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34 Cards in this Set
- Front
- Back
Business Ethics |
Ethics in a business context; a consensus of what constitutes right or wrong behavior in the world of business and the application or moral principles to situations that arise in a business setting |
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Categorical Imperative |
A concept developed by the philosopher Immanuel Kant as an ethical guideline for behavior. in deciding whether an action is right or wrong, or desirable or undesirable, a person should evaluate the action in terms of what would happen if everybody else in the same situation, or category, acted the same way |
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Corporate Social Responsibility (CSR) |
The concept that corporations can and should act ethically and be accountable to society for their actions |
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Cost Benefit Analysis |
A decision making technique that involves weighing the costs if a given action against the benefits of the action |
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Duty Based Ethics |
An ethical philosophy rooted in the idea that every person has certain duties to others, including both humans and the planet; those duties may be derived from religious principles or from other philosophical reasoning |
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Ethical Reasoning |
A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand |
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Ethics |
Moral principles and values applied social behavior |
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Moral Minimum |
The minimum degree of ethical behavior expected of a business firm, which is usually defined as compliance with the law |
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Outcome Based Ethics |
An ethical philosophy that focuses on the impacts of a decision on society or on key stakeholders |
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Principle of Rights |
The principle that human beings have certain fundamental rights. those who adhere to this "rights theory" believe that a key factor in determining whether a business decision is ethical is how that decision affects the rights of others. these others include the firm's owners, its employees, the consumers of its products or services, its suppliers, the community in which it does business, and society as a whole |
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Stakeholders |
Groups, other than the company's shareholders, that are affected by corporate decisions. these include employees, customers, creditors, suppliers, and the community in which the corporation operates |
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Triple Bottom Line |
The idea that investors and others should consider not only corporate profits, but also the corporation's impact on people and on the planet in assessing the firm (people, planet, and profits) |
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Utilitarianism |
An approach to ethical reasoning in which ethically correct behavior is related to an evaluation of the consequences of a given action on those who will be affected by it; in this reasoning, a "good" decision is one that results in the greatest number of people afflicted by the decision |
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What is the legal responsibility of business? |
follow the law, know the law, and if a law seems unethical, work to change it |
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Ethics (powerpoint definition) |
the idea of right or wrong behavior; whether the action is fair, right, or just |
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what are ethical decisions in business? |
the application of moral and ethical principles to the market place or work place |
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Law and Ethics Coincide Example |
Bribery is illegal and unethical |
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Law Permitting Certain Behavior that is Unethical Example |
law permitting pollution emissions |
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Law Demanding Certain Conduct Unethical Example |
law permitting hiring aliens |
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why is business ethics important? |
directors and officiers owe a complex set of ethical duties to others internal and external - when these duties collide, ethical dilemmas are created |
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Personal Ethical Theories |
ethical fundamentalism, utilitarianism, Kantian ethics, Rawls social justice, and ethical relativism |
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Business Ethical Theories |
maximizing profit, moral minimum, stakeholder interest, and corporate citizenship |
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Ethical Fundamentalism |
a person looks to an outside source (Bible or Torah) or a central figure (Jesus or Marx) for ethical guidance |
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Utilitarianism (powerpoint definition) |
choosing the alternative that would provide the greatest good to society (not to individuals) Ex.) Bill Gates |
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Kantian Ethics |
set of universal rules establishes ethical duties, which are based on reasoning and require consistency in application and reversibility; based on do unto others as you would have them do to you |
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Rawl's Social Justice |
ethical duties are based on an implied social contract; fairness is the essence of justice |
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Ethical Relativism |
individuals decide what is ethical based on their own feelings as to what is right or wrong |
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Maximizing Profits |
business goal: maximize profit Ex.) "public be damned" and Love Canal |
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Moral Minimum |
business goal: to maximize profits while avoiding harm and corresponding for any harm caused |
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Stakeholder Interest |
business goal: to maximize profits whir considering the interest of all stakeholders Ex.) owners, employees, customers, creditors, suppliers, local community |
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Corporate Citizenship |
business goal: to do well and solve social problems |
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Original Foreign Corrupt Practices Act (FCPA) |
established criminal penalties for bribery in international commerce |
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Current Foreign Corrupt Practices Act |
today bribery is allowed if it is legal under the laws, customs, or traditions, of the foreign country, and doesn't occur with foreign political officials, and is not an attempt to change governmental policy |
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Sarbanes - Oxley Act |
makes corporate officers personally responsible for criminal acts of subordinates acting in the interest of corporation; requires publicly traded corporation to publicly state whether the corporation has a "code of ethics" |