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Confucian culture, for example, stresses that individuals should share what they create with society. That may be, in part, what prompts the Chinese and other Asians to view the concept of intellectual property as a means for the West to monopolize its technological superiority.

What happens if ethical attitudes around the world permit large-scale software piracy? When ethics fail to support technological creativity, there are consequences that go beyond statistics—jobs are lost and livelihoods jeopardized. Companies must do more than lobby foreign governments for tougher enforcement of piracy laws.

They must cooperate with other companies and with local organizations to help citizens understand the consequences of piracy and to encourage the evolution of a different ethic toward the practice. At the other end of the spectrum from cultural relativism is ethical imperialism, which directs people to do everywhere exactly as they do at home. Again, an understandably appealing approach but one that is clearly inadequate. Consider the large U. Under the banner of global consistency, instructors used the same approach to train Saudi Arabian managers that they had used with U.

The instructors failed to consider how the exercise would work in a culture with strict conventions governing relationships between men and women. As a result, the training sessions were ludicrous. They baffled and offended the Saudi participants, and the message to avoid coercion and sexual discrimination was lost. The theory behind ethical imperialism is absolutism, which is based on three problematic principles.

Absolutists believe that there is a single list of truths, that they can be expressed only with one set of concepts, and that they call for exactly the same behavior around the world. In some cultures, loyalty to a community—family, organization, or society—is the foundation of all ethical behavior.

Values in Tension: Ethics Away from Home

The Japanese, for example, define business ethics in terms of loyalty to their companies, their business networks, and their nation. Americans place a higher value on liberty than on loyalty; the U. It is hard to conclude that truth lies on one side or the other, but an absolutist would have us select just one. The second problem with absolutism is the presumption that people must express moral truth using only one set of concepts. For instance, some absolutists insist that the language of basic rights provide the framework for any discussion of ethics.

That means, though, that entire cultural traditions must be ignored. The notion of a right evolved with the rise of democracy in post-Renaissance Europe and the United States, but the term is not found in either Confucian or Buddhist traditions. We all learn ethics in the context of our particular cultures, and the power in the principles is deeply tied to the way in which they are expressed.

The third problem with absolutism is the belief in a global standard of ethical behavior. Context must shape ethical practice. Very low wages, for example, may be considered unethical in rich, advanced countries, but developing nations may be acting ethically if they encourage investment and improve living standards by accepting low wages. Likewise, when people are malnourished or starving, a government may be wise to use more fertilizer in order to improve crop yields, even though that means settling for relatively high levels of thermal water pollution.

When cultures have different standards of ethical behavior—and different ways of handling unethical behavior—a company that takes an absolutist approach may find itself making a disastrous mistake. When a manager at a large U. Even the traditional litmus test—What would people think of your actions if they were written up on the front page of the newspaper? Companies must help managers distinguish between practices that are merely different and those that are wrong.

For relativists, nothing is sacred and nothing is wrong. For absolutists, many things that are different are wrong. Neither extreme illuminates the real world of business decision making. The answer lies somewhere in between. Consider those principles in action. In Japan, people doing business together often exchange gifts—sometimes expensive ones—in keeping with long-standing Japanese tradition.

When U. To them, accepting a gift felt like accepting a bribe. As Western companies have become more familiar with Japanese traditions, however, most have come to tolerate the practice and to set different limits on gift giving in Japan than they do elsewhere. Respecting differences is a crucial ethical practice. Research shows that management ethics differ among cultures; respecting those differences means recognizing that some cultures have obvious weaknesses—as well as hidden strengths.

In some parts of the Far East, stealing credit from a subordinate is nearly an unpardonable sin. People often equate respect for local traditions with cultural relativism. That is incorrect. Some practices are clearly wrong. Since the incident at Bhopal, Union Carbide has become a leader in advising companies on using hazardous technologies safely in developing countries.

