MGMT 320 Final Exam
what is the typical risk assessment for the EPA? (4 steps)
1. Hazard Assessment establishes a link between a substance and human disease 2. Find out if there is a relationship between risk and dosage of exposure 3. exposure assessment is the study of how much of a substance humans absorb through inhalation, ingestion, or skin absorption. 4. Risk characterization is an overall conclusion about the dangers of a substance
what is the UW Test?
1. Identify the important facts and ethical issue, e.g. "What is going on here?" 2. Who are the key stakeholders and how will they be affected? How do things subjectively appear from their perspectives? 3. What are the utilitarian trade-offs among the affected parties, e.g. who are the winners and losers? 4. articulate how different moral principles apply, and recognize how various justice/fairness models might yield different results 5. recognizes and articulates personal biases that can influence your evaluation (conflicts of interest)
what is an ITQ?
An individual transferable quota, imposed on individuals or firms by a governing body, that limits the production of a good or service. These can be traded if a firm has excess
what were the main points from Tad O'Neill?
Assistant Attorney General for Washington State a lot of opioid caused deaths aren't written down as such because of the actions being done while withdrawing from or on opioids restricting pills only led to people switching to street drugs washington lawsuit against Purdue: didn't have to prove that Purdue was guilty, just that they made misleading statements in their advertising Purdue paid company Practice Fusion to ask doctors if they have considered giving their patients opioids anytime a patient was in pain Practice Fusion and Mckinsey pled guilty Quintiles IMS, made by Arthur Sackler
What is Immanuel Kant's ethical model?
Categorical Imperative: A person should not act unless he or she is willing to have the rule or conduct on which one acts become universal law. Requires you to look into the future and consider the consequences of your actions Kant would not approve of the teenager doing jello shots
what was George Bush's argument for not doing anything about climate change?
EPA doesn't have the authority to do something about climate change
what is comparative negligence? how do businesses need to consider it?
Each person is responsible for their % of fault unless one party can't pay, rolls over to other party who can businesses need to be very careful because there are often situations where they would minimally responsible in a case and then end up having to pay a lot of money
what are the main features of environmental regulation in the US?
Environmental law at the federal level
what was the example in class used about Facebook and Germany?
Germany started imposing fines on Facebook because of abusive posts made about people In Germany, people have the right to be forgotten, or to remove themselves online
what were the key takeaways for guest speaker Noah Purcell?
Washington state soliciter general wrote the argument for the appeal of Purdue's bankruptcy case non-debtor release: a release of someone other than the party that filed for bankruptcy Sackler's strategy was to take all money out of Purdue and put it in hard to get places, then file the company for bankruptcy to get the benefits of bankruptcy
What is the Milgram experiment? What were the three key findings
Study on Obedience; Measured the willingness of study participants to obey an authority figure who instructed them to perform acts that conflicted with their personal conscience. People ended up obeying pretty easily when the victim was in a different room, but they could hear them 1. Distance Matters 2. Being told what to do causes people to do unethical things 3. corporate culture matters because people may follow unethical leads
what resulted from Upton Sinclair's book, the Jungle,?
The FDA, book was about meat packing industry He wanted to address worker exploitation and socialism, but food safety became the main takeaway
How do business students think differently than the public in terms of business problems?
They lean much more heavily in favor of the business over the consumer
What are examples of things that the US government can censor online?
