Business Ethics Chapter 3

Identify an example of a categorical imperative.

"All humans should refrain from taking the life of a human regardless of the circumstances."

A company patented a drug that would moderately improve the mood of anyone who takes it without any side effects or impairment in functioning. However, animal rights activists discovered that the company perfected the drug after numerous failed tests on animals, some of which had to be put down, and they called for the drug to be banned. How would a utilitarian most likely respond in this scenario?

A utilitarian would support the company because the drug would have positive overall consequences if sold.

Identify a view of virtue ethics.

Character and action have a reciprocal relationship.

_____ is a perspective that states that people act only out of self-interest.

Egoism

How do utilitarian policy experts improve their ability to predict outcomes that will maximize overall happiness?

Through careful observation

Which ethical tradition has its origins in 18th- and 19th-century political and social philosophy and functions on the belief that outcomes matter?

Utilitarianism

Which tradition in philosophical ethics seeks a complete and detailed description of character traits that would constitute a good and meaningful human life?

Virtue ethics

The perspective of egoism claims that it is impossible for people to _____.

be altruistic

According to many philosophers, ethical duties should be _____________ __________________ , which means that a person must obey fundamental ethical rules no matter what.

categorical imperatives

One of the challenges to utilitarian ethics is that _____.

comparisons of consequences are sometimes impractical

In the past, utilitarianism as a social philosophy has been strongly supportive of _____.

democratic policies and institutions

According to utilitarianism, the ultimate good and the only thing that can be valued for its own sake is _____.

happiness

According to Immanuel Kant, the fundamental duty of a person to respect the rights of others is the duty to _____.

treat others as ends in themselves

Much of 20th-century economics, or what is known as the free market, is based on _____.

utilitarianism

An issue faced by utilitarians when calculating the consequences of an action is that _____.

utilitarians differ on what constitutes the overall good

Character traits that would constitute a good and full human life are called _____.

virtues

Virtue ethics focuses on _____.

who a person is

In the context of a person's character, match the types of individuals with the descriptions of the nature of justification of their acts.

An individual who does not have a disposition to be modest: The only avenue open for justification of an act would display how an act serves some other interest that individual has. An individual who has modest, down-to-earth desires: The individual does not have any temptation to be unethical.

Identify an argument of socialist egalitarian theories.

Basic economic goods and services should be equally distributed.

Why do some utilitarians turn to policy experts to create and implement policies?

Because policy experts can best predict the consequences of the policies

True or false: Utilitarians believe that an act is either absolutely right or wrong in all cases in every situation.

False Reason: Because utilitarians decide strictly on the basis of consequences, and because the consequences of our actions will depend on the specific facts of each situation, utilitarians tend to be very pragmatic thinkers. No type of act is ever absolutely right or wrong in all cases in every situation; it will always depend on the consequences. For example, lying is neither right nor wrong in itself, according to utilitarians.

True or false: In ethics, all acts can be successfully justified by tying them to self-interest.

False Reason: For many people, justification of some act requires that it be tied to self-interest. However, such justification often fails as ethical controversies often involve a conflict between self-interest and ethical values.

Match the types of rights with their descriptions.

Human rights: They are called natural rights or moral rights. Legal rights: They are awarded to individuals on the basis of judicial rulings.

______________ are ethical rules that put values into action.

Principles

In the Kantian tradition, human beings do not act only out of instinct and conditioning; they make free choices about how they live their lives. In this sense, humans are said to have a fundamental human right of _____________ , or "self-rule."

autonomy

An ethics of virtue focuses on a person's ____________ , which refers to those dispositions, relationships, attitudes, values, and beliefs that popularly might be called a "personality."

character

Utilitarianism has been called a(n) ___________ approach to ethics and social policy because its fundamental insight is that people should decide what to do by considering the overall consequences of their actions.

consequentialist

In a business setting, the most important conflict of rights would occur when _____.

employees' economic rights conflict with their employers' property rights

Principles create _____ that bind people to behave or decide in certain ways.

ethical duties

A movement within utilitarian thought points to the line of thinking that originated with Adam Smith. It claims that _____.

free and competitive markets are the best ways for achieving utilitarian ends

Utilitarianism as a social philosophy is against policies that _____.

seek to benefit a small minority

Which of the following are the beliefs of libertarians? -A just society is one in which individuals are entirely exposed to governmental intrusion. -Individuals should be free to engage in any voluntary economic exchange as long as they do not harm others. -Government regulation on business practices that are not ethical is considered just. -Businesses should be restricted from pursuing profit in any voluntary and nondeceptive manner.

-Individuals should be free to engage in any voluntary economic exchange as long as they do not harm others. -Government regulation on business practices that are not ethical is considered just.

Which of the following would be promoted by Adam Smith's version of utilitarianism? -Policies that encourage competition -Policies that regulate private industry -Policies that ban free exchanges -Policies that protect property rights

-Policies that encourage competition -Policies that protect property rights

Identify the types of ethical principles that are part of a social contract. -Deviant principles -Arbitrary principles -Role-based principles -Organizational principles -Legal principles -Professional principles

-Role-based principles -Organizational principles -Legal principles -Professional principles

Arrange the steps in the decision-making process involved in the ethical resolution of a conflict in the order of their implementation.

