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PHILO 2074 - Business Ethics > FINAL EXAM REVIEW > Flashcards

FINAL EXAM REVIEW Flashcards

1
Q

What was Africville and why was it destroyed?

A

A small black community living in Nova Scotia since 1749. It was destroyed to make way for the industrial development of Halifax forcing relocation of population.

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2
Q

Why was there outrage at the hiring of leader of Africiville heritage trust restitution plan and what do supporters and critics say?

A

A white women (Rex. Carole Nixon) was hired and dismissed 1 day after.

Critics of Nixon: she cannot represent African-american Halifax community cause she does not fall into that demographic.

Supporters: Daurene lewis “she was the most qualified candidate”, race does not play a factor in this decision.

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3
Q

What is the CNIB case and why was it controversial?

A

In 2009, the CNIB (Canadian National Institute for the Blind) , hired their first sighted CEO (John Rafferty - excellent resume) . Supporters say that the job should be determined by Merit alone.
Critics: say it is discriminatory to blinds, “a step backwards”.

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4
Q

What is the CNIB case and why was it controversial?

A

In 2009, the CNIB (Canadian National Institute for the Blind) , hired their first sighted CEO (John Rafferty - excellent resume) . Supporters say that the job should be determined by Merit alone.
Critics: say it is discriminatory to blinds, “a step backwards”.

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5
Q

Discrimination is prohibited by

A

6 of the core international human rights documents.

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6
Q

What is Wouter Vandenhove concern with discrimination?

A

That there is no universal standard (definition for it) Therefore its parameters can be manipulated to the users own agenda.

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7
Q

What is the working definition of discrimination that many ethicists agree on:

A

Discrimination consists of acts, practices, or policies that impose (1) relative disadvantage on persons based on (2) their membership to a salient (noticeable/important) social group.

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8
Q

What is relative discrimination and relative disadvantage

A

how well a person is treated in relation to others.

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9
Q

Two Reasons why discrimination is wrong:

A

Richard Yetter: treating me different solely because of my virtue of race, gender age implies that this is significant information to determine my behaviour and I find this extremely insulting to my dignity as an individual. I am a distinct person, a free agent, an individual…

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10
Q

Who founded the idea of justified vs unjustified discrimination.

A

Aristotle.

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11
Q

things alike should be treated

A

alike” - Aristotle?

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12
Q

things alike should be treated

A

alike” - Aristotle?

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13
Q

What is justified discrimination

A

Discrimination of the basis of relevant qualities (things that matter to the situation at hand). Based on morally sound reasons.

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14
Q

What is unjustified discrimination

A

Discrimination on the basis of irrelevant qualities having nothing to do with subject matter

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15
Q

What is unjustified discrimination

A

Discrimination on the basis of irrelevant qualities having nothing to do with subject matter

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16
Q

is choosing to not hire a blind person as telemarketer justified or unjustified discrimination.

A

unjustified. sight has nothing to do with telemarketing.

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17
Q

choosing not to hire a blind person as a pilot is justified or unjustified discrimination

A

justified. blindness impedes task of flying plane.

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18
Q

Who believes that a person does not deserve the dis/advantages that are due based on her natural endowments (intelligence, athletic ability), these are purely the result of the “natural lottery”

A

John Rawls

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19
Q

Who believes that our natural endowments are part of who we are; and we own them and the advantages and disadvantages that come from them.

A

Robert Nozick.

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20
Q

Equality deals with _________, Equity deals with __________

A

Sameness. Fairness.

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21
Q

What is the basis of the principle of justice

A

Equals should be treated equally and unequals unequally.

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22
Q

What happened in the case of Sara Landriault?

A

She tried to apply for the admin assistant’s job in the ministry of Citizenship and immigration and was rejected because the job was restricted to aboriginals.

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23
Q

What was did supporters and critics of Sara Landriault rejection state?

A

Supporters: I support all extraordinary measures that get the federal government closer to its employment equity targets (NDP MP Pat Martin)

Critics: Hiring should be based on merit, not ethnicity (Immigration minister Jason Kenny)

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24
Q

What is affirmative action:

A

policy of favouring members of disadvantage group who was discriminated.

