BUSI 2371 Jarrell Exam 1, Chapter 4 – Flashcards
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Moral principles and values applied to social behavior.
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ethics
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The relationship between law and ethics
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- a law is defined as a rule of conduct or action prescribed or formally recognized as binding or enforced by a controlling authority - ethics, on the other hand, is subject to interpretation in light of personal and societal values - the moral minimum: while personal ethics are subjective, certain guides are available to businesses trying to meet or exceed the moral minimum, which is the minimally acceptable standard for ethical business behavior
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Voir Dire
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the jury selection process
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Foreign Corrupt Practices Act
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- prohibits any US company, director, officer, shareholder, employee, or agent from bribing any foreign government official if the purpose of the payment is to get the official to act in her official capacity to provide business opportunities to the party offering the bribe - the FCPA does not prohibit bribery of minor officials whose acts are purely ministerial, as long as such payments are legal in the foreign country. - requires US companies to keep detailed accounting records that accurately and fairly reflect all foreign activities - prohibits anyone from making false statements or false entries in said records
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Corporate Social Responsibility
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the idea that corporations should be accountable to society, not just their shareholders
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Utilitarian Ethics
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- dictates that a decision to act or not act should be directed to producing the greatest good for the greatest number of people - applying Utilitarianism requires a cost-benefit analysis
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Principle of Rights
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- 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 firms owners, its employees, the consumers, suppliers, community and society at large also known as rights theory
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Patrick, the human resources manager at Acme Company, must decide how to cut personnel costs. This decision will harm employees who are laid off or fired. Patrick must balance the interests of employees who have been loyal to the firm for a long time against the interests of
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Acme's shareholders
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Ted is the owner and chief executive officer of a business. He recently began an advertising campaign to promote a new product that is regulated by state law. The law is somewhat unclear. Before launching the campaign, he researched the relevant law and consulted with his attorney in an effort to comply with the law. Nevertheless, the attorney general of his state has filed a lawsuit against him for deceptive advertising. Ted's best defense is that
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he acted in good faith
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Bribery is acceptable in certain foreign countries. Indeed, U.S. Development, Inc., has found that the only way it can ensure delivery on certain contracts in these countries is to bribe the officials. This is
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permitted by U.S. law if the payment is made to a minor official to speed up administrative procedures.
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When the CEO of the company decides that he wants to pay the workers while the plant is closed, because "it is the right thing to do" regardless of the consequences, what ethical philosophy is he likely using?
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duty based ethics
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Which of the following would be the best argument to the shareholders that paying the workers while the plant is under construction is the correct decision?
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That the triple bottom line would be hurt by this move.
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Business ethics applies to
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businesspersons businesses managers
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According to the text, when making decisions, the first thing a business should evaluate is the _________ implications of each decision.
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legal
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The law _________ address all issues defining them as legal or illegal, therefore using the law as an absolute guide ________ sufficient when making business decisions.
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does not, is not
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Merely complying with the law is referred to as the
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Moral minimum
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According to the text, when making decisions, the second thing a business should evaluate is the _______ impact.
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public relations
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According to the text, when making decisions, the third thing a business should evaluate is the ______ risks for consumers.
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safety
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The ethical principle that Trevor's actions were wrong in shipping contaminated food because an act such as this could lead to death, and therefore is morally wrong, is the _____________.
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principle of rights
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According to the text, when making decisions, the fourth thing a business should evaluate is the _________ implications.
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financial
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In this case, Trevor's shipping contaminated food is an example of
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short-run profit maximization
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A particular challenge facing businesses is ethically balancing the competing demands of multiple groups of ___________ - e.g., shareholders, employees, retirees, suppliers, creditors, customers, the communities in which the business operates - whose lives are affected by business decisions.
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stakeholders
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Ethical responsibilities of managers to their subordinate employees
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- management attitudes: managers who are not committed to creating and maintaining an ethical workplace rarely have one. - employees tend to follow what they perceive to be management's lead, so managers must model ethical behavior for their employees. - managers who look the other way, because an unethical employee is successful, risk other employees believing that acting unethically is the key to success. - managers should set realistic goals for their employees to reduce the incentive to cheat in order to achieve management's goals.
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Jeff believes in the principle of rights theory and uses it to make ethical decisions for his business. He must decide whether to expand his business into Asia. Several key employees do not want the business to expand overseas and have threatened to quit if Jeff makes this move. Under the principle of rights theory, he will make this decision by considering
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how the expansion will affect the rights of his employees, his consumers, and the community into which he wishes to expand.
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A central theme in Kantian ethics is that individuals should evaluate their actions in light of the consequences that would follow if everyone in society acted the same way. This concept is known as the:
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categorical imperative.
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The Foreign Corrupt Practices Act:
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does not prohibit payment of substantial sums to minor officials whose duties are ministerial.
