Ethical Theories
This theory says we should produce the greatest good for the greatest number.
What is Utilitarianism?
This approach argues businesses should consider the interests of all parties affected, not just shareholders.
What is Stakeholder Theory?
A person who follows rules strictly and always does the right thing regardless of consequences.
Who is an Inherently Ethical person?
In the classic dilemma, this person considers stealing a drug to save his dying wife.
What is the Heinz Dilemma?
A situation where individuals benefit by not contributing while still enjoying the group’s rewards.
What is the Free-Rider Problem?
This theory claims people possess inherent rights that cannot be sacrificed for social benefit.
What is Natural Law/Rights Theory?
These include environmental, ethical, philanthropic, and economic responsibilities of a company.
What are the four types of CSR?
Someone who adapts their moral behavior to match the group they are currently in.
What is an Ethical Chameleon?
In this thought experiment, pushing one person saves five others.
Two criminals betray each other because each acts in self-interest, leading to worse outcomes for both.
What is the Prisoner’s Dilemma?
This philosophy evaluates actions by whether they could become universal moral laws.
What is Kantian (Deontological) Ethics?
An example of corporate failure where production goals and safety violations led to the deaths of 29 miners.
What is the Upper Big Branch Mine Disaster?
One definition of ethics that has the word "conduct" in it and another with the word "standard" in it
Principles of conduct governing an individual or group
A standard of behavior that tells us how as human beings we ought to act in the situations in which we find ourselves.
This research shows people are less likely to help when others are present.
What is the Bystander Effect?
A good that is non-rivalrous and non-excludable, such as clean air or national defense.
What is a Public Good?
This theory argues moral decisions should follow the commands of a divine being.
What is Divine Command Theory?
Milton Friedman argued that the primary responsibility of business is to maximize this for owners.
What are profits/shareholder value?
Someone who knowingly bends ethics because “everyone else does it” or “that’s how it’s done.”
What is an Ethical Rationalizer?
The first step in analyzing an ethical dilemma is to gather all available information about this.
What are the facts?
In experiments, contributions often decline over time due to mistrust and self-interest.
What happens in repeated Public Goods Games?
This theory evaluates actions based on the character traits they express rather than rules or outcomes.
What is Virtue Ethics?
In the Penn State scandal, leaders prioritized institutional reputation over protecting vulnerable individuals.
What is Organizational Ethical Failure / Culture of Silence?
A person who knows ethical issues exist but delays addressing them until achieving success or wealth.
What is an Ethical Procrastinator?
A concept suggesting ethical behavior decreases as the amount of money involved increases.
What is P = f(x) (Probability of ethical outcome vs money)?
The key paradox: rational self-interest leads individuals to outcomes worse than cooperation would produce.
What is the core paradox of the Prisoner’s Dilemma?