Business Ethics and Moral Development

Flashcards covering key terms and theories in business ethics, moral development, and corporate social responsibility.

Ethics

The study of what is right and good for human beings.

Business Ethics

The study of what is right and good in a business setting, encompassing moral law and issues arising from business practices.

Ethical Fundamentalism

Also called absolutism; individuals look to a central authority or set of rules to guide their ethical decision-making.

Ethical Relativism

Actions must be judged by what individuals subjectively feel is right or wrong for themselves.

Situational Ethics

Judging a person's actions by first putting oneself in the actor's situation.

Utilitarianism

Moral actions are those that produce the greatest net pleasure compared with net pain.

Act Utilitarianism

Each separate act must be assessed according to whether it maximizes pleasure or minimizes pain, aiming for the greatest good.

Cost-Benefit Analysis

Quantifies in monetary terms the benefits and costs of alternatives, often used in utilitarian decision-making.

Rule Utilitarianism

Supports rules that, on balance, produce the greatest good.

Deontology

An ethical theory where actions must be judged by their motive, means, and results, focusing on moral duties.

Categorical Imperative

A deontological principle stating that an action must be universal (applied consistently) and respect the autonomy and rationality of all humans to be moral.

Social Ethic Theories

Ethical theories that focus on a person's obligations to other members of society and the individual.

Social Egalitarians

Those who believe that society should provide all members with equal access to goods and services, regardless of their contribution.

Good Person Philosophy (Television Test)

A philosophical approach to ethics that assesses the morality of an action based on whether it aligns with how a 'good person' would behave.

Preconventional Level

The first stage of moral development.

Conventional Level

The second stage of moral development.

Postconventional Level

The third stage of moral development.

Arguments Against Social Responsibility

Reasons such as profitability concerns, perceived unfairness, issues of accountability, and lack of expertise that are used to argue against businesses engaging in social responsibility.

Arguments In Favor of Social Responsibility

Reasons such as adherence to the social contract (stakeholder model), the potential for less government regulation, and the pursuit of long-run profits that argue for businesses engaging in social responsibility.