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Chapter 03 - Philosophical Ethics and Business
Chapter 03 Philosophical Ethics and Business Globalization True/False Questions
1. (p. 66) An ethical theory only attempts to answer the question of how we should live our lives. FALSE Not only do ethical theories attempt to answer the question of how we should live, but they also provide reasons to support their answer. AACSB: 1 BT: Knowledge Difficulty: Medium Learning Objective: 1
2. (p. 66) Deontological ethical traditions direct us to act on the basis of moral principles such as respecting human rights. TRUE Deontological ethical traditions, direct us to act on the basis of moral principles such as respecting human rights. AACSB: 1 BT: Knowledge Difficulty: Easy Learning Objective: 1
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3. (p. 67) Much of the neoclassical economics, and the model of business and management embedded in it, has its roots in utilitarian thinking. TRUE Utilitarianism was part of the same social movement that gave rise to modern democratic market capitalism. Much of neoclassical economics, and the model of business and management embedded in it, has its roots in utilitarian thinking. AACSB: 2 BT: Knowledge Difficulty: Medium Learning Objective: 1
4. (p. 67) Virtue ethics tells us that we should act in ways that promote human wellbeing, from among the alternatives we are considering. FALSE Utilitarianism tells us that we should act in ways that produce better overall consequences than the alternatives we are considering. "Better" consequences are those that promote human wellbeing. AACSB: 2 BT: Knowledge Difficulty: Medium Learning Objective: 1
5. (p. 68) If a basic human value is individual happiness, then an action that promotes more of that is not necessarily reasonable or justified from an ethical point of view. FALSE If a basic human value is individual happiness, then an action that promotes more of that is more reasonable and more justified from an ethical point of view. AACSB: 2, 3 BT: Knowledge Difficulty: Easy Learning Objective: 1
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6. (p. 68) Utilitarianism opposes policies that aim to benefit only a small social, economic, or political minority. TRUE Utilitarianism is a social philosophy that provides strong support for democratic institutions and policies and opposes those policies that aim to benefit only a small social, economic, or political minority. AACSB: 2 BT: Knowledge Difficulty: Medium Learning Objective: 1
7. (p. 69) According to the text, if child labor produces overall positive consequences to the economy, utilitarianism will support it. TRUE One might argue on utilitarian grounds that child labor practices are ethically permissible if they produce better overall consequences than the alternatives. AACSB: 2 BT: Knowledge Difficulty: Easy Learning Objective: 1
8. (p. 69) Deontological traditions have a strong inclination to rely on the social sciences for help in predicting the social consequences of decisions. FALSE The utilitarian tradition has a strong inclination to rely on the social sciences for help in making such predictions. AACSB: 2, 3 BT: Knowledge Difficulty: Medium Learning Objective: 1
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9. (p. 70) According to the utilitarian movement imbibing the tradition of Adam Smith, business managers should focus on profit maximization. TRUE One movement within utilitarian thinking invokes the tradition of Adam Smith, claiming that free and competitive markets can attain utilitarian goals. AACSB: 2 BT: Knowledge Difficulty: Hard Learning Objective: 2
10. (p. 70) Under the framework of virtue ethics, competitive markets are considered the most efficient means of maximizing happiness. FALSE Economists see competitive markets as the most efficient means to the utilitarian end of maximizing happiness. AACSB: 3 BT: Knowledge Difficulty: Medium Learning Objective: 2
11. (p. 71) The 'market' version of utilitarianism argues that questions of safety and risk should be determined by experts who establish standards that the business is required to meet. FALSE The 'administrative' version of utilitarianism argues that questions of safety and risk should be determined by experts who then establish standards that business is required to meet. AACSB: 2, 3 BT: Knowledge Difficulty: Medium Learning Objective: 3
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12. (p. 73) Utilitarian ethics can support the breaking of duties or responsibilities. TRUE Since utilitarianism focuses on the overall consequences, utilitarianism seems willing to sacrifice the good of individuals for the greater overall good. AACSB: 2 BT: Knowledge Difficulty: Medium Learning Objective: 4
13. (p. 76) A social contract functions to organize and ease relations between individuals. TRUE Rules can be thought of as part of a social agreement, or social contract, which functions to organize and ease relations between individuals. AACSB: 1 BT: Knowledge Difficulty: Easy Learning Objective: 5
14. (p. 83) An ethics of virtue shifts the focus from questions about who a person is, to what a person should do. FALSE An ethics of virtue shifts the focus from questions about what a person should do, to a focus on who that person is. AACSB: 2, 3 BT: Knowledge Difficulty: Easy Learning Objective: 8