True threats libel and slander (civil) "obscene" materials intellectual property
what kind of agency is the EPA?
administrative agency, enabled by Congress to make come up with proposed rules; doesn't legislate themselves, but suggests and enforces it.
what sector of online content does the US regulate more regularly? what were the two examples of this given in class?
advertising that has the potential to deceive consumers social influencers fake online reviews
what is the fiduciary rule?
advisors must act in the best interest of their clients, not their own self interest financial advisors might give advice that will give themselves more commission, risky stocks, companies that give financial incentive take advantage of elderly people
what are the justice reasons for regulations?
americans with disabilities act UW makes all buildings accessible
what is an externality? what was the example used in class?
an expense, cost or byproduct, incurred in production, distribution or use of a product or service, which is not born by the business or consumer, but by the general public oil spoil, wildlife killed was a cost that nobody paid pollution, microbeads
what surgery were doctors performing too often in Elyria, Ohio? what was in it for them?
angioplasty, doctors were prescribing it way more than needed because they were receiving kickbacks to do it conflict wasn't that the surgery was performed poorly, it's that it was riskier than the other option
what word means "mans ability to reshape the environment"?
anthropocene
what was the example Tod gave in class about culture and parking tickets?
UN ambassadors were able to park without getting fined in New York when doing in business Studies found that ambassadors from corrupt countries had a direct correlation with getting more fines than ambassadors from less corrupt countries
why did Bob Ferguson sue Facebook?
Washington state has a public disclosure law that requires contributions to political ads need to be logged by media platform Facebook refused to keep public records about political ad contributions
what is greenwashing?
attempting to give the impression of environmental friendliness whether or not it is environmentally friendly examples: Volkswagen emission scandal test problem is that there is no definition for "sustainable" or "green"
what did Microsoft do before other companies that gave them a leg up ethically?
banned forced arbitration agreements for sexual harassment cases
how many hours does it take to get a barber's license vs. becoming an EMT? what effect does this cause?
barber license: 1000 hours of education in WA state EMT: 110 hours Cadillac effect, making license harder to obtain raises business prices
why did people in a poor south african city all have cellphones?
because there were no landlines, cellphones were a necessity
why do companies voluntarily regulate themselves?
because they know that the government will come in with their own set of regulations if they don't.
what is the conventionist ethic?
business is game, where special, lower ethics are permissible jello shot example, didn't "drink" alcohol
what is the theory of moral unity?
businesses should be judged by the same moral/ethical considerations that apply throughout society leads to ethical relativism
whose interests do businesses act in and how does the government want them to act?
businesses: it's about me government: it's about us
what kind of bankruptcy is Purdue filing?
chapter 11 - reorganization
what are examples of rationalization causing ethical problems in business?
"the ends justify the means" breaking bad heart transplant, intentionally going to jail idea to get free healthcare
what were the key takeaways of the Mckinsey Settlement?
- Mckinsey helped design Purdue's marketing plan for opioids - focus on higher dosages - 573m settlement
what were the main points of guest speaker Sam Quinones?
- author of Dreamland - fentanyl made heroin obsolete - opposite of cartels are happening with fentanyl, more like "fiefdoms" - most doctors didn't realize they were prescribing too many opioids until it was too late - Fentanyl is mainly a US trend because of the instant gratification culture, as well as the fact that we dealt with a massive wave of legal opioids on top of that
what are the different ways that EPA regulations can be enforced? What is always the biggest issue of EPA regulations?
civil or criminal law at different levels of government biggest issue is will the responsible agency reinforce the provisions
what is a non-disparagement clause? are they widely used today?
clause in a companies terms and conditions saying that if a customer speaks negatively or leaves a negative review, the company are able to fine them.
what is the spectrum of regulatory options for managing environment tasks?
command and control flexible enforcement market incentives required disclosure voluntary compliance
what is the command and control method of enforcing EPA regulations? pros and cons?
companies must comply with the goal of the regulation and perform actions a certain way pros: gets results fast cons: high costs because lack of flexibility, not all industries or companies are the same
what are the two models for ethics enforcement? what do they entail?
compliance-based programs seek to avoid legal sanctions through detection and punishment. e.g police officers, speed limit integrity-based programs combines a concern with the law with an emphasis on personal integrity, try to make people aware
what's the main idea of result-oriented models?
consequentialism looks at the results to determine what is ethical CBA Utilitarianism Runaway Trolley example transplant surgeon has 6 patients going to die, sees healthy guy with necessary organs walk in
what were the in class examples of conflict of interest?
