Chapter 2

Study Guide 2-(Normative Theories of Ethics)

“A defensible moral judgment must be supportable by a sound moral principle”.

Normative- standard, guide:
P 69—Read and note the guidelines for handling obligations, ideals, effects.

Obligation- binding, contractual, duty to do certain things and avoid doing others
Ideals- morally important goal
Effects- consequences
1.    Define consequentialist theory.

2.    Define non-consequentialist theory.

3.    Summarize three problems with egoism according to Shaw.

4.    Define Utilitarianism. How did Bentham and Mill apply their ideas of utilitarianism?

5.    Why is utilitarianism appealing in an organizational context? ( three points)

6.    Articulate Adam Smith’s view of the role of business in society.

7.    Immanuel Kant sought moral principles that do not appeal to consequences and that define acts as inherently right and wrong.  Explain Immanuel Kant’s categorical imperative.

8.    How would Kant’s ethics be applied in an organizational context?

9.    Outline the seven basic obligations as articulated by W.D. Ross.

10.    Provide a definition of moral rights and distinguish between positive and negative rights.

11.    Terms and definitions

A.    Will:     B. Maxim:      C. Universalizable:     D. Prima facie obligation:

E.   Moral right:                 F. Positive rights:         G. Negative rights

Chapter 3

Study Guide 3- (Justice and Economic Distribution)

1.    What are the two requirements of justice according to the Aristotelian           notion of ethics?

2.    Summarize the rival principles of distribution.

3.    Compare and contrast the approach to justice as utilitarianism with justice as libertarianism.

4.    Summarize Nozick’s theory of justice.

5.    Summarize Rawls’ theory of justice.

Chapter 4

Study Guide 4-(The Nature of Capitalism)

1.    What is capitalism?

2.    Define socialism and explain Worker control socialism.

3.    Read the historical background and trace the evolution of capitalism through guilds, mercantile capitalism, and industrial capitalism. What is a Guild?

4.    How did state welfare capitalism come about and how does it differ from industrial capitalism?

5.    Outline the four features of capitalism today.

6.    Articulate as the text does the moral justification of capitalism.

7.    What are the major criticisms/ objections to the capitalistic economic system?

8.    Examine Karl Marx’s argument concerning exploitation and alienation in capitalism.

9.    Outline the essence of Marx’s critique of the system.

10.    The American economy is facing both theoretical and operational challenges.

11.    What are those challenges as outlined by Shaw?

12.    What is the laissez faire economic model?  How and why has that been changed over time in America?

Chapter 5

Study Guide 5-(Corporations)

1.    What are the implications of limited liability? How do limited liability companies differ from partnerships or other forms of organization?

2.    What are the issues with regard to assigning moral agency to a corporation?

3.    In what sense does a corporation make moral decisions?

4.    What are the responsibilities of a corporation?

5.    Articulate the narrow view of corporate responsibility as well as the broader view as discussed in the text.

6.    Outline the arguments against broadening corporate responsibility.

7.    What are the actions suggested in the text for creating an ethical atmosphere within corporations?

8.    We need to understand that there are limits to the law. What are those limits according to Shaw?

9.    Define and give examples of corporate culture.

Chapter 6

Study Guide 6-(Consumers)

1.    What is the basis for determining business’ responsibility to consumers especially in today’s economy?

2.    What recourse does the consumer have if injured by a defective product?

3.    What are the moral and legal responsibilities of business with regard to products sold to consumers?

4.    The doctrine of due care replaced the notion of caveat emptor.  Define and describe the doctrines of due care and caveat emptor.

5.    What is the doctrine of strict product liability and what are the basic arguments in its favor?

6.    What is the Consumer Product Safety Act?  What provisions does that Act make for protecting the public?

Consumer product safety is a 5-member consumer product safety commission that sets standards and policy.

7.    Economists and philosophers express concerns about protecting the public. Outline those concerns.

8.    What is the doctrine of legal paternalism? How does one defend regulations that may be classified as paternalistic?

9.    Shaw goes on to discuss the other areas of responsibility outside of product safety.  List and describe all of those areas.
A.    Product quality
B.    Prices
C.    Labeling and packaging

10.    What are some of the ways in which advertising can be considered to be deceptive?

11.    What does the Federal Trade Commission do? How does it regulate business?

Chapter 7

Study Guide 7- (The Environment)

1.    In speaking about the environment, define the following:
A.    Ecology
B.    Ecosystem
C.    Externality, or spillover
D.    Free-rider problem
E.    Cost-benefit analysis
F.    Ecological economics
2.    Who should pay the bill for environmental cleanup and restoration?

