Chapter 7–Business Ethics Fundamentals – Flashcards

(a) law often represents an ethical minimum, (b) law reflects society's codified ethics, and (c) ethics often represents a standard that exceeds the legal minimum; {"Just because something is legal does NOT mean that it is ethical"}

the ethical responsibilities of business as expected by the general population and relevant stakeholders; conventional approach, principles approach, and ethical tests approach

based on what is acceptable in society; ordinary, common sense

based on the use of ethical principles to justify behavior, actions, and policies

based on short practical questions to guide ethical decision making, behavior and practices

Business firm's responsiveness to the legal expectations mandated and expected by society in the form of federal, state, and local jurisdictions, or through legal principles as developed in case law; Statutory Law: laws from Congress, Common Law: law that comes from court cases (example: McDonald's hot coffee warning label)

Captures those activities which are intended to have either a direct or indirect positive ___ impact on the corporation in question; {Positive impact is based on two distinct but related criteria: (1) maximization of profits and/or (2) the maximization of shareholder value}; Direct: dollars and cents (tangible), Indirect: employee moral (intangible)

(based on the individual: one's self interest and conscience) family, friends, the law, faith/religious beliefs, society at large, employer, profession, region of country, local community, co-workers/fellow workers

conforms to the highest standards of ethical behavior or professional standards of conduct; pursues its objectives of economic/legal/ethical as both required and desirable; (always strive to this)

a style devoid of ethical principles and active opposition to what is ethical; focused on economical responsibilities; Characteristics: (a) intentionally do wrong, (b) self-centered and self-absorbed, (c) care only about self or organization's profits, (d) actively oppose what is right, fair, or just, (e) exhibit no concern for stakeholders, (f) are the "bad guys", and (g) an ethics course probably would not help them

does not consider ethical factors; focused on economic responsibilities; managers believe: --business and ethics don't mix (example: "It's not personal, it's just business" or "It's not you, it's me"), --business and ethics are existing in separate spheres, a vanishing breed of managers; {more common than immoral management; neither immoral or moral managers}

Casual or careless about ethical factors, lack ethical perception and moral awareness; focused on economical responsibilities; managers: --don't consider the ethical dimension of decision making, --don't "think ethically", --have no "ethic buds"/lack awareness of ethics, well-intentioned, but morally casual/unconscious (example: height/weight requirements for police officer job = discrimination); {more common than immoral management; not immoral or moral managers}

Corporate actions that are not considered ethical and have no direct or indirect economic benefit; {Example: surgeon general's label warnings on tobacco products--could be legal or ethical obligation, probably only legal obligation}

any activity that has no direct or indirect economic or legal implications; {Example: Chick-fil-a closed on Sunday for personal religious beliefs}

Activities which are purely economic in nature must have a direct or indirect economic benefit, be illegal (criminally or civilly), or passively comply with the law, and be considered amoral or unethical {Enron focused on making money at all costs.} [Immoral & Amoral Management]

corporate activity is not based on legal consideration, but is ethical and economic simultaneously; generally involves passive compliance with the law because almost all illegal activities would be considered unethical; {Example: Ben & Jerry's donates ice cream, ethical--goodwill, community involvement, economic--promote ice cream}

very few activities which corporations engage in are both economic and legal, while also considered unethical. Activities which are based on the legal system would likely to be considered ethical as well. The exception might be those companies that opportunistically comply with the law, searching for and using legislative and administrative loopholes for economic gain; {Example: Las Vegas--prostitution is legalized, economic--can be taxed & increase tourism}

activities that are both ethical and legal often provide indirect economic benefits. Consequently, very few activities fall within this category; {Example: gun law requires special safety, but company may add better safety than legally required}

{moral management} an activity that is motivated by the bottom line, the legal system, and ethical principles; [always strive for this, not always possible]

(Level 1.) Pre-conventional Level, (Level 2.) Conventional Level, (Level 3.) Post-conventional Level

Focus on self; (Stage 1) Reaction to punishment, (Stage 2) Seeking of rewards; most in childhood and into adulthood

Focus on others; (Stage 3) Good boy/nice girl morality, (Stage 4) Law and order morality; accepted in society

{a.k.a. Autonomous or Principle Level} Focus on humankind; (Stage 5) Universal ethical principle orientation, social contract orientation; greatest good for greatest number (utilitarianism)

(a) most of us--(1) to avoid some punishment, (2) to receive some reward; (b) many of us--(3) to be responsive to family, friends, or superiors, (4) to be a good citizen; (c)very few of us--(5) to do what is right, pursue some ideal