are his own, and if he is not entitled to the benefits that result from the exercise of his talents, he doesn't own himself. This raises the question of who owns citizens if they don't own themselves.

Answer 18

Contract: a law that the parties intend to establish between themselves by defining services or obligations that they must perform (other than what goes against the law or against public order). It is formed when the offeror receives acceptance of the other party. The place of the contract is where the acceptance is received: laws of the place of the offeror will apply to the contract. Verbal contracts are as valuable as written contracts.

Answer 19

Nominate contracts: specific contracts such as the sale of an asset, rental, leasing, etc. which are detailed by the Civil Code.

Answer 20

Public order: what laws prevent us from doing or not.

Answer 21

Consensualism: each party must have the capacity to contract, they must not be incapacitated and must be endowed with reason. The consent must be free (free of vice for example) and informed. Good faith must govern the conduct of the parties (bona fide).

Answer 22

Freedom of contract: their form, nature and objects are not circumscribed except when there is an exception set out by the law. It is limited by law.

Answer 23

Shareholders’ agreement: settle future problems in the event of disagreements.

Answer 24

Clauses of a shareholders’ agreement: customized. * Transfer and allocation of shares * Administration and management of the corporation * Shares emission * Right of first refusal * Piggy-back clause * Health of the shareholders * Mediation * Arbitrage * Shot-gun (forced purchase): if at some point there is a disagreement the shareholders and one of them proposes to the other party to buy or sell his shares. And if the other refuses this offer, the one who made the offer must, on the same terms, buy or sell the shares of the other shareholder. * Base-ball (auction)

Answer 25

Unanimous shareholders’ agreement: allows the shareholders to take over the powers and the responsibilities of the directors.

Answer 26

Claims of free markets: 1.Welfare: The utilitarian perspective on free markets argues that as long as an individual's actions make them better off without hurting anyone else, it will increase overall utility. In the case of a volunteer army, allowing individuals to freely choose to enlist based on the compensation being offered maximizes their own utility, while those who don't want to serve don't suffer the utility loss of being forced into the military against their will. 2.Freedom: The libertarian perspective on free markets argues that letting people engage in voluntary exchanges respects their freedom. Any laws that interfere with the free market are seen as violating individual liberty.

Answer 27

Objections to surrogacy contracts: 1. Tainted consent: It argues that we can exercise free choice only if we’re not unduly pressured (by the need for money, say), and if we’re reasonably well informed about the alternatives.

Answer 28

Ethics and reasoning behind different methods of military service allocation. From both libertarian and utilitarian perspectives, the volunteer army is considered the best option, followed by the Civil War hybrid system, and conscription as the least desirable. However, two objections are raised against this line of argument, centered on fairness and freedom and civic virtue and the common good: 1.Fairness and freedom: The first objection highlights that the free market may not be entirely free for those with limited alternatives, and economic necessity can pressure individuals into military service, similar to conscription. 2.Civic virtue and the common good: The second objection emphasizes that military service is not just another job, but a civic obligation that should not be commodified. Hiring soldiers instead of drafting them undermines civic ideals and the duty citizens have to serve their country.

Answer 29

Degradation and higher good: She argues that surrogacy contracts degrade children and women’s labor by treating them as if they were commodities. Central to Anderson’s argument is the idea that goods differ in kind; it’s therefore a mistake to value all goods in the same way, as instruments of profit or objects of use. If this idea is right, it explains why there are some things money shouldn’t buy.

Answer 30

Fiduciary duty: is a Common law concept which concerns the relationship between a person, the owner of a property, who entrusts it to another person, the trustee, who undertakes to administer the property and to give it back to the owner at the end of his or her term of office.

Answer 31

Trust: legal provision allowing a person to transfer to a 3rd party (the fiduciary or trustee) property, rights or securities, which the trustee must manager under defined conditions.

Answer 32

Trustee’s duties: competency and loyalty. 1. Advise or decide how best to administer or invest money. 2. The trustee must act competently, diligently and in good faith. 3. Respect confidentiality 4. Must avoid any conflict of interest

Answer 33

Corporate law: branch of law which studies the civil societies and commercial ones.