Some activities are wrong no matter where they take place. But some practices that are unethical in one setting may be acceptable in another. In hot climates, however, it quickly becomes harmless through exposure to intense solar radiation and high soil temperatures. As long as the chemical is monitored, companies may be able to use EDB ethically in certain parts of the world. Few ethical questions are easy for managers to answer. Another is what Westerners call the Golden Rule, which is recognizable in every major religious and ethical tradition around the world.

Values in Tension: Ethics Away from Home

In Book 15 of his Analects , for instance, Confucius counsels people to maintain reciprocity, or not to do to others what they do not want done to themselves. Although no single list would satisfy every scholar, I believe it is possible to articulate three core values that incorporate the work of scores of theologians and philosophers around the world. To be broadly relevant, these values must include elements found in both Western and non-Western cultural and religious traditions.

At first glance, the values expressed in the two lists seem quite different. Nonetheless, in the spirit of what philosopher John Rawls calls overlapping consensus , one can see that the seemingly divergent values converge at key points. Despite important differences between Western and non-Western cultural and religious traditions, both express shared attitudes about what it means to be human.

Finally, members of a community must work together to support and improve the institutions on which the community depends. I call those three values respect for human dignity , respect for basic rights , and good citizenship. Those values must be the starting point for all companies as they formulate and evaluate standards of ethical conduct at home and abroad.

But they are only a starting point. Companies need much more specific guidelines, and the first step to developing those is to translate the core human values into core values for business. What does it mean, for example, for a company to respect human dignity? How can a company be a good citizen? I believe that companies can respect human dignity by creating and sustaining a corporate culture in which employees, customers, and suppliers are treated not as means to an end but as people whose intrinsic value must be acknowledged, and by producing safe products and services in a safe workplace.

And companies can be good citizens by supporting essential social institutions, such as the economic system and the education system, and by working with host governments and other organizations to protect the environment. The core values establish a moral compass for business practice. Similarly, if employing children prevents them from receiving a basic education, the practice is intolerable. Lying about product specifications in the act of selling may not affect human lives directly, but it too is intolerable because it violates the trust that is needed to sustain a corporate culture in which customers are respected.

Take the case of the Tan family, a large supplier for Levi Strauss. The Tans were allegedly forcing 1, Chinese and Filipino women to work 74 hours per week in guarded compounds on the Mariana Islands. In , after repeated warnings to the Tans, Levi Strauss broke off business relations with them. The core values for business that I have enumerated can help companies begin to exercise ethical judgment and think about how to operate ethically in foreign cultures, but they are not specific enough to guide managers through actual ethical dilemmas.

Values in Tension: Ethics Away from Home

Levi Strauss relied on a written code of conduct when figuring out how to deal with the Tan family. In Europe and the Far East, the percentages are lower but are increasing rapidly. Does that mean that most companies have what they need? Even though most large U. As a result, the senior managers who drafted the statements lose credibility by proclaiming values and not living up to them. Codes of conduct must provide clear direction about ethical behavior when the temptation to behave unethically is strongest. Codes of conduct must be explicit to be useful, but they must also leave room for a manager to use his or her judgment in situations requiring cultural sensitivity.

Striking the appropriate balance between providing clear direction and leaving room for individual judgment makes crafting corporate values statements and ethics codes one of the hardest tasks that executives confront. The words are only a start. Managers living and working abroad who are not prepared to grapple with moral ambiguity and tension should pack their bags and come home. The view that all business practices can be categorized as either ethical or unethical is too simple. Such activities are neither black nor white but exist in what Thomas Dunfee and I have called moral free space.

Managers must chart their own courses—as long as they do not violate core human values. Consider the following example. Some successful Indian companies offer employees the opportunity for one of their children to gain a job with the company once the child has completed a certain level in school. Not surprisingly, the perk is among the most cherished by employees, but in most Western countries, it would be branded unacceptable nepotism. In the United States, for example, the ethical principle of equal opportunity holds that jobs should go to the applicants with the best qualifications.

Given this difference in ethical attitudes, how should U. Should they condemn the Indian companies, refusing to accept them as partners or suppliers until they agree to clean up their act?

