Phil 312 test 2

What is the stockholder (free market) model of CSR?

The view that a corporation's only responsibility is to maximize profits for shareholders while obeying the law and basic ethical rules.

Whose name is most closely associated with the stockholder model?

Milton Friedman

What is Adam Smith's utilitarian justification?

Self-interested actions in free markets produce the greatest overall good through efficiency, competition, and the invisible hand

What is the natural rights justification?

Individuals have rights to property and voluntary exchange; interference violates freedom

What are the four main types of market failure?

Externalities; public goods; information problems; market power

What are negative externalities?

Costs imposed on third parties not involved in a transaction

What are public goods?

Goods that are non-excludable and non-rivalrous

What are information problems?

Situations where one party lacks necessary knowledge for fair exchange

What is the first-generation problem?

Markets fail to protect those unable to participate effectively (e.g., the poor)

What is the "game the system" objection?

Firms exploit loopholes or weak regulations for profit

What is the philanthropic model of CSR?

Businesses voluntarily donate or give back to society

What does "supererogatory" mean?

Morally good but not required

What is the moral minimum model of CSR?

Businesses must avoid causing harm and meet basic ethical standards

What is the multiple stakeholder model of CSR?

Businesses must consider all stakeholders, not just shareholders

What is a stakeholder in a business?

Anyone affected by a business (employees, customers, community, etc.)

What is the accommodation argument?

Businesses already consider stakeholders, so they should formally adopt this model

What is the difference between prudential and ethical?

Prudential = self-interest; Ethical = morally right

What is the utilitarian argument for the stakeholder model?

It maximizes overall happiness by considering all affected parties

What is the rights argument for the stakeholder model?

Stakeholders have moral rights that must be respected

What is the implementation problem?

No clear way to balance competing interests

What is the efficiency problem (stakeholder)?

Slower decision-making reduces productivity

What is the property rights problem (stakeholder)?

Weakens shareholder ownership control

What is the consistency problem?

No clear rules lead to inconsistent decisions

What is the sustainability model of CSR?

Businesses must preserve resources for future generations

What is the Malthusian theory?

Population grows faster than resources, leading to collapse

What was Julian Simon's response?

Innovation increases resources and prevents scarcity

What is the classical liberal CSR model?

Emphasizes free markets, limited government, and profit

What is the conventional model of work?

Work is mainly for earning income

What is the human fulfillment model of work?

Work provides meaning and personal growth

What is Marxist alienation?

Workers are disconnected from product, process, others, and themselves

What is the progressive liberal model of work?

Emphasizes worker protections and fairness

What is the classical liberal model of work?

Emphasizes freedom and minimal regulation

What is the main difference between progressive and classical liberal models of work?

Progressive focuses on fairness and protection; classical focuses on freedom and efficiency

What are the three tenets of creative destruction?

Innovation destroys old industries; disruption drives growth; entrepreneurs lead change

Who is associated with creative destruction?

Joseph Schumpeter

What is a yellow dog contract?

Agreement not to join a union

What is a closed shop?

Must be a union member to be hired

What is a union shop?

Must join the union after being hired

What is an agency shop?

Must pay union fees without joining

What is a right-to-work law?

Cannot be forced to join or pay a union

What is the free rider argument (pro-union)?

Non-members benefit unfairly from union efforts

What is the unequal power argument (pro-union)?

Unions balance employer power

What is the freedom to contract argument (pro-union)?

Voluntary agreements should be allowed

What is the free association argument (anti-union)?

Forced membership violates freedom

What is the bad deal argument (anti-union)?

Workers may be coerced into agreements

What is the universalizability argument (anti-union)?

The rule would not work if applied universally

What is the forced support argument (anti-union)?

Violates individual autonomy

What are Beck rights?

Workers can refuse to fund union political activities

What is the right to life argument for a job?

Jobs are necessary for survival

What is the meaningful life argument for a job?

Work provides purpose and dignity

What is the obligation problem (right to a job)?

Unclear who must provide jobs

What is the crowding out problem?

Government jobs may replace private jobs

What is the inefficiency problem (right to job)?

Forced employment reduces productivity

What is the social justice argument for minimum wage?

Reduces inequality

What is the "no taxpayer cost" argument?

Businesses pay wages, not taxpayers

What is the "increases unemployment" argument?

Higher wages lead to fewer jobs

What is the "poorly targeted" argument?

Does not effectively help the poorest

What is the exercise of power argument (due process)?

Prevents employer abuse

What is the employee freedom argument (against due process)?

Limits flexibility and mobility

What is the fairness to employer argument?

Reduces employer control

What is the property rights argument (due process)?

Employers own the business

What is the efficiency argument (due process)?

Slows decision-making

What is workplace democracy?

Workers have a say in business decisions

What is the ends argument for workplace democracy?

Democracy is intrinsically valuable

What is the self-worth argument?

Increases dignity and respect

What is the alienation argument?

Reduces worker disconnection

What is the apathy argument?

Increases engagement and participation

What is the property rights argument (against workplace democracy)?

Owners should control their business

What is the lack of expertise argument?

Workers may lack necessary knowledge

What is the inefficiency argument (workplace democracy)?

Slows decisions and reduces productivity

What is the false analogy argument?

Workplaces are not governments

What is OSHA?

U.S. agency that enforces workplace safety standards

What does "safest feasible standards" mean?

Maximum safety possible without making business impractical

About how many workplace fatalities per year?

Around 5,000

What are the two main rights of privacy?

Control over personal information; freedom from intrusion