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163 Cards in this Set
- Front
- Back
Which model describes business as responding to economic forces? |
The Market Capitalism Model |
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The economic philosophy that rejects the intervention of the government in the operations of markets? |
Laissez-faire |
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An intangible object of thought |
Idea |
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An enduring belief about what important choices in how we live are "correct" is called |
Value |
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True or False: The social contract is an unwritten agreement between people in a society which gives people an opportunity to live in peace with each other. |
True |
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True or False: A social contract between business and society gives this relationship a moral basis for its operation. |
True |
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The entities that have a relationship with a corporation in such a way that they are affected immediately and powerfully by the actions of the corporation are called the |
A primary stakeholder |
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True or False: Economic activity is a geophysical force in the society |
True |
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True or False: BGS is the study of business, government, and society and its importance for managers. |
True |
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True or False: The primary purpose of a business is to make a profit by providing products that satisfy human needs. |
True |
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True or False: The structures and processes in a society that make and apply policies and rules are called business. |
False |
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True or False: A business needs to be responsive to its economic environment but not to its non-economic environment. |
False |
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True or False: Adam Smith used the word “capitalism” often in his published writings. |
False |
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True or False: Under the dominance model, corporations are insulated from the pressures that promote responsibility to society. |
True |
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True or False: “Enriches a few at the expense of many” – this is one of the principles of the Market Capitalism Model. |
False |
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True or False: Astor demonstrated real patriotic behavior in his business activity. |
False |
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True or False: In general, Rockefeller was ethical person because he donated huge money to the Church. |
False |
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A profit-making activity that provides products that are intended to satisfy human needs is called a(n): |
Business |
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The idea that there are no universal ethical values but that each culture determines these values is a basic tenet in: |
Ethical Relativism |
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Which of the following models emphasizes that corporations benefit or burden a number of persons, groups and entities both directly and indirectly? |
The stakeholder model |
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The duty of a corporation to avoid harm to the assets of society is called: |
Corporate Social Responsibility |
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True or False: Socialism accepts the basic values of capitalism. |
False |
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True or False: When a society is ruled by people who are smart and wealthy, this is called socialism. |
False |
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True or False: The industrial revolution decreased the gap between the rich and poor around the world. |
False |
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True or False: The idea of a classless society in which property is owned collectively by the people is a basic tenet in democracy. |
False |
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True or False: Corporate social responsibility has a definite, universal meaning. |
False |
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True or False: Large corporations often find stronger restraints on their operations in foreign countries. |
False |
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True or False: What is right or wrong in a business decision involving ethical concerns is always a clear decision. |
False |
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The idea that a retail shop owner should pay damages to a customer who was hurt by a salesperson is consistent with which ethical principle? |
Compensatory Justice |
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Which of the following explains why ethical decisions (decisions involving ethical issues) can be so difficult to make? |
Because knowledge of the future consequences of our actions is inherently limited |
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Which of the following would be a valid criterion for making an ethical decision? |
a. Choosing the alternative which creates the greatest good for the greatest number of people. b. Choosing the alternative that most effectively fulfills the manager’s most important obligations. c. Choosing the alternative that most completely follows the law. |
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The idea that the sole responsibility of a business is to maximize profits while acting within the law is a fundamental tenet in: |
Friedmanism |
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True or False: Kant’s categorical imperative is an ethical guideline that allows a manager to be flexible and act depending on the situation. |
False |
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True or False: The idea that different cultures have different ethical values is called the theory of ethical relativism. |
True |
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True or False: Top managers are the strongest influence on the integrity of the company’s managers. |
True |
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True or False: The ethical principle of equal freedom asks the manager to ask himself if his actions will prevent other workers from doing what they have a right to do. |
True |
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True or False: The conventionalist ethic is often a justification for questionable behavior by managers. |
True |
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Which of the following is NOT generally regarded to be a stakeholder of a firm? |
The environment |
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True or False: An enduring belief about which basic choices in a society are “correct” is called an idea |
False |
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True or False: The general public generally believes that a business has social responsibilities beyond merely making a profit. |
True |
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A set of statements that describes patterns of relationships in a complex subject is called a(n); |