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Despite the obvious tension between nepotism and principles of equal opportunity, I cannot condemn the practice for Indians. In a country, such as India, that emphasizes clan and family relationships and has catastrophic levels of unemployment, the practice must be viewed in moral free space. The decision to allow a special perk for employees and their children is not necessarily wrong—at least for members of that country.

How can managers discover the limits of moral free space? That is, how can they learn to distinguish a value in tension with their own from one that is intolerable? Helping managers develop good ethical judgment requires companies to be clear about their core values and codes of conduct. But even the most explicit set of guidelines cannot always provide answers. Managers must recognize that when countries have different ethical standards, there are two types of conflict that commonly arise. Each type requires its own line of reasoning. As mentioned before, developing countries may accept wage rates that seem inhumane to more advanced countries in order to attract investment.

As economic conditions in a developing country improve, the incidence of that sort of conflict usually decreases. The second type of conflict is a conflict of cultural tradition. Topic: The Nature of Ethics Feedback: The news media and the Internet make it increasingly difficult to hide the questionable behavior of large organizations. Extensive coverage of business decisions and their effect on society makes us more aware than ever of failures of business ethics. According to Adam Smith, leading a good life means being solely concerned about the fortunes of oneself.

Topic: The Nature of Ethics Feedback: The end result of ethical examination is what philosophers call the good. The concept of the good is central to the study of morality. The good may be defined as those moral goals and objectives one chooses to pursue. Thus, leading a good life means more than having the good 4. It means more than material possessions and luxury. It means pursuing intangibles, being concerned, as Adam Smith put it, about the fortunes of others.

Adam Smith, the author of The Wealth of Nations, denied the existence of any moral element in human nature that goes beyond self-interest. To succeed in international operations, businesses must be sensitive to differences in moral values. Topic: The Nature of Ethics Feedback: To succeed in international operations, businesses must be sensitive to differences in moral values. Internationally, businesses often face problems when they do business with nations with different moral values. Ultimately, the commitment to ethical values is superior to mere observance of the law in ensuring responsible business behavior.

Topic: The Nature of Ethics 5. Feedback: Ultimately, the commitment to ethical values is superior to mere observance of the law in ensuring responsible business behavior. Legal rules can never be specific enough to regulate all business actions that may have socially undesirable or even dangerous consequences. Formalism is primarily a duty-based view of ethics. To be ethical, one has a duty, or moral obligation, not to lie.

Topic: Two Systems of Ethics Feedback: Rawls suggests a simple first step in determining the ethical values on which a just society can be built. People should assume that they are unaware of their age, gender, race, intelligence, strength, wealth, or social status. This step is vital because it keeps people from being self-interested in the ethical values they consider. Laws regarding traffic violations predominantly address ethical concerns. Topic: The Nature of Ethics Feedback: Unlike ethical systems, the legal system is an institution of the state.

The state enforces legal rules through civil and criminal sanctions, like monetary damage awards, fines, and imprisonment. Many ethical values regarding the treatment of animals, for example are not 6. Topic: Two Systems of Ethics Feedback: For the formalist thinker Immanuel Kant — , to be ethical, it is required that one acts with a good intent. To have a good intent, one has to act in ways that are ethically consistent. This emphasis on consistency Kant called the categorical imperative.

The social contract theory is based on duty and not on contract or agreement. Topic: Two Systems of Ethics Feedback: The social contract theory is based not on duty but on contract agreement. The social contract theory of Harvard philosopher John Rawls furnishes an important recent example of how formalism has influenced thinking about business and personal ethics. According to the social contract theory, though there may be social and economic inequalities, these inequalities must be based on what a person does, not on who a person is.

Topic: Two Systems of Ethics Feedback: According to the social contract theory, though there may be social and economic inequalities, these inequalities must be based on what a person does, not on who a person is, and everyone must have an equal opportunity for achievement. Consequentialism concerns itself with the morality of the actions themselves. Topic: Two Systems of Ethics Feedback: Consequentialism concerns itself with the moral consequences of actions rather than with the morality of the actions themselves.

