Phil 312 exam 2 Key Concepts in Corporate Social Responsibility, Free Market Theory, and Labor Rights

What is the stockholder (free market, economic) model of corporate social responsibility

A business exists to maximize the goals of its owners/stockholders, as long as it operates within the limits of law and morality.

Whose name is most closely associated with the stockholder model

Milton Friedman.

What is Adam Smith's utilitarian justification for the free market model

Self-interested actions in free markets promote the greatest overall good through efficiency, competition, and the invisible hand.

What is the natural rights justification for the free market model

Individuals have rights to private property and voluntary exchange, so interference violates freedom.

What are the four main types of market failure

Externalities, public goods, information problems, and market power (monopolies).

What are negative externalities

Costs imposed on third parties not involved in a transaction.

What are public goods

Goods that are non-excludable and non-rivalrous.

What are information problems

Situations where one party lacks necessary knowledge for a fair exchange.

What is the first-generation problem

Markets fail to protect vulnerable groups who cannot effectively participate (e.g., the poor).

What is the "game the system" objection to the free market model

Firms exploit loopholes or weak regulations to increase profits.

What is the philanthropic model of corporate social responsibility

Businesses voluntarily give to charity or promote social good, but it is not required.

What does "supererogatory" mean

Morally good actions that go beyond what is required.

What is the moral minimum model of corporate social responsibility

Businesses must avoid causing harm and meet basic ethical standards before pursuing profit.

What is the multiple stakeholder model of corporate social responsibility

Businesses must consider and balance the interests of all stakeholders, not just shareholders.

What is a stakeholder in a business

Any group affected by business decisions, such as employees, customers, suppliers, or the community.

What is the accommodation argument for the stakeholder model

Businesses already consider stakeholders in practice, so they should formally adopt this model.

What is the difference between prudential and ethical reasoning

Prudential reasoning focuses on self-interest, while ethical reasoning focuses on what is morally right.

What is the utilitarian argument for the stakeholder model

Considering all stakeholders leads to the greatest overall happiness.

What is the rights argument for the stakeholder model

Stakeholders have moral rights that must be respected, not just shareholders.

What is the implementation problem with the stakeholder model

There is no clear way to identify or balance all stakeholder interests.

What is the efficiency problem with the stakeholder model

Considering many stakeholders slows decision-making and reduces productivity.

What is the property rights problem with the stakeholder model

It weakens the control and rights of actual owners (shareholders).

What is the consistency problem with the stakeholder model

Lack of clear rules leads to inconsistent decisions.

What is the sustainability model of corporate social responsibility

Businesses should prioritize environmental and social goals, especially preserving resources for future generations.

What is the Malthusian theory

Population growth will outpace resources, leading to scarcity and collapse.

What was Julian Simon's response to Malthusian theory

Human innovation and technology increase resources and prevent scarcity.

What is the classical liberal model of corporate social responsibility

A model emphasizing free markets, limited government, and maximizing owner preferences within law and morality.

What is the conventional model of work

Work is primarily a means of earning income.

What is the human fulfillment model of work

Work is a central way people develop meaning, purpose, and their full potential.

What is Marxist alienation

Workers are disconnected from their product, the production process, other people, and themselves.

What is the progressive liberal model of work

Work should promote fairness, worker protections, and meaningful conditions.

What is the classical liberal model of work

People should be free to choose jobs, and businesses should operate with minimal regulation.

What is the main difference between progressive and classical liberal models of work

The progressive model emphasizes fairness and protection, while the classical model emphasizes freedom and efficiency.

What are the three tenets of creative destruction

Innovation destroys old industries, disruption drives economic growth, and entrepreneurs lead change.

Who is associated with creative destruction

Joseph Schumpeter.

What is a yellow dog contract

An agreement where an employee promises not to join a union.

What is a closed shop

Employees must be union members to be hired.

What is a union shop

Employees must join a union after being hired.

What is an agency shop

Employees must pay union fees even if they are not members.

What is a right-to-work law

Employees cannot be forced to join or pay a union.

What is the free rider argument

Non-union members benefit from union efforts without contributing.

What is the unequal power argument

Unions help balance power between employers and employees.

What is the freedom to contract argument

Workers and employers should be free to agree to union conditions.

What is the free association argument

People should not be forced to join or support unions.

What is the bad deal argument

Union agreements may not benefit all workers.

What is the universalizability argument

Forced union support would not be fair if applied universally.

What is the forced support argument

It is wrong to force individuals to fund organizations they disagree with.

What are Beck rights

Workers can refuse to fund union political activities.

What is the right to life argument for a job

People need jobs to survive.

What is the meaningful life argument for a job

Work provides purpose and dignity.

What is the obligation problem

It is unclear who is responsible for providing jobs.

What is the crowding out problem

Government jobs may reduce private sector jobs.

What is the inefficiency problem

Artificial job creation can reduce productivity.

What is the social justice argument for minimum wage

It reduces inequality.

What is the "no taxpayer cost" argument

Businesses pay wages rather than taxpayers.

What is the "increases unemployment" argument

Higher wages may lead to fewer jobs.

What is the "poorly targeted" argument

Minimum wage does not effectively help the poorest.

What is the exercise of power argument

Due process prevents employer abuse.

What is the employee freedom argument

Too many protections limit flexibility.

What is the fairness to employer argument

Employers should control their business decisions.

What is the property rights argument

Businesses are private property.

What is the efficiency argument

Due process requirements slow decision-making.

What is workplace democracy

Employees have a say in workplace decisions.

What is the ends argument

Democracy is valuable in itself.

What is the self-worth argument

Participation increases dignity and respect.

What is the alienation argument

It reduces worker disconnection.

What is the apathy argument

It increases engagement and participation.

What is the property rights argument against workplace democracy

Owners should control the business.

What is the lack of expertise argument

Workers may lack decision-making skills.

What is the inefficiency argument

It slows decisions and reduces productivity.

What is the false analogy argument

Workplaces are not governments.

What is OSHA

A U.S. agency that enforces workplace safety standards.

What does "safest feasible standards" mean

Workplaces should be as safe as possible without making business impractical.

About how many workplace fatalities occur per year in the U.S.

Around 5,000 per year.

What are the two main rights of privacy

The right to control personal information and the right to be free from intrusion.