BUS 220 Exam 1

Virtue ethics

is a normative ethical theory about the definition and realization of virtues and human excellence

Responsibility

is the ability and moral obligation to respond (inaction or verbally) to normative questions concerning the rightness and wrongness of actions or state of affairs.

Identify the argument that is NOT used as support for the capitalist free market economy:

it results in equal distribution of wealth B. It promotes individual freedom and opportunities C. It is efficient D. It stimulates competition, innovation, and economic growth E. None of the above Answer: it results in equal distribution of wealth

TRADITIONAL CRITICISM

questions the classical claims about the benefits of the capitalist market economy

If the Fed wants to 'cool down' the economy (i.e. reduce aggregate demand), they will:A. Buy US treasury bondsB. Sell US Treasury bondsC. Maintain current interest ratesD. Inject money into the economy

B. Sell US Treasury bonds

Identify the argument that is NOT used as support for capitalist free market economy. B. It promotes individual freedom and opportunities C. It is efficient D. It stimulates competition, innovation, and economic growth E. None of the above A. It results in equal distribution of wealth

.A. It results in equal distribution of wealth

Which of the following is an accurate definition of new criticism of capitalism?

A. New criticism questions whether the existing capitalist market economy is able to meet the new challenges of the 21st century

Which of the following is an example of Aristotle's theory that a virtue is in between two vices (deficiency and excess)?A. Courage is in between rashness and rashness and cowardlinessB. Courage is the same as rashnessC. Courage is in between toughness and rashnessD. Courage os the contradiction of cowardlinessE. All of the above

A. courage is in between rashness and rashness and cowardliness

Which of the following statements about the banking system is correct? A. the policy rate is the rate at which the central bank lends in the money market B. the bank lending rate is the rate at which the central bank lends to commercial banks C. The spread (markup) represents how the central bank's money is distributed amongst the commercial banks A. the policy rate is the rate at which the central bank lends in the money market

A. the policy rate is the rate at which the central bank lends in the money market

The most accurate description of Kant's Categorical Imperative is to

Act only according to principles that you reasonably would want everyone to adopt and follow.

CONDITIONS THATCONSTITUTE RESPONSIBILITY:

Action based Responsibility - knowledge - causality - Free will Role Based- Resonsibility - position/function/ relationship - ability and power

Step IV: IDENTIFY STRATEGIES FOR THE BUSINESS TO ASSUME RESPONSIBILITY ANDTAKE ACTION

Activities should effectively address the ethical issues

Kantian Ethics

An ethical theory that focuses on rules and principles as binding ethical obligations to act in a certain way

Which of the following is not a typical ethical argument

Argument by consequences of actions argument by principle argument by character/ human excellence argument from ignorance All the above Answer: All the above

What is the typical economic consequence of market failures?

B. Inefficiency

Which of the following is an accurate definition of capitalism? A.Capitalism is an economic system is which the means for production are owned collectively B. Capitalism is an economic system in which the means for production are owned privately c. Capitalism is an economic system in which the means for production are owned by the government D. Capitalism is an economic system is which the means for production are owned by authorities E. Capitalism is an economic system which does not have any concept of private property

Capitalism is an economic system in which the means for production are owned privately

Which of the following is NOT a typical situation that causes market failure?

Competition

Which of the following is NOT a step of the Utilitarian Method?

Consider the motives of the acting person(s) Consider all possible alternative actions Consider how everyone is affected in terms of pain and pleasure (benefit and harm) Consider who is affected by the consequences of the alternative actions Sum up the benefits/harms for each possible action Answer:Consider the motives of the acting person(s)

Which of the following is the best characterization of CR?

Cr is about social, economic, and environmental responsibilities of a business.

Which of the following is NOT a typical situation that causes market failures? A. Monopolies B. Public goods C. External effects D. Competition E. All of the above

D. Competition

Which of the following is NOT a characteristic of Adam Smith's concept of the economy?

Economic actions are primarily driven by benevolence

Which of the following formulations is in line with the definition of ethics that was given in class?

