Introduction

Question 1

Definition of Morality

Answer 1

a system of norms relating to actions of individuals or groups

Question 2

Differentiate between 3 types of Norms

Answer 2

• Moral norms: actions affecting other people, don’t hurt others.
• Social norms: concerning oneself, informal understandings that govern the behavior of members of a society
• Legal standards: clearly defined guidelines that shall not be violated or get punished

Question 3

Definition of ethics

Answer 3

science of morality, examines moral standards of individuals or groups

Question 4

Two categories of ethics

Answer 4

Normative ethics: argues how behavior ought to be, and how a person should act
Descriptive ethics: describes how people really behave in moral dilemmas

Question 5

Main questions of Ethics

Answer 5

What should I do?
How should I live?
Why is this action right or wrong?
What is a good life?

Question 6

Descriptive Ethics: Adam Smith

Answer 6

Invisible hand: if every person pursues his own self-interest, the utility for the society will be maximized.
Empirical finding by Smith: people not only strive for maximization of own utility, but also upon reducing pain or increasing gain of others due to empathy.
Was measured and still proved valid today.

Question 7

Different layers of Ethics research

Answer 7

Main question: what is a good decision?

• Microlevel (personal level): concerning the conditions under which an individual behaves ethically or not.
• Mesolevel (institution/company level: business ethics): principles to govern the conduct of business. Analysis of how moral standards emerged and how to put them into practice.
• Macro (economic ethics): how should the government interact with the economy, if at all.
• Supra (international level): should several nations tackle global problems?

Question 8

Overview of relevant branches of ethics

Answer 8

Teleology: telos = purpose/goal.
An action is good when the consequence is good, looking at ends. Normative ethics, most popular strain: utilitarianism.

Deontology: deos = duty
an action is good when the intention to act was good, looking at intentions.

Question 9

Virtue ethics

Answer 9

when a person lives according to certain characteristics, he/she is good.
•Three parts of the soul: reason, appetite and spirit.
•Cardinal virtues: prudence, justice, temperance, courage.
→ One has to balance each of the virtues to be ethical

Question 10

Important terms business ethics

Answer 10

Stakeholders
Sustainable Development
Compliance

Question 11

Stakeholders

Answer 11

people being affected by the actions of the organization

Question 12

Sustainable development

Answer 12

meeting the needs of the present time without taking away the ability of future generations to meet their own needs (limitation of environmental resources)
Two key concepts:
- concept of needs: especially of the poor, should be prioritized
- concept of (technological and social) limitations, on the environment’s ability to meet present and future needs

Question 13

Compliance

Answer 13

Conforming to rules and laws; meeting legal or self-imposed standards within companies.

Question 14

Triple-Bottom-Line

Answer 14

Three P’s: People, profit, planet.
good business means balancing financial, social and environmental goals in business decision making.
- corporate profit
- people account/social responsibility
- planet account - environmental responsibility

Question 15

Corporate Social Responsibility (CSR)

Answer 15

refers to companies voluntarily going beyond the limit of what the law requires to achieve social and environmental objectives

Question 16

Dieselgate example

Answer 16

VW programmed a special software to reduce the carbon-dioxide emissions when being in a testing facility.
Clash of CSR incentives with actual corporate culture? Still unclear

Question 17

Inversion of the internet - example

Answer 17

in 2018 more traffic in the internet is fake than real - to fool advertisers into thinking their ads have been seen.

Question 18

Theory of shared values (Porter)

Answer 18

Companies can create economic value by creating societal one.
▪Neoclassical thinking: CSR measures are another constraint to companies imposing additional costs.
▪Mainstream: CSR expenses are deemed to be mandatory and everything beyond will not be pursued.
▪Concept of shared value recognizes that societal needs in addition to economic needs define markets. Social harms and weaknesses = costs for the company.
Companies can create economic value by creating societal value

Question 19

three ways to create societal value

Answer 19

Reconceiving products & markets
redefining productivity in the value chain
building supportive industry clusters locally

Question 20

Leadership according to Jensen:

three elements of leadership

Answer 20

Integrity - being whole and complete by honoring one’s word
Authenticity - knowing who you are and acting accordingly (consistently)
Being committed to something bigger than oneself - source of charisma, teaching other leaders; is a source of persistence