consulting Finance person about getting a loan to buy a car: they might be incentivized to give you a high interest rate loan, causing a conflict of interest Tod investing in prison companies because he is a criminal prosecutor
what was the conflict of interest in large consulting firms 20 years ago?
consulting firms and accounting firms were tightly knit together consultants were making a lot more money than accountants and they didn't want accountants to come in with bad news government had to regulate companies doing consulting and accounting and break businesses up doing these two things SOX
why is information disclosure effective in sustainability?
corporations hate bad publicity, so requiring them to disclose to the public how much they pollute is very effective
true or false: assessing the costs of environmental regulation is notoriously difficult
false; the costs are easy, the benefits are hard.
what is a regulatory impact analysis? what three things do they contain?
federal regulatory agencies have to write a regulatory impact analysis for major new rules that had a predicted annual impact of more than $100 million 1. a statement of the need for the rule 2. an examination of alternative approaches 3. an evaluation of the benefits and costs of the rule, and the alternatives
what is the situation about climate change in Australia?
fires in Australia being caused via global warming, prime minister doesn't want to change it. gas and oil are big exports in Australia, which is bad for climate change, but prime minister doesn't want to change it
what are examples of social regulations? what is a social regulation?
focus on a concern for public welfare and safety, through production, working conditions, and by-products (pollution) also focus on externalities the goal is better quality of life for all powdered alcohol example internet privacy Americans with disabilities act
what were the key takeaways for guest speaker Mike Quinn?
lawyer for artists, representative for those who experienced opioid problems his clients wanted accountability, not credit he changed the judge shopping law (Purdue moving corporate headquarters to get a more favorable judge)
how is moral intensity relevant to the Upper Big Branch Mine?
leader might have made more ethical decisions if he was in the action of the mining
what were regulations like during WWII?
lots of regulation because of war, wage and price controls, rationing
what kinds of things does Google regulate advertising for?
mail-order brides false documents
what is the example of natural monopolies used in class?
makes no sense for cities to have multiple sewage systems competing, it's a waste of resources it's better to allow one company to run it but have prices regulated by the government
what does the Anthropocene period reference?
man's ability to reshape the environment, goes back to the pyramids
what are the examples for utilitarianism/protecting the public
mandatory safety regulations smoke detectors the FDA peanut butter example, peanut butter plant gets audited by AIB International in 2008, audited a particular company that had good results, even though many people got salmonella, chief exec went to prison
what are the reasons for regulations?
market failure (monopolies, pollution) natural monopolies ethical arguments for regulation inadequate remedy via tort (can't compensate for death) tempering caveat emptor (let the buyer beware) - it is simply impossible to be fully informed when making purchases these days guard rails - protect innocent parties from getting hurt
summarize the case study about sustainability in California. What's the problem?
not enough rain water for underground water tables to catch in California, being used more than it is being collected. Headed towards water crisis
what is compensatory justice? what are some examples of compensatory justice?
one of the three forms of justice refers to the preset rules concerning how we compensate those who have been wronged in the past tort law: put the party back where they originally were before harm affirmative action
what are virtue ethics?
shorthand for important ways that we should act personal values can be excellent guides to acting in a ethically correct way
what is the idea of ethical relativism?
the idea that there are no fixed, static, ethical rules, but that ethics rules depend upon the time, place and circumstances do what is ethically "normal" in other countries nike child stitching together football leaked picture example
what is rationalization? how does it relate to ethics?
the more time you have to think about a dishonest action, the greater the chance you will rationalize the conduct and take that course trusting your gut is the move
what two things are always characteristic of a regulation?
they always have a cost they always take away freedom
how can businesses influence the government?
they can't vote, but they can contribute large amounts of money, and lobbying
what is the risk management side of the EPA?