Answer 34

Half-truths upon which the of syndrome of selfishness is built: 1.Homo economicus - the assumption that everyone is an evaluator, constantly making trade-offs and substitutions among wants in order to maximize personal gain. 2.Corporations exist to maximize shareholder value. 3.Corporations need heroic leaders who are solely responsible for performance. 4.Effective organization is lean and mean. 5.A rising tide of prosperity lifts all boats - the belief that economic growth benefits everyone and there are no losers. These assumptions lead to a worldview where self-interest is the only motivation and profit is the only measure of success, disregarding the social and environmental consequences of economic activity.

Answer 35

Corporate social responsibility (CSR): This model supposedly defines the totality of the responsibilities that businesses must assume in order to meet the expectations of society. Archie B. Carroll.

Answer 36

4 elements of CSR: Carroll insists, however, that this pyramid structure shouldn’t infer that employees, managers and directors should address these different responsibilities in a consecutive manner as if they were sequential steps: The primary responsibility of a corporation is economic, which involves creating wealth by producing and selling goods and services. Legal responsibilities involve respecting the laws that regulate the conduct of business. Ethical responsibilities involve encouraging behaviors that are expected by various stakeholders and adapting to social norms that are not codified in law. Discretionary responsibilities involve voluntary actions such as charitable giving or employee volunteering that are not expected with the same level of moral force as ethical responsibilities.

Answer 37

The KPMG study concludes that the principal source of motivation for corporations putting in place CSR programs is economical. Limits of CSR: 1. Lack of consensus regarding “ethical” and “discretionary” responsibilities 2. The great diversity in the various recommendations concerning CSR demonstrates that consensus about the subject hasn’t yet been reached. This lack of consensus has led to much criticism by those who feel the CSR model is more theoretical than prescriptive, leading to arbitrary and biased interpretations. 3. Furthermore, this same lack of consensus undermines the validity of scientific research on the correlations that might exist between CSR and other variables like profitability. 4. The CSR theory also seems relatively vulnerable to manipulations on the part of disingenuous managers. Furthermore, the notion of “strategic philanthropy” is condemned by many for opening the door to potential manipulation and opportunism. 5. Finally, Carroll’s concept of CSR is criticized for being too tied to established social norms.

Answer 38

Transcendental idealism (Emmanuel Kant):Emmanuel Kant's transcendental idealism holds that space and time are structures that organize all experience, and that the true nature of things-in-themselves is unknowable to us. Kant's Groundwork argues that morality is not about maximizing happiness, but about respecting persons as ends in themselves. He believes that justice and morality should be connected to freedom, rejecting utilitarianism, which he argues leaves rights vulnerable and is based on empirical considerations that cannot serve as a basis for universal moral principles. Kant advocates for deriving moral principles from the idea that we are rational beings deserving of dignity and respect.

Answer 39

Pure practical reason: supreme principle of morality. Kant readily concedes that our capacity for reason is not the only capacity we possess. We also have the capacity to feel pleasure and pain. Kant recognizes that we are sentient creatures as well as rational ones. When reason governs our will, we are not driven by the desire to seek pleasure and avoid pain. This means that everyone who exercises pure practical reason will reach the same conclusion—will arrive at a single (universal) categorical imperative.

Answer 40

Definition of freedom by Kant:Kant defines freedom as the ability to act autonomously and not according to the dictates of nature or social convention. He argues that seeking pleasure or avoiding pain, like animals, does not constitute true freedom because it is determined by external factors. To act freely is to act according to a self-imposed law rather than being biologically or socially determined.

Answer 41

Heteronomy: When I act heteronomously, I act according to determinations given outside of me. To act freely is not to choose the best means to a given end; it is to choose the end itself, for its own sake.

Answer 42

Human dignity by Kant: For Kant, respecting human dignity means treating persons as ends in themselves. This is why it is wrong to use people for the sake of the general welfare, as utilitarianism does.

Answer 43

Morality by Kant: Kant's moral philosophy places importance on the intention behind an action, rather than the consequences that result from it. For an action to be morally good, it must be done for the sake of the moral law, with the motive of duty. Only actions done out of duty have moral worth, and acting morally means acting out of duty, for the sake of the moral law.