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25
Q

What is the aim of affirmative action

A

to offset discrimination.

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26
Q

What does Section 15 of Canadian Charter of Rights and Freedoms State.

A

(1) Every individual is equal and under the law without discrimination”

(2) however it does not (make impossible) any law program or activity that has the object of to improve the conditions of the disadvantaged.

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27
Q

What is western university doing as affirmative action.

A

making aboriginal access to university more accessible and encouraging applications.

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28
Q

What happened in the case of Edward Snowden?

A

Snowden leaked NSA classified information.
NSA (PRISM) were operated unconstitutionally.
Government criminalized Snowden.
Snowden was granted Asylum in Russia.
Many consider Snowden a hero, a whistleblower.

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29
Q

What happened in the case of Edward Snowden?

A

Snowden leaked NSA classified information.
NSA (PRISM) were operated unconstitutionally.
Government criminalized Snowden.
Snowden was granted Asylum in Russia.
Many consider Snowden a hero, a whistleblower.

30
Q

What is the supportive and critical argument of of Edward Snowden.

A

Critical: what Snowden did was illegal and compromised our ability to keep the fundamental goal of keeping the country safe.

Supportive: as a democratic country, it is not our place to decide what policies and programs are right and wrong for the public.

31
Q

What is the supportive and critical argument of of Edward Snowden.

A

Critical: what Snowden did was illegal and compromised our ability to keep the fundamental goal of keeping the country safe.

Supportive: as a democratic country, it is not our place to decide what policies and programs are right and wrong for the public.

32
Q

What is whistleblowing?

A

making public matters intended to be hidden and are significantly morally wrong.

33
Q

What is the goal of whistleblowing?

A

to protect the public for harm. (CSR)

33
Q

What is the goal of whistleblowing?

A

to protect the public for harm. (CSR)

34
Q

What happened in the Canadian Pharmaceutical case of Nancy Olivieri:

A

Nancy a researcher for Apotex found that the drug being used to treat fatal blood disorder was ineffective and may cause a fatal liver disease.
- Research ethics board told her to report findings to patients.
- Apotex instructed her not to disclose information because it would cause patients to break confidentiality.
- Nancy made information public against apotex will. She is a whistleblower because she made known an immediate danger to the public that was supposed to be hidden.
- Was awarded for this.

35
Q

What happened in the case of the challenger disaster? (no whistleblowing)

A
  • challenger shuttle blown apart in flight… tragic.
  • night before engineers urged NASA to postpone launch.
  • VPS felt that no need to postpone without significant evidence.
  • months before launch, engineers warned that there was a faulty O-ring design that could cause catastrophe.
  • rogers commission determined cause for failure was O-ring seal.
  • Ice made O-ring seal cold, engineers were aware and urged NASA, NASA made concern hidden, engineers didn’t externally whistleblow (only escalation) . Unfortunate consequences.
36
Q

3 Stages of whistleblowing

A

Internal whistleblowing: reporting concern to someone not in normal channel of authority but within the organization
Escalation: report to someone higher up in chain of command.
External whistleblowing: seeking external intervention.
Only external whistleblowing is considered whistleblowing.

37
Q

What protects whistleblowers. What is the correct procedure for whistleblowers?

A

Criminal Code (2004) and Public Servants Disclosure Protection Act (2007) both protect whistleblowers in federal sector.
- procedure, both documents require whistleblower to first disclose intent to employer in writing and then to appropriate law enforcement agency, unless matter constitutes and imminent risk.

37
Q

What protects whistleblowers. What is the correct procedure for whistleblowers?

A

Criminal Code (2004) and Public Servants Disclosure Protection Act (2007) both protect whistleblowers in federal sector.
- procedure, both documents require whistleblower to first disclose intent to employer in writing and then to appropriate law enforcement agency, unless matter constitutes and imminent risk.

38
Q

What conditions must be met for an action to be considered as genuine whistleblowing?