they perform a CBA of regulations suggested Costs = enforcement costs, foregone net benefits, job losses Benefits = lives saved, reduced medical costs, aesthetic appeal
why should businesses act ethically?
to enhance performance - costs of reputational damage is higher than the financial costs of fines to comply with legal requirements - US Sentencing Guidelines takes into consideration proactive things the business was doing - like an insurance policy to prevent or minimize harm to meet demands of business stakeholders to promote personal morality what is the value of trust? - not trusting is more expensive: double checking work, extra monitoring, etc. - Ronald Reagan's foreign policy, "trust but verify" was expensive because verification has costs
what is the disclosure rule? what is an example of it in medicine?
to test whether something is ethical or not, imagine how you would feel about your action being published on the front page of the New York Times any payments from pharma to doctor need to be recorded and added to a database
what are the three dangers that need to be considered when making regulations?
too much regulation, too little, or unenforced regulations
what are the examples used for market failure?
towing industry, consumers have no say in setting price private streets can set their own towing prices, public streets it is more regulated
true or false: 67% of all internet users live in countries where criticism of the government, military, or ruling family are subject to censorship
true
true or false: in general businesses have been successful in getting Courts to see things their way
true
true or false: you can build technology that improves the bottom line and sustainability
true
what was the general stance on regulation during the Great Depression in the 1930s?
under-regulated financial markets needed to become regulated by the government to get out of the depression
What is cost-benefit analysis? what are its pros and cons
utilitarianism do the benefits outweigh the costs? rational, sometimes it's hard to place a value on things, like human life OUTCOME DETERMINATIVE
what are the 5 ethical arguments for regulations?
utilitarianism protecting the public justice combatting ethical lapses embracing regulation to stave off mandatory government regulation (nothing to do with ethics)
What did Jeremy Bentham and John Stuart Mill contribute in terms of ethics?
utilitariansim = the right thing to do is what gives the greatest number of people the greatest good OUTCOME DETERMINATIVE not good at valuing liberty or freedom biggest problem is that it is usually impossible to know what the actual consequences of a decision will be
How does John Rawl's apply distributive justice?
veil of ignorance, only way to make fair decisions is to not have a stake in the outcome, which is very hard to do video example: you get to choose which country you're born in, but not your exact location, family, or economic situation, where would you go? what would you change about the country?
what is the idea of embracing self-regulation? why do companies do it? what is the example used in class?
video game maturity rating and movie rating are all self-embraced, not government regulated this is because these companies know that if there is no regulation, the government will come in and make stricter regulations, so they make their own. Tod's nephew buying videogames
what is the in-class example of self-regulation that doesn't work? what is the in class example of self-regulation that does work?
video game maturity ratings hotel that wouldn't let Tod check in with his nephew
What are virtue ethics?
we should all strive to do as many things as possible on the virtues list, but they are not models on how to act, they are aspirational. Trying to act virtuously will take you far Duty based ethics
what is public policy? what for aspects can you break public policy down into?
what the government chooses to do, or not do. inputs, goals, tools, and effects
what are goals in terms of public policy?
what the policy is trying to achieve goals can be extremely broad and subjective, and that they can conflict with each other
what is the Modern Era in terms of environmental law?
when environmental laws starting coming forward more National Environmental Policy Act
what were the main points from guest speaker Patrick Keefe?
writer of empire of pain
what does technology displace? what effect does this have on industries?
knowledge, barriers to entry
what were the key takeaways from the corrupt doctors and pill mills presentation?
- even ethical doctors increased prescriptions when oxycontin released - why doctors overprescribed is because they lacked electronic medical records, doctors were graded on their ability to assess pain, incentive to prescribe painkillers to get higher ratings. - salespeople told doctors that painkillers aren't addictive if the pain is real Lots of pain doctors became huge advocates about opioids, "King of Pain". Opioids were not inherently addictive belief - idea of pseudoaddiction: patients with pain were untreated, and should therefore be prescribed more opioids - pill mill: high patient volume, short visits, long lines, cash only
what were the key takeaways of the presentation about CVS and Walgreens?
