Business Ethics and Political Philosophy Practice Flashcards

This set of flashcards covers the fundamental definitions, special challenges, legal-ethical relationships, and political philosophy frameworks (including Rawlsian justice and the Chicago School approach) related to Business Ethics based on the provided transcript.

How is business ethics roughly defined in the provided notes?

The study of how commercial organizations ought to behave, involving questions about right and wrong behavior, good and bad outcomes, and character and moral leadership in business.

Why does the 'size' of a corporation matter in ethical decision-making compared to an individual?

The productivity and scale of large corporations mean their decisions have a much larger impact on resource depletion, pollution, and waste than an individual's similar actions.

What distinguishing feature makes business ethics require special attention regarding wealth distribution?

Private commerce is the only established method for increasing social wealth in a sustainable manner, which raises questions about equity and whether corporations have special obligations to share that wealth.

According to the transcript, what are four social roles that companies play?

They produce products and services, pay taxes, provide employment, and generate wealth.

Why is an auto manufacturer generally not obligated to lobby for the fair treatment of native peoples?

It is considered beyond the company’s domain of interest and expertise, illustrating that the limited list of roles played by business implies a limit on their obligations.

Why is it argued that Coca-Cola has no general obligation to cooperate with PepsiCo on pricing?

Such cooperation would undermine the competitive nature of the free market, which would be to the detriment of consumers.

What example is provided as a case of unconscionable treatment of employees in the U.S.?

Time-card frauds committed at certain Wal-Mart stores.

What is 'managerial capitalism'?

An economic system featuring private ownership of the means of production and the separation of ownership and control typified by the modern corporation.

How is 'ethics' defined in the context of being 'utterly essential' to commerce?

A commitment to reasonable, mutually-advantageous constraints on shallowly self-interested behavior.

Why can citizens not simply assume that ethical obligations are synonymous with legal obligations?

The overlap is not perfect; some activities are legal but unethical (like lying to a friend), and some laws (like those promoting sexist hiring practices) are considered 'bad laws' that should be violated.

What is the 'Difference Principle' in Rawlsian justice?

The principle that social and economic inequalities are to be arranged so that they are to the greatest benefit of the least advantaged.

What is 'the fact of reasonable pluralism' according to Rawls?

The observation that the exercise of human reason under conditions of freedom and equality generates persistent disagreement about the ultimate ends of life.

What are the three components of a 'unified' normative theory of business ethics as proposed by Heath, Moriarty, and Norman?

(a) Markets and regulation, (b) corporate law and governance, and (c) 'beyond-compliance' norms and principles of self-regulation.

What are the three kinds of organizational justice distinguished by theorists?

Distributive (outcomes like promotions), procedural (processes used to arrive at outcomes), and interactional (interactions between authorities and subordinates).

What is the 'Chicago School' approach to a manager's ethical duty?

Managers have a core ethical obligation to do the job they promised (typically maximizing lawful profits for shareholders) while obeying all laws and 'moral customs' such as avoiding deceit and fraud.

How does the 'Chicago School' justify the hierarchy of the firm?

The firm is seen as a 'nexus of contracts' where the hierarchy is used to lower transaction costs and correct market failures or collective action problems.

Why might a unified theory of business ethics include 'beyond-compliance' obligations?

Since no set of rules is perfect or comprehensive, informal mechanisms of ethics (like norms of sportsmanship) are necessary to civilize commercial behavior where the law is too cumbersome or political to act.