Answer 44

Supreme principle of morality: 1.Duty v. inclination: The moral worth of an action is conferred only by the motive of duty, not by inclination or any other ulterior motive. 2.Autonomy v. heteronomy: Kant distinguishes between autonomy and heteronomy as two ways that the will can be determined. Freedom, according to Kant, is the ability to act autonomously, i.e., governed by a law that one gives oneself, not determined externally by forces such as physical laws or social conventions. 3.Categorical v. hypothetical imperatives: Kant distinguishes between hypothetical and categorical imperatives. Hypothetical imperatives are based on instrumental reason and are only good as a means to an end. Categorical imperatives, on the other hand, are based on reason and are inherently good in themselves, regardless of any desired outcome. Kant argues that only categorical imperatives can be considered moral imperatives.

Answer 45

Formulations of categorical imperatives: 1.Formula of universal law: Kant proposes that we should only act on principles that we could universalize without contradiction. This is a test to see whether our actions accord with the categorical imperative, and it's not about speculating possible consequences. 2.Treat persons as ends: Kant argues that we should not base the moral law on any particular interests, purposes, or ends because it would be relative to the person whose ends they were. Instead, we should act in a way that always treats humanity, whether in our own person or in others, never simply as a means, but always as an end.

Answer 46

Kantian respect: is respect for humanity as such, for a rational capacity that resides, undifferentiated, in all of us.

Answer 47

Moral law: consists of a categorical imperative, a principle that requires us to treat persons with respect, as ends in themselves. Only when I act in accordance with the categorical imperative am I acting freely. I can escape the dictates of nature and circumstance only by acting autonomously, according to a law I give myself. Such a law must be unconditioned by my particular wants and desires. Duty and autonomy go together only in a special case—when I am the author of the law I have a duty to obey.

Answer 48

Justice by Kant:Kant's theory of justice involves rejecting utilitarianism as a basis for personal morality and law. He argues that a just constitution aims to harmonize individual freedoms with each other, without requiring the endorsement of any particular conception of happiness. Kant also derives justice and rights from a social contract, which he calls an imaginary act of collective consent. He maintains that this contract is the test of the rightfulness of every public law, even though it is not an actual historical fact.

Answer 49

Tacit consent (John Locke): Locke argues that a government can only be legitimate when its citizens have consented to it.

Answer 50

Hypothetical consent (Emmanuel Kant): a person would consent if he or she were in a position to do so.

Answer 51

Moral limits of contracts: 1. We assume the terms of their (parties) agreement must be fair. They must justify the terms that they produce. Thus, there is no guarantee to produce fair terms of social cooperation. 2. Bargaining position 3. Actual contracts carry moral weight insofar as they realize two ideals— autonomy and reciprocity. As voluntary acts, contracts express our autonomy; the obligations they create carry weight because they are selfimposed. As instruments of mutual benefit, contracts draw on the ideal of reciprocity; the obligation to fulfill them arises from the obligation to repay others for the benefits they provide us. In practice, these ideals—autonomy and reciprocity—are imperfectly realized. 4. Consent is not enough to create a binding moral claim.

Answer 52

John Rawls (liberalism/egalitarian) :John Rawls argues that justice should be considered based on what principles we would agree to in an initial situation of equality. He rejects utilitarianism and believes that two principles of justice would emerge from the hypothetical contract. The first principle is to provide equal basic liberties for all citizens, which takes priority over considerations of social utility and general welfare. The second principle concerns social and economic equality and permits only those inequalities that work to the advantage of the least well-off members of society.

Answer 53

Contracts: derive their moral force from two different ideals, autonomy and reciprocity.

Answer 54

The difference principle (Rawls):The difference principle proposed by Rawls allows only those social and economic inequalities that work to the benefit of the least advantaged members of society. It aims to correct the unequal distribution of talents and endowments without limiting the potential of the talented. The rewards of the talented individuals in the market would belong to the community as a whole, and the distribution of natural talents would be regarded as a common asset, to be shared by everyone. The difference principle doesn't seek to reward moral desert but rather to improve the situation of those who have lost out.

Answer 55

Meritocracy: Meritocracy aims to remedy social and economic disadvantage by providing equal educational opportunities to those from underprivileged backgrounds to compete on an equal basis with those from more privileged backgrounds. However, Rawls believes that the meritocratic conception of justice falls short of justice because distributive shares are decided by the outcome of the natural lottery, which is arbitrary from a moral perspective. Rawls concludes that the meritocratic conception of justice is flawed because both libertarian and meritocratic theories of justice base distributive shares on factors that are morally arbitrary. This realization leads to a need for a more egalitarian conception of justice.

