Reading Quiz One Business Ethics

Define Moral and give example

• An individual's personal philosophies about what is right or wrong

• Ex:Treating everyone equally without bias or prejudice

Define Value and give example

• Enduring beliefs and ideals that are socially enforced

• Ex:Doing the right thing, even when no one is watching.

Define moral dilemma and give example

• A situation where the person is faced with multiple choices, all of which are undesirable as defined by the person

• Ex: A runaway train will kill five people. You can pull a lever to divert it onto a track where it will kill only one person. Do you sacrifice one life to save five

From President John F. Kennedy's 1962 "Special Message on Protecting the Consumer Interest" that outlined four basic consumer rights:

1. the right to safety,

2. the right to be informed,

3. the right to choose,

4. the right to be heard

Consumer Bill Right

Organization’s obligation to maximize its positive impact on stakeholders and minimize its negative impact

corporate social responsibility

An organization developed to guide corporate support for ethical conduct

Defense Industry Initiative on Business Ethics and Conduct

Guidelines that codified into law incentives to reward organizations for taking action to prevent misconduct, such as developing effective internal legal and ethical compliance programs

Federal Sentencing Guidelines for Organizations

Far-reaching law that made securities fraud a criminal offense and stiffened penalties for corporate fraud, created a corporate accounting oversight board, and required executives to sign off on their firms’ financial report

Sarbanes-Oxley Act

Define Reciprocity and give example

• An interchange of giving and receiving in social relationships

• ex:A neighbor brings you a plate of welcome cookies, so you watch their dog when they go on a trip.

define equality and give example

The fair and even distribution of benefits and resources

ex:Paying a male worker and a female worker the exact same salary when they perform the same job with the same duties.

• The trade-off between equity (equality) and efficiency (maximum productivity)

Optimization

: When an individual must choose whether to advance their own interests, those of the organization, or those of some other group

Conflict of interest

When the person who promises or gives the bribe commits the offense

Active bribery:

Offense committed by the official who receives the bribe

(accepting bribe

Passive bribery:

The collection and analysis of information on markets, technologies, customers, and competitors, as well as on socioeconomic and external political trend

Corporate Intelligence:

A personal, loving, and/or sexual relationship with someone with whom you share professional responsibilities.

Dual relationship:

______: Any purposeful communication that deceives, manipulates, or conceals facts in order to harm others

Fraud

___________Inaccurate information in a corporation’s financial reports, in which companies provide important information on which investors and others base decisions involving millions of dollars

Accounting fraud:

Define Marketing Fraud and example

• Dishonestly creating, distributing, promoting, and pricing products

• ex:Advertising a product at a very low price to get customers inside, then pushing them to buy a much more expensive option instead(bait and swirch)

Define Puffery and example

• Exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely on

• America's Best Loved Coffee" (An untestable expression of popularity and pride).

Define and example of Implied Falsity

• Message tends to mislead, confuse, or deceive public

• A shaving company states that its razor's moisture strip is "six times smoother" than a competitor's strip

Define and example of Literally False:

• When an advertisement says that tests prove (establishment claims), when the advertisement cites a study or test that establishes the claim; and bald assertion non-establishment claims), when the advertisement make a claim that cannot be substantiated

• ex:The cars were environmentally friendly and met strict emissions standards.(volkwagon)

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_______When consumers attempt to deceive businesses for their own gain

Consumer Fraud:

______The buying or selling of stocks or other securities by someone who possesses information that is not yet public

Insider trading

:The specific principles or values people use to decide what is right and wrong

Moral Philosophy:

A concept based on self-ownership, the right to choose, voluntary exchange, open markets, and clearly defined and enforced property rights

Economic freedom:

Associated with values quantified by monetary means; according to this theory, if an act produces more economic value for its effort, then it should be accepted as ethical

economic value orientation

Define and example of Idealism

• A moral philosophy that places special value on ideas and ideals as products of the mind

• Expecting the best out of people and assuming everyone has an innate desire to do right, despite evidence of wrongdoing