Theory |
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The study of phenomena that move through time is called: |
History |
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The entities that have a relationship with a corporation in such a way that they are affected immediately and powerfully by the actions of the corporation are called the: |
Primary Stakeholders |
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True or False: The vast majority of the poor people on earth live in economies that have been transformed by industrial growth |
False |
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True or False: The modern nation-state arose out of the ruin of the Roman Empire. |
True |
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True or False: Changes in the business environment can sometimes result from unknown and unpredictable causes. |
True |
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True or False: Trade liberalization occurs when nations promote trade by easing tariff restrictions but not non-tariff restrictions. |
False |
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True or False: Values that are based on the assumption of affluence are called postmodern values. |
True |
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Inequality in living standards as measured by HDI is__________ , while income inequality as measured by per capita GDP is__________ . |
Declining, Rising |
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True or False: Power is sometimes used in U.S. society to prevent change. |
True |
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True or False: All societies have mechanisms to control power. |
True |
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True or False: The force behind a company’s actions is called its power. |
True |
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True or False: On a deep level,corporate power creates many indirect effects on the society in which it operates. |
True |
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True or False: Increases in business mergers are caused by changes in the economic environment of the society that create incentives to combine businesses. |
True |
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True or False: The U.S. Constitution discourages pluralism. |
False |
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True or False: Modern socialist ideas were developed by Francois-Noel Babeuf. |
True |
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A society that has its economic, political, and cultural values based on agriculture is called: |
Agarian |
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The idea that hard work and acting in a virtuous manner will result in the approval of God is called: |
The Protestant Ethic |
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When a society is ruled by people who are wealthy, it is called a(n): |
Plutocracy |
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When a group of consumers places pressure on a company to make efforts to reform its policies by refusing to buy this company’s products, this is called a(n): |
Boycott |
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True or False: When managers are convicted of criminal behavior, prison sentences are imposed based on a numerical formulas |
True |
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True or False: The doctrine of the mean in ethics is a fundamental teaching of Aristotle. |
True |
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True or False: Thracymachus believed that justice is simply what is in the best interest of the stronger person. |
True |
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In considering whether or not to do a certain action based on ethical reasoning, when the manager asks herself: “If I act in this way, would my family approve of my actions?”, she is applying which principle? |
The Others Test |
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“Do unto others as you would have them do unto you” is the basic premise in which ethical principle? |
The Golden Rule |
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When a manager makes ethical decisions based on what he feels he can get away with given his power in the organization’s hierarchy, he is using which ethical principle? |
The Might-Equals Right Ethic |
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The idea that pay raises should be based on objective performance criteria instead of the “buddy system” is fundamental to which ethical principle? |
Distributive Justice |
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The idea that a retail shop owner should pay damages to a customer who was hurt by a salesperson is consistent with which ethical principle? |
Compensatory Justice |
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True or False: The populist movement of farmers blamed society’s social problems on industry and wanted government ownership of the railroads, telegraphand telephone companies, and banks.. |
True |
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True or False: The idea of a classless society in which property is owned collectively by the people is a basic tenet in democracy. |
False |
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True or False: Socialism accepts only the basic values of capitalism. |
False |
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The ability of a business to influence government is called: |
Political Power |
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The purpose of the U.S. Foreign Corrupt Practices Act's requirement of full disclosure of the company's relations with sales agents and government officials is: |
To prevent bribery and other legally quetionable payments |
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True or False: Kohlberg’s Six Stages of Morality and Ethical Judgments are the best approach to figure out ethical and unethical decisions. |
False |
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People everywhere depend on ethical systems to tell them whether their actions are: |
Right or Wrong |
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Stakeholders involved with one part of a company often may have little or no involvement with another part of a company |
True |
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True or False: Human rights issues have become more prominent and important for business. |
True |
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A stakeholder analysis: |
Involves understanding the nature of stakeholder interest |
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Which of the following is a justification given by advocates of Corporate Social Responsibility (CSR)? |
CSR motivates employees and creates loyal customers |
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A stakeholder is defined as: |
An entity thatis either benefited or burdened by the actions of the organization. |
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What stakeholder group(s) can exercise legal power? |
Employees, Customers and Shareholders |
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According to utilitarian reasoning, if the benefits outweigh the costs, then the action is ethical because it produces: |
