Business Ethics Midterm

(1) Define ethics. (2) Which question does ethics attempt to answer?

(1) Ethics refers to those values, norms, beliefs, and expectations that determine how people within a culture live and act.
(2) Ethics attempts to answer the question: How should we live?

The primary aim of ethical values is that the human well-being promoted through it is not of a _____ and _____ nature.

personal, selfish

Respecting employee privacy while also adequately managing the workplace at a time when workplace e-mail was in its infancy, and no laws regarding it were in place, is an example for which one of the following?

Laws cannot anticipate every new business dilemma that might be faced.

Individual codes of conduct regarding how one should live, how one should act, what one should do, what kind of a person should one be, etc. is sometimes referred to as:

morality

_____ set the standards or guidelines for determining what one should do, how one should act, what type of person one should be.

Norms

Ethics requires that the promotion of human welfare be done...

in a manner that is acceptable and reasonable from all relevant points of view.

Which among the following branches of study raises questions about justice, law, civic virtues, and political philosophy?

Social ethics

Understanding the change in attitude towards the role of business ethics includes the understanding that corporate scandals in the recent past have largely affected _____.

stakeholders

This inclines one to act or to choose one way rather than another.

Values

In the context of ethics, a _______ will be anyone affected, for better or for worse, by the decisions made within a particular firm.

Stakeholder

Give the steps of an ethical decision making process.

1.Determine the facts
2.Identify the ethical issues involved
3.Identify stakeholders and consider the situation from their point of view
4.Consider the available alternatives - also called "moral imagination"
5.Consider how a decision affects stakeholders

A person who acts in a way that is based upon a careful consideration of _____ has acted in a more ethically responsible way than a person who acts without deliberation.

the facts

Which among the following steps involves predicting the likely, foreseeable, and the possible consequences to all the relevant stakeholders?

Compare and weigh the alternatives

Even if it may not be the best decision made, using a simple _____ might appear to relieve one of accountability for the decision.

decision rule

In the broadest sense, which among the following can help explain ethical disagreements?

Perceptual differences

The model for making ethically responsible decisions suggests that a certain type of _____ can lead to making bad ethical choices.

ignorance

Which among the following distinguishes good people who make ethically responsible decisions from good people who do not?

Moral imagination

One of the major challenges associated with ethical decision-making is better understood by realizing that decisions involve...

the interests of multiple stakeholders

The ability of losing sight of the ethical aspects while involved in the financial aspect of decisions is called_______.

normative myopia

One helpful exercise for considering the effects of a decision on others is to...

shift one's role

Very briefly describe in your own words Rawls method of decision making that sought ethicial fairness.

When you are going to make a decision you start by placing yourself behind a "veil of ignorance" and imagine yourself ignorant with regard to your position and then strive toward impartiality. You seek to make a decision that is based on fairness where ea

Which ethical framework is based on the foundations of rules and the need for them to be followed, no matter the consequences?

Deontological framework of ethics

Role-based duties concerned with professionals in business (lawyers, accountants, financial analysts, bankers etc.) are often termed as _____.

gatekeeper functions

Immanuel Kant argued that there is one fundamental ethical principle that one has to follow, no matter what the consequence. Identify it.

Respect the dignity of individuals

Fundamentally, the concept of _____ is central to the deontological tradition.

moral rights

The utilitarian tradition has a long history of relying on _____ for deciding on the ethical legitimacy of alternative decisions.

social sciences

Which form of Ethics does the end justify the means?

Utilitarianism

An ethical tradition that directs us to decide based on overall consequences of our actions is termed

utilitarianism

The study of various character traits that can contribute to, or obstruct, a happy and meaningful human life is part of

virtue ethics

Which of the following focuses on the concept of practices and what type of people these practices are creating?

Virtue ethics framework of ethics

One of the key manifestations of ethical leadership is the _____ for the organization.

articulation of values

The development of guiding principles for the firm is the articulation of a clear vision regarding

the firm's direction

According to the text, which among the following are the defining factors for the success of codes of conduct?

