Business Ethics Unit 1: Study Guide

1. Creating a Study Guide

a. Example of ethics
i. How we meet the challenges of doing the right thing when that will cost
more than we want to b\pay
b. Standard of ethical behavior are absorbed by _______.
i. Osmosis, both positive and negative examples set by those around you.
c. When trying to formulate those principles into a code of behavior, then you are
adopting a what?
i. Value system
d. Aristotle believed in _____ _____?
i. Virtue ethics, the con of virtue ethics is that different societies can place
different emphasis on different values
e. What type of ethics is based upon finding the greatest good for the greatest
amount of people?
i. Utilitarianism, which was originally proposed by David Hune, and its con
is the idea that the ends justify the means.
f. What type of ethics are actions taken out of “duty” or “obligation”?
i. Universal Ethics. Proposed by Immanuel Kant and its con is the reverse of
the weakness in ethics for the greater good
g. The three steps to resolve ethical dilemmas
i. Analyzing the consequences, analyzing the action, and making a decision.
h. Who proposed the 8 questions you should ask to solve an ethical dilemma?
i. Arthur Dorbin
i. What are the two different types of business ethics?
i. Descriptive summation and normative evaluation
j. A code of ethics is structured to do what?
i. To liberate and empower people to make more effective decisions with
greater confidence.
k. Code of ethics is what two things?
i. A message and internal document
l. What is the Sarbanes-Oxley Act?
i. An act introduced in 2002 that encouraged greater accountability for
CEOs and board of directors in signing off on the financial performance
records of the organization they represent.
m. Resolving an ethical dilemma is usually not a clear answer. T or F?
i. True
n. What are the three resolution principles to resolving ethical dilemmas?
i. End-based, rules-based, and the golden rule.
o. The three resolution principles offer a perfect solution or resolution for ever
situation. T or F?
i. False
2. & 3. 15 Key Terms defined
a. Ethics- the study of how we try to live our lives according to a standard of “right”
or “wrong” behavior
i. Doing the right thing when it takes more than it gives
b. Moral Standard- principles based on religious, cultural, or philosophical beliefs by
which judgments are made about good and bad behavior
i. Decided differently by each individual, what that person believes is the
difference between right and wrong.
c. Virtue Ethics- a concept of living your life according to a commitment to the
achievement of a clear ideal
i. For example, someone practicing the Christian faith.
d. Value System-how you choose to respond to those situations and the specific
choices you make that really define your personal value system.
i. Your actions are based on the set of personal principles by which you aim
to live your life.
e. Ethical Dilemma- a situation in which there are no obvious right or wrong
answers
i. Example, offering a client a worse product for your own benefit and profit.
f. Applied Ethics- ethical theories put into practice
i. Example, moral issues regarding abortion, gun control, and or war tactics.
g. Ethical Relativism- the gray area in which your ethical principles are defined by
the traditions of your society, your personal opinions, and the circumstance of the
present moment.
i. This is usually flexible and not defined by black and white rules.
h. Universal Ethics- argues that there are certain and universal principles that should
apply to all ethical judgments
i. For Example, a college asking an Alumni for a donation and the alumni
feeling obligated because their child attends the college as well.
i. Intrinsic Value- the quality by which a value is a good thing in itself and is
pursued its own sake, whether anything comes from that pursuit or not
i. Doing something and it is gaining you self-respect or happiness.
j. Instrumental Value- the quality by which the pursuit of one value is a good way to
reach another value
i. Doing something to earn money rather than for itself.
k. Stakeholders- someone with a share or interest in a business or enterprise
i. Examples, stockholders, employees, retailers, the federal government, and
the community.
l. Code of Ethics- a company’s written standards of ethical behavior that are
designed to guide managers and employees in making the decisions and ethics
they face every day.
i. The code of ethics is meant to liberate and empower administration and
employees to make more effective decisions with greater confidence daily.
m. Golden Rule- do unto others as you would have them do unto you
i. Treating others how you want them to treat you.
n. The simple truth- doing the right thing
i. For example, giving back the extra money a cashier gives you during the
checkout.
o. Ethical Reasoning- looking at the information available to us and drawing a
conclusion based on the information in relation to our own ethical standards
i. Using both facts that are available and using or own value system to
conclude or at least a possible one.