The greatest good for the greatest number of people
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An employee may become an external whistle-blower by: |
Speaking with the media or appropriate government agency |
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A giant step is taken toward improving ethical performance throughout the company when: |
Senior level managers signal to employees that they believe ethics is a high priority |
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True or False: Respecting others, except those with whom we disagree or dislike, is the essence of ethical rights reasoning. |
False |
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What can government Influence? |
Legal Environment, Political Regime, Economic Environment |
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What can Business Influence? |
Economic Environment & Technological Environment |
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What can society influence? |
Technological Environment & Cultural Environment |
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Parts of legal environment? |
Legislation, Regulation and Litigation |
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Parts of Political Regime? |
Democracy or Not? Level of control over media, businesses, and civil services |
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Parts of Economic Environment? |
Commodity prices, interest rates, and currency fluctuations |
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Parts of Technological Environment? |
Access to Modern Technology |
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Parts of Cultural Environment? |
Social Norms, Values, Customs, Rituals and Taboos |
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What is government? |
Refers to structures and processes in society that authoritatively make and apply policies and rules |
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What is society? |
A network of human relations that include three interacting elements: Ideas, Institutions and Material Things |
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Why is the BGS field important to managers? |
To succeed in meetings its objectives a business must be responsive to both its economic and its noneconomic environment |
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What is managerial capitalism? |
Dominated by smaller numbers of large corporations run by hierarchies of salaried managers |
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Principles of Market Capitialism Model? |
1.Government regulation should be limited. 2. Markets discipline private economic activity to promote social welfare 3. The proper measure of corporate performance is profit 4. The ethical duty of management is to promote the interests of shareholders |
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Dominance Model? |
Business and Government dominate the masses "Enriches a few at the expense of many" |
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Define the conclusions of the Countervailing Forces Model? |
Business is deeply integrated into an open society
Business is a major initiator of change in society
Broad public support of business depends on its adjustment to multiple social,political, and economic forces
BGS relationships continuously evolve as changes take place in the main ideas,institutions, and processes of society. |
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Entities in a relationship with the corporation in which the effects on them, the corporation, or both are less significant and pressing. |
Secondary Stakeholders |
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Name some forces that changed the business environment? |
1. The Industrial Revolution 2. Population Growth 3. Technology 4. Globalization 5. Inequality 6. Nation-States 7. Dominant Ideologies 8. Great Leadership 9. Chance |
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What was the Industrial Revolution? |
The Industrial Revolution was the major shift of technological, socioeconomic and cultural conditions in the late 18th and early 19th century that began in Britain and spread throughout the world. |
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First Phase of the Industrial Revolution? |
Transfer of Knowledge Industry Innovations Transportation |
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Second Phase of the Industrial Revolution? |
Electricity Communication Industry Urbanization Entertainment
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Implications of current population trends... |
The wealth gap between high- and low-income countries will extend Growth will continue to strain the earth’s ecosystems The West is in demographic decline compared with other peoples |
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Defined as growing networks of economic, political, social, military, scientific, or environmental interdependence, is a long-term environmental force going back to prehistoric times |
Globalization |
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Composite index that measures the average achievements in a country in three basic dimensions of human development: |
Human Development Index (HDI) |
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Measures of HDI? |
Life expectancy Literacy Rate GDP per capita in PPP US dollars |
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Unit of human organization in which individuals and cultural groups can influence their circumstances and future. |
Nation-state |
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A coherent system of ideas, relying upon a few basic assumptions about reality that may or may not have any factual basis, but are subjective choices that serve as the seed around which further thought grows |
Ideology |
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What are the characteristics of ideology? |
1. it must have power over cognitions; 2. it must be capable of guiding one'sevaluations; 3. it must provide guidance towardsaction; 4. it must be logically coherent |
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Ideology that seeks to establish a classless, stateless social organization,based upon common ownership of the means of production |
Communism |
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Kohlberg’s Six Stages of Morality and Ethical Judgments? |
Level 1. Preconventional Morality Stage 1. Obedience and Punishment Orientation Stage 2. Individualism and exchange Level II. Conventional Morality Stage 3. Good Interpersonal Relationships. Stage 4. Maintaining the Social Order. Level III. Postconventional Morality Stage 5. Social Contract and Individual Rights. Stage 6: Universal Principles |
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Persons in this stage obey rules to avoid punishment? |
Obedience and Punishment Orientation |
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Personal needs determine what is right or wrong. There is just one right opinion. Different individuals have different viewpoints. |
Individualism and Exchange |
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One's behavior is determined by what pleases and is approved by others? |
Good Interpersonal Relationships Stage |
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People on this stage think about society as a whole? |