Define and example of realism

• It is the view that an external world exists independent of our perceptions

• Realists assume humankind is not naturally benevolent and kind but, instead, inherently self-centered and competitive

• Believe only one thing is intrinsically good

Monists:

Define and example of Hedonism:

• The idea that pleasure is the ultimate good, or

• Ex: Taking a long spa day:

Define and example of Quantitative Hedonists:

• Those who believe more pleasure is better

• ex:Binge-Watching TV vs. Learning Math

Qualitative Hedonists

Those who believe it is possible to get too much of a good thing

Eating rich food or drinking alcohol

pluralists:

Also known as nonhedonists, take the opposite position that no one thing is intrinsically good

Peaceful Coexistence

Define and example Teleology

• Refers to moral philosophies in which an act is considered morally right or acceptable if it produces some desired result

• Such as pleasure, knowledge, career growth, the realization of self-interest, utility, wealth, or even fame

Define and example Consequentialism:

• Teleological philosophies that assess the moral worth of a behavior by looking at its consequences

• Lying to save a life

Define and example Egoism

• Defines right or acceptable behavior in terms of its consequences for the individual

• ex:Declining to help a friend move on a Saturday morning because you prefer to use that time to rest or work on a personal project.

Define and example of Enlightened egoism:

• A long-range perspective that allows for the wellbeing of others although the individual's own self-interest remains paramount

• ex: company provides healthcare benefits to eligible part-time and full-time employees and ethically souce coffee

• This create good brand image

Define and example of Utilitarianism:

• Seeks the greatest good for the greatest number of people

• ex:mandatory childhood vaccination policies

Define and example of Rule Utilitarians:

• Determine behavior based on principles or rules designed to promote the greatest utility, rather than on individual examinations of each situation they encounter

• ex: You are driving late at night and reach a red light on an empty road but stopped on red light

Define and example of Act Utilitarians:

• The rightness of each individual action must be evaluated to determine whether it produces the greatest utility for the greatest number of people

• ex:Stealing Food to Feed a Hungry Family

Define and example of Deontology

• Moral philosophies that focus on the rights of individuals and the intentions associated with a particular behavior rather than its consequences

• ex:You keep a promise to a friend even when a more fun or profitable opportunity comes up, because your duty is to honor your word

Define and example of Nonconsequentialism

• Regard for certain behaviors as inherently right, and the determination of this rightness focuses on the individual actor, not on society

• ex: student is struggle in their test but they would never cheating on test bc cheating is unfair and not honesty

Define and example of Categorical Imperative:

• Act as if the maxim of thy action were to become by they will a universal law of nature

• ex:Treat employees as valuable human beings, not just tools to make money.

• golden rule

Proposes that people naturally see situations from their own perspectives, and there is no objective way of resolving ethical disputes between different value systems and individual

Meta-ethical relativism:

Define and example Virtue Ethics:

• Argues that ethical behavior involves not only adhering to conventional moral standards but also considering what a mature person with a “good” moral character would deem appropriate in a situation

• ex:A compassionate worker goes out of their way to help colleagues finish a project successfully

Define and example Justice:

• Fair treatment and due reward in accordance with ethical or legal standards, including the disposition to deal with perceived injustices of others

• ex:Fair Pay and Workplace Equity

• Based on the evaluation of the outcomes or results of a business relationship

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Distributive Justice:

Considers the processes and activities that produce a

particular outcome

Procedural Justice

Interactional Justice:

Based on the relationships between organizational

members

Theory in which people make different decisions in similar ethical situations because they are in different moral development stages

Kohlberg’s model of cognitive moral development (CMD). 

Illegal misconduct perpetrated every year by nonviolent business criminals and four time

White-Collar Crime (WCC):

What did Adam Smith

free market can unintentionally promote overall economic well being

inflation is always and everywhere a monetary phenomenon, driven by excessive money supply growth rather than corporate greed or labor unions

Milton Friedman