Answer 56

Objections to the difference principle: 1. Incentives: the incentives generate economic growth that makes those at the bottom better off than they would be with a more equal arrangement, then the difference principle permits them. 2. Effort: Like other factors in our success, effort is influenced by contingencies for which we can claim no credit (natural abilities and skills)

Answer 57

Entitlement to legitimate expectations (Rawls): Rawls argues that entitlement to legitimate expectations differs from desert claims in that it arises once certain rules are in place. Distributive justice is not about rewarding virtue or moral desert, but rather about meeting legitimate expectations that arise once the rules of the game are in place. Once the principles of justice set the terms of social cooperation, people are entitled to the benefits they earn under the rules. However, if the tax system requires them to hand over some portion of their income to help the disadvantaged, they cannot complain that this deprives them of something they morally deserve.

Answer 58

Rawls’ rejections of moral desert as the basis for distributive on 2 grounds: 1. By having the talents that enable me to compete more successfully than others is not entirely my own doing. 2. The qualities that a society happens to value at any given time also morally arbitrary.

Answer 59

Paternalism (hard paternalism):Paternalism refers to the interference of a state or individual with another person against their will, justified by the claim that it will increase their wellbeing or protect them. This raises a moral dilemma between individual autonomy and the obligation to increase wellbeing. Philosophers disagree on the merits of paternalism, with neoliberals and libertarians opposing state paternalism. Immanuel Kant believes that paternalism that uses constraint and force is always wrong, while Jeremy Bentham finds it permissible if it increases the wellbeing of the majority and is democratically chosen. Although some businesses operate on a paternalistic footing, not all family businesses are paternalistic, and they often generate better results than non-family businesses. John Stuart Mill was not opposed to paternalism in general, but only when it is used against adults.

Answer 60

Soft paternalism: In his seminal book on the moral limits of criminal law, the philosopher Joel Feinberg provided some interesting insights on how to resolve the moral dilemma posed by paternalism. 29 He argued that paternalism should be blameable when it leads to treating adults like children, be it for their wellbeing or for the wellbeing of another person. Feinberg argues, however, that there is a good form of paternalism. Its function is to protect people who are defenceless or vulnerable to an outside and ignored danger, as is the case of parents who protect their children from dangers they are unaware of.

Answer 61

Henry Ford’s paternalism: 1. Among workers, the rise of unionism enabled more humane working conditions 2. In government, mechanisms of more egalitarian redistribution of opportunity and wealth were introduced 3. among employers, the notion of welfare capitalism was developed.

Answer 62

Extracontractual responsibility: the Civil code imposes on any person, moral or physical, the obligation to make reparation for damage cause to others through his fault.

Answer 63

The concept of fault can be defined as the breach of a legal or moral obligation, including the responsibility to behave reasonably in a society. Common law analyzes fault in two stages, assessing whether there was a duty of care and whether that duty was breached. Prejudice refers to the damage suffered by the victim, which the party at fault must repair. Finally, there must be a direct and immediate causal relationship between the fault and the prejudice for the victim to prove liability.

Answer 64

Specific extra-contractual liabilities: 1. Absolute responsibility to a manufacturer 2. Automatic liabilities

Answer 65

Labour law (Civil Code): an employment contract, written or oral, by which a person, the employee, undertakes, for a limited period of time and in return for remuneration, to perform work.

Answer 66

Employee contract: between an employee and another person. It is not ad vitam aeternam (not for life), thus limited duration.

Answer 67

Service contract: does not imply an employee, but a self-employed worker.

Answer 68

Employer’s obligations: The employer must provide work to the employee as well as to make available to the employee the tools adequate for the execution of work, salary, and an environment complying with the norms of health and safety.

Answer 69

Employee’s obligations: perform work with prudence and diligence. Must act with loyalty.

Answer 70

Subordination: the link between the employee and employer that is defined as the control and direction from another person.

Answer 71

Laws defending employees: 1. Act respecting labor standards a. Minimum salary b. Number of working hours c. Vacation d. Progressive discipline e. Harassment 2. Act respecting occupation health and safety 3. Act respecting industrial accidents and occupation diseases 4. Employment insurance 5. Canadian charter of rights and freedoms

Answer 72

Ideas around the political philosophy of Aristotle: Aristotle's political philosophy revolves around the idea that justice involves giving people what they deserve, based on their merit and relevant excellence. He believes that justice is linked to honor, virtue, and the good life. According to him, the just distribution of goods is determined by their telos, or purpose, and the allocation should reflect that purpose. For example, the best flutes should go to the best flute players because flutes are meant to be played well.