Maintaining Social Order |
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Good is determined by socially agreed upon standard of individual rights... |
Social Contract and Individual Rights Stage |
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What is "good" and "right" are matters of individual conscience and involve abstract concepts of justice, human dignity, and equality? |
Universal Principles Stage |
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Study of good and evil, right and wrong, and just and unjust actions in business? |
Business Ethics |
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Conduct prescribed by convention or by authority to be used while interacting with business associates |
Business Etiquette |
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What are the two approaches to Business Ethics? |
Theory of Amorality Theory of Moral Unity |
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Business should be conducted without reference to the full range of ethical standards, restraints, and ideals in society |
Theory of Amorality |
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Business actions are judged by the ethical standards of society. |
Theory of Moral Unity |
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What are the four major sources of Ethical Values in Business? |
Religion Philosophy Culture Law |
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Holds that in terms of biological and psychological needs, human nature everywhere is the same? |
Ethical Universalism |
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True or False: Corporations are criminally liable for corrupt actions of managers if those actions are intended to benefit the corporation |
True |
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What are the four internal forces that shape corporate ethics? |
Leader's example Policies Organization Culture Individual Characteristics
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A factor that contributes to lowered ethical climates in corporations is? |
Moral Muteness |
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The set of shared values, beliefs, and norms that influences the way employees think, feel, and behave toward each other and toward people outside the organization? |
Organizational Culture |
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The study of duty or obligation? |
Deontology |
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The study of the ends? |
Consequentialism |
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An action is right if it is in accordance with a moral rule or principle? |
Deontology |
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The Ends justifies the Means |
Consequentialism |
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Act only according to that maxim which will become a universal law |
The Categorical Imperative |
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Business is like a game with permissive ethics and any action that does not violate the law is permitted... |
The Conventionalist Ethic |
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Test an ethical decision by asking how you would feel explaining it to a wider audience such as newspaper readers,television viewers, or your family... |
The Disclosure Rule |
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Virtue is achieved through moderation. Avoid behavior that is excessive or deficient of a virtue... |
The Doctrine of the Mean |
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What is good or right is understood by an inner moral sense based on character development and felt as intuition... |
The Intution Ethic |
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Be loyal to the organization? |
The Organization Ethic |
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A person has the right to freedom of action unless such action deprives another person of a proper freedom... |
The Principle of Equal Freedom |
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A set of rules for making decisions having both good and evil consequences... |
The Proportionality Ethic |
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Each person has protections and entitlements that others have a duty to respect... |
The Rights Ethic |
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Each person should act fairly toward others in order to maintain the bonds of community... |
The Theory of Justice |
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The greatest good for the greatest number... |
The Utilitarian Ethic |
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Main sources of criticism of business? |
1. The belief that people in business place profit before more worthy values such as honesty, truth, justice, love, piety, etc.
2. The tension placed on societies by economic development. |
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Believed that insatiable appetites existed in every person, but could be controlled by acquiring inner virtues. |
Plato |
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True or False: The Catholic Church believed that merchants should charge a just price and opposed the modern idea of market price? |
True |
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Father of the cooperative movement and the Union? |
Robert Owen |
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Where was the first experiment with Socialism? |
New Harmony. A town in Indiana |
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Believed that the identity of a social class derived from its relationship to the means of production (as opposed to the notion that class is determined by wealthalone, i.e., lower class, middle class, upper class). |
Karl Marx |
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Aristocracy is the ruling class. Merchants develop into capitalists. |
Feudalism |
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Which system has the highest level of inequality? |
Socialism |
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Who believed that agrarian economy was the ideal social order? |
Thomas Jefferson |
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A political doctrine or philosophy that aims to defend the interests of the common people against an entrenched, self-serving or corrupt elite? |
Populist |
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Sought to cure social ills by using government to control perceived abuses of big business? |
Progressives |
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Liberalism and Neoliberalism? |
John Keynes and Milton Friedman |
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All monopolies are illegal in the US |
False |
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Which of the following is not a statue in place to protect the market from monopolies? |
Securities and Exchange Act of 1934 |
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True or False: Singapore's Prime Minister Lee Kuan Yee believed into the Principle of Equal Freedoms |
True |
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Which was not in the success of Singapore's economy? |
High Trade Barriers and little foreign investment |
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What was the key part of Margaret Thatcher's policy in the U.K.? |
Privatizing business |