- ignored suspicious orders - CVS charged criminally, did not comply with Florida laws designed to try and stop drug abuse, shipped unreasonable amounts of opioids - paid $22 million to the DEA - Walgreens also charged criminally by West Virginia and Florida, filled suspicious orders and failed to provide satisfactory reports, violated the West Virginia Consumer Credit and and Protection Act - Marino Bill: DEA cannot suspend doctors immediately
what were the key takeaways from the Purdue bankruptcy presentation?
- no secured creditors - chapter 11 bankruptcy (reorganization) - by withdrawing 10 billion dollars out of the company early and putting it in offshore bank accounts, Sackler family was able to protect their money from bankruptcy and only lose a little bit of it - non-consensual third-party release: in exchange for contributing a little bit of their money, shields Sackler family from all liability. Essentially hijacked the bankruptcy plan - changed corporate headquarters to Whiteplains, New York because there is a bankruptcy judge with a history of approving third-party releases
what were the main points of guest speaker Ryan Hampton?
- recovered opioid and heroin addict - most Americans didn't know the Sackler family until 2012 - initially got excited when Purdue filed for bankruptcy, but didn't realize how broken the system was yet - asked attorneys how he could help the bankruptcy filings, was recommended to get on the unsecured creditors committee - "bankruptcy is basically a melting ice cube" - lawyers get paid before unsecured creditors - Government always got paid first instead of individual victims, individual victims got screwed over
what are the seven different ways that de-regulation takes form?
1. abolishing regulations in specific industries 2. imposing CBA and finding its not worth it 3. reduce command and control in favor of incentive controls - tells industry being regulated that they have to meet a certain standard, doesn't matter how they do it 4. reducing the $ available to enforcement agencies - just stop funding the agency that regulates 5. putting industry insiders, or those who do not support the industry, in charge of the agency - don't want EPA? just make someone who hates the EPA in charge of the EPA 6. not appointing, or blocking the confirmation of regulators 7. sunset laws - when regulation is formed, provide that it will expire automatically at a certain point in time
why do we regulate? what are the four reasons listed in the textbook? what are the reasons not listed in the textbook?
1. market failure - when natural market forces don't work 2. externalities? 3. natural monopolies 4. ethical arguments for regulations not in textbook 5. inadequate remedy via tort 6. tempering caveat emptor 7. guard rails
Why do ethical problems occur in business?
1. personal gain and selfish interest rationalization for insider trading is easy because the victim is spread out, MBA Oath example culture of greed makes more greed, Wells Fargo example, creates positive feedback loop when people see others crossing lines Why does Tod lie? to prevent other people from rationalizing that they should cheat VW diesel scandal - shows system breakdown in organizational ethics 2. competitive pressure 3. conflicts of interest - judge accepting money from detention centers by sending kids there who didn't deserve it
what are the three stages of defining an ecologically sustainable organization?
1. pollution prevention 2. product stewardship 3. clean technology
what is the CBA of regulations?
1. regulations cost money always result in lower profits for owners, or higher prices for consumers, and less competitive goods globally Direct costs - additional government employees - compliance costs Indirect costs (often much higher than direct costs) - extra time filling out paperwork -increased stress on employees to comply - opportunity costs of businesses small businesses bear a disproportionate amount of costs of dealing with Federal and State regulations
what three choices does the government have when it comes to pollution as an externality?
1. tell the company to pay for the costs 2. tell all the players in the market segment to pass the cost on to its customers 3. if 1 and 2 are not practical, ban the activity example: microbeads, black exfoliating stuff
what two groups of people does a culture of breaking rules affect?
1. the first group of people crossing the lines 2. the second group of people who see the first group, then think they have to cross the lines to keep up creates a positive feedback loop
what are the five factors of moral intensity?