Answer 73

1. Justice is teleological. Defining rights requires us to figure out the telos (the purpose, end, or essential nature) of the social practice in question. 2. Justice is honorific. To reason about the telos of a practice—or to argue about it—is, at least in part, to reason or argue about what virtues it should honor and reward.

Answer 74

Telos: term used by philosopher Aristotle to refer to the full potential or inherent purpose or objective of a person or thing, similar to the notion of an 'end goal' or 'raison d'être'. Moreover, it can be understood as the "supreme end of man's endeavour".

Answer 75

Distributive justice: distribution of income, wealth, and opportunities. For Aristotle, distributive justice was not mainly about money but about offices and honors. Aristotle reminds us that all theories of distributive justice discriminate.

Answer 76

Politics by Aristotle: Aristotle's Politics focuses on the purpose of politics, which he believes is to cultivate good citizens and character. He criticizes both oligarchs and democrats, stating that they misconstrue the purpose of political community. He rejects the idea that the purpose of politics is to satisfy the preferences of the majority, instead believing that it is about learning how to live a good life and developing human capacities and virtues. The highest offices and honors should go to those who are greatest in civic virtue and best at identifying the common good. Aristotle's ethic of telos and fit sets a more demanding moral standard for justice in the workplace than the liberal ethic of choice and consent.

Answer 77

Learning by doing: The virtuous person is someone who takes pleasure and pain in the right things. If someone takes pleasure in watching dog fights, for example, we consider this a vice to be overcome, not a true source of happiness. Moral excellence does not consist in aggregating pleasures and pains but in aligning them, so that we delight in noble things and take pain in base ones. If moral virtue is something we learn by doing, we have somehow to develop the right habits in the first place. For Aristotle, this is the primary purpose of law—to cultivate the habits that lead to good character. Aristotle’s emphasis on habit does not mean he considers moral virtue a form of rote behavior. Habit is the first step in moral education. But if all goes well, the habit eventually takes, and we come to see the point of it.

Answer 78

Moral virtue : Moral education is about learning to discern the particular features of situations that call for this rule rather than that one. The only general thing that can be said about moral virtue, Aristotle tells us, is that it consists of a mean between extremes. But he readily concedes that this generality doesn’t get us very far, because discerning the mean in any given situation is not easy. The challenge is to do the right thing “to the right person, to the right extent, at the right time, with the right motive, and in the right way.” This means that habit, however essential, can’t be the whole of moral virtue. Moral virtue therefore requires judgment, a kind of knowledge Aristotle calls “practical wisdom.”

Answer 79

Practical wisdom: about how to act. It must “recognize the particulars; for it is practical, and practice is concerned with particulars. Aristotle defines practical wisdom as “a reasoned and true state of capacity to act with regard to the human good. Practical wisdom is a moral virtue with political implications. People with practical wisdom can deliberate well about what is good, not only for themselves but for their fellow citizens, and for human beings in general. 1. First, the laws of the polis inculcate good habits, form good character, and set us on the way to civic virtue. 2. Second, the life of the citizen enables us to exercise capacities for deliberation and practical wisdom that would otherwise lie dormant.

Answer 80

Intellectual property: works of the mind, such as inventions, literary, and artistic works, etc. It is primarily a commercial matter. It is governed in each country by law. In Canada, we have the Patent Act, Trademarks Act, and the Copyright Act. CIPO is the organization that manages intellectual property in Canada.

Answer 81

Psychology: Etymologically formed by the roots psyche and logos, psychology is “the science or the language of the soul.” It legitimately became recognized as a distinct science in 1877.

Answer 82

Lawrence Kohlberg’s theory of moral development: Lawrence Kohlberg's theory of moral development suggests that morality follows a definite sequence, and that people develop their own moral judgment through cognitive development, education, critical reflection, and dialogues with others. Kohlberg evaluates moral development according to a person's capacity to search for universal principles of action in an open-minded way, rather than simply following their own interests or social and cultural backgrounds. He opposes both a "laisser-faire" vision of human development and a mechanistic approach, advocating instead for a blended approach that includes moral development, free reflection, and open discussion in real social contexts.

