1. Business Ethics and Social Responsibility
Chapter 2
Business Ethics and Social Responsibility

2. Ethics
A set of moral principles or values that governs the conduct of an individual or a group
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3. Theories of Ethics Ethical Fundamentalism Utilitarianism Kantian
Rawl’s Social Justice Theory
Ethical Relativism
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4. 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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5. Utilitarianism
A moral theory which dictates that people must choose the action or follow the rule that provides the greatest good to society
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6. 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”
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7. Rawl’s Social Justice Theory
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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8. 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
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9. Theories of Social Responsibility
Maximizing profits
Moral Minimum
Stakeholder Interest
Corporate Citizenship
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10. Maximizing profits
A corporation owes a duty to take actions that maximize profits for shareholders
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11. 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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12. 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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13. Corporate Citizenship
A theory of responsibility which says that a business has a responsibility to do good
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14. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.