LO 2.1: Assessment of Ethical Decisions in the Business Context

Question 1

What is the definition of Business Ethics according to Philip Lewis?

Answer 1

Business ethics is the rules, standards, codes, or principles which provide guidelines for morally right behavior and truthfulness in specific situations.

Question 2

What are the three levels of assessing ethical implications in business decisions or actions

Answer 2

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.

Question 3

What does Level 1 of ethical assessment assume?

Answer 3

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.

Question 4

What factors are considered at Level 2 of ethical decision-making?

Answer 4

Value Judgments of Purpose: Subjective evaluations of what is considered important.

Moral Standards of Behavior: Accepted behaviors based on society’s norms

Question 5

What does Level 3 of ethical assessment involve?

Answer 5

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.

Question 6

What is a common misconception about being a good person and solving ethical dilemmas?

Answer 6

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.

Question 7

What are Value Judgments in ethical decision-making?

Answer 7

Value judgments are subjective evaluations of what is considered important, based on how managers intuitively feel about the goodness or rightness of various goals.

Question 8

What are Moral Standards in the context of ethical decision-making?

Answer 8

Moral standards are the means by which individuals judge their actions and the actions of others based on accepted behavior in society.