Lecture 1: Why Ethics Matter Flashcards
What does it mean by ethics?
It is the standards of behavior to which we hold ourselves in our personal and professional lives.
What actually is business ethics?
It guides the conduct by which co. & their agents abide by the law & respect the rights of their stakeholders (i.e.: customers, clients, employees, community and environment)
What does compliance in terms of business ethics refer to?
It refers to the extent to which a co. conducts its business operations in accordance w/ applicable regulations, statutes and laws. It is strictly mandatory to abide these rules and regulations.
What is integrity?
It is the unity between what we say and what we do. Adhering strongly to code of ethics (trustworthiness and incorruptibility).
What it means to be a professional of integrity?
Someone who is consistently striving to be the best person you can be in all your interactions w/ others and is true to his words (keep the promise made), always telling the truth, doesn’t betray the trust created.
“Practice what you preach, walk the talk and do what you believe is right based upon reason.”
Who are stakeholders in a business?
They are individuals & entities affected by the business’ decisions. They value a leadership team that chooses the ethical way to accomplish the co.’s profit goals.
What does the code of ethical behavior says?
It serves as ideal guides for business & the professions. Ethical behavior in business is NECESSARY!
Why do laudable business practices serve the long-term interest of corporations?
It’s because they’re perceived as caring about the community it serves.
What is normative ethical theories?
It focuses on how people ought to behave.
What is descriptive ethical theories?
It is based on scientific evidence, primarily in the field of psychology, and describe how people tend to behave within a particular context.
List 3 different perspectives that help us assess whether our decisions are ethical on the basis of reason.
- 1st normative approach: to examine the ends, or consequences, a decision produces in order to evaluate whether those ends are ethical. (eg: utilitarianism, consequentialism)
- 2nd normative approach: examine the actions we use to carry out a business decision. (eg: deontology which suggests that it is the mean that lend nobility to the ends)
- 3rd normative approach: aka virtual theory, which focuses on the character of decision-maker. This reflects the training we receive growing up. (eg: create a character of integrity & make ethical decisions)
What is Ethical Business Leadership?
It means doing the right by all stakeholders directly affected by the firms’ operations. Business leaders do what is best for all who have a stake in their co. & NOT just merely focusing on maximizing shareholders’ wealth.
What is social contract?
It is an implicit agreement among all members to cooperate for social benefits. A co. owes a reciprocal obligation to do what’s best for as many of society’s members as possible.
This contract implies that a co. gives back to the society that permits it to exist, benefiting the community at the same time enriches itself.
What actually is the main purpose of a business?
It is to take into account a broad array of stakeholders & the long-term and short-term consequences for a course of action.
What is goodwill?
It is the positive feeling stakeholders have for any particular company. Even a co. being socially responsible generate goodwill towards the stakeholders.
