Exploring Business Ethics and Governance

What are the main ethical theories relevant to business?

• Relativism, consequentialism, egoism, corporate social responsibility

• Utilitarianism, deontological ethics, virtue ethics, stakeholder theory

• Moral absolutism, ethical egoism, social contract theory, profit maximization

• Cultural relativism, hedonism, ethical pluralism, market ethics

Identify a common ethical issue faced by businesses today.

• Market competition

• Employee turnover

• Data privacy

• Supply chain disruptions

Explain an ethical dilemma that managers might encounter.

• A common ethical dilemma for managers is choosing between cost-cutting measures that may lead to layoffs and maintaining employee job security.

• Managers often face the choice between enforcing strict policies or allowing flexibility for employee creativity.

• An ethical dilemma can arise when managers must choose between transparency with clients and protecting company secrets.

• A typical ethical dilemma is deciding whether to prioritize shareholder profits over environmental sustainability.

How do ethics play a role in the global business environment?

• Ethics only apply to local businesses, not global operations.

• Ethics hinder innovation and create barriers in global business.

• Ethics are irrelevant to profit margins and market competition.

• Ethics play a crucial role in promoting trust, compliance, and sustainable practices in global business.

What are the advantages of multinational corporations (MNCs) to host nations?

• MNCs provide job creation, technology transfer, foreign investment, infrastructure development, and access to global markets.

• MNCs promote cultural isolation and local unemployment.

• MNCs limit access to international trade and resources.

• MNCs reduce local competition and increase prices.

What are the disadvantages of MNCs for host nations?

• Boosting local economies through investment

• Disadvantages of MNCs for host nations include economic dependency, exploitation of resources and labor, profit repatriation, undermining local businesses, and cultural erosion.

• Increased job opportunities for locals

• Enhancing cultural exchange and diversity

Why is it important for managers to make ethical decisions?

• It is important for managers to make ethical decisions to build trust, enhance reputation, ensure compliance, and promote a positive culture.

• It is important for managers to make ethical decisions to satisfy shareholders and boost stock prices.

• It is important for managers to make ethical decisions to increase profits and reduce costs.

• It is important for managers to make ethical decisions to avoid legal penalties and fines.

Describe Kohlberg’s model of cognitive moral development.

• Kohlberg's theory emphasizes two main stages: moral reasoning and ethical behavior, focusing on personal gain and group approval.

• Kohlberg's framework includes five stages: Obedience, Self-interest, Conformity, Law and Order, and Universal Ethics, highlighting moral dilemmas.

• Kohlberg's model consists of four levels: Pre-conventional, Intermediate, Advanced, and Post-conventional, each with three stages.

• Kohlberg's model includes three levels: Pre-conventional, Conventional, and Post-conventional, each with two stages, focusing on self-interest, societal norms, and universal ethical principles.

What steps can be taken to make good ethical decisions in business?

• Make decisions based on majority opinion only.

• Rely solely on personal intuition without analysis.

• Ignore the impact on stakeholders and focus on profits.

• Follow a structured decision-making process that includes identifying issues, gathering information, considering stakeholders, evaluating alternatives, making a decision, and reflecting on the outcome.

What is whistleblowing and what role does a whistleblower play?

• Whistleblowing is reporting misconduct; a whistleblower exposes unethical or illegal activities.

• Whistleblowing is sharing secrets; a whistleblower keeps information confidential.

• Whistleblowing is a form of protest; a whistleblower advocates for change.

• Whistleblowing is a legal process; a whistleblower represents the accused party.