If actions cause overall harm to society, they are unethical. The dominant form of consequentialism is utilitarianism. Utilitarianism judges actions by the morality of the actions and not by usefulness. Topic: Two Systems of Ethics Feedback: Utilitarianism judges actions by usefulness, by whether they serve to increase the common good.

Contractarianism: Crash Course Philosophy #37

For utilitarians, the end justifies the means. Business ethics reflect elements of both formalism and consequentialism, but tend to focus more heavily on the former. Topic: Two Systems of Ethics Feedback: Although business ethics reflect elements of both formalism and consequentialism, they focus more heavily on the latter.

Business leaders feel a need to justify what they do in terms of whether it produces dividends for their shareholders. Their primary goal or end is to produce a profit. This orientation reflects consequentialism. The Protestant ethic was a boon to capitalism, but the religious basis of the Protestant ethic was eroded by rising wealth and the encouragement of mass consumption. The quest for economic independence fueled commercial growth, which fueled industrial growth, which created our modern consumer society. Along the way, however, the religious basis of the Protestant ethic was eroded by rising wealth and the encouragement of mass consumption.

Learning Objective: To analyze why ethical consequentialism and not ethical formalism has been the chief source of values for business ethics. Topic: Two Systems of Ethics Feedback: Formalists might say that secret monitoring treats employees only as a means to the end of increasing organizational efficiency and does not respect their self-worth as individuals. The monitoring also does not respect their dignity and their privacy. Formalists might conclude that secret monitoring is unethical. Explaining the problem to the employees and asking for their consent to monitor would be a more ethical action to take.

When faced with a dilemma, a consequentialist would rely on absolutism. Topic: Two Systems of Ethics 9. Feedback: When faced with a dilemma, a consequentialist would rely on relativism, observe the morality of actions, and then test the morality to arrive at a resolution. However, a formalist would rely on absolutism, observe the morality of actions, and then test the morality to arrive at a resolution. Courts have examined due care in negligence cases in terms of a balancing test.

In negligence law, failure to exercise due or reasonable care is the principal element that triggers liability against a defendant. The balancing test is central to the concept of due care. The legal requirement of honoring confidences contains both formalist and consequentialist ethical values. Blooms: Remember Difficulty: 1 Easy Learning Objective: To analyze why ethical consequentialism and not ethical formalism has been the chief source of values for business ethics. Topic: Sources of Values for Business Ethics Feedback: The legal requirement of honoring confidentiality appears in agency law generally and in the professional-client relationship in particular.

It is a conflict of interest for a judge or administrative regulator to make a decision involving a company in which he or she owns stock. For instance, it is a conflict of interest for a judge or administrative regulator to make a decision involving a company in which he or she owns stock. Creation of codes of ethics is far more important than implementation and enforcement of those codes.

Topic: Sources of Values for Business Ethics Feedback: Although many businesses have codes of ethics, effective implementation and enforcement of those codes is far more important than the creation of a code. Whether companies pursue ethical self-regulation with enthusiasm and commitment or the codes are mere window dressing to satisfy the government and the general public is an important issue in determining the value of these codes. Due care usually promotes individual rights and self-worth. Due care promotes the common good. For a consequentialist, lying itself is considered unethical.

For a consequentialist, lying itself is not unethical. It is the consequences, or end results, of lying that must be evaluated for their ethical implications. To judge the utility of a particular action, it is necessary to consider alternative courses of action. But to judge the utility of a particular action, it is necessary to consider alternative courses of action.

Only after one considers all reasonable courses of action can one know whether a particular action has the greatest utility. Ambrose Bierce posited that individuals in large groups such as corporations feel more responsibility for what happens in the group than they do for what happens in their individual lives. Coupled with an overemphasis on profit, the group effect increases the difficulty of achieving an ethical business corporation. Topic: Achieving an Ethical Business Corporation Feedback: That individuals in groups may feel a diminished sense of responsibility for decisions made and actions taken invites ethical compromise.

