CMU PHL 318 Exam 1 Coleman Study Guide Test.

CMU PHL 318 Exam 1 Coleman Study Guide Test. What is business ethics? - CORRECT ANSWER consists of the application of ethical values and standards to business activities What is a "generally accepted ethical standard"? - CORRECT ANSWER Ethical standards that are generally accepted by experts in business experts and most in the business community. Often at least partly codified in business law. Why should business professionals be concerned about ethics? - CORRECT ANSWER Unethical business activities harm the social and legal climate in which business operates. Unethical business practices violate either the letter or the spirit of the law Unethical business activities can pose unnecessary risks to the profitability of the company. Unethical business activities compromise one's integrity because they violate the ethical values that most business people hold. What does it mean to say that unethical business activities harm the social climate in which business operates? - CORRECT ANSWER Unethical business practices—especially when they are widespread and well-known—can severely tarnish the reputation of all business professionals, giving business itself a bad name. What does it mean to say that unethical business activities harm the legal climate in which business operates? - CORRECT ANSWER In the wake of major business scandals, or when there is a public perception that a business or industry is operating in a way that is unfair or detrimental to society, government often creates new laws, new regulations, new regulatory agencies, new bureaucracies, new forms to fill out, new requirements, new . . . . Additional business regulation increases the cost and complexity of doing business. What is the relationship between business ethics and business law? - CORRECT ANSWER They do not always match up perfectly However, the law often "follows" ethics Law is one way that society expresses strong ethical standards The "spirit of the law" is often an ethical principle/idea Much unethical behavior is actionable in civil court even if it is not criminal. What are some of the main costs of unethical business practices? - CORRECT ANSWER -legal costs: prison and fines, judgments in lawsuits, attorney's fees -reputation costs: customer/brand loyalty, recruitment, public goodwill (PR costs) -investor confidence -employee morale: turnover, labor unrest, productivity/pilferage/poor attention to quality **notice that many of these are long term costs and costs of damage to intangible assets. in contrast, the benefits of unethical actions are typically short-term and tangible When you figure in all of the potential costs and benefits of unethical practices, there is reason for cautious optimism about the claim that ethics is good for the bottom line. Why? - CORRECT ANSWER When you figure in all the long-term and intangible costs of unethical action, this conclusion seems reasonable: Doing the right thing is usually better from a cost-benefit perspective than it first appears. If there ever is any overall financial advantage to an unethical course of action, it is probably smaller than it first appears. In what way might it be appropriate to see business ethics as a form of risk management? - CORRECT ANSWER Even if unethical practices do not always backfire, they DO carry serious risks. Protecting from such risks is worthwhile, even if it costs such protection costs more than not having it. A policy of ethical business can be compared to an insurance policy—it protects the business from serious risks posed by unethical practices While you MIGHT get away with unethical business practices, the insurance is still worth it (just like it's worth having car insurance even if you never need it). In the context of this course, what does "integrity" mean? - CORRECT ANSWER Living in a way that is faithful to ALL of one's values—economic as well as ethical. Basically, living in a way that recognizes that while we value economic goods, we also have other values as well. When you inquire about the values that people hold (either directly or through exercises like the "What do you value" exercise), what important fact emerges? - CORRECT ANSWER Although we may disagree about specific moral issues (like abortion), by and large, almost everyone holds the same basic set of moral values. What are some of the most widely shared ethical and personal values? - CORRECT ANSWER Almost everyone in our society (and most others) holds the following ethical values: Compassion Respect Honesty Fairness Loyalty Keeping one's word Taking care of family and other loved ones Most people also value such things as Strong communities The natural environment A healthy society What is the relationship between business ethics and integrity? - CORRECT ANSWER Both are attempts to achieve a balance among all of one's values; that is, to keep one's financial and economic values in harmony with one's moral, ethical, and personal values.