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15. (p. 86) Virtue ethics remind us to look to the actual practices within businesses and ask what type of people these practices are creating. TRUE Virtue ethics reminds us to look to the actual practices we find in the business world and ask what type of people these practices are creating. AACSB: 3 BT: Knowledge Difficulty: Hard Learning Objective: 8
Multiple Choice Questions
16. (p. 66) An ethical tradition that directs us to decide based on overall consequences of our actions is termed a. deontological ethics. b. social justice. C. utilitarianism. d. virtue ethics. Utilitarianism is an ethical tradition that directs us to decide based on overall consequences of our act. AACSB: 1 BT: Knowledge Difficulty: Easy Learning Objective: 1
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17. (p. 66) The study of various character traits that can contribute to, or obstruct, a happy and meaningful human life is part of a. philosophical ethics. B. virtue ethics. c. deontological ethics. d. utilitarianism. Virtue ethics directs us to consider the moral character of individuals and how various character traits can contribute to, or obstruct a happy and meaningful human life. AACSB: 2 BT: Knowledge Difficulty: Medium Learning Objective: 1
18. (p. 66) Philosophical ethics seeks foundations that all reasonable people can accept, regardless of their a. educational background. b. economical background. c. cultural background. D. religious background. Philosophical ethics seeks foundations that all reasonable people can accept, regardless of their religious convictions. AACSB: 2, 3 BT: Knowledge Difficulty: Easy Learning Objective: 1
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19. (p. 67) _____ was part of the same social movement that gave rise to modern democratic market capitalism. A. Utilitarianism b. Virtue ethics c. Deontological ethics d. Ethical relativism Utilitarianism was part of the same social movement that gave rise to modern democratic market capitalism. AACSB: 2, 3 BT: Knowledge Difficulty: Medium Learning Objective: 1
20. (p. 68) Which among the following provides a strong support for democratic institutions and policies? A. Utilitarianism b. Virtue ethics c. Deontological ethics d. Social justice The emphasis on producing the greatest good for the greatest number makes utilitarianism a social philosophy that provides strong support for democratic institutions and policies and opposes those policies that aim to benefit only a small social, economic, or political minority. AACSB: 1 BT: Knowledge Difficulty: Medium Learning Objective: 1
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21. (p. 69) According to which type of ethical framework would child labor in any country be tolerated? a. Virtue ethics b. Deontological ethics C. Utilitarianism d. Social justice In judging the ethics of child labor, utilitarian thinking would advise us to consider all the likely consequences of employing young children in factories. If the consequences are good, then it is tolerated. AACSB: 2 BT: Knowledge Difficulty: Easy Learning Objective: 1
22. (p. 69) The utilitarian tradition has a long history of relying on _____ for deciding on the ethical legitimacy of alternative decisions. a. intuition b. experience c. variable analysis D. social sciences Deciding on the ethical legitimacy of alternative decisions requires that we make judgments about the likely consequences of our actions. How do we do this? The utilitarian tradition has a strong inclination to rely on the social sciences for help in making such predictions. AACSB: 3 BT: Knowledge Difficulty: Hard Learning Objective: 1
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23. (p. 70) Utilitarian thinking would promote the following policies except to: a. deregulate private industry. b. protect property rights. C. regulate advertising. d. allow for free exchanges. Utilitarian thinking invokes the tradition of Adam Smith, claiming that free and competitive markets are the best means for attaining utilitarian goals. This version would promote policies that deregulate private industry, protect property rights, allow for free exchanges, and encourage competition. AACSB: 2, 3 BT: Knowledge Difficulty: Medium Learning Objective: 2
24. (p. 70) One sector of economists that view profit maximization as a central idea to corporate social responsibility are following the a. social justice through fairness framework of ethics. b. deontological framework of ethics. C. utilitarian framework of ethics. d. virtuebased framework of ethics. One movement within utilitarian thinking invokes the tradition of Adam Smith, claiming that free and competitive markets are the best means for attaining utilitarian goals. Given this utilitarian goal, neoclassical free market economics advises us that the most efficient economy is structured according to the principles of free market capitalism. This requires that business managers, in turn, should seek to maximize profits. This idea is central to one common perspective on corporate social responsibility. AACSB: 2, 3 BT: Knowledge Difficulty: Medium Learning Objective: 2
