ACCT 324 Chapter 2

Ethics

the study and practice of decisions about what is good or right

Business Ethics

the application of ethics to the special problems and opportunities experience by business people

Ethical Dilemma

a problem concerning what a firm should do for which no clear, right decision is available

Social Responsibility of Business

consist of the expectations that the community imposes on firms doing business inside its borders

WH Process

A set of guidelines that urges us to consider whom an actions affects, the purpose of the action, and how we view it morally

Ethical Relativism

a theory of ethics that denies the existence of objective moral standards

Situational Ethics

evaluating the morality of an action by imagining ourselves in the position of there person facing the ethical dilemma

Absolutism

requires that individuals defer to a set of rules to guide them in the ethical decision-making process

Consequentialism

inquiring about the consequences to relevant people of our making a particular decision

Utilitarianism

urges managers to take those actions that provide the greatest pleasure after having subtracted the pain or harm associated with the action in questions

Act Utilitarianism

examines all the potential actions in each situation and choose the action that yields the greater amount of pleasure over pain for all involved

Rule Utilitarianism

on balance produce the greatest amount of pleasure for all involved should be established and followed in each situation

The Golden Rule

we should interact with other people in a manner consistent with the way we would like them to interact with us

Deontology

acting on the basis of the recognition that certain actions are right and wrong, regardless of their consequences

Categorical Imperative

an action is moral only if it would be consistent for everyone in society to act in the same way

Principle of Rights

asserts that whether a business decision is ethical depends on how the decision affects the rights of all involved

Virtue Ethics

an ethical system in which the development of virtues, or other positive character traits, is the basis for morality

Ethics of Care

the right course of action is the option most consistent with the building and maintaining of human relationships

Q. Business decisions are made for a reason. In other words, there exists a ____ behind every decision as reflected in the WPH approach to ethical decision making

purpose

Q. questions of morality cannot be judged on an objective basis under the theory of

ethical relativism

Q. the premise behind the ____ test is that ethics is hard work - labor we might avoid if we did not have frequent reminders that we live in a community

public disclosure

Q. The ____ test asks us to consider what the world would be like where our decision copied by everyone else

Universalism

Q. the most famous deontological approaches to business ethics is referred to as ____ ethics

Kantian

Q. labor laws that prohibit employers from hiring children are founded on the ____ form of consequentialism

rule utilitarianism

the ____ of ____ asserts that whether a business decision is ethical depends on how the decision affects the rights of all involved

principle; rights

Q. Which philosopher proposed the categorical imperative to determine whether an action is right

Immanuel Kant

Q. nurturing human relations is the cornerstone for the ethical approach known as

the ethics of care

Q. when a business manager makes a decision that takes into account the harm and benefit caused by that decision, the manager is actually applying the theory of business ethics known as

consequentialism