Business Law Chapter 2

Moral Relativism

A belief that a decision may be right even if it is not in keeping with our own ethical standards.

Moral Universalism

A belief that some acts are always right or always wrong.

Kantian Evasion or a palter

A truthful statement that is nonetheless misleading.

Categorical Imperative

An act is only ethical if it would be acceptable for everyone to do the same thing.

The Role of Business in Society

An ongoing debate about whether managers should focus only on what is best for shareholders or whether they should consider the interests of other stakeholders as well.

Corporate Social Responsibility

An organization's obligation to contribute positively to the world around it.

Ethics Decision

Any choice about how a person should behave that is based on a sense of right and wrong.

Deontological Ethics

Immanuel Kant, He argued that you should not do something unless you would be willing to have everyone else do it, too. Applying this idea, he concluded that one should always tell the truth because if everyone lied, the world would become an awful place. Thus, Kant would say that the drug user should tell the truth on job applications, even if that meant she could not find work. The truth should be told, no matter the outcome.

Rawlsian Justice Ethics

John Rawls, who referred to these circumstances into which we are born as life prospects. In his view, hard work certainly matters, but so does luck. Rawls argued that we should think about what rules for society we would propose if we faced a "veil of ignorance." In other words, suppose that there is going to be a lottery tomorrow that would determine all our attributes. We could be a winner, ending up a hugely talented, healthy person in a loving family, or we could be poor and chronically ill in a broken, abusive family in a violent neighborhood with deplorable schools and social services.

Utilitarian Ethics

John Stuart Mill, A correct decision is one that maximizes overall happiness and minimizes overall pain, thereby producing the greatest net benefit. His goal was to produce the greatest good for the greatest number of people. Risk management and cost-benefit analyses are examples of utilitarian business practices.

Deontological

The duty to do the right thing, regardless of the result.

Ethics

The law dictates how a person must behave. This governs how people should behave.

Life Prospects

The opportunities one has at birth, based on one's natural attributes and initial place in society.

Veil of Ignorance

The rules for society that we would propose if we did not know how lucky we would be in life's lottery.

Life Principles

These are the rules by which you live your life. If you develop these now, you will be prepared when facing ethical dilemmas in the future.

Differences Principle

Rawls' suggestion that society should reward behavior that provides the most benefit to the community as a whole.