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25. (p. 70 – 71) Under which of the following do the legislative (bureaucratic) side and the administrative side of an organization work together? a. Virtue ethics framework of ethics. B. Utilitarian framework of ethics. c. Social justice through fairness framework of ethics. d. Deontological framework of ethics. A second influential version of utilitarian policy turns to policy experts who can predict the outcome of various policies and carry out policies that will attain utilitarian ends. This approach to public policy underlies one theory of the entire administrative and bureaucratic side of government and organizations. From this view, the legislative body establishes the public goals that we assume will maximize overall happiness. The administrative side executes (administers) policies to fulfill these goals. AACSB: 2, 3 BT: Knowledge Difficulty: Hard Learning Objective: 3
26. (p. 71) What according to the authors will prove best for optimally satisfying the various interests in the two approaches to utilitarianism? A. Marketbased solutions b. Consumersupplier partnerships c. Deontological practices d. Strict governmental regulations The very basic economic concept of efficiency can be understood as a placeholder for the utilitarian goal of maximum overall happiness. Thus, marketbased solutions will prove best at optimally satisfying these various and competing interests and will thereby serve the overall good. AACSB: 3 BT: Knowledge Difficulty: Medium Learning Objective: 3
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27. (p. 72) Which among the following frameworks of ethics becomes less practical with an increase in the number of people, animals, etc that could be affected by decisions made? a. Virtue ethics framework of ethics. B. Utilitarian framework of ethics. c. Social justice through fairness framework of ethics. d. Deontological framework of ethics. Some utilitarians argue that the happiness of future generations ought to be considered; others include animals and all living beings capable of feeling pleasure and pain. The more expansive the list we should consider, the less practical utilitarian thinking becomes. AACSB: 2, 3 BT: Knowledge, Analysis Difficulty: Medium Learning Objective: 4
28. (p. 72) The essence of utilitarianism is a. to compare the consequences of alternative actions. B. its reliance on consequences. c. its focus on just one consequence. d. to ignore harmful consequences. A second challenge goes directly to the core of utilitarianism. The essence of utilitarianism is its reliance on consequences. AACSB: 3 BT: Knowledge Difficulty: Medium Learning Objective: 4
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29. (p. 72 – 73) Which ethical framework goes against the ethical principle of obeying certain duties or responsibilities, no matter the end result? a. Deontological framework of ethics. b. Social justice through fairness framework of ethics. c. Virtue ethics framework of ethics. D. Utilitarian framework of ethics. A second challenge goes directly to the core of utilitarianism. The essence of utilitarianism is its reliance on consequences. In short, the end justifies the means. But this seems to deny one of the earliest ethical principles that many of us have learned: The ends do not justify the means. To put it another way, we have certain duties or responsibilities that we ought to obey, even when doing so does not produce a net increase in overall happiness. AACSB: 2, 3 BT: Knowledge Difficulty: Easy Learning Objective: 4
30. (p. 73) A manager honoring a commitment, although resulting in unfavorable consequences, is highlighting the difficulties associated with which type of ethical framework? a. Virtue ethics framework of ethics. B. Utilitarian framework of ethics. c. Social justice through fairness framework of ethics. d. Deontological framework of ethics. A second challenge goes directly to the core of utilitarianism. The essence of utilitarianism is its reliance on consequences. In short, the end justifies the means. But this seems to deny one of the earliest ethical principles that many of us have learned: The ends do not justify the means. To put it another way, we have certain duties or responsibilities that we ought to obey, even when doing so does not produce a net increase in overall happiness. AACSB: 2, 3 BT: Knowledge, Analysis Difficulty: Hard Learning Objective: 4
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31. (p. 74 – 75) Which ethical framework is based on the foundations of rules and the need for them to be followed, no matter the consequences? a. Virtue ethics framework of ethics. b. Social justice through fairness framework of ethics. c. Utilitarian framework of ethics. D. Deontological framework of ethics. The idea behind deontological ethics is based on common sense. Ethical principles can simply be thought of as types of rules, and this approach to ethics tells us that there are some rules we ought to follow, even if doing so prevents good consequences from happening or even if it results in some bad consequences. AACSB: 2 BT: Knowledge Difficulty: Easy Learning Objective: 5
32. (p. 75) Rolebased duties concerned with professionals in business (lawyers, accountants, financial analysts, bankers etc.) are often termed as _____. a. work culture b. code of conduct c. activity alerts D. gatekeeper functions Perhaps the most dramatic example of rolebased duties concerns the work of professionals within business. They have important roles to play within political and economic institutions. Many of these roles, often described as "gatekeeper functions," insure the integrity and proper functioning of the economic, legal, or financial system. AACSB: 3 BT: Knowledge Difficulty: Easy Learning Objective: 5