3.    Define and explain the use of the following terms.

A.    Regulatory approach
B.    Incentive approach
C.    Pricing mechanisms
D.    Pollution permits
E.    Naturalistic ethic

Chapter 8
Study Guide 8-(The Work Place (1): Basic Issues)

1.    Freedom/Privacy is one of the major issues dividing employers and employees today. What is civil liberties especially at the workplace?

2.    According to common law, what is employment at will?
3.    What is Bona fide occupation qualification (BFOQs)?
4.    In testing what two conditions must be measured? Define those measures.
A.
B.
5.    What is Situational Interview?
6.    Define the following terms:
A.    Seniority    B. Inbreeding        C. Nepotism        D. Just cause
E.    Due process    F. Firing    G. Termination    H. Layoff
I.   Position elimination    J. A living wage

7.    What is the National Labor Relation Act (also called the Wagner Act)?

8.    What is Right-to-work states?

Chapter 9

Study Guide 9-(The Workplace (2): Today’s Challenges)

1.    Privacy is one of the major issues dividing employers and employees today. Define privacy in the context of business ethics and give three examples of issues involving privacy.

2.    What is the general rule with regard to privacy?

3.    What are the moral issues raised by the use of polygraph and personality tests in the workplace?

4.    Outline the reasons that employers give as a justification for testing.

5.    What are the assumptions underlying the use of polygraphs?

6.    Outline the three moral concerns that should be addressed satisfactorily before proceeding with a polygraph.

7.    What are personality tests and why are they administered?

8.    List the questions that need to be raised prior to administering drug tests.

9.    What is OSHA? What is OSHA’s relationship to the workplace?
Chapter 10

Study Guide 10- (Moral Choices Facing Employees)

Obligations to the Firm include: Employees have an obligation to be loyal to their employees. Legal obligation based on the law of agency. Employees are obliged to warn the organization of danger; act to protect legitimate interests; cooperate actively to further corporate goals.
Argument against: loyalty depends on ties that demand self-sacrifice with no expectation of reward.
1.    What is Loyalty?

Avoiding conflicts of interest: Conflicts of interest are not always financial, when the private interests of employees are enough to interfere with organization’s best interests—job duties.  Employees should not subordinate the welfare of the organization for their own gain.
2.    How do Firms avoid conflict of interest?

Abuse of official position: Examples-Use of subordinates for non-organizational related work-
Insider trading-use of non-public information for one’s own benefit. Moral concerns arise for direct as well as indirect injury. Pros and cons for harm caused by insider trading
3.    What can be done to stop abuse of official position?

Proprietary Data: (Distinguish between patents and trade secrets) Patents-well defined legally.
Trade secrets-vague, broad, and imprecise. (Arguments for protecting trade secrets) 1. Intellectual property of company 2. Theft constitutes unfair competition 3. Violation of confidentiality agreement
4.    What is a trade secret?
5.    Explain the intent of Economic Espionage Act of 1996.

Bribes and Kickbacks: (Intent to induce to make a decision that would not otherwise be favorable)
6.    What is a bribe?
7.    What is a kickback?
8.    What is a Grease payment?
9.    Explain the intent of the Foreign Corrupt Practices act (FCPA) of 1977.

Gifts and Entertainment: Morality of giving depends on several questions: 1. Value of the gift 2. Purpose of gift 3. Circumstances under which gift is given 4. Position and sensitivity to influence of recipient 5.  Accepted business practice in industry 6. Company policy 7. Law
10.    What is a Quid pro quo?

Obligations to third parties: Moral decisions should take into account- Specific obligations- Any important ideals that our actions would support or undermine- Effects/consequences of various options. Obligations to employers should be distinguished from obligations to third parties Obligation to avoid injury and to be truthful and fair. Whistle Blowing—Self-interest and moral obligation
11.     What is whistle blowing?
12.    What is prudential reasons?

Chapter 11

Study Guide 11-(Job Discrimination)

1.    What is employment discrimination?

2.    Provide four examples of individual and institutional discrimination.

3.    How does one determine the existence of discrimination?

4.    Consider the statistical evidence discussed in the text.  Summarize the evidence   presented for discrimination against women and minorities.

5.    What is attitudinal evidence?  How does one gather evidence of attitudinal discrimination?

6.    Brown v Board of Education was an important ruling that concerned the constitutionality of segregated schools.  Research the ruling and summarize its essence and subsequent impact on education in particular and society in general

7.    What is the essence of the Civil Rights Act of 1964 and its implications with regard to employment?

8.    Bakke v Regents of the University of California was the first major ruling on affirmative action.  Summarize the Bakke decision and its impact on admissions and hiring.

9.    Summarize the arguments for and against affirmative action.

10.    Sexual harassment applies to male and female employees. What is sexual harassment?  Describe three types of sexual harassment.