Lecutre 1: Introduction

Question 1

What are business ethics?

Answer 1

Business Ethics talk about how you should act in the context of business, if you want to do what is right.

Question 2

What are some distinguishing features of the business context?

Answer 2

1. Economic or market activity: buyers and sellers, employers and employees
2. Organizations: as members of organizations with certain goals, we have impact.

Question 2

What type of arguments are there?

Answer 2

1. Descriptive (what is? –> factual)
2. Normative (what ought? –> opinion based)

Question 3

What are the distinguishing features of what is moral and what is legal?

Answer 3

1. Not everything that is legal is moral
2. Not everything that is illegal is immoral

Question 4

Why is the law not enough?

Answer 4

1. The law is inappropriate for regulating certain aspects of business activity
2. The law is often slow to develop in new areas of concern
3. The law uses moral concept that are not defined
4. Pragmatic reasons: the law is inefficient and reliance on it invites excessive legal processes

Question 5

How can you find about the right thing to do in business by applying business ethics?

Answer 5

1. Learn about ethical theories
2. Learn to identify disagreements about facts vs. disagremeents about values
3. Think critically and in a structured manner about the problem
4. Be curious and discuss

Question 6

What is Carr’s position and conclusion about business bluffing?

Answer 6

He believes business bluffing is ethical.

1. Ethical rules in society and ethical rules in a game are not the same.
2. If something is legal and accepted in a game, it is ethical.
3. Business is a game and bluffing is accepted
4. Therefore, business bluffing is ethical

Question 6

What is Carr’s position and conclusion about business bluffing?

Answer 6

He believes business bluffing is ethical.

1. Ethical rules in society and ethical rules in a game are not the same.
2. If something is legal and accepted in a game, it is ethical.
3. Business is a game and bluffing is accepted
4. Therefore, business bluffing is ethical

Question 7

What is wrong with the analogy of business bluffing and bluffing in poker?

Answer 7

1. In poker nobody is forced to enther the game (freedom of entry and exit)
2. In poker nobody outside the game is affected by the game (no externalities)
3. The outcomes of the game are usually minor (no large consequences)