Business Law - Chap 8

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Business Law - Chap 8
2010-03-15 02:01:30
Business Law

Ethics of Managers and Social Responsiblity of Business
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  1. Ethics and the Law
    Ethics is a set of moral principles on values that governs the conduct of an individual or a group.
  2. Business Ethics
    A number of morals theories have been applied to business ethics.
  3. Ethical Fundamentalism
    Under the moral theory of ethical fundamentalism, person look to an outside source (e.g., bible, Koran) or a central figure to set ethical guidelines.
  4. Utilitarianism
    Under the moral theory of utilitarianism, persons choose the alternative that would provide the greatest good to society.
  5. Kantian Ethics
    Under the moral theory of Kantian ethics, also called duty ethics, a set of universal rules establishes ethical duties. The rules are based on reasoning and require (1) consistency in application and (2) reversibility.
  6. Rawls's Social Justice Theory
    Under Rawls's social just theory, moral duties are based on an implied social contract . Fairness is justice and the rules are establised from an original position of a "veil of ignorance".
  7. Ethical Relativism
    Under the moral theory or ethical relativism, individuals decide what is ethical based on their own feelings of what is right or wrong.
  8. Social Responsibility of Business
    A number of theories of social reesponsiblity have been posited
  9. Maximizing Profits
    The goal of the maximizing profits theory is to maximize profits for shareholders.
  10. Moral Minimum
    the goal of the moral minimum theory is to make a profit and avoid harm and to compensate for harm caused.
  11. Stakeholder Interest
    the of the stakeholder interest theory is to consider the interests of stakeholders other than shareholders, such as employees, suppliers, customers, creditors and the local community.
  12. Corporate Chitizenship
    The goal of the corporate citizenship theory is to do good and help solve social problems.
  13. Corporate Social Audit
    A social audit is an audit of corporation by independent auditors that examines how well employees have adhered to the company's code of ethics and how well the company has met its duty of social responsiblity.