Chp 1 30

Understanding the reasons a course of action that may have an ethical impact took place.

analytical ethics

The collective values of a business organization that can be used to evaluate whether the behaviors of the organization’s collective members are considered acceptable and appropriate.

business ethics

Ethical framework based on the belief that all individuals agree to social contracts to be a member within a society; also known as social contract theory.

contractarianism

The presentation of facts related to the specific ethical actions of an individual or organization.

descriptive ethics

Is based on the assumption that the allocation of finite resources within the firm will be distributed fairly based on maximizing the benefits of those allocations.

distributive fairness

Includes ensuring the employee actively promotes the interests of the company in a diligent and professional manner.

due diligence

Ethical framework based on the belief that every individual should act in a way to promote themself if the net result will generate, on balance, positive rather than negative results.

ethical egoism

The values an individual uses to interpret whether any particular action or behavior is considered acceptable and appropriate.

ethics

Ethical framework based on the underlying belief that the only person who can determine right and wrong is based on the free will of the person making the decisions.

existentialism

Focuses on the fair treatment given by the firm as it interacts with its existing and potential competitors.

fair competition

Comprised of three components: the individual’s principles, the individual’s character, and the consequences of a particular action.

moral values

A prescribed course of action that attempts to ensure that ethical behavior will be followed in the future.

normative ethics

Deals with ensuring parties that interact with the firm are treated fairly from a due process perspective.

procedural fairness

Addresses the issues of treating another party fairly and having the other party treat the firm fairly.

reciprocal fairness

Ethical theory based on bridging the gap between ethical egoism and utilitarianism; analysis of whether the actions based upon self-benefit affect just the individual or others.

Sidgwick’s dualism

Ethical framework based on the belief that any action of an individual will be based on providing the greatest good for the greatest number of people.

Utilitarianism