Blooms: Remember Difficulty: 1 Easy Learning Objective: To evaluate the obstacles and rewards of ethical business practice in our property-based legal system. Some of the most profitable businesses have also historically been the most ethical. Stakeholder theory suggests that through its managers, an ethical corporation avoids risks to stakeholders which, if explained, would be clearly unacceptable. Topic: Achieving an Ethical Business Corporation Feedback: Stakeholder theory suggests that through its managers, an ethical corporation avoids risks to stakeholders which, if explained, would be clearly unacceptable.

It works actively and cooperatively to reduce the risk of corporate harm to all stakeholders and to compensate them when harm occurs. For businesses, merely to observe the law is sufficient as legal regulations are flexible and adequately informed to be the only social guide for business decision making. Topic: Achieving an Ethical Business Corporation Feedback: Business plays a vital role in serving society, and one cannot isolate the effect of important business decisions from their social consequences. For businesses merely to observe the law is not sufficiently responsible.

Legal regulation lacks flexibility and is inadequately informed to be the only social guide for business decision making. That individuals will do unethical things as part of a mob, which they would never do alone, is widely recognized, and the same pattern can be observed in corporate behavior. Answer: True Topic: Achieving an Ethical Business Corporation Feedback: That individuals will do unethical things as part of a mob, which they would never do alone is widely recognized, and the same pattern can be observed in corporate behavior.

That individuals in groups may feel a diminished sense of responsibility for decisions made and actions taken invites ethical compromise. In a modern corporation, the very nature of corporate structure gives managers the opportunity to abuse and misappropriate corporate resources owned ultimately by shareholders. Topic: Achieving an Ethical Business Corporation Feedback: Sometimes, managers embezzle corporate money or abuse expense accounts.

At other times, they misrepresent the financial condition of the corporation to exercise stock options, obtain huge bonuses, or prop up loans they have secured with company stock. Because the very nature of corporate structure gives managers the opportunity to abuse and misappropriate corporate resources owned ultimately by shareholders, ethical business practice is made more important yet more difficult. For ethical corporate values to make their most significant effect on decision making, corporate employees must be willing to talk with each other about ethical issues.

Topic: Achieving an Ethical Business Corporation Feedback: For ethical corporate values to make their most significant effect on decision making, corporate employees must be willing to talk with each other about ethical issues. Openness promotes trust, and without trust even the best-drafted code of ethics will likely fall short of achieving an ethical business corporation. Multiple Choice Questions The Wealth of Nations was written by. Adam Smith B. Karl Marx C. Immanuel Kant D. Euripides E. Which of the following statements is true of the social contract theory? It lays minimal emphasis on individual rights and self-worth.

It is based on duty. It has its origins in formalism. It has given rise to utilitarianism. It is based on agreements between people. Topic: Two Systems of Ethics Feedback: Because of its emphasis on individual rights and self-worth, social contract theory has its origin in formalism. It provides a powerful process for ethical business decision making.

Social contract theory is especially valuable in international business. Which of the following statements is true of formalism? It lays more emphasis on end results and their evaluation. It focuses more on common good rather than on individual rights. It is an approach to ethics that affirms an absolute morality. Its dominant form is utilitarianism. Topic: Two Systems of Ethics Feedback: Formalism is an approach to ethics that affirms an absolute morality. A particular act is in itself right or wrong, always and in every situation. For example, lying is wrong. There are no justifications for it, and its wrongness does not depend on the situation in which a lie is told.

Dan is a supporter of the formalist view. Which of the following is most likely to be his belief about lying? He is likely to support a lie that is told for personal gain. He is likely to condemn all forms of lying. He is likely to support a lie that is told for the common good. He is likely to disapprove of lying only in instances that hurt people.

He is likely to support a lie that is harmless. Formalism is an approach to ethics that affirms an absolute morality. There are no justifications for it, and its wrongness does not depend on the situation in which the lie is told. Ethical formalists maintain that. Difficulty: 1 Easy Learning Objective: To compare the connection between law and ethical principles. Topic: Two Systems of Ethics Feedback: For a formalist one who expresses the ethics of formalism , the ethical focus is on the worth of an individual.

