GBU Midterm Review

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Terms in this set (...)

Course Philosophy
Ability/Talent
Social Skills
External Factors
Knowledge-(information base you need to be successful)
Character-(work ethic, honesty, punctuality,reliability, preparedness, "grit")
Business Strategy
Creating shared value
Ethical Decision-Making
This is a skill that can be developed
Social Contract Theory
Society increasingly expects more ethical behavior from business
Separation Theses (fact/value dichotomy)
The discourse of business and the discourse of ethics can be separated so that sentences like 'x is a business decision' have no moral content and 'x is a moral decision' have no business content,
Business
voluntary value for value exchange
Government
structures and processes in society that authoritatively make and apply policies and rules
Society
a network of human relations composed of ideas, institutions, and material things.
Value
an enduring belief about which fundamental life choices are correct
Ideology
a bundle of values that creates a particular view of the world
Institution
a formal pattern of relations that links people to accomplish a goal
Institutions support markets...
regulatory
judicial
financial
corporations
media
cultural
political
Market Capitalism
business operates within the market environment, and is substantially sheltered from direct impact by social and political forces by the free-market.
-Ethical duty of managers is to promote profits for owners of businesses within "the rules of the game"
Dominance Model
business, government, and social elite use business to control the world at the expense of the populace.
Countervailing Forces Model
various forces interact in our society, with no consistent dominance from any particular force.
-business
-government
-environmental catalysts
-the public
Stakeholder Model
Corporation is answerable, either directly or indirectly, to various stakeholder groups that either positively or negatively affect the organization
-The goal of the corporation is to work cooperatively with these stakeholders to create shared value for as many stakeholders as possible, without resorting to trade-offs
The Industrial Revolution
economic metamorphosis occurring in England in late 1700s that signaled a shift from a simple agrarian economy to industrial economy
-sufficient capital, labor, and natural resources
-adequate transportation
-strong markets
-ideas and institutions that support the above three
Accelerated growth after 1825 due to
-advances in water sanitation
-mechanized farming
Globalization
the creation of networks of human interaction that span worldwide distances
-what has changed in the world to allow for this?
Nation-state
an international actor having a ruling authority, citizens, and a territory with fixed borders.
-arose from roman empire
-trade increasingly used to increase power instead of war
Ideologies in the industrial revolution
-capitalism
-constitutional democracy-protection of individuals' rights
-protestant work ethic
-darwinism/social darwinism/progress
Culture
A system of shared knowledge, values, norms, customs, and rituals acquired by social learning
Ethics
the stud of good and evil, right and wrong, just and unjust
Business Ethics
the study of ethics as applied to actions in business
Business
value for value exchange
Personal
ethical decisions you make with respect to your own personal conduct- the right answer is usually easy, but doing the right thing is difficult
Organizational
business policy decisions made for a business organization-the "right" answer is often hard to determine because of competing societal interests
Theory of Amorality
business should be conducted without reference to the full range of society's ethical standards
-recall the Separation Fallacy
-focus on playing by the "rules of the game"
Theory of Moral Unity
business actions should comport with general ethical standards of society
-high levels of personal ethics can be harmonized with business life
-business is just an aspect of life and affects numerous people, and thus should be held to same ethical standards
Socrates and Plato
focus on cultivating internal virtue and wisdom to understand absolute moral ideals
-believed that there were absolute moral standards, but the best way to understand them was to cultivate internal judgement/wisdom/virtue
Deontological Ethics
associated with immanual kant-focus on finding universal and objective ethical rules in logic, and morality of an action is based upon adherence to the rule, not to consequences
Consequencial Ethics
ethicality of an action can be determined by it's consequences. Commonly associated with Jeremy Bentham/utilitarianism
Rights Based Ethics
individuals have inalienable rights by virtue of being human, and ethics focuses on respecting these rights.
