What is psychological egoism?
- -view that everyone is always motivated to act in his or her perceived
- -People always do what pleases them or what is in their
- -“People are at heart selfish, even if they appear to be
What is ethical egoism?
- -The supreme principle of conduct is to promote ones well being above everyone else’s.
- -Normative theory of what people oughtt to do.
- -People always ought to act on the basis of self interest
What is Utilitarianism?
- -Moral worth of actions or practices is determined by their consequences.
- -An action or practice is right if it leads to the best possible balance of good consequences over bad
- consequences for all the parties affected
What makes the action or practice right? (utilitarian)
If it minimizes harm and maximizes benefits.
What is the Principle of utility?
- “Greatest happiness principle” actions are right if they promote happiness and the
- absence of pain and wrong if they create unhappiness and pain.
What is act utilitarianism?
- -In all situations one ought to perform the act that leads to the greatest
- good for the greatest number.
- -Rules are useful guidelines, but are expendable
What is rule utilitarianism?
highest regard for rules
What is deontological theory?
- Persons should be treated as an end not as a means. Failure to respect persons
- treats them as a means.
What is good will for Kant?
- Person has good will only if the motive for the action is moral obligation determined by a universal rule
- of obligation
What is the categorical imperative?
- 1. “I ought never to act except in such a way that I can also will that my
- maxim (private principle of action) should become a universal law.”
- 2.“Treat other people as an end, never as a means only.”
What is the moral implication of the categorical imperative?
- “I ought never to act except in such a way that I can also will that my
- maxim should be a universal law”
What is virtue?
- neither a feeling nor an innate capacity, but a disposition bred from an innate capacity properly
- trained and exercise. People require virtue much as they do skills.
What is the main argument of virtue ethics with regard to business?
- If you are great at customer service and do your job correctly, but instead
- of working and believing in what your selling you rather be sleeping you
- are not engaged in a morally appropriate manner. However, if you start a
- yogurt company because you care about your product and what you’re
- selling you are morally responsible.
What is ethics of care and its conrtibution to business ethics?
- -Sympathy, compassion, fidelity, love, friendship
- -Value relationships
What are postive rights?
- certain people or institutions provide benefits or services (thus
- securing benefit rights or welfare rights)- valid claim on goods and
What are negative rights?
- those that require that we do not interfere with the liberty of others (thus
- securing liberty rights)- valid claim to liberty, a right not to be
- interfered with.
What is Milton Friedmans concept of social responsibility
Obligation to manage the firm in the interest of the stockholders
Explain the difference between the stockholder theory and the stakeholder theory?
- -Stockholder: states that stockholders advance capital to corporate managers who act as
- agents in advancing their interests.
- -Stakeholder: firm is to be managed in the interests of the various stakeholders
Who are the stakeholders?
managers, employees, customers, local society, and suppliers
Why is stockholder theory problematic?
- -Justifies that people will do anything in order to maximize profits including
- acting immorally
- -Managers should use customers, employees and suppliers as mere tools
To whom do managers have a fiduciary duty in running the corporation?
Explain the corporate character
- Resulting illegal acts is a product of the corp. character, rather than the act of
- a rogue employee. The higher an official the more likely they are to
- represent the company
What constitutes the corporate character?
policies, structures, systems, procedures
What are the two views on the issue of corporate moral responsibility? how do they differ from eachother
- -Collectivist view: corporate organization as a moral agent. Both individuals and corp. org.
- can be responsible
- -Individualist view: Corporation is made up of individuals who are responsible for the
- organizations acts. Human beings are responsible.
What is due process?
- -Rationality and fairness
- -Means by which a person can appeal a decision in order to get an explanation of
- that action and an opportunity to argue against it
- -Hearing, trial, grievance procedure, etc.
What are the ethical issues regarding EAW?
- -No legal protection against the job loss
- -No rights to due process or to appeal employment decisions
- -No right to belong to any union
- -No union agreement available
What would be the utilitarian argument with regard to the EAW
- A utilitarian would believe that the employer is not morally right to
- terminate the employee at any time because the unhappiness of the
- employee would outweigh the happiness.
