Business Law Ethics Exam: Ch. 5 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

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

The concept that corporations can and should act ethically and be accountable to society for their actions

A decision making technique that involves weighing the costs if a given action against the benefits of the action

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

A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand

Moral principles and values applied social behavior

The minimum degree of ethical behavior expected of a business firm, which is usually defined as compliance with the law

An ethical philosophy that focuses on the impacts of a decision on society or on key stakeholders

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

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

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)

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

follow the law, know the law, and if a law seems unethical, work to change it

the idea of right or wrong behavior; whether the action is fair, right, or just

the application of moral and ethical principles to the market place or work place

Bribery is illegal and unethical

law permitting pollution emissions

law permitting hiring aliens

directors and officiers owe a complex set of ethical duties to others internal and external - when these duties collide, ethical dilemmas are created

ethical fundamentalism, utilitarianism, Kantian ethics, Rawls social justice, and ethical relativism

maximizing profit, moral minimum, stakeholder interest, and corporate citizenship

a person looks to an outside source (Bible or Torah) or a central figure (Jesus or Marx) for ethical guidance

choosing the alternative that would provide the greatest good to society (not to individuals)

Ex.) Bill Gates

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

ethical duties are based on an implied social contract; fairness is the essence of justice

individuals decide what is ethical based on their own feelings as to what is right or wrong

business goal: maximize profit

Ex.) "public be damned" and Love Canal

business goal: to maximize profits while avoiding harm and corresponding for any harm caused

business goal: to maximize profits whir considering the interest of all stakeholders

Ex.) owners, employees, customers, creditors, suppliers, local community

business goal: to do well and solve social problems

established criminal penalties for bribery in international commerce

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

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"