Process by which they are conceived and written, as well as the implementation

Identify the most important factor in integration, without which, there is no clarity of purpose, priorities, or process.

Communication

Ethical means of leadership alone is insufficient for establishing ethical leadership. Identify the other element.

The ends or objective towards which the leader leads

Which among the following facilitates the organization to spot vulnerabilities before other stakeholders (internal or external) spot them?

Ongoing assessment of the corporate culture

Which among the following has the capacity to offer a firm direction and stability during challenging times?

Organizational culture

Which among the following actually impacts culture in a circular way?

Perception

A strong ethical culture can serve as a deterrent to _____ and improve bottom line sustainability.

stakeholder damage

Which among the following has an effect of not only ending unethical activities but also harming the business, and seeming disloyal?

Whistleblowing

Corporate philanthropy is an example of

a firm's taking on the social responsibility of doing voluntary good.

In essence, talk about business's _____ is to be concerned with society's interests that should restrict or bind business's behavior.

social responsibilities

Among which of the following would both law and ethics say that business should be held liable for violating its responsibilities?

The social responsibility of a firm to not cause harm to others.

This model of CSR denies that business has any social responsibilities beyond the economic and legal ends for which it was created.

economic

A good CSR reputation can improve profitability by enhancing the company's standing among its __________.

stakeholders, employees, and customers

These businesses bring social goals into the core of their business model, and fully integrate economic and social goals.

Integrative Model of CSR

Though there are many justifications for ethics in business, often the discussion returns to ___________.

return on investment

This model views business as a citizen of the society in which it operates and must conform to the normal ethical duties and obligations that we all face.

Social Web Model of CSR

_______ is the practiice of attending to the "image" of a firm.

Reputation Management

_______ recognizes that every business decision affects a wide variety of people, benefiting some and imposing costs on others.

Stakeholder Theory

Matthew 7:12

Do to others whatever you would like them to do to you. This is the essence of all that is taught in law and the prophets.

Matthew 22:37-40

Jesus replied, "you must love the Lord your God with all your heart, all your soul, and all your mind. This is the first and greatest commandment. A second is equally important: ' Love your neighbor as yourself. The entire law and all the demands of the p

C.S. Lewis Quote

Every time you make a choice, you are turning the central part of you, the part that chooses, into something a little different than it was before.

Cynthia's Response to the C.S. Lewis quote

The foundation of our character is laid brick by brick , decision by decision, in how we chose to live our lives.

Ethical directive 1

Know what you believe is right or wrong.

Ethical directive 2

When making decisions, apply the Golden Rule: Treat other people the way you would want to be treated.

Ethical directive 3

Guard against being lulled into thinking you're not capable of making bad decisions.

Ethical directive 4

Ask yourself: Would I be comfortable with my decision landing on the front page of a news paper.

Ethical directive 5

Practice ethical decision making everyday. "Good and evil both increase at compound interest," wrote C.S. Lewis. "That is why the little decisions you and I make everyday are of such infinite importance.

Ethical directive 6

Discuss tough ethical dilemmas with others you respect - a professor, a parent, a friend.

Ethical directive 7

Find your courage. Courage is acting in the face of fear.

Ethical directive 8

Apply the same code of ethics whether at home, work, school, or a house of worship.

Ethical directive 9

Pay attention to your instincts.

Ethical directive 10

Above being loyal to your superiors, be to your principles.

David Meyer

He is the controller at WorldCom. He has capitalized line cost to make the company seem like it was making money instead of losing money. When he is confronted by Cynthia, he tells her everything and he is relieved after words like a weight is lifted off

Betty Vinson

She is in her mid - 40 and is known for her devotion and diligence to her work. She is also an accounting director. She booked some of the entries used to cover up WorldCom's deficit. She did it because she was the bread winner in her family and was scare

Troy Normand

He was the lowest level employee and didn't report it because he felt he didn't know enough. He was part of the cover up of WorldCom's deficit and he did it because he was scared of losing his job. In the book he was described as a really nice guy.