Explain the two theories of whistleblowing
- -Standard theory (utilitarian): when serious harm might occur
- to others and whistle blowing is the only way to stop it (only after
- other internal affairs have been exhausted)The
-Complicity theory: Kantian, focuses on moral wrong not harm
What are three paradoxes of the standard theory?
- -The paradox of burden
- -The paradox of missing harm
- -The paradox of failure
What are the conditions for whistleblowing?
- -Always involves revealing information
- -Involves an actual (declared) intention to prevent something bad that otherwise
- would occur
What is sexual harrasment?
Verbal or threating behavior that is unwelcome and sexual in nature
What is gender specific harrasment?
Example: demeaning remakers about how women under perform in the work place
What factors determines whether and environment is hostile?
- The frequency of discriminatory conduct; its severity; whether it is
- physically threatening or humiliating; or a more offensive utterance; and
- whether it unreasonably interferes with an employees work performance.
What are the arguments that diversity is morally important?
Businesses cant discriminate against certain races/demography
Why should corporations welcome goals and quotas?
- -Improved work force
- -Maintenance of a bias free corporate environment
- -Congeniality to managerial planning
What is intellectual property? How does it differ from other types of property?
- -Products of the mind or intellect
- -Infinitely sharable
- -Cannot make complete claim to it
- -Fundamentally social-shared
- -Responsibility to pass on
The ethical justification for copyright?
- -Utilitarian: best way to promote production of such works is by making it possible for
- those who produce them to benefit financially
- -Fairness: spend energy,time, money and therefore deserve recompense
Why should the privacy be recognized as a social good rather than an individual good?
- -Organizations: can acquire use and information about us without our knowledge or consent
- -Individuals: give up privacy
What is puffery?
Exaggeration made by a seller to make product fanciful or suggestive
What are the five levels of information disclosure in sales? (Brief explanation)
- -Minimal information rule: the buyer is responsible for acquiring info. About the
- product. There is no obligation to give any info the buyer does not
- specifically ask her
- -Modified minimal information rule: the only addition info the seller is obligated
- to give is info a buyer might need to avoid risk of injury
- Fairness rule: a seller is responsible for giving
- -Mutual benefit rule: seller is responsible for giving the buyer any info. needed to make a reasonable judgment about
- whether to purchase the product which the buyer does not possess
- -Maximal information: a seller is responsible for giving the buyer any information relevant to deciding
- whether to purchase the product
Two perspectives to deal with the environmental issues of business
- -Businesses should not lobby against proposed environmental legislation
- -Businesses have an obligation to utilize their considerable expertise regarding the
- causes of environmental harm to educate consumers about best practices
- regarding environmental protection
Some practical measures for ecological protection and preservation of environment-
internal cost, external costs
- -Internal: fuel, labor, and equipment for which the manufacture pays
- -External: clean up and medical care that the neighbors pay as a result of the pollution
- -Internalizing external costs: the costs of pollution control are borne by stockholders
- and by customers, both of them benefits from the polluting activities of
- the firm. The benefits of pollution control flow to those neighbors who
- once had to put with the firms pollution
Rawls thoery of justice as fairness
Veil of ignorance
- -Allows that no one is advantaged or disadvantaged in the choice of principles.
- -The contingency of social circumstances and the outcome of natural chance are
- -Enables the initial situation fair among individuals as moral persons
- -Society must give more attention to those with fewer native assets and to those
- born into the less favorable social positions
- -The difference principle is not the principle of redress though. But the
- difference principle would allocate resources in education so as to
- improve the long-term expectation of the least favored.
- -Natural distribution (birth, talents) is neither just nor unjust. But the way
- that institutions deal with these facts matters.
- -The two principles are a fair way of meeting the arbitrariness of fortune.
Nozicks entitlment principle
- -We are not in the position of children who have been given portions of pie
- by someone.
- -There is no central distribution; no person or group entitled to control all
- the resources.
- -What each person gets, he/she gets from others who give to him/her in exchange
- for something, or as a gift.
- -In free society, divers persons control different resources and new holdings
- arise out of the voluntary exchanges and actions of persons.
Peter Singers position
- -We have an obligation to assist
- -We are not isolated individuals