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33. (p. 76) This signifies the fact that no group could function if members were free at all times to decide for themselves what to do and how to act. a. Ethical standards B. Social contract c. Social mores d. Personal norms Legal rules, organizational rules, rolebased rules, and professional rules can be thought of being a part of a social agreement, or social contract, which functions to organize and ease relations between individuals. No group could function if members were free at all times to decide for themselves what to do and how to act. AACSB: 3 BT: Knowledge Difficulty: Medium Learning Objective: 5
34. (p. 77) Immanuel Kant argued that there is one fundamental ethical principle that one has to follow, no matter what the consequence. Identify it. a. Speak the truth always. b. Remain loyal to family. C. Respect the dignity of individuals. d. Always help the poor. The foremost advocate of this tradition in ethics, the 18thcentury German philosopher Immanuel Kant, argued that there is essentially one such fundamental ethical principle: respect the dignity of each individual human being. AACSB: 2 BT: Knowledge Difficulty: Easy Learning Objective: 6
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35. (p. 77) Kant's version which directs us to act according to those rules that could be universally agreed by all people forms part of the famous "Kantian _____." a. hypothetical imperative b. decisive correlations C. categorical imperative d. moral objectivism One version directs us to act according to those rules that could be universally agreed to by all people. (This is the first form of the famous "Kantian categorical imperative.") AACSB: 3 BT: Knowledge Difficulty: Medium Learning Objective: 6
36. (p. 78) Fundamentally, the concept of _____ is central to the deontological tradition. a. social justice b. normative analysis c. personal ethics D. moral rights According to Immanuel Kant, by treating humans as ends in themselves, and not as a means to one's own ends, the concept of a moral right is central to the deontological tradition. AACSB: 2 BT: Knowledge Difficulty: Easy Learning Objective: 6
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37. (p. 78) Which among the following justifies the assumption that humans possess special dignity, and should be treated as ends in themselves? a. Their ability to make rely on instinct. b. Their ability to love and nourish their offspring. C. Their ability to make free and rational choices. d. Their ability to act according to conditioning. What human characteristic justifies the assumption that humans possess a special dignity? The most common answer offered through the Western ethical tradition is that the human capacity to make free and rational choices is the distinctive human characteristic. AACSB: 2, 3 BT: Knowledge Difficulty: Medium Learning Objective: 6
38. (p. 80) Which among the following is not a legal right? a. Equal opportunity b. Collective bargaining as part of a union C. Particular pension funds d. Freedom from sexual harassment Legal rights granted to employees on the basis of legislation or judicial rulings include a right to a minimum wage, equal opportunity, to bargain collectively as part of a union, to be free from sexual harassment, and so forth. Employee rights might also refer to those goods that employees are entitled to on the basis of contractual agreements with employers. In this sense, a particular employee might have a right to a specific health care package, a certain number of paid holidays, pension funds, and the like. AACSB: 3 BT: Knowledge Difficulty: Medium Learning Objective: 7
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39. (p. 81) Rawls' system of social justice as fairness is founded on all of the following except a. the veil of ignorance. b. unanimous agreement. c. institutionalized fairness. D. equal distribution of benefits of a society. One of the principles derived from the veil of ignorance is the fact that the benefits and the burdens of a society should generally be distributed equally. AACSB: 2 BT: Knowledge Difficulty: Hard Learning Objective: 7
40. (p. 86) Which of the following focuses on the concept of practices and what type of people these practices are creating? A. Virtue ethics framework of ethics. b. Social justice through fairness framework of ethics. c. Utilitarian framework of ethics. d. Deontological framework of ethics. Virtue ethics reminds us to look to the actual practices we find in the business world and ask what type of people these practices are creating. Many individual moral dilemmas that arise within business can best be understood as arising from a tension between the type of person we seek to be and the type of person business expects us to be. AACSB: 3 BT: Knowledge Difficulty: Medium Learning Objective: 8
Fill in the Blank Questions
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41. (p. 66) ___________ provides a rational justification for why we should act and decide in a particular way. Philosophical ethics Anyone can offer prescriptions for what you should do and how you should act, but philosophical ethics answers the "Why?" question as well by connecting its prescriptions with an underlying account of a good and meaningful human life. AACSB: 1 BT: Knowledge Difficulty: Medium Learning Objective: 1