Individuals have rights, and these rights should not be infringed, even at the expense of society as a whole, because they have an intrinsic moral value to them. The , proposed by Kant, says that a person has a moral duty to act in the way he or she believes everyone should act. Topic: Two Systems of Ethics Feedback: For the formalist thinker Immanuel Kant — , to be ethical requires that people act with a good intent.

To have a good intent, they have to act in ways that are ethically consistent. People have a moral duty to act in the way they believe everyone should act. Who among the following developed the theory of the categorical imperative? Socrates B. Plato C. John Rawls D. Immanuel Kant E. For Immanuel Kant, to be ethical requires that people act with a good intent. Which of the following statements is true of the categorical imperative? It propagates that there is hardly any need to act in the way one believes everyone should act. It holds that one can choose to be unethical if a situation demands it.

It requires one to act with good intent to be ethical. It holds that one can hold contradictory opinions and act on them without having to ensure consistency with what others believe. Isla fakes a headache to skip her classes. Few weeks later, when her friend, Isaac, lies to the teacher about being sick, Isla reports him to the teacher.

She tells the teacher that she is not in favor of lying. According to Immanuel Kant, Isla would most likely be in violation of. For the formalist thinker Immanuel Kant — , to be ethical requires that people act with a good intent. Who developed the social contract theory? John Rawls B. Immanuel Kant C. John Locke D. Robert Jackall E. Plato Answer: A He furnishes an important recent example of how formalism has influenced thinking about business and personal ethics. This theory is based not on duty but on contract agreement.

The social contract theory concerns itself with how to construct a just society given. Topic: Two Systems of Ethics Feedback: Social contract theory concerns itself with how to construct a just society given the many inequalities of wealth, knowledge, and social status. What purpose does this step serve? It permits one put oneself first before considering others. It keeps one from being self-interested in the ethical values he or she considers.

It promotes the assumption that what one personally needs or wants is morally correct. Rawls suggests a simple first step in determining the ethical values on which a just society can be built. One should assume that one does not know his or her age, gender, race, intelligence, strength, wealth, or social status. This step is vital because it keeps one from being self-interested in the ethical values he or she considers.

Placing themselves behind a veil of self-ignorance, Rawls proposes two ethical principles. First, everyone is entitled to certain equal basic rights, including liberty, freedom of association, and personal security. Second, although there may be social and economic inequalities, these inequalities must be based on what a person does, not on who a person is, and everyone must have an equal opportunity for achievement. For the formalist thinker Immanuel Kant, to be ethical requires that people act with a good intent.

To have a good intent, people have to act in ways that are ethically consistent. This emphasis on consistency Kant called the. The categorical imperative implies that people have a moral duty to act in the way they believe everyone should act. Which of the following statements is an example of ethical formalism? Openness in communications is deemed fundamental. There is no doubt that the standards of morality are flexible. The greatest happiness of the greatest number is the foundation of morals and legislation. The strongest argument for raising the ethics bar boils down to self-interest.

Loss of confidence in an organization is the single greatest cost of unethical behavior. According to Rawls, which of the following serves as the first step in determining the ethical values on which a just society can be built? To test the morality of actions done by others in a society E. Topic: Two Systems of Ethics Feedback: Rawls suggests a simple first step in determining the ethical values on which a just society can be built.

Social contract theory concerns itself with how to construct a just society given the many inequalities of wealth, knowledge, and social status. Which of the following is one of the ethical principles proposed by Rawls? People from the lower strata of a society should be given special opportunities for achievement.

Social inequalities should be based on a person and not on his or her actions. Everyone is entitled to certain equal basic rights, including liberty, freedom of association, and personal security. The concerns of an individual are more important than the concerns of a society. Topic: Two Systems of Ethics Feedback: Placing himself behind a veil of self-ignorance, Rawls proposes two ethical principles. Which of the following statements is true about a formalist? A formalist places ethical focus on the worth of an individual. A formalist predominantly believes and works for the common good.