A
  1. Public Interest must be threatened by some policy/procedure.
  2. Employees of the organization must have attempted to resolve problem internally.
    ***External whistleblowing is justified only when these have failed.
39
Q

Why do people become whistleblowers?

A

They feel guilty by being complicit. They try to achieve reflective equilibrium.

  • they feel competing Obnligations as even when they do the morally superior thing they still gave done something wrong.
40
Q

What are whistleblowers competing moral obligations?

A
  1. As a person, I have a moral obligation to prevent foreseeable harm to fellow persons.
  2. As an employee/citizen, I have a moral obligation to confidentiality, loyalty.
    - resolved through reflective equilibrium…, ex. I have a moral obligation to my employer unless it comes at the expense of harming the public.
41
Q

Why is Whistleblowing sometimes seen as disloyal.

A

the culture of silence.

42
Q

What is a possible contributing reason to the culture of silence that Arendt uncovered.

A

case of Adolf Eichmann, nazi officer and one of the major organizers of the holocaust.
Did not whistleblow not because he was prevented nor sadistic, but “terrifyingly normal”.
Had no motive other than to diligently advance career within the Nazi bureaucracy.

CAN EVIL BE BANAL?

Eichmann did not see his deeds as evil because he was thoughtless, he did not really critically reflect and see his action from the standpoint of somebody else.

stuck within the system, people play proper roles. don’t challenge the system.

43
Q

What was the moral code that Jackall uncovered?

A

Managers follow as set of unspoken rules in the corporate workplace.
1. You never go around your boss.
2. You tell your boss what he wants to hear, even when your boss claims he wants dissenting views.
3. If your boss wants something dropped, drop it.
4. Your job is not to report something your boss does not reported, but rather to cover it up.

44
Q

What is Corporate Governance?

A

control methods that ensure that organization acts in an ethical and legal way.

45
Q

What is founder centrism, and what is the new theory of corporate governance aiming to achieve.

A

Founder Centrism: founder still plays significant role as CEO chairman, board member, etc.
New theory: Aim to narrow the separation between ownership and control.

46
Q

What caused the case of PESO Silver Mines LTD. V. Cropper and what was the ruling?

A
  • Cropper was managing director of Peso.
  • Dickson offered to sell mines to Peso
  • Peso board of directors refused.
  • Cropper wanted mines so he formed his own company (cross bow to acquire them)
  • Peso’s chairman told Cropper to turn over interest to Peso.
  • Cropper refused.
  • Cropper was sued under grounds that he violated managerial role.
  • Supreme Court ruled Cropper did not violate duties as manager.
47
Q

What was the case of Canadian Aero Service V O’Malley and what was the verdict?

A
  • “Can-Aero”: exploration company.
  • O’Malley, Zarzycki, Wells, senior officer of Canaero
  • O.Z.W. resigned after Canaero bought Litton industries.
  • Before resignation they formed own business, Terra Surveys
  • Terra Surveys was offered business in Guyana based on the merit of work they did Can-Aero.
  • Can-Aero filed claim that OZW took advantage of opportunity of their own interest.
  • Supreme Court Ruled OZW guilty of violating fiduciary duty.
48
Q

Why did the Supreme Court of Canada rule differently when distinguishing the two cases?

A

Cropper did not violate managerial duty because Peso had no interest in mines.
OZW violated managerial duty because CAN-AERO had interest in Guyana.

***One deal was made in bad faith and was a conflict of duty.

49
Q

What is fiduciary duty? (means in latin - to trust - fidere) What is fiduciary relationship?

A

A certain manner of care a professional (trustee) must undergo for the beneficiary.

Fiduciary Relationship: a legal or ethical relationship of confidence between two or more parties where one person or party acts at all times in the best interest of another person or party (principle/beneficiary)

50
Q

What is the dentist and patient example outline in terms of a fiduciary relationship?

