Ethical Theories and Practices

These flashcards cover key terms and concepts related to ethical theories and practices.

Altruism

Self-defeating. Leads to the denial of the value of the individual, "his first concern is not how to live life, but how to sacrifice it"

Utilitarianism

Holds that the Most Ethical Choice is the one that will produce the Greatest Good for the Greatest Number.

1st Categorical Imperative

“Act only according to that maxim by which you can at the same time that it should become a universal law.”Kant’s principle is that a person should act only on (maxims) that you would be willing to see everyone follow.

2nd Categorical Imperative

Principle of ends, is “so act to treat humanity, whether in your own person or in that of any other, in every case as an end and never as merely a means.”

Hypothetical Imperative

The binding force of the “ought” depends on having the relevant desire.

Psychological Egoism

Descriptive, Claims that most People primarily

Teleological Theories

The End Always Justifies the Means (Good vs Bad).

Deontological Theories

There are some things that may not be done, no matter what (Right vs Wrong).

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.

The Conventional Approach

Compares a decision, practice, or policy that is being used in practice with prevailing norms of acceptability in society.

Principles Approach

Represents normative ethics and considers general guidelines to ethical decision making that managers should consider in practice.

Distributive Justice

Dividing up what there is (Perks and Burdens).

Retributive Justice

An “eye for an eye”...a “tooth for a tooth”.

Consumer’s Magna Carta

The four basic consumer rights: the right to safety, the right to be informed, the right to choose, and the right to be heard.

Managerial Ethics

Entails making decisions which have ethical implications or consequences. Difficult decisions typically present the individual with a conflict-of-interest situation.

Multinational Corporation

A company that has bases in countries other than their home country.

Developed Countries

Globalization’s impact, cross-border investment, and challenges faced by multinational corporations (USA, Germany, Japan)

Developing Countries

Multinational enterprises and emerging market multinational enterprises interact with these economies (Nepal, Romania)

Emerging Economies

Demonstrate high growth rate and increase in GDP year to year (China, Russia)

Legitimacy

Refers to the perceived validity or appropriateness of a stakeholder’s claim to a stake

Information Asymmetries

Firms internal members have more knowledge about the products and services than the consumers have

Triple Bottom Line

The concept seeks to encapsulate for business the three key spheres of sustainability that it must attend to—profit (economic), people (social), and planet (environmental).

Ethical Imperialism

A position holds that the business firm should continue to follow its home country’s ethical standards even while operating in another country.

Federal Trade Commission

Responsible for monitoring employer use of consumer reports in the United States. They annually report its summary of consumer complaints.