42. (p. 66) Virtue ethics directs us to consider the _____ of individuals and how various character traits can contribute to, or obstruct a happy, meaningful life. moral character Virtue ethics, directs us to consider the moral character of individuals and how various character traits can contribute to, or obstruct, a happy and meaningful human life. AACSB: 2 BT: Knowledge Difficulty: Easy Learning Objective: 1
43. (p. 67) _____ was part of the same social movement that gave rise to modern democratic market capitalism. Utilitarianism The first ethical tradition that we will discuss, utilitarianism, has its roots in 18th and 19th century social and political philosophy. Utilitarianism was part of the same social movement that gave rise to modern democratic market capitalism. AACSB: 1 BT: Knowledge Difficulty: Medium Learning Objective: 1
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44. (p. 68) The emphasis on producing the greatest good for the greatest number makes utilitarianism a _____. social philosophy The emphasis on producing the greatest good for the greatest number makes utilitarianism a social philosophy that provides strong support for democratic institutions and policies and opposes those policies that aim to benefit only a small social, economic, or political minority. AACSB: 2, 3 BT: Knowledge Difficulty: Hard Learning Objective: 1
45. (p. 69) People endorsing child labor and justifying that it brings in foreign investment within poor countries are mostly _____. utilitarians Utilitarians consider choices and decisions in terms of the consequence of the action, and it they feel that child labor will have more positive end results than negative ones; then child labor could be endorsed by utilitarians. AACSB: 2 BT: Knowledge Difficulty: Medium Learning Objective: 1
46. (p. 69) Utilitarian reasoning usually supplies some support for each _____. competing available alternative Utilitarian reasoning also usually supplies some support for each competing available alternative. AACSB: 2, 3 BT: Knowledge Difficulty: Hard Learning Objective: 1
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47. (p. 70) In a utilitarian goal, neoclassical free market economics advises us that the most efficient economy is structured according to the principles of _____. free market capitalism One movement within utilitarian thinking invokes the tradition of Adam Smith, claiming that free and competitive markets are the best means for attaining utilitarian goals. Given this utilitarian goal, neoclassical free market economics advises us that the most efficient economy is structured according to the principles of free market capitalism. AACSB: 3 BT: Knowledge Difficulty: Medium Learning Objective: 3
48. (p. 71) The _____ version of the utilitarian framework of ethics is sympathetic with government regulation of business since such regulation will insure that business activities contribute to the overall good. administrative A second version of utilitarian policy turns to policy experts who can predict the outcome of various policies and carry out policies that will attain utilitarian ends. This approach to public policy underlies one theory of the entire administrative and bureaucratic side of government and organizations. This utilitarian approach, for example, would be sympathetic with government regulation of business on the grounds that such regulation will insure that business activities do contribute to the overall good. AACSB: 3 BT: Knowledge Difficulty: Medium Learning Objective: 3
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49. (p. 71) The _____ version of the utilitarian framework of ethics argues that the best judges of acceptable risk and safety of products are the consumers themselves. market The dispute between these two versions of utilitarian policy, what we might call the "administrative" and the "market" versions of utilitarianism, characterizes many disputes in business ethics. One clear example concerns regulation of unsafe or risky products. AACSB: 3 BT: Knowledge Difficulty: Medium Learning Objective: 3
50. (p. 72) One problem associated with utilitarianism is that the essence of utilitarianism is its _______. reliance on consequences A second challenge goes directly to the core of utilitarianism. The essence of utilitarianism is its reliance on consequences AACSB: 3 BT: Analysis Difficulty: Medium Learning Objective: 4
51. (p. 73) Keeping one's word, and ensuring contractual agreements no matter the consequences, is an example of _____. duties or responsibilities We have certain duties or responsibilities that we ought to obey, even when doing so does not produce a net increase in overall happiness. AACSB: 2 BT: Knowledge Difficulty: Medium Learning Objective: 4
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52. (p. 76) Legal rules, organizational rules, rolebased rules, and professional rules, all form a part of a social agreement called the _____. social contract Legal rules, organizational rules, rolebased rules, and professional rules can be thought of as part of a social agreement, or social contract, which functions to organize and ease relations between individuals. AACSB: 1 BT: Knowledge Difficulty: Easy Learning Objective: 4
53. (p. 77) The basis of the ethical principle emphasized by Immanuel Kant is to ______. respect the dignity of individuals The 18thcentury German philosopher Immanuel Kant, argued that there is essentially one such fundamental ethical principle: respect the dignity of each individual human being. AACSB: 3 BT: Knowledge Difficulty: Hard Learning Objective: 4