Ethics is the systematic reflection on values and norms

Ethics Definition

Ethics is the systematic reflection on values and norms: their content and changes, and their meaning, justification, and determination

What does 'sourcing' mean in ethical life cycle assessments? A. Production processes related to the product B. Extraction and gathering of raw materials necessary to produce the product C. Outsourcing of the production processes D. Acquisition of financial meansE. Recycling processes

Extraction and gathering of raw materials necessary to produce the product

Ethics of Care:

Focuses on specific ethical aspects of concrete relationships and relational roles

Which of the following is NOT a relevant condition for constituting responsibility? CausalityB. KnowledgeC. Free willD. GenderE. Ability and power

Gender

Step III: TO WHAT DEGREE CAN THE BUSINESS BE HELD ACCOUNTABLE FOR THE ISSUES IDENTIFIED IN STEPS I AND II?

How much ability, expertise, and power does the business have to address the issue?

Which of the following is an accurate description of the meaning of Adam Smith's invisible hand concept:

In economic markets, individuals act with regard to their own self-interest and, by this, automatically serve the public interest without intending it

NEW CRITICISM

New criticism questions if the existing capitalist market economy is able to meet the new challenges of the 21st century

BASIC CHARACTERISTICS OF UTILITARIANISM:

Refers to consequences of actions Considers all persons (beings) affected by an action Considers consequences in terms of resulting happiness (pain and pleasure) Evaluates the overall happiness that results from an action

Which of the following is not a characteristic Unitarianism.

Refers to goodwill

Which of the following is NOT one of the levels of business ethics?

Societal level Organizational level Individual level Cosmological level Global level Answer: Cosmological level

ECLA Step I: IDENTIFY SOCIETAL, ENVIRONMENTAL, GLOBAL AND LONG-TERM IMPACTSTHAT RESULT FROM THE ENTIRE PRODUCT LIFE CYCLE:

Sourcing Production Distribution Use disposal

Invisible-hand concept:

The individuals act in their own self-interest and,by this, automatically serve the public interest without even intending it(in the context of markets).

Which of the following is an accurate description of the instrumental perspective of business ethics?

The instrumental perspective analyzes how ethics best supports business success.

Which of the following is NOT a typical topic of the philosophical perspective of business ethics?

The meaning of economic aspects for a good life How to define business as a positive force in the world The meaning of a professional career for a good life How to best use ethics as strategic management tool The meaning of business for the wellbeing of society Answer: How to best use ethics as strategic management tool

Virtues

Virtues define one's personality and way of acting Examples: courage, benevolence, generosity, temperance

Which of the following is NOT an accurate characteristic of virtues?

Virtues involve practical wisdom and societal feedback Virtues are developed over time through experience Virtues exist at birth Virtues are excellent character traits Virtues are developed by the interplay of emotional and rational elements Answer: Virtues exist at birth

CI METHOD B (respect-for-persons formula):

Which action respects the dignity of all persons (as reasonable beings) involved in or affected by it?

Virtue method B

Which action/decision best supports the development of personal or professional potential and ensures thriving of all affected?

Virtue method A:

Which action/decision is consistent with who someone is, and wants to be, referring to reasonable concepts of excellence?

Rawlsian method

Which action/decision would rational (self-interested) persons agree to behind a 'veil of ignorance'?

Discourse method

Which decision would win by rational argument in an open, deliberate discourse?

Which of the following is an accurate formulation of the Virtue method A?

Which decision/action is consistent with who someone is and wants to be? (referring to reasonable concepts of excellence)

CI METHOD A (universalizability):

Which way of action (of a given set of alternatives) can reasonably beuniversalized? That is, which way of action (personal principle) couldone reasonably want everyone to adopt

Step II: ETHICALLY EVALUATE THOSE IMPACTS - IDENTIFY ETHICAL ISSUES

all methods however us method B Also NO HARM PRINCIPLE: Others should not be harmed; harm to others and the environment should be minimized

Utilitarianism

an ethical theory that evaluates actions by conse-quences and considers the action that maximizes overall happiness the ethically best action

Empirical ethics

analysis of existing norms and values

Business-specific (company-specific) responsibility

means the sum of responsibilities a given business has regarding its specific operations, products, services, and stakeholders. This includes all ethically critical societal, environmental, global, and future effects that result from the business's activities and products.

Analytical ethics

systematic reasoning about the meaning of evaluative and normative concepts and statements

Normative ethics

systematic reflection on the determination and justification of norms and values