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A comprehensive overview of ethical decision-making theories and concepts relevant to business ethics. It includes key definitions, decision rules, advantages, disadvantages, and examples for each theory, such as utilitarianism, theory of justice, theory of rights, ethics of care, integrative social contract theory, virtue ethics, objectivism, consequentialism, and deontology. It also explores moral awareness triggers, moral decision-making steps, and factors influencing ethical behavior in organizations. Valuable for students studying business ethics, as it offers a structured framework for understanding different ethical perspectives and their practical applications.
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Utilitarianism - CORRECT ANSWER ✔✔Decision Rule: maximize the benefits to society and minimize harm Advantages: replaces partially with science Disadvantages: the means do not matter WHAT TO LOOK FOR: -STAKEHOLDER ANALYSIS -ATTEMPT TO GET THE BEST RULE -MAXIMIZE BENEFITS FOR SOCIETY -GIRL IN TOWER Theory of Justice: John Rawls - CORRECT ANSWER ✔✔Decision Rule: favor the least advantaged. Advantages: unbiased approach to social justice Disadvantages: denies free will and concept of meritocracy
Theory of Rights - CORRECT ANSWER ✔✔Decision Rule:A decision is Ethical if it is free of fraud and force. Do what you want as long as you're not hurting others Advantages: Virtually complete freedom of action with minimal governmental intrusion Disadvantages: Almost complete disregard of interests of others with a stake in behavior WHAT TO LOOK FOR: -NO LIES -EMPHASIS ON RIGHTS OF DECISION MAKER -EX: BANK LOANS
Hypernorm - CORRECT ANSWER ✔✔1. Respect Human Dignity (recognizing value of human beings ex. Providing a safe workplace)
Objectivism - CORRECT ANSWER ✔✔Decision Rule: be rational and all you can be. Advantages: reinforces personal responsibility Disadvantages: individualistic and judgmental, does not protect the weak WHAT TO LOOK FOR: -DECISION MAKER'S INTEREST COMES FIRST -EMPHASIS ON RATIONAL DECISIONS EX: MOTIVE COMMUNICATIONS -anything about happiness Consequentialist - CORRECT ANSWER ✔✔consider consequences Deontological - CORRECT ANSWER ✔✔focuses on duties, obligations, principles
Reinforcement theory - CORRECT ANSWER ✔✔People are likely to behave in ways rewarded Deindividuation - CORRECT ANSWER ✔✔psychological process where one is focusing attention on the role and expectations that accompany it. reduces the awareness of self -Zimbardo Prison experiment Zimbardo Prison experiment - CORRECT ANSWER ✔✔Normal people behaved cruelly when placed in position of power The Milgram Experiments - CORRECT ANSWER ✔✔the subject had to shock someone because the professor told them to. -wanted to see if someone would stop even when told to do something Diffusion of responsibility - CORRECT ANSWER ✔✔-individual disconnect from consequences of actions -not personally responsible -groupthink
Factors that lead to diffusion of responsibility - CORRECT ANSWER ✔✔responsibility: -taken away -shared with others -obscured by hierarchy -diluted by psychological distance to potential victims Goals - CORRECT ANSWER ✔✔focus attention on desired outcome and lead individuals to strategize how to achieve Multiple ethical selves: - CORRECT ANSWER ✔✔-act different at home and at office -goal of managers to bring these together Groupthink - CORRECT ANSWER ✔✔-cohesive groups where members are commited and begin to think alike -illusion of morality illusion of morality - CORRECT ANSWER ✔✔the sense that the group simply wouldn't do anything wrong
-principled person makes decisions alone and consistent with principles of rights and justice -rise above the system Fact gathering - CORRECT ANSWER ✔✔overconfidence of your knowledge about facts Looking at consequences - CORRECT ANSWER ✔✔-you reduce # of consequences -consequences of self greater than others -consequences as risk Illusion of optimism: - CORRECT ANSWER ✔✔things are going better than they are Illusion of control: - CORRECT ANSWER ✔✔we are in charge of what happens Escalation of commitment - CORRECT ANSWER ✔✔investing in something and remaining committed because we are so far in -not on isolated choice but series