Answer 83

Seven stages of moral development by Kohlberg: This model, in three levels, is strongly influenced by the theories of John Dewey 1. Pre-conventional level: a person is impulsive according to hedonist wishes a. Stage 1: a person directs his or her behavior to avoid potential physical punishments b. Stage 2: aim of gaining something through exchanges with others 2. Conventional level: a person follows the social standards a. Stage 3: a person directs his or her behavior to gain acceptance in a given community b. Stage 4: out of respect towards the commonly accepted laws and rules of a community 3. Post-conventional level: a person becomes relativistic and reflexive, while developing a conscience and critical moral action a. Stage 5: a person directs his or her behavior based upon their critical judgments about accepted social norms b. Stage 6: or according to ethical principles the person chooses and considers to be “universal” c. Stage 7: In a last stage, the person bases his or her ethics upon a cosmic perspective and ways of thinking that go beyond common moral reasoning

Answer 84

Limits of Kohlberg’s theory:The limitations of Kohlberg's theory of moral development include: 1) ignoring the female point of view, 2) being too cognitive and intellectual, 3) being too individualistic and not applicable in the social, economic, and political context of organizational life, 4) using fictional tests based on cases to measure moral stages, 5) the sequential and linear nature of the stages, and 6) his idealism and lack of applicability to non-Western countries.

Answer 85

Romantic model: views the development of the mind through the metaphor of organic growth, the physical growth of a plant or an animal. In this metaphor, the environment affects development by providing necessary nourishment for the naturally growing organism.

Answer 86

Cultural transmission model: views the development of the mind through the metaphor of the machine. The structure of the child’s concepts or behaviors is viewed as the result of the association of discrete stimuli with another, with the child’s responses, and with the experiences of pleasure and pain.

Answer 87

Cognitive-developmental metaphor: is not material, it is dialectical […]: A core of universal ideas are redefined and reorganized as their implications are played out in experience and as they are confronted by their opposites in arguments and discourse. […] The child is not a plant or a machine; he or she is a philosopher or a scientist-poet.

Answer 88

Liability in tort of directors of organizations: directors and managers are statutorily liable, which means that their liability in tort is specifically provided for in specific laws. They are personally liable for decisions made in the course of the operations of the organization that are illegal and criminal in nature.

Answer 89

3 practices in socializing newcomers into corrupt practices: 1.Cooptation: Using rewards to induce attitude change toward unethical behaviors, often done subtly where individuals may not even realize they have been influenced to act in their own self-interest. 2.Incrementalism: Newcomers are gradually introduced to corrupt acts, starting with small deviant acts, creating cognitive dissonance. As the individual comes to accept the act as normal, they are introduced to more corrupt acts and rationalizations, eventually engaging in acts they previously rejected outright. 3.Compromise: Individuals "back into" corruption through attempts to resolve dilemmas, conflicts, and other problems in good faith. This often involves compromising their ethical standards to achieve a desired outcome.

Answer 90

Group Attractiveness and a Social Cocoon: A social cocoon is a micro culture created within a group where the norms may be very different from those valued by society or even the wider organization.

Answer 91

Once a social cocoon has formed, corruption may be facilitated through the following steps: 1. veterans model the corrupt behavior and easy acceptance of it 2. newcomers are encouraged to affiliate and bond with veterans and develop desires to identify with, emulate, and please the veterans 3. newcomers are subjected to strong and consistent information and ideological statements such that they view corrupt acts in a positive light 4. newcomers are encouraged to attribute any misgivings they may have to their own shortcomings (particularly naivete) rather than to what is being asked of them.

Answer 92

Mutual Support of Rationalization and Socialization: newcomer engaging in the first corrupt act is likely to experience significant dissonance that could prevent the process from continuing. However, when rationalizations are available to subdue this dissonance, the process is more likely to continue. Similarly, rationalizations are easier to accept if, initially at least, they are adopted for acts that are only marginally corrupt or that offer potent rewards or a way out of an intractable dilemma.

Answer 93

Euphemistic Language: which enables individuals engaging in corruption to describe their acts in ways that make them appear inoffensive.

