Transcript BUSINESS LAW 3E, by Henry R. Cheeseman

Chapter 2
Business Ethics and Social Responsibility
Ethics

A set of moral principles or values
that governs the conduct of an
individual or a group
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Theories of Ethics


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Ethical Fundamentalism
Utilitarianism
Kantian
Rawl’s Social Justice Theory
Ethical Relativism
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
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Ethical Fundamentalism

A theory of ethics
which says that a
person looks to an
outside source for
ethical rules or
commands
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Utilitarianism

A moral theory which
dictates that people must
choose the action or follow
the rule that provides the
greatest good to society
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
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Kantian Ethics

A moral theory which
says that people owe
moral duties that are
based on universal
rules, such as the
categorical imperative
“Do unto others as you
would have them do
unto you”
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
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Rawl’s Social Justice Theory

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Social Contract Theory
Moral theory that says that each
person is presumed to have entered
into a social contract with all others
in society to obey moral rules that
are necessary for people to live in
peace and harmony
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Ethical Relativism

A moral theory which holds that
individuals must decide what is
ethical based on their own feelings
about what is right and wrong
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
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Theories of Social Responsibility

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Maximizing profits
Moral Minimum
Stakeholder Interest
Corporate
Citizenship
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Maximizing profits

A corporation owes a
duty to take actions
that maximize profits
for shareholders
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Moral Minimum

A theory of social responsibility which says
that a corporation’s duty is to make a
profit while avoiding causing harm to
others
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Stakeholder Interest

Theory of Social Responsibility which says that a
corporation must consider the effects its actions
have on persons other than its stockholders
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Corporate Citizenship

A theory of responsibility which says that a
business has a responsibility to do good
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
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