-how to overcome: recognize that it exists and try to adjust for it -invite input -allow for graceful exits -group decision making Illusion of superiority - CORRECT ANSWER ✔✔people tend to think of themselves as more ethical, fair and honest than others Ethics of your profession - CORRECT ANSWER ✔✔virtue of ethics approach -professionals have the responsibility to act in the public interest by providing accurate information Consequences as risk - CORRECT ANSWER ✔✔-illusion of optimism: underestimate risk reduced number of consequences - CORRECT ANSWER ✔✔simplify their decisions and make them more manageable by reducing the number consequences they consider
Moral Disengagement - CORRECT ANSWER ✔✔most of us behave ethically most of the time because we've internalized standards of good conduct and judge our behavior against these standards Ways of thinking about or behavior that makes bad behavior seem more acceptable (Define moral justification and advantageous comparison) - CORRECT ANSWER ✔✔-use of euphemistic language -moral justification: unethical behavior thought to be okay because it contributes to some socially valued outcome -advantageous comparison: compare own behavior to worse behavior Distorting consequences or reducing personal responsibility: (Def: displacement of responsibility, diffusion, distorting consequences)
Conflicts of interest - CORRECT ANSWER ✔✔occurs when your judgement or objectivity is compromised Bottom line of conflicts of interest - CORRECT ANSWER ✔✔should decline a personal benefit and refuse to give or offer a personal benefit to another, if they believe that accepting the benefit will compromise the impartial decision making Influence: - CORRECT ANSWER ✔✔relationship conflicts Incentive - CORRECT ANSWER ✔✔a payment or gift as an inducement but not a conflict of interest misuse of a company's personal information - CORRECT ANSWER ✔✔1. selling employers secrets to the highest bidder
-private -should be appropriately harsh Termination for cause - CORRECT ANSWER ✔✔-instant firing because of something an employee has done poor performance - CORRECT ANSWER ✔✔based on written documentation such as appraisals downsizing - CORRECT ANSWER ✔✔slowdowns in work layoffs - CORRECT ANSWER ✔✔: can result from mergers, acquisitions, relocations, or result of economic business strategy. Survivor syndrome - CORRECT ANSWER ✔✔decreased morale, lower productivity, distrust and cautiousness in survivors of layoff Expansive View - CORRECT ANSWER ✔✔businesses must help social problems. have moral obligation to -social responsibility can be profitable
Limited View - CORRECT ANSWER ✔✔-corporations do not owe anything -legally bound to make as much profit as possible for stockholders Consent Order - CORRECT ANSWER ✔✔advertiser agrees to stop Cease and Desist Order - CORRECT ANSWER ✔✔an order to stop Affirmative Disclosure - CORRECT ANSWER ✔✔additional information Corrective advertising - CORRECT ANSWER ✔✔correct false impression Social Contract - CORRECT ANSWER ✔✔-concept that members of society agree among themselves on certain standards Cultural Relativism - CORRECT ANSWER ✔✔change where ever you are "in rome do as the romans do"
collectivism - CORRECT ANSWER ✔✔emphasizes collective purposes over personal goals and group harmony over individual achievement Sarbanes Oxley Act - CORRECT ANSWER ✔✔protects investors from fraudulent activities -auditing FCPA (to who/what are payments prohibited)? - CORRECT ANSWER ✔✔-Prohibits the paying, offering, promising to pay) or authorizing to pay or offer) money or anything of value to a foreign official. -Prohibits payments to foreign: political parties, candidates, and government officials -It permits: Facilitating payments, must not change outcome Title VII (what is protected)? - CORRECT ANSWER ✔✔prohibits discrimination Multiplier (under the FSGO) - CORRECT ANSWER ✔✔-The culpability score is multiplied with the monetary fine
Culpability Score (what does this word mean?) - CORRECT ANSWER ✔✔-compliance with due diligence - your efforts to prevent the offense (compliance program) -the degree of cooperation during investigation (avoid obstruction of justice) -It doesn't reflect the seriousness of the crime itself; that is reflected in the base penalty Obstruction of justice - CORRECT ANSWER ✔✔degree of cooperation during an investigation Puffery in advertising - CORRECT ANSWER ✔✔-not illegal -exaggerated claims stakeholder - CORRECT ANSWER ✔✔will be affected in SOME Way or another, not stock ie: 3rd parties shareholder - CORRECT ANSWER ✔✔have stock in company