1. the magnitude of the consequences 2. proximity 3. social consensus (e.g majority agrees its wrong) 4. probability that an action will lead to a result 5. immediacy
what were the three common reasons why sustainable business practices are important?
1. they often help improve the bottom line 2. they are viewed as the moral thing to do 3. without them, the planet may be irreparably harmed
what are the 6 stages of moral development?
1. to avoid punishment 2. to satisfy self-centered needs and elicit a positive external response 3. to conform to the group interest to please others in the group 4. to accept legal restrictions as being in the best interest of society 5. to accept legal restrictions balanced with individual rights as being in the best interests of society and the individual 6. to find satisfaction in being ethical and moral for personal reasons
what's the main idea of duty-based ethics models?
In duty-based models, rules are set up and exist prior to the ethical issue arising; the pre-existing rules guide you to determining what is ethical rules exist ahead of conflict, it is bad to steal 10 commandments, golden rule
what was the problem with the type of surgeries that heart surgeons were performing in Elyria, Ohio? (student experts)
Large amount of angioplasty cases in small town doctors were performing it way more often than it needed to be done for financial incentives doctors were fined in the end problem with the surgery wasn't that it didn't cause harm to people, it just was a little riskier than the conventional option
what were the main points from Rick Mountcastle?
Lead the prosecution against Purdue in 2007 Got into that because he was prosecuting over-prescribing physicians in Virginia, saw firsthand what oxycontin was doing Purdue achieved regulatory capture, which is when they are able to get insiders working for the agencies that are supposed to be regulating Purdue's industry Rick Mountcastle was unable to go against the Sackler family themselves because of their army of attornies Sackler family had been committing these kinds of scandals with drugs way before OxyContin, valium example
what are examples of cross-cultural contradictions causing ethical problems?
NBA in China example again Heineken beer displayed flags of participants in Olympics, muslim countries very mad
summarize the NCAA case study
NCAA forbid students from profiting from their name, image, likeness. universities started using state legislatures to try and change this: California did it first, no federal law to preempt, states followed like dominoes additionally, NCAA critics went to federal courts to enforce antitrust laws, claiming that NCAA doesn't abide by them, and doesn't deserve an exemption NCAA fought back in federalism and separation of power to solve its problems: sought exemption from anti-trust laws, and federal law outling name, image, likeness Supreme court ruling: colleges can offer educational benefits to students now, like paying for law school
what's the success story about sustainability in Australia?
Opera House stopped using plastic straws, saving 1.3 millions straws from landfill each year
what were the regulations like after WWII?
cycled between less and more regulation, Civil Rights Act, deregulation of airlines and trucking, Consumer Protection Act
what were the key takeaways of the 2020 Purdue settlement?
deception and aggressive marketing, relatable pain commercials with people saying high doses of oxycontin helped them $225M settlement Purdue pled guilty to felony charge, Sacklers remained unconvicted, only had to pay civil damages guilty plea to criminal fines of $3B practice fusion kickbacks
what is the political component of sustainability?
democrats are much more concerned with climate change, republicans are less enthusiastic about legislation for climate change light bulb example
what is a root cause analysis?
describes a wide range of approaches, tools, and techniques used to uncover causes of problems ask "why?" five times to discover the underlying causes of a problem
what was uber's corporate culture in the beginning? why?
don't ask permission, ask forgiveness they needed to get things done quickly to capture market share, so they did things like not obtain certain licenses and permissions before starting business in a city
what are the two different TYPES of ethics models?
duty-based models(deontological) result-oriented(consequentialist)
what is procedural justice, one of the three types of justice? what is an example of it covered in class?
duty-based; it's not really concerned with the end result; if we follow the rules and procedures agreed upon ahead of time, the result is just washington judges don't have a lot of discretion because more privileged people always got off easier
what are the two different types of regulations?
economic regulations social regulations
what three aspects are considered for companies placing relative importance?