54. (p. 78) That humans are able to make free choices about how they live their lives, and make decision about their own ends, enables us to say that humans have _____. autonomy Humans do not act only out of instinct and conditioning; they make free choices about how they live their lives, about their own ends. In this sense, humans are said to have autonomy. AACSB: 3, 5 BT: Knowledge Difficulty: Easy Learning Objective: 4
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55. (p. 83) Virtue ethics differs from utilitarian and deontological approaches from the perspective of _____. egoism To understand how virtue ethics differs from utilitarian and deontological approaches, consider the problem of egoism. As mentioned above, egoism is a view that holds that people act only out of selfinterest. AACSB: 3 BT: Knowledge Difficulty: Easy Learning Objective: 8
Essay Questions
56. (p. 66) What is an ethical theory and how do they help? An ethical theory is nothing more than an attempt to provide a systematic answer to the fundamental ethical question: How should human beings live their lives? Not only do ethical theories attempt to answer the question of how we should live, but they also provide reasons to support their answer. As the previous chapter suggested, accountable decisionmaking requires giving reasons to justify our actions. Ethical theories seek to provide a rational justification for why we should act and decide in a particular way. Philosophical ethics answers the "Why?" question as well by connecting its prescriptions with an underlying account of a good and meaningful human life. AACSB: 2 BT: Knowledge Difficulty: Medium Learning Objective: 1
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57. (p. 70) Explain how the branch of utilitarianism claims free and competitive markets can help maximize the overall good? Utilitarianism answers the fundamental questions of ethics – what should we do? – by reference to a rule: Maximize the overall happiness. One movement within utilitarian thinking invokes the tradition of Adam Smith, claiming that free and competitive markets are the best means for attaining utilitarian goals. This version would promote policies that deregulate private industry, protect property rights, allow for free exchanges, and encourage competition. In such situations, decisions of rationally selfinterested individuals would result, as if led by "an invisible hand" in Adam Smith's terms, in the maximum satisfaction of individual happiness. Thus neoclassical free market economics advises us that the most efficient economy is structured according to the principles of free market capitalism. This requires that business managers, in turn, should seek to maximize profits. This idea is central to one common perspective on corporate social responsibility. By pursuing profits, business insures that scarce resources go to those who most value them and thereby insures that resources will provide optimal overall satisfaction. Thus, these economists see competitive markets as the most efficient means to the utilitarian end of maximizing happiness. AACSB: 2 BT: Analysis Difficulty: Medium Learning Objective: 2
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58. (p. 70 – 71) Describe the ‘administrative' version of the utilitarian framework of ethics, as applied to increasing the overall good. This version of utilitarian policy turns to policy experts who can predict the outcome of various policies and carry out policies that will attain utilitarian ends. These experts, usually trained in the social sciences such as economics, political science, and public policy, are familiar with the specifics of how society works, and they therefore are in a position to determine which policy will maximize the overall good. This approach to public policy underlies one theory of the entire administrative and bureaucratic side of government and organizations. From this view, the legislative body (from Congress to local city councils) establishes the public goals that we assume will maximize overall happiness. The administrative side (presidents, governors, mayors) executes (administers) policies to fulfill these goals. The people working within the administration know how the social and political system works and use this knowledge to carry out the mandate of the legislature. This utilitarian approach, for example, would be sympathetic with government regulation of business on the grounds that such regulation will insure that business activities do contribute to the overall good. AACSB: 2, 3 BT: Comprehension Difficulty: Hard Learning Objective: 3
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59. (p. 72 – 74) Briefly highlight the problems associated with utilitarian thinking. If utilitarianism advises that decisions be made by comparing the consequences of alternative actions, then we must have a method for making such comparisons. Thus there will be a tendency to ignore the consequences, especially the harmful consequences, to anyone other than those closest to us. This problem is intensified when we recognize that our actions may impact the happiness not only of ourselves and those people surrounding us, but unknown and untold people in distant places and in the distant future. A second challenge goes directly to the core of utilitarianism. The essence of utilitarianism is its reliance on consequences. Ethical and unethical acts are determined by their consequences. In short, the end justifies the means. But this seems to deny one of the earliest ethical principles that many of us have learned: The ends do not justify the means. Utilitarian reasoning demands rigorous work to calculate all the beneficial and harmful consequences of our actions. Perhaps more important, utilitarian reasoning does not exhaust the range of ethical concerns. Consequences are only a part of the ethical landscape. Responsible ethical decisionmaking also involves matters of duties, principles, and personal integrity. AACSB: 3 BT: Knowledge Difficulty: Hard Learning Objective: 4