1. Collect all relevant facts related to the conflict. 2. Identify the ethical issues that are involved in the conflict. 3. Identify the stakeholders of the conflict. 4. Consider, compare, and weigh the alternatives available to resolve the conflict. 5. Make a decision that resolves the conflict. 6. Monitor and learn from the implementation of a decision that resolves the conflict.

From an ethical perspective, what is considered the most reasonable decision a person can make?

A decision that promotes the greatest number of human values for the greatest number of people

Lorraine captures an endangered snake in her garden. A passerby tells her that it is extremely valuable and that she should sell it instead of calling the authorities. However, she notifies the authorities and has them take it away as it is a crime to sell the snake. What type of ethical principle is Lorraine abiding by?

A legal principle

Which of the following statements is true according to the libertarian perspective? -Government regulation should not be aimed at preventing business fraud or deception. -An unethical business is one that pursues profit within the law. -Businesses should not be restricted from pursuing profit in any voluntary and nondeceptive manner. -Ethical business practices include anticompetitive behavior.

Businesses should not be restricted from pursuing profit in any voluntary and nondeceptive manner.

How does virtue ethics reconcile the conflict between self-interest and altruism?

By stating that some people's selves are altruistic

Ethical theories and traditions can help resolve a conflict ethically. In this context, match the ethical theories and traditions with the associated considerations.

Consequences: Considering beneficial and harmful effects to all parties affected Considering beneficial and harmful effects to all parties affected. Duties, rights, and principles: Considering if the people involved are being treated fairly, with respect for their autonomy and equality. Implications for personal integrity and character: Considering one's own principles and purposes and if a decision makes one proud or embarrassed.

True or false: In principle-based ethics, liberty and equality are considered legal rights created by governments and communities.

False Reason: According to principle-based ethics, liberty and equality are "natural rights" that are more fundamental and persistent than the legal rights created by governments and communities. They are considered fundamental components of social justice.

Which of the following contains an "if" clause? -Absolute values -Categorical imperatives -Unconditional rules -Hypothetical duties

Hypothetical duties

Match the types of rights with their features.

Legal rights: They are established by the legal system. Human rights: They establish the framework for the legal system.

Match the versions of utilitarianism with the actions they are most likely to prescribe in the field of advertising.

Market utilitarianism: Advertising regulations should be determined by advertisers themselves, who are in the best position to judge what risks they are willing to take to generate profits. Administrative utilitarianism: Advertising regulations should be determined by experts who have carefully studied and observed the field of advertising and who will establish well-researched standards for advertisers.

Identify an example of a hypothetical duty.

"One must support charities as long as it is within one's means to do so."

What are the categories that represent the major traditions of ethical frameworks? -Consequences -Personal character -Principles -Circumstances -Religious justifications

-Consequences -Personal character -Principles

According to principle-based ethics, which of the following are natural rights? -Property -Happiness -Equality -Liberty

-Equality -Liberty

Which of the following is a true statement about utilitarians? -They are likely to be very pragmatic thinkers. -They tend to favor policies that aim to benefit only a small economic or political minority. -They believe that the economy and economic institutions exist to create wealth for a few. -They oppose democratic institutions and policies.

They are likely to be very pragmatic thinkers.

What is the function of rights?

To prevent individuals from being sacrificed for the greater overall good

According to utilitarians, what is the ultimate ethical goal?

To produce the best outcomes overall after considering all the stakeholders involved

True or false: An individual's self, or character, is identical to his or her most basic and enduring dispositions, values, beliefs, and attitudes.

True Reason: Character is not like a suit of clothes that you step into and out of at will. Rather, the self is identical to a person's most fundamental and enduring dispositions, attitudes, values, and beliefs.

Match the ethical frameworks with their descriptions.

Utilitarianism: Directs one to decide based on overall consequences of one's acts. The principle-based framework: Directs one to act on the basis of moral principles. Virtue ethics: Directs one to consider the moral character of individuals and how various character traits can contribute to, or obstruct, a happy and meaningful human life.

Free-market economics requires businesses to pursue profits to ensure that businesses _____.

allocate resources to people who value them the most

According to free-market economics, the most efficient method of maximizing overall happiness requires that _____.

business managers aim to maximize profits

Rights function to prevent individuals from _____.

having to sacrifice their integrity for greater overall happiness

Egalitarian perspectives on social justice generally support _____.

increased governmental involvement in the economy

The most significant contribution of utilitarianism to philosophical thought is _____.

its impact in the field of economics

Utilitarians believe that the purpose of ethics ought to be the _____.

maximization of overall happiness

A serious issue that ethicists have with the utilitarian school of thought concerns its belief that _____.

means are justified by their end

According to Immanuel Kant, one should never treat others as _____.

means to one's own end

The goal of economic activity in free-market economics is to _____.

meet consumer demand

One of the features of human rights is that they _____.

protect individuals from having their dignity violated

According to free-market proponents, free markets maximize overall happiness by _____.

providing an environment within which individuals can decide what they want and bargain for it

According to principle-based ethics, the fundamental moral duty of human beings is to _____.

respect other people's basic human rights

One of the challenges to an ethics of rights highlights the fact that _____.

rights are sometimes in conflict with each other

The market and the administrative versions of utilitarianism both _____.

share the same goal of maximizing good outcomes overall

According to the Kantian tradition, fundamental human rights and duties are derived from _____.

the free and rational nature of human beings

According to virtue ethics, one of the ways in which choices affect character is through _____.

the people and organizations one chooses to associate with