Business Ethics Chapter 6

virtue ethics

• - assumes what is moral in a given situation is not only what conventional morality requires but also what the mature person with a "good" moral character deems appropriate

egoism

• - defines right or acceptable actions as those that maximize a particular persons' self-interest as defined by the individual

nature

• The term_____ is crucial for deontologists.

moral philosophy

• refers to the specific principles or values people use to decide what is right and wrong.

descriptive

• relativism relates to observations of other cultures.

normative

• relativists assumes one person's opinion is as good as another's.

learning

• the disposition to constantly acquire knowledge internal and external to the firm, whether about an industry, corporate culture, or other societies

fairness

• the disposition to deal equitably with the perceived injustices of others

self-control

• the disposition to pass up an immediate advantage or gratification; the ability to avoid exploiting a known opportunity for personal gain

trust

• the predisposition to place confidence in the behavior of others while taking the risks that the expected behavior will not be performed

pluralists

, often referred to as non-hedonists, take the opposite position that no one thing is intrinsically good.

idealism

is a moral philosophy that places special value on ideas and ideals as products of the mind.

empathy

the ability to share the feelings or emotions of others

act

utilitarians examine specific actions, rather than the general rules governing them, to assess whether they will result in greatest utility

teology

• (from the Greek wok for "end" or "purpose") refers to moral philosophies in which an act is considered morally right or acceptable if it produces some desired result, such as pleasure, knowledge, career growth, the realization of self-interest, utility, wealth, or even fame.

deontology

• (from the Greek work for "ethics") refers to moral philosophies that focus on the rights of individuals and the intentions associated with a particular behavior rather than its consequences.

utilitarianism

• - defines right or acceptable actions as those that maximize total utility or the greatest good for the greatest number of people

justice

• - evaluates ethicalness on the basis of fairness: distributive, procedural, and interactional

relativist

• - evaluates ethicalness subjectively on the basis of individual and group experiences

deontology

• - focuses on the preservation of individual rights and on the intentions associated with a particular behavior rather than on its consequences

teleogy

• - stipulates acts are morally right or acceptable if they produce some desired result, such as realization of self - interest or utility

Jeffery Wigand

• - who exposed the underside of the tobacco industry when he blew the whistle on his employer, Brown & Williamson Tobacco

virtue

• A ______ represents an acquired disposition valued as a part of an individual's character.

positive

• A _______ consensus signifies that the group considers the action to be ethical.

practice; commitment

• A virtue is considered praiseworthy because it is an achievement than an individual developed through _____ and _______

true

• Although all pluralists are non-hedonists, all monists are not necessarily hedonists. t or f

moral; nature

• As with utilitarians, deontologists may be divided into those who focus on _____ rules and those who focus on the _____ of the acts themselves.

vague

• Ethical dilemmas arise in problem-solving situations when the rules governing decision making are ______ in conflict.

past experiences

• For act deontologists, ____ ____ are more important than rules; rules serve only as guidelines in the decision making process.

true

• Free markets will not solve all problems. t or f

mean; means

• From a practical standpoint, an end is only a remote ____, and the _____ are but a series of acts viewed from an earlier stage.

relativist

• From the _____ perspective, definitions of ethical behavior are derived subjectively from the experiences of individuals and groups.

ends; means

• In short, teleological philosophies consider the ______ associated with an action, whereas deontological philosophies consider the ______

ethics

• In the context of business, ______ refers to what the group, firm, or organization defines as right or wrong actions that pertain to its business operations and the objective of profits, earnings per share, or some other financial measure of success.

social; political; economic

• Individuals in today's society exist within a framework of _______, ____, and _______ institutions.

utilitarianism

• Like egoism, __________ is concerned with consequences, but unlike the egoist, the utilitarian seeks the greatest good for the greatest number of people.

unethical; short-term; gain

• Many believe egoistic people and companies are inherently _____, ________ oriented, and willing to take advantage of any opportunity for_______.

quantitative; qualitative

• Moral philosophers describe those who believe more pleasure is better as _______ hedonists and those who believe it is possible to get too much of a good thing (such as pleasure) as ______hedonists.

settled; mutual

• Moral philosophies are guidelines for "determining how conflicts in human interests are to be ______ and for optimizing _____ benefit of people living together in groups."

person

• Moral philosophies are_____-specific, while business ethics is based on decisions made by groups or when carrying out tasks to meet business objectives.

differences; similarities

• One problem with relativism is it emphasizes peoples' _____ while ignoring their basic _____.

moderation and fitness; proportion and beauty; intelligence and wisdom; sciences and arts; pure pleasures of the soul

• Plato argued that the good life is a mixture of:

less

• Relativism is associated with dedication to group values and objective, leading to _____ independent ethical decision making.

negative

• Research shows a _ correlation between realistic thinking and ethical decision making.

accept

• Rule utilitarians do not automatically ______ conventional moral rules, however; if they determined an alternative rule would promote greater utility, they would advocate its use instead.

instrumentalists

• Sometimes called pragmatists, _________reject the ideas that: ends can be separated from the means that produce them; ends purposes, or outcomes are intrinsically good in and of themselves

negatively

• Studies suggest relativism is ________ correlated to person's sensitivity to ethical issues.

consequences

• Teleological philosophies asses the moral worth of a behavior by looking at its __________, and thus moral philosophies today often refer to these theories as consequentialism.

invisible

• The United States exported the idea that the ______ hand of free-market capitalism can solve the troubles of mankind and guide societies towards greater happiness and prosperity as a result of the increased availability of products.

virtue ethics approach

• The ____ ____ ____ to business can be summarized as follows:1. Good corporate ethics programs encourage individual virtue and integrity, 2. By the employee's role in the community (organization), these virtues form a good person, 3. An individual's ultimate purpose is to serve society's demands and the public good and be rewarded in his or her career, 4. The well-being of the community goes hand in hand with individual excellence

elements

• The ____ of virtue most important to business transactions are trust, self-control, empathy, fairness, and truthfulness.

virtue ethicist

• The _____ ______ believes a successful market economy depends upon social institutions such as family, school, church, and community where virtues can be nurtured.

economic value orientation

• The concept of the _____________ is associated with values quantified by monetary means; according to this theory, if an act produces more economic value for its effort, then it should be accepted as ethical.

harassment

• The court decided the greatest utility to society would result from forcing businesses to prevent _______

deductively; inductively

• The difference between deontology, teleology, and virtue ethics is the first two are applied ________ to problems, whereas virtue ethics is applied _______.