60. (p. 75) Briefly explain how the concept of rolebased rules work. As an employee, one takes on a certain role that creates duties. Every business will have a set of rules that employees are expected to follow. Sometimes these rules are explicitly stated in a code of conduct, other times in employee handbooks, still others simply by managers. Likewise, as a business manager, one ought to follow many rules in respect to stockholders, employees, suppliers, and other stakeholders. Perhaps the most dramatic example of rolebased duties concerns the work of professionals within business. Lawyers, accountants, auditors, financial analysts, and bankers have important roles to play within political and economic institutions. Many of these roles, often described as "gatekeeper functions," insure the integrity and proper functioning of the economic, legal, or financial system. AACSB: 2, 3 BT: Analysis Difficulty: Easy Learning Objective: 5
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61. (p. 77) Explain how Immanuel Kant means that humans are subjects, and not objects. German philosopher Immanuel Kant, argued that there is essentially one such fundamental ethical principle: respect the dignity of each individual human being. One way to do so requires us to treat all persons as ends in themselves and never only as means to our own ends. In other words, our fundamental duty is to treat people as subjects capable of living their own lives and not as mere objects that exist for our purposes. To use the familiar subject/object categories from grammar, humans are subjects because they make decisions and perform actions rather than being objects that are acted upon. Humans have their own ends and purposes and therefore should not be treated simply as a means to the ends of others. AACSB: 2, 3 BT: Comprehension Difficulty: Easy Learning Objective: 6
62. (p. 78) How is the concept of moral right central to the concept of deontological ethics? The concept of a moral right is central to the deontological tradition since the inherent dignity of each individual means that we cannot do just anything we choose to another person. Moral rights protect individuals from being treated in ways that would violate their dignity and that would treat them as mere objects or means. Moral rights imply that some acts and some decisions are "offlimits." Accordingly, our fundamental moral duty (the "categorical imperative") is to respect the fundamental moral rights of others. Our rights establish limits on the decisions and authority of others. AACSB: 2 BT: Knowledge Difficulty: Easy Learning Objective: 6
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63. (p. 80) Distinguish between legal, contractual and employee rights of an employee. Legal rights are those granted to employees on the basis of legislation or judicial rulings. Thus, employees have a right to a minimum wage, equal opportunity, to bargain collectively as part of a union, to be free from sexual harassment, and so forth. Employee rights might refer to those goods that employees are entitled to on the basis of contractual agreements with employers. In this sense, a particular employee might have a right to a specific health care package, a certain number of paid holidays, pension funds, and the like. Finally, employee rights might refer to those moral entitlements to which employees have a claim independently of any particular legal or contractual factors. Such rights would originate with the respect owed to them as human beings. AACSB: 2, 3 BT: Comprehension Difficulty: Easy Learning Objective: 7
64. (p. 81) Explain the concept of ‘veil of ignorance'. John Rawls has developed one of the most powerful and influential accounts of justice. Rawls offers a contemporary version of the social contract theory that understands basic ethical rules as part of an implicit contract necessary to insure social cooperation. Imagine rational and selfinterested individuals having to choose and agree on the fundamental principles for their society. The image of members of a constitutional convention is a helpful model for this idea. To ensure that the principles are fair and impartial, imagine further that these individuals do not know the specific details or characteristics of their own lives. They do not know their abilities or disabilities and talents or weaknesses; they have no idea about their position in the social structure of this new society. They are, in Rawls's terms, behind a "veil of ignorance" and must choose principles by which they will abide when they come out from behind the veil. AACSB: 3 BT: Knowledge Difficulty: Easy Learning Objective: 7
