P2F.1 Business Ethics

Question 1

Ethics

Answer 1

1. Shared values, acceptable norms, group/societal expectations.
2. A code imposed by outside authority
3. The study of morality
4. Do the ‘right’ thing even when one can’t get caught
5. Society’s expectations of a business and a business’s code of behavior for its employees.

Question 2

Morals

Answer 2

1. Behaviors, beliefs of individuals
2. Serving one’s self interest
3. Business’s actions as an independent unit in the face of social expectations.

Question 3

Morality

Answer 3

1. Convergence with ethics
2. Formed by same system of expectations
3. Desire for acceptance
4. Refers specifically to the beliefs and behaviors of individuals.

Question 4

Virtue

Answer 4

1. Adherence to one’s morality; defined as the adherence to a high level of morality
2. Focus on character and behavior

Question 5

Teleology (Consequentialism)

Answer 5

1. Judges actions based on results.
2. This philosophy is embodied by the sayings, “The ends justify the means,” and “All’s well that ends well.”
3. Teleology is also known as consequentialism.

Question 6

Utilitarianism

Answer 6

1. Common branch of teleology that defines goodness which brings the overall greatest benefit (utility) to society.
2. If we could sum all of the benefits that an action would create to every member of society, then subtract all of the unpleasantness it caused, the result would be the standard by which utilitarianism would judge the action.
3. The practice of eminent domain, or government forcing landowners to sell property to other parties in the name of public use, is based on utilitarianism.

Question 7

Deontology

Answer 7

1. Defines ethical behavior, not in terms of its consequences, but the ethics of the act itself.
2. This view states that “goodness” comes from acts that are in accordance with our obligations.

Question 8

Virtue Ethics

Answer 8

Judges less in the action but more of the character of the individual.

Question 9

Moral relativism

Answer 9

Based on the idea of what is ethically acceptable should depend on the values and accepted norms of a particular culture in which the actions take place.

Question 10

Moral Universalism

Answer 10

1. Rights and wrongs are absolute constants that don’t depend on culture or geographical location.
2. This view is considered the opposite of moral relativism.

Question 11

Distributive Justice

Answer 11

Refers to the ability of social and government institutions to allow for a fair and just distribution of goods and penalties.

Question 12

Retributive or Corrective Justice

Answer 12

Focuses on the propriety of punishment to those who have compromised the rights of others.

Question 13

Compensatory Justice

Answer 13

Deal with making victims whole.

Question 14

Fairness

Answer 14

Everyone being treated equally.

Question 15

Integrity

Answer 15

Quality of holding oneself to strong adherence to both ethics and morality.

Question 16

Due Diligence

Answer 16

Ongoing responsibility of corporate leaders to evaluate risks and very benefits before committing to the firm’s capital.

Question 17

Fiduciary Responsibility

Answer 17

Agents in fiduciary relationships are legally liable both for performing the duty of care as well as putting the interests of their beneficiaries above their own.

Ex: real estate agents, lawyers and financial advisors.

Question 18

Business Ethics

Answer 18

Business ethics refers to both how a business performs in comparison to the expectations of the society in which it operates, and how employees act with respect to the behavioral expectations of their employers.

Question 19

3 approaches to ethics: Classical branches

Answer 19

1. Teleology
2. Deontology
3. Virtue ethics