A
  • Dentist offered expensive treatment to patient.
  • Patient (Mickey) wonders if Dentist is offering treatment because it is the best for them or because it is expensive.
  • Recommending treatment because it is expensive would be breach fiduciary duty.
    Why, because there is a power imbalance which means that the patient is vulnerable and is entitled to a strong duty of care.
51
Q

What is the principal-agent problem:

A

Conflict between the principal (owner/shareholders) and agent (management).
- Arises in situations when the “agent” (management) is entrusted to make decision for the owners - aka. fiduciary relationship.

52
Q

What are examples of principal agent problems?

A

Patient - Dentist
Client - Lawyer
Voters - Politician
Shareholder - Managers

53
Q

What are incentives and internal and external incentives

A

Incentives are formed to try and align principal and agents interests.

External:

market driven causes for action.
ex. If managers don’t maximize profits for shareholders, they risks future employment.

Internal:

executive compensation causes for action.
pay-for-performance bonuses.

54
Q

How did apple create incentives for executives

A

CEO Tim Cook had to hold 10x base salary, other seniors had to hold 3x base salary in shares.

This ensured that executives would be motivated to work harder as better performance would result in their share prices increasing which meant more money for them.

“the basic premise of this was to align executives financial interests (agents) with financial interests of shareholders (principal) (Jonas Kron)

55
Q

Case at Financial Post?

A

Green Giant found that frozen’s peas were being packaged with insect parts
- incentivized employees with money bonus for finding insect parts
- employees responded by bringing insect parts from home “finding” them and earning the bonus.

56
Q

What did Maurice Schweitzer say about goal achievement

A

the more people are rewarded merely for goal achievement, the more likely to engage in unethical behaviour.

57
Q

How did pay disparity in the impact performance in the MLB?

A

Teams with players with unequal pay gaps performed worse because the players being not paid as much didn’t think they were as valuable and this demotivated them and resulted in their poor performance.

58
Q

What is a better way of incentivizing employees?

A

Autonomy and purpose?
- autonomy: employees have free reign over their work.
- purpose: employees believe in the cause of work.

59
Q

What is conflict oil, what is its problem? What is ethical oil? What is its problem?

A

Saudi Arabian Oil. Human Rights Issues.

Canadian Oil Sands Oil. Environmental Concerns.

60
Q

Why is conflict oil vs ethical oil a false dilemma.

A

Oil isn’t labelled by country. Neither country is perfect ethically or environmentally.

61
Q

Oil Sands have what type of oil.

A

unconventional this mixture of sand deposits takes 4 times more energy to extract.

61
Q

Oil Sands have what type of oil.

A

unconventional this mixture of sand deposits takes 4 times more energy to extract.

62
Q

Pros/Cons of Oil Sands.

A

pros:
huge economy/job contributor.

cons:
destroys Albertas boreal forest.
oil leaks
takes more water to produce same amount of oil.
wildlife impact.

63
Q

What is goal of Paris climate accord?

A

limit global warming to well below 2. Preferably 1.5 degrees celsius.

64
Q

Carbon Tax

A

A fee placed on the carbon contents of fuel. Aim is to promote clean energy usage.

65
Q

What is the tragedy of the commons.

A

When something belongs to everyone, it really belongs to no-one.
Principle: individuals acting in self-interested ways will ultimately a shared limited resource.
Tragedy: resources are at their capacity because of the demands we have made them.

66
Q

How does the case of Grand Banks Fisheries show the tragedy of the commons.

A

when fishers over fished, fishing population collapsed irreparably.

67
Q

Ethical egoism:

A

we should always act in our own self-interest.

68
Q

Mike and Nancy thought Experiment: (prisoner’s delimma)

A
  • Mike and Nancy are ethical egoists.
  • They live on small lake.
  • If one of them deposits waste in water, nothing changes
  • if they both do, then the lake becomes toxic.
  • they can either cooperate or cheat.
  • if they don’t think about what the other will do, they should cheat as that guarantees them the most pleasure.
  • however, if they decided not to be egoists, they both could gain more pleasure then if they both cheat.
69
Q

What obligations

A

humanist perspective: protect environment for humanity

Naturalist perspective: protect environment for environment.

PHILO 2074 - Business Ethics (4 decks)

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