Business Law | Chapter 42

Ethics

A set of moral principles or values that governs the conduct of an individual or a group

Law

Obeyed and followed by citizens, subject to sanctions or legal consequences

Ethical Fundamentalism

A theory of ethics that says a person looks to an outside source for ethical rules or commands

Utilitarianism

A theory of ethics that dictates that people must choose the action or follow the rule that provides the greatest good to society

Kantian Ethics (Duty ethics & Deontological Ethics)

A theory of ethics that says people owe moral duties that are based on universal rules, such as the categorical imperative “Do unto others as you would have them do unto you”

Rawls’s Social Justice Theory (Social Contract Theory)

A theory of ethics that asserts fairness is the essence of justice. The theory preoffers that each person is presumed to have entered in a social contract with all others in society to obey moral rules that are necessary for people to live in peace and harmony.

Ethical Relativism

A theory of ethics that holds that individuals must decide what is ethical, based on their own feelings about what is right and wrong

Social Responsibility of Business

Understanding and acknowledging that a businesses decision can impact others outside of it and have a negative impact on society

Maximize Profits

A theory of social responsibility that says a corporation owes a duty to take actions that maximize profits for shareholders

Moral Minimum

A theory of social responsibility that says a corporation’s duty is to make profit while avoiding causing harm to others

Stakeholder Interest

A theory of social responsibility that says a corporation must consider the effects its actions have on persons other than its stockholders

Corporate Citizenship

A theory of social responsibility that says a business has a responsibility to do good