Answer 94

Thwarting the Use of Rationalization and Socialization: 1. Foster awareness among employees 2. Use performance evaluations that go beyond numbers 3. Nurture an ethical environment in the organization 4. Top management services as ethical role models

Answer 95

Reversing Rationalization and Socialization: When unethical acts are uncovered in organizations, there is often strong resistance to accepting the facts, no matter how strong the evidence.

Answer 96

Ethical decision-marking steps (integrative model): 1.Take note of your initial intuition 2.Establish the facts 3.Identify the ethical issue 4.Identify the stakeholders 5.Identify the consequences 6.Identify your obligations 7.Consider your character and values 8.Show empathy 9.Explore decision alternatives 10.Make an assumed decision In the decision-making process, it is important to remain unbiased, gather all the relevant information, identify the ethical issue and stakeholders, consider the consequences and obligations, reflect on personal values, show empathy, explore alternative solutions, and ultimately make a decision. The decision should be based on moral, deontological, and legal obligations, and should take into account the interests and well-being of all stakeholders involved.

Answer 97

Empathy:The concept of empathy is the ability to experience emotions that are congruent with but not necessarily identical to those of another person. Empathic concern plays a significant role in motivating prosocial or altruistic behavior and is a predictor of utilitarian moral judgment in personal or impersonal moral dilemmas. Empathy works as a moral marker that indicates the presence of a morally important event and stimulates individuals to consider the appropriate moral principles for the current situation. Finally, empathy works against fragmentation in organizations.

Answer 98

Adam Smith’s definition of empathy: an interaction between biological, instinctual, emotional, and cognitive processes. All in all, it is now generally accepted that empathy can be learned and taught (Feshbach and Feshbach 2009). As Adam Smith had already noted in his time, empathic capacities and dispositions can be stimulated by daily activities, such as sound relationships at work, but also through education and exposure to art, music, or literary works, allowing people to develop their imaginative, emotional, and aesthetic faculties – an idea also supported by contemporary scholars from different domains

Answer 99

Affective empathy (affect-sharing): accounts for the vicarious experience of another’s emotions, or the experience of “coming to feel as another person feels. Although affective empathy may lead empathic concern, which is a more active state, it is not necessarily always the case. Bottom-up process that occurs spontaneously and without awareness

Answer 100

Emotional contagion: automatic transmission of emotions between individuals that mostly involves one’s automatic mimicry of the posture, facial expression, voice, and movements of other people that allows for emotions to converge

Answer 101

Emotion sharing: relates to the simultaneous sharing of an emotion, such as when two people experience the same emotions when watching a movie together, or to the human propensity to recount emotions to others.

Answer 102

Sympathy: feelings of sorrow or concern for another person

Answer 103

Cognitive empathy: capacity to adopt the subjective perspective of another person. Top-down process that implies executive functioning, is generally defined as the ability to consciously put oneself into the mind of another person to understand what she is thinking or feeling. Both affective and cognitive empathy enrich our interpretation of situations because they represent additional sources of information. Cognitive empathy is therefore essential in the evaluation of possible consequences of decisions for vulnerable stakeholders, which is one aim of stakeholder management philosophy

Answer 104

Modulators of empathy: The degree to which individuals empathize with others is modulated by social and interpersonal factors. The degree of affiliation, affective link, proximity, and similarity between individuals. Apart from the nature of the relationship between the empathizer and the other person, other modulators of empathy have been identified, such as characteristics of the emotion of the empathizer, of the context, and of the goals, beliefs, and values we bear and possibly share with this other person.

Answer 105

Empathy modulators: 1. Nature of the relationship between individuals: degree of affiliation, emotional bond, proximity, and similarity. 2. Characteristics of the emotion: valence (i.e., pleasantness or unpleasantness of emotional stimulus), intensity, salience. 3. Characteristics of the empathetic person: mood, personality, gender, age, past experiences. 4. Characteristics of the context: objectives, beliefs, and values that we carry and that we share or not with the other person.

