RSM100 Week 4: Ethical Theory and Business Ethics

Vocabulary practice flashcards covering ethical theory, social responsibilities of business, consumer rights, and ethical case studies from RSM100 Week 4.

Ethics

Principles that reflect people's proper relations with one another and dictate how individuals treat others, extending beyond mere legality.

Laws

Narrow formal rules established to protect individuals and society specifically from fraud.

Moral and Ethical Development

The ongoing process by which an individual's ethical standards are shaped and changed over time through factors including experiences, family, and education.

Corporate Philanthropy

A business social responsibility toward the general public consisting of cash contributions and donations of equipment and products.

The Texas Instruments Quick Test

A set of questions used to evaluate whether an action is ethical, which includes considering whether the action could withstand being published on the front page of a major newspaper like the Globe and Mail.

Consumer Rights

The core responsibilities businesses hold toward their customers, categorized into the Right to Be Safe, Right to Be Informed, Right to Choose, and Right to Be Heard.

Right to Be Safe

A consumer right centered on the safe operation of products and the prevention of product liability.

Right to Be Informed

A consumer right focused on avoiding false or misleading advertising and providing effective customer service.

Right to Choose

A consumer right guaranteeing the ability of consumers to select the products and services they desire.

Right to Be Heard

A consumer right protecting the ability of consumers to express legitimate complaints to the appropriate parties.

Business Stakeholders

The four key constituent groups evaluated in business ethics decisions: customers, employees, the general public (society), and investors.

Ashley Madison Case Study

An ethical case study of an infidelity website that highlighted moral concerns regarding employee-created fake profiles to lure male users, investor obligations, and devastating personal outcomes following a public data breach.

Southwest Airline Extra-Seat Policy

An ethical case study regarding a policy charging overweight passengers double if they require an extra seat (refunded only if the flight is not full), balancing customer equity and operational certainty against passenger stigma and gate conflict.

AI Takeover Scenario

An ethical dilemma wherein artificial intelligence becomes excessively intelligent and aggressively destroys competition to maximize profit, necessitating global policing and multi-stakeholder regulation.