Business Ethics

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  1. Ethics
    (or moral philosophy) values, morals, guide to right/wrong, etc.
  2. Business Ethics
    Study of what constitutes right and wrong (or good and bad) human conduct in a business context. Closely related moral questions arise in other organizational contexts.
  3. Deontology
    Acts conform to duties and rights, independently of the consequences. The principles are universal in scope, that is, they apply to everyone, everywhere, at all times. -Immanuel Kant (ethics based on duty)
  4. Utilitarianism
    tells us to bring about the most happiness for everyone.
  5. Cost/Benefit analysis
    A device used to determine whether it's worthwhile to incur a particular cost..Actions and policies are evaluated on the basis of the costs and benefits they will impose on a business. The decision is made based on whether or not benefits outweigh costst. Cost-benefit analysis is the economic application of utilitarianism.
  6. Egoism
    Advocates individual self-interestas its guiding principle. the view that the standard that should be used to determine the best course of action is self-interest. Choose the action that produces the most individual pleasure and avoids the most pain.
  7. Relativism
  8. Moral Rights
    are universal. They pertain to all people of every nationality by virtue of the fact that they are human beings. Moral rights are not limited to a particular jurisdiction.
  9. Legal Rights
    entitlement under the legal system. This system gives rights to people by virtue of the fact that they live within the jurisdiction of the system.
  10. Negative Rights
    defined in terms of duties not to interfere with a person who has a given right. Also called first generation rights. Example: right to live, right not to be killed, freedom of speec, etc.
  11. Positives Rights
    provide the holder with whatever he or she needs to pursue an interest. Also called second generation rights. Example: income, education, work, health care, social security, minimum necessities.
  12. Supererogatory
    actions that it would be good to do but not immoral not to do. Assisting others beyond what is morally required by rights and justice. Giving more than is due. _Thomas Aquinas
  13. Immanuel Kant
    German Philosopher (1724-1804) provides an excellent example of a throughly nonconsequentialist approach to ethics. Believed that moral reasoning is not based on factual knowledge and that the results of our actions do not determine whether they are right or wrong.
  14. John Stuart Mill
    Utilitarianist; (1806-1873) along with Jeremy Bentham were the first to develop the theory explicitly and in detail. interest in LEGAL and SOCIAL REFORM...ONe can measure the quantity of happiness likely to be produced by an act and the quantity of happiness likely to be produced by all alternative acts. Decisions made based on " the greatest good for the greates number of people."
  15. Adam Smith
    • "Wealth of Nations"-economic case for capitalism.
    • "Invisible Hand" -each person's invdividual and private pursuit of wealth results in most beneficial overall organization and distribution of economic resources.
  16. Enron
    energy company located in Houston, Texas and didn't claim loses and ended up using loopholes to drive the business into the ground
  17. Arthur Anderson
    Auditors who brought down Enron
  18. Bernard Madoff
    Ponsy Scheme- taking money and promising interest but used other investors money to pay off interest for someone else
  19. Bystander Apathy
    Diffusion of responsiblity; Kitty Genovese
  20. Dumping
    Taking a product that is cannot or is not aloud to be sold in one country, then taken and "dumped" into another company at extreme discount and making an enormous amount of profit no matter the consequences to the people they 'prey' on
  21. Groupthink
    Pressure for unaimity within a highly cohesive group overwhelms its members' desire or ability to appraise the situation realistically and consider alternative courses of action.
  22. "Economic Justice for All"
    Pope John Paul II- social teaching in the U.S economy
  23. KANT'S Categorical Imperative
    • Formula of Universal law: Act only according to that maxim by which u can at same time will that it should become a universal law
    • Formula of the End in Itself: Act in such a way that you always treat humanity, whether in your own person or in that of another, always as an end and never as a means only.
  24. KANT terms:
    • -Categorical: unconditional, no exceptions
    • -Imperative: command, rule
    • -Maxim: brief expression of a general truth or rule of conduct, a principle
    • -Person as Means: a person who is used or exploited in order to achieve a desired result
    • -Person as end: a person who has value in and of herself or himself, merely because she or he is human
    • -Universalizablity: applies everywhere, to everyone, without exception
    • -Reversibility: we are willing to have others use the same rules for treating us as we use for treating them
Card Set:
Business Ethics
2011-09-14 06:14:01
Business Ethics

business Ethics Test: 1
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