LO 2.1: Assessment of Ethical Decisions in the Business Context Flashcards
What is the definition of Business Ethics according to Philip Lewis?
Business ethics is the rules, standards, codes, or principles which provide guidelines for morally right behavior and truthfulness in specific situations.
What are the three levels of assessing ethical implications in business decisions or actions
Awareness: Awareness of moral or ethical implications.
Assessment: Assessment based on influences (individual, organizational, societal).
Assessment based on ethical principles: Using ethical principles to systematically analyze outcomes and stakeholder impact.
What does Level 1 of ethical assessment assume?
It assumes an awareness of the moral or ethical implications of business decisions or actions.
Without this awareness, managers may mistakenly believe they are behaving in an amoral manner.
What factors are considered at Level 2 of ethical decision-making?
Value Judgments of Purpose: Subjective evaluations of what is considered important.
Moral Standards of Behavior: Accepted behaviors based on society’s norms
What does Level 3 of ethical assessment involve?
It involves a systematic analysis of ethical implications using fundamental ethical principles to evaluate the outcomes of decisions, with a focus on the distribution of benefits and harms to all stakeholders.
What is a common misconception about being a good person and solving ethical dilemmas?
The misconception is that being a good person is enough to solve ethical dilemmas.
In reality, ethical decision-making often requires a structured approach based on solid principles.
What are Value Judgments in ethical decision-making?
Value judgments are subjective evaluations of what is considered important, based on how managers intuitively feel about the goodness or rightness of various goals.
What are Moral Standards in the context of ethical decision-making?
Moral standards are the means by which individuals judge their actions and the actions of others based on accepted behavior in society.