A formalist attempts to achieve utilitarianism as fast as possible. A formalist evaluates the consequence or end result of lying and not lying itself. A formalist lays less emphasis on duty or moral obligation. Which of the following statements best defines ethics? Ethics is a legal system for evaluating who profits in a business transaction. Ethics is merely a different term for the laws and regulations created by a government. Ethics is an irrational method used specifically in examining the morality of lives.

Ethics is a simplified term given to the momentary decisions one makes regarding which answer will lead to the most personally successful solution. Ethics is a formal system for deciding what is right and wrong and for justifying moral decisions. In the context of ethics, the good is most likely to be defined as.

The good may be defined as those moral goals and objectives people choose to pursue. It serves to define people. Thus, leading a good life means more than having the good life. Which of the following statements is true of ethical systems? They are institutions of the state. They believe that the motivation to observe moral values usually comes from within an individual. They set a bare minimum standard acceptable to a society, and violations of the standards are punishable under the legal system. They are based on just meeting minimum legal requirements.

They hold that every ethical value is enforced by the state.

Balancing the Extremes: Three Guiding Principles

Although values found in ethics may be imposed on an individual by the family, the company, or the law , the motivation to observe moral rules comes from within. However, even though the values found in law may also be personal ethical values of an individual, the motivation to observe the law comes from outside the individual in the form of state sanctions.

Which of the following is a difference between ethical and legal systems? The moral values are observed from within the legal system, whereas the moral values are observed in the form of state transaction in an ethical system. An ethical system consists of rules to guide conduct, whereas the legal system consists only of rules to foster social cooperation. An ethical system primarily deals with what is wrong, whereas the legal system primarily deals with what is right.

The legal system involves a broader-based commitment to proper behavior than an ethical system. The legal system is an institution of state, whereas an ethical system is not an institution of state. Both deal with what is right and wrong. Which of the following statements is true of the legal system? The state enforces legal rules through civil and criminal sanctions. The motivation to observe moral values in a legal system comes from within an individual.

It sets moral standards but does not legally prosecute in instances of breach. It involves a broader-based commitment to proper behavior than does the ethical system. It sets the highest ethical standards acceptable to a society. Which of the following refers to the collection of values that guides human behavior? Divinity B. Morality C. Utility D. Integrity E. Topic: The Nature of Ethics Feedback: Morality is the collection of values that guides human behavior.

In society at large, the sharing of moral values promotes social cooperation and is a significant means of social control. Which of the following statements is true of the sharing of moral values? It usually fails to set limits on unethical behavior. It is a significant means of social control.


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It creates an atmosphere of mistrust and suspicion among people. It disrupts social harmony. It stifles social cooperation as many people fail to accept others.

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Topic: The Nature of Ethics Feedback: In society at large, the sharing of moral values promotes social cooperation and is a significant means of social control. Shared moral values lead people to accept and trust others. Shared values allow people to recognize when there is proper behavior in others and where limits to behavior rightfully belong. Shared moral values create social harmony. The end result of ethical examination is what philosophers call. Which of the following is a similarity between ethical and legal systems? Both systems are institutions of the state.

In both systems, the motivation to observe moral values comes from within an individual. Both systems are based on utilitarian views. Both systems consist of rules to guide conduct and foster social cooperation. In both systems, ethical behavior is based on just meeting minimum legal requirements. Both consist of rules to guide conduct and foster social cooperation. Which of the following statements is true of the role of economic interdependence on business ethics and society? It reduces concerns about business ethics.

It sometimes gives opportunities to executives who control what stockholders own to manipulate corporate actions for their own benefit. It reduces any transparency problems in an organization as corporate leaders are usually the real owners of corporations. It predominantly results in utilitarianism. It ensures that the decision taken by stockholders have little effect on others. In the context of ethical issues, modern economic theory reflects. For a consequentialist, the. It is the consequences, or end results of lying, that must be evaluated for their ethical implications. It is the loss of trust or harm done by lying that is unethical.

Utilitarianism judges actions by usefulness, by whether they serve to increase the common good. Good faith B. Due care C. Utilitarianism D. Conflict of interest E. Which of the following statements is true of the Protestant ethic?