Milton Friedman

• The economist _____ _____ supports this viewpoint, contending the market will reward or punish companies for unethical conduct without the need for government regulation.

John Dewey

• The philosopher ______ _____ argued that the difference between ends and means is merely a matter of the individual's perspective; thus, almost any action can be an end or a mean.

implementation

• The problem of virtue ethics comes in its _______ within and between cultures.

group consensus

• The relativist looks to the interacting groups and tries to determine probable solutions based on ______ _______

philosophical; individuals

• The success of an economic system depends on both its_________ framework and on the_________within the system who maintain moral philosophies that bring people together in cooperative, efficient, and productive marketplace.

true

• There is no single moral philosophy everyone accepts. T or F

conformity

• To decide if a behavior is ethical, deontologists look for _______ to moral principles.

deontologists

• Unlike utilitarians, argue that there are some things we should not do, even to maximize utility.

virtue ethics

• _____ _____argues that ethical behavior involves not only adhering to conventional moral standards but also considering what a mature person with a "good" moral character would deem appropriate in a given situation.

meta-ethical

• ________ relativism proposes that people naturally see situations from their own perspectives, and there is no objective way of resolving ethical disputes between different value systems and individuals.

noconsequentialism

• a system of ethics based on respect for persons.

monists

• believe only one thing in intrinsically good, and pluralists believe two or more things are intrinsically good.

John Dewey

• cautions that virtues should not be looked at separately and points out that examining interactions between virtues actually provides the best idea of a person's integrity of character.

egoism

• defines the right or acceptable behavior in terms of its consequences for the individual.

rule

• deontologists believe conformity to general moral principles based on logic determines ethicalness.

act

• deontologists hold that actions are the proper basis to judge morality or ethicalness.

rule

• deontology is determined by the relationship between the basic rights of the individual and a set of rules governing conduct.

act

• deontology requires a person use equity, fairness, and impartiality when making and enforcing decisions.

Immanuel Kent

• developed the so-called categorical imperative: "Act as if the maxim of thy action were to become by thy will a universal law of nature."

enlightened

• egoists take a long-range perspective and allow for the well-being of others although their own self-interest remains paramount.

Adam Smith

• is considered the father of free-market capitalism.

realism

• is the view that an external world exists independent of our perceptions.

Aristotle

• named loyalty, courage, wit, community, and judgment as "excellences" society requires.

obligation

• theories emphasize the means and motives by which actions are justified and are divided into the categories of teleology and deontology.

goodness

• theories typically focus on the end result of actions and the goodness or happiness created by them.

relativists

• use themselves or the people around them as their basis for defining ethical standards, and the various forms of relativism include descriptive, meta-ethical, and normative.

truthfulness

•: the disposition to provide the facts or correct information as known to the individual

rule

•______ utilitarians determine behavior on the basis of principles or rules designed to promote the greatest utility, rather than on individual examinations of each situation they encounter.

pleasure

○ An individual can believe in a single intrinsic good other than ______.

trust

○ Eliminates the need for and associated cost of monitoring compliance with agreements, contracts, and reciprocal agreements, as there is the expectation a promise or agreement can be relied on

individual

○ Enlightened egoists may abide by professional codes of ethics, control pollution, avoid cheating on taxes, helps create jobs, and support community projects not because these actions benefit others but because they help achieve some ultimate ______ goal, such as advancement within their firms.

true

○ From this conclusion it follows there is no such thing as a single, universal end. t or f

self-control

○ Gives up short-term self-interest for long-term benefits

permanent; stable

○ In general, deontologists regard the nature of moral principles as ______ and _____, and they believe compliance with these principles define ethicalness.

complexity; size; majority

○ In the 18th century, Smith could not imagine the _______ of modern markets, the ______ of multinationals, or the fact that four or five companies could gain control of the vast _______ of the resources of the world.

truthfulness

○ Involves avoiding deception and contributes to trust in business relationships

hedonism

○ Monists are often characterized by______ - the idea that pleasure is the ultimate good, or the best moral end involves the greatest balance of pleasure over pain.

economic

○ Moral philosophies are often used to defend a particular type of ________ system and individuals' behavior within these systems.

fairness

○ Often relates to doing the right thing with respect to small matters in order to cultivate a long-term business relationship

emphathy

○ Promotes civility because success in the market depends on the courteous treatment of people who have the option of going to competitors; the ability to anticipate needs and satisfy customers and employees contributes to a firm's economic success

good

○ Smith believed business was and should be guided by the morals of______ people.

unethical

○ The belief that all actions are ultimately self-motivated seems to lead to a tendency toward ____decisions.

cost-benefit

○ Using such ________ analysis, a utilitarian decision maker calculates the utility of the consequences of all possible alternatives and then selects the one that results in the greatest benefit.

utility

○ Utilitarians believe they should make decisions that result in the greatest total _____ or the greatest benefit for all those affected by a decision.

non-virtuous

○ ____ ____ characteristics include lying, cheating, fraud, and corruption.