Chapter 2 Business Ethics and Social Responsibility Copyright

Ethics n A set of moral principles or values that governs the conduct of

Theories of Ethics Ethical Fundamentalism n Utilitarianism n Kantian n Rawl’s Social Justice Theory

Ethical Fundamentalism n A theory of ethics which says that a person looks to

Utilitarianism n 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. 2 -5

Kantian Ethics n 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. 2 -6

Rawl’s Social Justice Theory n n 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 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 2 -7

Ethical Relativism n 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. 2 -8

Theories of Social Responsibility Maximizing profits n Moral Minimum n Stakeholder Interest n Corporate

Maximizing profits n A corporation owes a duty to take actions that maximize profits

Moral Minimum n A theory of social responsibility which says that a corporation’s duty is to make a profit while avoiding causing harm to others Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 2 -11

Stakeholder Interest n Theory of Social Responsibility which says that a corporation must consider the effects its actions have on persons other than its stockholders Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 2 -12