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Business Ethics
Exam prep
23
Business
Undergraduate 4
05/09/2017

Additional Business Flashcards

 


 

Cards

Term
Ethics
Definition

Ethics are the guidance or rules of conduct by which we try to live. 

Term
Absolutism
Definition

There is one set of rules commont to everyone and unlikely to change

 

Ethical principles should be obeyed regardless of situations or pressures

Term
Relativism
Definition

Many sets of rules 

Rules can change

 

Decisions depend on the situation

 

When in Rome, do as the Romans do

Term
Deontological Perspective
Definition

Non-consequential perspective.

 

Acts are good or bad in themselves.

 

Action based approach to morality.

Term
Teleological Perspective
Definition

Consequential approach

 

Outcome based morality

 

An act is right or wrong depending on the favourability of the outcome. 

Term
Immanuel Kant
Definition

Philosopher who believed morality should be considered seperately from religion.

 

Moral truth is drive by reason.

 

Held a deontological perspective. 

 

Pioneered 'CATEGORICAL IMPERATIVES' - You have moral obligations regardless of desire. It's not fair to make acceptions for yourself. 

Term
David Hume
Definition

18th Century Scottish philosopher.

 

Teleological approach to ethics.

 

"Reason is the slave of passion."

 

Morality based on more than just reason, but rather emotions involved also

Term
Kolhberg's Cognitive Moral Development Theory
Definition

3 Stages:

Pre conventional

1. Obedience and punishment

2. Instrumental purpose and exchange (reward)

Conventional

3. Interpersonal accord (copying others)

4. Social accord & system maintenance (rule follower)

Postconventional 

5. Social contract and individual rights (challenge status quo, what is right, not what is legal)

6. Universal ethical principles (free from external influence)

Term
Utilitarianism
Definition

Teleological approach

 

Maximise pleasure, minimise pain

 

Goia, example of Ford Pinto cost benefit analysis

 

We should always act as to produce the greatest good for the greatest number

 

Rule utilitarianism is when long term is considered

 

 

Term
Aristotle & Virtue Theory
Definition

Character based morality rather than rules

 

If you become virtuous, the right, moral actions will come naturally.

 

Doctrine of the mean: avoiding both excess and deficiency

EG courage instead of recklessness (excess) and cowardice (deficiency) or generosity as opposed to giving too much or too little

 

Relate this to business - business virtues: ambition, wisdom, courage, opportunistic

 

Term
Ethical Egoism
Definition

Objectivism

 

Acting in a way that benefits oneself

 

Adopted by author of Atlas Shrugged, Ayn Rand

 

Rational self interest

Term
Corporate Social Responsibility
Definition
a concept whereby companies integrate social and environmental concerns in their business operations and in their interactions with their stakeholders on a voluntary basis
Term
Milton Friedman 
Definition

Believed business and social responsibilty should be kept seperate

 

No obligation for businesses to be socially responsible, this is the responsiblity of charity and governments

 

Business are responsible to their shareholders

Term
Ben Freeman
Definition

Key in development of Stakeholder theory

 

Businesses are repsonsible to all those who have an interest in their operations

 

Organisations cannot ignore their responsiblity to stakeholders, even if they have no legal obligation to do so

Term
Porter & Kramer
Definition

Argue there is a business case for corporate social responsibilty 

 

CSR can add competitive advantage

 

Similar to Husted & Salazaar

 

 

 

Term
Ford Motor Company
Definition

Good example for CSR

 

Ford Britain Trust, comited to social and environmental enterprise

 

But scandal over Ford Pinto, dangerous design

 

Facing heavy competition, rushed flawed design which led to explosions and fatalities

 

Also, carbon intensive, despite pledging to be more environmentally freindly 

Term
General Motors
Definition

Chevrolet Malibu incident

 

Cost benefit analysis discussed in Bakan's 2004 the externalising machine

 

risked lives to minimise costs, found guilty and ordered to pay ground breaking sum of compensation

Term
Examples of morally ambiguous business decisions
Definition

1. Bribery

2. Divestment

3. Reduction of staff

4. Lying/concealing truth to secure deals

5. Learning of potentially harmful design flaws and not recalling them

6. Make up example - not investing in foundations for women with darker skin tones

Term
Carr
Definition

Is business bluffing ethical

 

Pressure to decieve

 

Juniors will defer to seniors

 

Comparison with poker - its not cheating but still provides you with advantage over your competitors

Term
Clive Crook, The Good Company
Definition

Article in the Economist

 

States that businesses should operate seperately from social responsiblity

 

Similar argumet to Friedman

Term
Cadbury (1987)
Definition

We cannot isolate the economic elements of major decisions from their social consequences

 

 

Term
R Jackall
Definition

Corporations are moral mazes

 

Bracket morality, you adopt different morality at work than at home

 

Findings on corporations: focus on short term goals and pressure to achieve, deliver good results to superiors can mean morality is different from when at church or at home

 

Juniors learn from seniors and culture continues

 

Culture of doing what it takes to achieve success and avoid failure

Term
Restrained Consciousness
Definition

Moral Myopia

 

Having different standards for other organisations or actions

 

Hypocritical?

 

Think of Pat Robinson example (BOS)

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