Ch 5

What is the Friedman doctrine?

"the social responsibility of business is to increase profits," so long as the company stays withing the rules of law.

What are the drawbacks of the utilitarian philosophy?

1- Measuring the benefits, costs, and risks of a course of action. 2- The philosophy omits the consideration of justice.

What are the two type of payments allowed by the Foreign Corrupt Practices Act? and what are they?

Speed money and grease payments. They are payments to ensure receiving the standard treatment that a business ought to receive from a foreign government, but might not due to the obstruction of a foreign official.

What is the tragedy of the commons?

it occurs when a resource held in common by all, but owned by one, is overused by individuals, resulting in its degradation.

What is an ethical dilemma?

a situation in which there is no ethically acceptable solution.

What are values?

are abstract ideas about what a group believes to be good, right, and desirable.

What are business ethics?

are the accepted principles of right or wrong governing the conduct of businesspeople.

What are norms?

are the social rules and guidelines that prescribe appropriate behavior in particular situations.

What is the first principle of the veil of ignorance?

each person be permitted the maximum amount of basic liberty compatible with a similar liberty for others.

What is an ethical strategy?

is a strategy, or course of action, that does not violate the business ethics principles.

What is a just distribution?

is one that is considered fair and equitable.

What is cultural relativism?

is the belief that ethics are nothing more than the reflection of a culture - a firm should adopt the ethics of the culture in which it is operating.

What are straw men approach?

it approaches to business ethics raised by business ethics scholars primarily to demonstrate that they offer inappropriate guidelines for ethical decions making in a multinational enterprise.

What righteous moralist claims?

it claims that a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries.

How many principles does the Universal Declaration of human Rights lays down?

it lays down four basic principals that should always be adhered to irrespective of the culture in which one is doing business.

What is the veil of ignorance?

its a concept where everyone is imagined to be ignorant of all of his or her particular characteristics, for example, race, sex, intelligence, nationality, family background, and special talents.

What is the second principle of the veil of ignorance?

once equal basic liberty is ensured, inequality in basic social goods such as income and wealth distribution, and opportunities is to be allowed only if such inequalities benefit everyone.

What Kantian ethics say?

people should be treated as ends and never purely as means to the ends of others.

What are sustainable strategies?

strategies that not only help the multinational firm make good profits, but also do so without harming the environment.

What rights theories recognize?

that human beings have fundamental rights and privileges that transcend national boundaries and cultures.

What a naive immoralist asserts?

that if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should not either.

What does the utilitarian approach to ethics say?

the moral worth of actions or practices is determined by their consequences.

What is organizational culture?

the values and norms shared among an organization's employees.

What does the Corporate Social Responsibility refer to?

to the idea that businesspeople should consider the social consequences of economic action when making business decisions and that there should be a presumption in favor of decisions that have both good economic and social consequences.