Answer 106

Emotional intelligence: globally defined as the capacity to reason about one’s own and others’ emotions, and of emotions to enhance thinking. Emotional intelligence embraces four dimensions that can be associated with different aspects of empathy discussed before: 1) the capacity to perceive and recognize emotion in the facial and postural expressions of others; 2) the capacity of emotions to assist in thinking; 3) the capacity to analyze emotions, to understand their evolution over time and their outcomes; and 4) the management of emotions in the context of the individual’s goals, selfknowledge, and social awareness

Answer 107

Limitations of empathy: 1. Empathy felt for a person can lead people to violate moral standards of fairness or the utilitarian principle of acting for the greater good of the greatest number. This could lead to favoritism, benefitting group members, and nepotism. 2. Paternalistic response to the person in need 3. Negative feelings such as envy or malicious joy. These negative responses can also enhance competition and non-cooperative behaviors between individuals, which in turn reinforce negative feelings from empathic responses, in a negative feedback loop

Answer 108

Ethical leadership: the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement, and decision-making. Ethical leaders were thought to be honest and trustworthy. Beyond that, ethical leaders were seen as fair and principled decision-makers who care about people and the broader society, and who behave ethically in their personal and professional lives.

Answer 109

Moral person: The researchers characterized this as the moral person aspect of ethical leadership, representing observers' perceptions of the leader's personal traits, character, and altruistic motivation.

Answer 110

Moral manager: This aspect of ethical leadership represents the leader's proactive efforts to influence followers' ethical and unethical behavior. Moral managers make ethics an explicit part of their leadership agenda by communicating an ethics and values message, by visibly and intentionally role modeling ethical behavior, and by using the reward system (rewards and discipline) to hold followers accountable for ethical conduct.

Answer 111

Moral manager dimension: represents the leader's proactive efforts to influence followers' ethical and unethical behavior. Moral managers make ethics an explicit part of their leadership agenda by communicating an ethics and values message, by visibly and intentionally role modeling ethical behavior, and by using the reward system (rewards and discipline) to hold followers accountable for ethical conduct.

Answer 112

Social learning theory: for leaders to be seen as ethical leaders by their followers, they must be attractive and credible role models. In addition, social learning theory helps to explain why and how ethical leaders influence their followers. Based on the idea that individuals learn by paying attention to and emulating the attitudes, values and behaviors of attractive and credible models. Power and status are two characteristics of models that enhance their attractiveness.

Answer 113

3 situational factors that are likely to influence employees' perceptions of a leader as an ethical leader: 1. Ethical role modeling 2. Ethical context in the organization: the prevailing perceptions of typical organizational practices and procedures that have ethical content 3. Moral intensity of issues faced

Answer 114

Individual characteristics and ethical leadership: 1.Personality characteristics (Big Five): extraversion and openness to experience are most strongly related to general leadership effectiveness, while conscientiousness and extraversion are most strongly related to leader emergence. Neuroticism and agreeableness are weakly related to leadership. 2.Motivation: individuals are driven by three main motives - power motive, achievement motive, and affiliation motive. A high need for power, moderate need for achievement, and moderate to low need for affiliation are associated with leader effectiveness. 3.Machiavellianism: Machiavellian leaders use guile, deceit, and opportunism in interpersonal relations and are motivated to manipulate others to achieve their own goals. 4.Additional individual characteristics: moral judgment level, moral utilization, locus of control, and self-monitoring influence ethical leadership. Moral judgment refers to differences in how individuals think about what is right, while moral utilization refers to the extent to which individuals use their moral reasoning capacity in ethical decision-making. Locus of control refers to perceived control over events in one's life, while self-monitoring reflects an individual's attentiveness to and control of how they present themselves to others. High self-monitors adjust their behavior to fit in, while low self-monitors are consistent across social settings.

Answer 115

Outcomes of ethical leadership: 1. Follower ethical decision-making 2. Employee prosocial behavior 3. Employee counterproductive behavior 4. Follower work attitudes

Answer 116

Propositions: 1. Being able to identify a proximate, ethical role model during one's career is positively related to ethical leadership. 2. An ethical context that supports ethical conduct will be positively related to ethical leadership. 3. Moral intensity (magnitude of consequences and social consensus) enhances the relationship between ethical context and ethical leadership. 6. Neuroticism is negatively related to ethical leadership. 7. Power inhibition enhances the relationship between need for power and ethical leadership. 8. Machiavellianism is negatively related to ethical leadership. 9. Leader moral reasoning level is positively related to ethical leadership.

Answer 117

Trial: legal tool by which a 3rd person, a judge, must decide the faith of the dispute and how to compensate the parties. The judge or an arbitrator can’t look forward in the future, they can only look into the past behavior.

Answer 118

Mediation: tool where the parties take control of the solution. The 3rd person being the mediator. We can look into the past and the future.