Realist Ethics
both good and evil are naturally present in human nature, and human behavior will ultimately reflect both
Ethical universalism
human nature is everywhere essentially the same, so basic ethical rules are applicable in all cultures
hypernorms
master ethical principles that underlie all other ethical principles and are universal, and to which all variations must conform
moral free space
some deviation from hypernorms within a culture is acceptable, but gross deviation is unethical
ethical relativism
the theory that ethical values are created by cultural experience and there is no universal standard by which to judge which values are superior
-as long as a culture considers it to be ethical, there is no objective standard to judge that it isn't
The Conventionalist Ethic
business is like a game with permissive ethics, and any action that does not violate the law ethically is permissible
Ends Means Ethic
ancient Roman proverb: "The ends justify the means"
-essentially any conduct is permissible if it is justified by the importance of the end that is sought
Might Equals Right
ancient greek origin : Justice is the interest of the stronger
-whoever is the strongest has the right to do what they want, and the use of power by those who have it is de facto ethical
The Organization Ethic
be loyal to the organization (AKA the mafia mentality)
-your role in business is to further the interests of your organization, and that is all you need to consider in business and ethical reasoning
The Principle of Equal Freedom
a person has the right to freedom unless such action deprives another person of a proper freedom
The Categorical Imperative
developed by Immanuel Kant-"Act only according to that maxim by which you can at the same time will that it should become a universal law"
-A rigid form of deontological ethics; "Could this act be turned into a universal code of behavior without society disintegrating?"
-Basically, would you be comfortable with everyone behaving this way?
Aristotelian (Virtue) Ethics
ethics is about building character and developing internal virtue and wisdom
The Golden Rule
common to many religions and philosophies: do unto others as you would have them do unto you.
-focus on reciprocity and putting yourself in someone else's shoes
-can be useful as a "tiebreaker" in tough situations
The Intuition Ethic
what is good or right is understood by an inner moral sense which must be cultivated, and is felt as intuition
-go with your gut
The Rights Ethic
each person has rights and duties that others have a duty to respect
-should think about your actions in terms of how they may negatively affect others rights.
Theory of Justice
contemporary philosopher John Rawls-"Justice is fairness"
-focuses on fair process in society and how inequalities should be distributed
-each person has an equal right to the most extensive basic liberty compatible with a similar liberty for others
-derived from the "Orginal Position" and the "Veil of Ignorance"
The Disclosure Rule
think hypothetically about how you would feel explaining your decision to a wider audience.
- "Would i be comfortable with my decision being talked about on CNN? Would i be comfortable with my parents and friends knowing?"
-Helps screen out your personal biases and helps you think in terms of the social contract.
-In the modern world, it is hard to keep secrets, so it helps you to think in these terms
Utilitarianism
consequentialist ethic associated with Jeremy Bentham and John Stuart Mill- focusing on creating the greatest good for the greatest number (maximize societal utility/minimize societal harm?
-can help you "split the baby" in tough decisions
-does not consider motives or values-focuses only on consequences
Proportionality Ethic
Catholic principle with a set of rules for making decisions where both good and evil consequences will result
Principle of Double Effect- after weighing these five factors, actions is ethical if:
-the good outweighs the bad
-the intention is to create the good effect
-there are no better alternatives
Agrarian
a society with a largely agricultural economy
-not much industrialization or developed markets, so there is a belief that amount of wealth in the world is fixed
-much of philosophy/religion develops in agrarian society, and thus profit making is considered to take wealth from others, thus not virtuous
Modern World
-with industrialization, view of business began to change
Protestant Work Ethic
belief that hard work and adherence to virtues could bring wealth and God's approval
Adam Smith
free markets harnessed greed to help society
Alexander Hamilton
favored industrial growth, wanted to promote manufacturing and finance
Thomas Jefferson
favored an agricultural base for the economy, said farming was more virtuous and would promote equality, basic justice, and concern for the common good
Economic Liberalism
philosophy that social progress comes when individuals freely pursue their self-interests in unregulated markets
Neoliberalism
modern economists who revived economic liberal thought. Market focused economic policies, laissez-faire government structure
Markets manage themselves, and government intervention should be slight to non-existent
Keynesianism
economic philosophy of active state intervention to stabilize economies and stimulate employment
Business Model
the underlying idea or theory that explains how a business will create value by making and selling products or services in the market
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