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20 Cards in this Set
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Derived from ethical theories in philosophy offers decision-making tools that prescribe what decision you should make as a "conscientious moral agent" who thinks carefully about ethical choices |
The Prescriptive Approach - Designed to help you make the most ethical decision |
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Relies on psychological research and describes how people actually make ethical decisions |
The Descriptive Approach - It focuses in particular on the cognitive biases and limitations that often keep us from making the best possible decisions |
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Theories that focus on the results or consequences of the decision or action |
Consequentialist Thoery - Also known as the teleological theory |
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Consequentialist Theory An ethical decision should maximize benefits to society and minimize harms. What matters is the net balance of good consequences over bad, |
Utilitarianism - A utilitarian would approach an ethical dilemma by identifying the alternative actions and their consequences for all stakeholders - The best ethical decision would be the one that yielded the greatest net benefits for society, and the "worst" decision would be the one that yielded the greatest net harms for society. |
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It is often difficult to obtain the information required to evaluate all of the consequences for all stakeholders who may be directly/indirectly affected by an action or decision |
The Challenge in using a strictly consequentialist approach |
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Focus on Duties, Obligations, and Principles |
Deontological Theories |
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Comes from the Greek God Deon, meaning duty |
Deontological |
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Base their decisions on broad, abstract universal ethical principles or values such as honesty, promise keeping, fairness, loyalty, rights to safety privacy, justice, compassion, and respect for persons and property |
Deontologists - A Deontologist focuses on doing what is "right" (based on moral principles or values such as honesty) unlike a utilitarian who focuses on doing what will maximize societal welfare. |
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The concept of rights goes back to classical notions of Natural Rights that emerge from natural lawDeciding which duty, obligation, right, or principle takes precedence because ethical dilemmas often pit these against each other. |
A major challenge of deontological approaches |
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Focus on integrity |
Virtue Ethics |
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Focuses more on the integrity of the moral actor than on the moral act itself |
Virtue Ethics - Considers primarily the actor's character, motivation, and intentions - This doesn't mean that principles, rules, or consequences aren't considered at all, but they're considered in the context of assessing the actor's character and integrity |
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Important to ethical decision making as the law acknowledges |
Motivations and Intentions |
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Particularly useful in determining the ethics of an individual who works within a professional community that has well-developed norms and standards of conduct. |
Virtue Ethics - This approach allows the decision maker to rely on such relevant community standards without going thru the complex process of trying to decided what's right in every situation |
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The usefulness in business may also be limited because in many areas of business there is limited agreement about what the standards are |
Virtue Ethics |
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When the price of any commodity is neither more nor less than what is sufficient to pay the rent of land, the wages of the labour, and the profits of the stock employed in raising, preparing, and bringing it to market, according to their natural rates, the commodity us then sold for what may be called its: |
Natural Price |
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There is an intimate connection between economics and politics, that only certain combinations of political and economic arrangements are possible. |
Milton Friedman's Capitalism and Freedom |
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- Government enforcing information - Warning Labels - Comparisons - qualify buyers - Power to fine or ban products - Broker fiduciary duty |
Consumer Protection Bureau |
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- Gate Keepers of the marketplace - Direct role on marketplace have to go thru them to get to the market - Information/Education - Methods: Recalls and import refusals - Regulates a range of products |
Food and Drug Administration |
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- Fines and force recall of cars - To save lives, prevent injuries and reduce traffic-related health care and other economic costs - Protects consumers from the imbalance of information |
National Highway & Transportation Agency - Automobile Safety and Standards |
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- Will regulate online banking, mortgages, credit cards, payday loans, student loans and more - Power to fire or ban products - Broker fiduciary dury |
Consumer Financial Protection Agency |
