BLS342 – Chp. 2 – Flashcards
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the study and practice of decisions about what is good, or right.
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Ethics
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the application of ethics to the special problems and opportunities experienced by business people -refers to standards of business conduct -does NOT necessarily result in correct decisions Ex. Accutane advertisers saving the company money by not including all possible illnesses from product
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Business Ethics
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a problem about what a firm should do, for which there is no clear or right decision available
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Ethical Dilemma
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consists of the expectations that the community imposes on firms doing business inside its borders. -must be honored to a certain extent or risk peril
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The Social Responsibility of Business
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-how to go about production -how to compete -social responsibilites
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Minimal Standard of Ethical Business Considerations
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serve as an interactive system - informing and assessing each other Note: law is guided by ethics! Business decisions are guided by ethics
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Law & Business Ethics
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facilitates market exchanges and trade - reliable enforceability of agreements -legal rules governing the exchange are shaped by ethics
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Contract Law
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different ethical understandings shape interactions, agreements, and laws in other countries
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Global Perspective
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WPH Process of ethical decision making -offers ethical guidelines
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3-Step Approach to Practical Business Ethics
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1. WHO would this decision affect (stakeholders) 2. PURPOSE - what is the ethical end (values) 3. HOW - decision must meet the standards of business behavior (guidelines for making ethical decisions)
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WPH Framework for Business Ethics
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Stakeholders: many groups of people affected by the firm's decisions -owners/shareholders -employees -customers -management -community -future generations
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WHO - Stakeholders
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What is the ultimate reason or purpose of the decision? --> look to values!
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PURPOSE - Values
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positive abstractions that capture our sense of what is good or desirable - basic unit of business ethics -must consider what is meant by particular values -ex. honesty is a common value and plays a large role in trust in business interactions (trust is key!)
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Values
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an ethical guideline provides one path to ethical conduct Note: all reflect consideration for stakeholders and require the decision of which stakeholder's interest to focus on -The Golden Rule -Public Disclosure Test -Universalization Test
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HOW - Guidelines
