Business Ethics - The principles, norms and standards of conduct governing an individual or group
Process of Individual Ethical Decision-Making Behavior - Moral Awareness - Ethical Judgement - Ethical
Behavior
ethical dilemma - a situation in which two or more "right" values are in conflict.
Personal value conflicts with organizational value
consequentialist theories - focus attention on the results or consequences of the decision or action
deontological theories - focuses on duties, obligations and principles.
base their decisions about what's right on broad, abstract universal ethical principles or values such as
honesty, promise keeping, fairness, loyalty, rights (to safety, privacy, etc.), justice, responsibility,
compassion, and respect for human beings and property.
virtue ethics - focuses on integrity
utilitarianism - best known consequentialist theory.
would approach an ethical dilemma by systematically identifying the stakeholders in a particular
situation as well as the alternative actions and their consequences (harms and/or benefits) for each.
consequentialist - Name theory: challenge is it's difficult to evaluate all consequences
consequentialist - Name theory: challenge is the rights of minorities can be sacrificed
deontological - Name theory: decisions based upon abstract universal principles: honesty, promise-
keeping, fairness, rights, justice, respect
,deontological - Name theory: focus on doing what's "right" (consistent with these principles) rather than
doing what will maximize societal welfare
Kant's categorical imperative - Name rule: What kind of world would it be if everyone behaved
this way? Would I want to live in that world?
Rawls' veil of ignorace - Name rule: What would decision be if decision makers knew nothing about their
identities or status?
Golden Rule - Name rule: Treat others as you would have them treat you
virtue ethics - Name theory: disclosure rule
virtue ethics - Name theory: advantage is one can rely upon community standards
virtue ethics - Name theory: challenge is that its limited agreement about community standards
virtue ethics - Name theory: challenge is that many communities haven't done the thinking yet
virtue ethics - Name theory: challenge is that the community may be wrong
The Eight Steps to Sound Ethical Decision Making - 1. Gather the facts
2. Define the ethical issues
3. Identify the affected parties
4. Identify the consequences
5. Identify the obligations
6. Consider your character and integrity
7. Think creatively about potential actions
8. Check your gut
,Disclosure rule - Name rule: Would you want to see it printed in the New York Times?
conflict of interest - intersection of professional and personal interests
whistleblower - A person who exposes misconduct, alleged
dishonest or illegal activity occurring in an
organization.
Ethical Awareness - Step 1 in the Ethical Decision Making Process
A person recognizes that a situation or issue is one that raises ethical concerns and must be thought
about in ethical terms
Ethical Judgement - Step 2 in Ethical Decision Making Process
making a decision about what is right to do
Ethical Action - Step 3 in Ethical Decision Making Process
Do the right thing
Individual Differences - Characteristics of individuals that differentiate
one person from another, making one person
more predisposed to think and behave ethically
while another is predisposed to think and
behave unethically.
Kohlberg's Cognitive Moral Development - This theory can be applied to adults in business settings.
Level 1 Preconventional
Level 2 Conventional
Level 3 Postconventional and Principled
, Level 1 Preconventional
Level 2 Conventional
Level 3 Postconventional and Principled - Levels of Cognitive Moral Development
Level 1 Preconventional - What level of cognitive moral development? Obedience to authority for its
own sake. Sticking to rules to avoid punishment. Following rules only when it is in one's immediate
interest. Right is an equal exchange, getting a good deal.
Level 2 Conventional - What level of cognitive moral development? Stereotypical "good" behavior. Living
up to what is expected by peers and people close to you. Fulfilling duties and obligations of the social
system. Upholding laws and rules except in extreme cases where they conflict with social duties.
Level 3 Postconventional or Principled - What level of cognitive moral development?
Upholding rules because they are the social contract if they are consistent with values such as fairness
and rights and the greater good (not because of the majority opinion).
Following ethical principles of justice and rights. Acting in accord with principles when laws violate
principles.
Stage 1: Obedience and Punishment Orientation
Stage 2: Instrumental Purpose and Exchange - Stages in Level 1 Preconventional of Cognitive Moral
Development
Stage 1: Obedience and Punishment Orientation - obedience to authority for it's own sake.
sticking to rules to avoid punishment.
Stage 2: Instrumental Purpose and Exchange - following rules only when it's in one's immediate interest.
right is an equal exchange, getting a good deal.
Stage 3: Interpersonal Accord, Conformity, Mutual
Expectations
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller VasilyKichigin. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.48. You're not tied to anything after your purchase.