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65. (p. 83) Briefly explain the concept of virtue ethics. An ethics of virtue shifts the focus from questions about what a person should do, to a focus on who that person is. This shift requires not only a different view of ethics but, at least as important, a different view of ourselves. Implicit in this distinction is the recognition that our identity as a person is constituted in part by our wants, beliefs, values, and attitudes. A person's character—those dispositions, relationships, attitudes, values, and beliefs that popularly might be called a "personality"—is not a feature independent of that person's identity. The character is not like a suit of clothes that you step into and out of at will. Rather, the self is identical to a person's most fundamental and enduring dispositions, attitudes, values, and beliefs. Note how this shift to an emphasis on the individual changes the nature of justification in ethics. AACSB: 2, 3 BT: Analysis Difficulty: Easy Learning Objective: 8
66. (p. 69) Explain how child labor may be justified in the eyes of a utilitarian. Utilitarianism begins with the conviction that we should decide what to do by considering the consequences of our actions. One might argue on utilitarian grounds that child labor practices are ethically permissible because they produce better overall consequences than the alternatives. AACSB: 2 BT: Knowledge Difficulty: Easy Learning Objective: 1
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67. (p. 69) What does utilitarianism rely upon to make predictions about possible consequences of our actions? Deciding on the ethical legitimacy of alternative decisions requires that we make judgments about the likely consequences of our actions. How do we do this? The utilitarian tradition has a strong inclination to rely on the social sciences for help in making such predictions. AACSB: 2 BT: Knowledge Difficulty: Easy Learning Objective: 1
68. (p. 70) According to one version of attaining the utilitarian goal, and with reference to Adam Smith's ‘an invisible hand', how is it possible to have the most efficient economy? One movement within utilitarian thinking invokes the tradition of Adam Smith, claiming that free and competitive markets are the best means for attaining utilitarian goals. Given this utilitarian goal, neoclassical free market economics advises us that the most efficient economy is structured according to the principles of free market capitalism. AACSB: 3 BT: Knowledge Difficulty: Hard Learning Objective: 2
69. (p. 72) How does utilitarianism directly go against the fundamental ethical principle? The essence of utilitarianism is its reliance on consequences. Ethical and unethical acts are determined by their consequences. In short, the end justifies the means. But this seems to deny one of the earliest ethical principles that many of us have learned: The ends do not justify the means. AACSB: 2, 3 BT: Knowledge Difficulty: Easy Learning Objective: 4
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70. (p. 73) How does utilitarianism contribute to responsible decisionmaking? Through utilitarianism, we are reminded of the significance of consequences. Responsible decisionmaking requires that we consider the consequences of our acts. But, as an ethical theory, utilitarianism also reminds us that we must consider the consequences to the well being of all people affected by our decisions. AACSB: 3 BT: Knowledge Difficulty: Easy Learning Objective: 4
71. (p. 75) What are the roles enacted by professionals within business termed as, and what do they entail? Lawyers, accountants, auditors, financial analysts, and bankers have important roles to play within political and economic institutions. Many of these roles, often described as "gatekeeper functions," insure the integrity and proper functioning of the economic, legal, or financial system. AACSB: 2, 3 BT: Knowledge Difficulty: Easy Learning Objective: 5
72. (p. 76) What is the social contract? Legal rules, organizational rules, rolebased rules, and professional rules can be thought of as part of a social agreement, or social contract, which functions to organize and ease relations between individuals. AACSB: 2 BT: Knowledge Difficulty: Easy Learning Objective: 5
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73. (p. 77) What is a moral right? Moral right is the right to be treated with respect, to expect that others will treat us as an end and never as a means only, the right to be treated as an autonomous person. AACSB: 2 BT: Knowledge Difficulty: Easy Learning Objective: 6
74. (p. 81) Explain briefly Rawls's theory of fairness as being the central element of a just decision or a just organization. The idea of the "original position," of having to make decisions behind a veil of ignorance, is at the heart of Rawls's theory that fairness is the central element of a just decision or just organization. He contends that our decisions ought to be made in such a way, and our social institutions ought to be organized in such a way, that they would prove acceptable to us no matter whose point of view we take. AACSB: 2, 3 BT: Comprehension Difficulty: Medium Learning Objective: 7
75. (p. 83) What is the biggest challenge posed by ‘egoism'? The biggest challenge posed by egoism and, according to some, the biggest challenge to ethics, is the apparent gap between selfinterest and altruism, or between motivation that is "selfregarding" and motivation that is "otherregarding." Ethics requires us, at least at times, to act for the wellbeing of others. AACSB: 3 BT: Knowledge Difficulty: Medium Learning Objective: 8
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