egoism (Self-centered) benevolence (concern for others) principle (integrity approach)
what is the Rights model? what are some violations of the rights model that were covered in class? how do rights sometimes conflict?
emphasizes individuals' rights to life, safety, free speech, freedom, property, and due process rights cannot be selectively applied covid: human challenge - people were deliberately exposed to covid in order to study the effects of it tuskegee experiments - black men had syphilis went untreated so they could be studied rights sometimes conflict - Christian bakery gay marriage example
what are extended product responsibilites?
environmental law where governments tell manufacturer are responsible for the lifecycle of a product at the end, manufacturers have to take it back creates incentive to reduce externalities
what are inputs in terms of public policy?
external pressure that shape governments' policy decisions and strategies to address problems.
how is climate change contributing to inflation?
extreme weather events and actions needing to be taken by the government to be more resilient is expensive, higher gov't spending = inflation weather affecting agriculture seattle heat wave - clams and oysters more expensive
true or false: businesses can directly contribute to federal candidates for federal office
false
true or false: the US has stricter online content regulations than Europe
false
what is distributive justice, one of the three types of justice? what is an example of it covered in class? how does equality vs. equity relate to distributive justice?
form of consequentialism because the results matter; it focuses on the end result, and whether it is fair problem is fair is subjective, vaccine distribution/mandatory vaccination proof example equality vs. equity three boxes example tax disparity in America
what are the non-economic costs of social regulation?
freedom
what is a deposit and refund law?
get money back for recycling, type of market incentive
what were the key takeaways from the presentation about heroin and the xalisco boys?
heroin - morphine from poppy seeds oxycontin - derived from morphine lower costs, stricter prescription rules about oxycontin, convenient way to get heroin led people to switch. Xalisco Boys distributed heroin by growing it in Xalisco, and focused on customer service and used various strategies to avoid law enforcement. Delivered drugs to people's doorstep. Free heroin when people were thinking about quitting. Delivery drivers were usually immigrants Blue ocean strategy - only operate in new areas Boise, Denver, Phoenix
what are the seven virtues?
honestly/truthfulness generosity/charity humility/modesty justice prudence courage trust
Even though Section 230 basically makes social media companies immune, what could they still be held liable for?
intellectual property, breaking promises listed in the Terms and Conditions
what is a life cycle analysis?
involves collecting information on the lifelong environmental impact of a product, all the way from extraction of raw materials to design, manufacturing, distribution, use, and ultimate disposal
what is the justice model? what are the three types of justice?
is it fair, according to society's rules? 1. procedural justice 2. distributive justice 3. compensatory justice
what is the nature of politics in America? how do businesses use this to their advantage?
it is open - easy for people to enter any of the legislative, executive, judicial positions can be put under pressure at the federal, state, county, and city level by businesses who want rules changed
what was the result of the root cause analysis that the NFL performed on CTE?
kickoffs were the most dangerous part of football, leading to concussions which leads to brain damage which leads to cases like Aaron Hernandez
what are the effects in terms of public policy? what was the example used in class?
outcome usually includes intended results as well as unintended results seattle's minimum wage raised directly correlated with the amount of food safety violations being given, means that companies were trying to cut corners elsewhere in order to keep up with minimum wage.
what is the one of the few climate change success stories?
ozone layer got restored
what is an example of public policy in Washington? what are the inputs, goals, tools, and effects?
paid sick leave inputs the pressure is coming from the employees who don't want to stay home and not get paid, but also don't want to come to work and get other people sick (covid) goals goal is to get employees out of that lose-lose situation employer argues that paying for sick leave means hiring less people tools companies get penalized for not complying with paid sick leave effects employees got paid more, employers have to pay more
what are the tools in terms of public policy?
penalties, incentives legal actions can be taken
what was the strategic defaults example that was used in class to explain duty-based models?
people were mortgaging homes and then walking away from it, banks criticized people who do that after that, bank walked away from mortgage placed on it's office space
who are climate refugees and what do they want?
people who lost their homes because of planet change (floods, natural disasters). lots of islanders forced to leave homes they want the government to look into predicting natural disasters and at least inform citizens about imminent disasters
why do ethical problems occur in business?
personal gain and self interest competitive pressure conflicts of interest cross-cultural contradictions rationalization
what areas is the internet not very successful in self-regulating?
political campaigns, privacy protection
what areas is the Internet successful in self-regulating?
porn, fake users, restricting dangerous advertisements
what are the pros and cons of duty-based models?
pros: strong foundation in which to guide people cons: occasionally, difficult to consistently apply
How did the Ford Pinto example relate to utilitarianism?
rather than fix a faulty explosive car, Ford chose to just keep paying restitution fees to the families of the people that died from them didn't take into account the value of their reputation in that CBA
why do people engage in white collar crime?
rationalization the effect of the crime is spread out over many victims, most of which will never know a crime was done to them the insider trader is much more far removed from the victim than a robber timing is important too
what did the securities and exchange act of 1933-34 do?
regulated the stock market and forced publicly traded companies to disclose what was going on
what are democrats and republicans' general stance on regulations? what has contributed to this divide?
republicans don't regulations, democrats do covid vaccine and mask policies
what is the fiduciary rule?
requires the fiduciary to act solely in the interest of that other person's property and interests a fiduciary is a trusted person, like a financial advisor getting client to invest in something where there is a subtle kickback
what was the reason for the airlines needing to request to set a price for a flight ticket?
safety, theory was that if airlines were trying to undercut each other it would lead to compromised safety.
what is the priority order in terms of who gets paid when a company goes bankrupt?
secured creditors - people who have a claim on an asset unsecured creditors - people who are just owed money
what is the characteristic of technology that was talked about in class?
semantics/metadata
what was the in class example of unenforced regulation?
significant air pollution in India, government mandated third-party audits however, only 7% of plants were violating the pollution standards deeper search found that in reality, 59% of factories were violating pollutant standards, auditors had incentives to falsify their reporting solution: auditors were paid from a pool of money collected by factories auditors were randomly assigned to factories auditors were paid a bonus for accurate reports, and were audited
who is sunday riley? what happened to them with the government?
skincare company, CEO gave instructions on how to write fake reviews, with different identities, VPN, five stars reviews and downvoting low reviews the FTC had to publicly disclose what they did and agree with the government that they would take the reviews down and not do it again
what is the utilitarian argument for smoking?
smoke more, people die earlier, saves social security costs and prisons
how did Bob Ferguson get grocery companies to settle for 9 million dollars?
sugary beverage businesses can give money to a middle man who will contribute to a political campaign that will help them. middle man nor companies disclosed their campaign contributions
what is the market incentive method of enforcing EPA regulations?
tax breaks, or taxes levied ideally, taxes collected be spent on programs to clean up waste.
which agency regulates social media advertising? what do social influencers have to do?
the FTC, social influencers have to disclose when a post about a product is an advertisement or not Kim Kardashian
what is theory of amorality?
the belief that business should be conducted without reference to the full range or ethical standards, restraints and ideals in society leads to the conventionist ethic
what are ethics?
the conception of right and wrong conduct
which two kinds of fairness does sustainability encapsulate?
the current benefits of natural resources across various countries, every country should get their fare share
how has the government used economic regulation? what are examples of economic regulation? what are the two types of economic regulation?
the government has, historically, regulated and de-regulated various industries 1. natural monopolies break down certain monopolies, allow certain ones (electricity line for a city example) 2. fiscal policy this refers to the patterns of taxation and spending. sometimes this is intended to stimulate the economy. Tax breaks
what is the triple bottom line? what are the three P's?
the idea that firms when they're doing sustainability analysis, they need to include non-financial measures along financial measures of success financial results environment results social results 3 P's: profit, planet, people