Whose Responsibility
Who said the the only social responsibility of business is to to use it resources to increase profits.
Milton Friedman
Smith argues that moral rules and principles are not innate. Instead, they emerge from:
The collective experience of humanity — the accumulated process of sympathizing with others over time
A central concept in The Theory of Moral Sentiments is "propriety." Which of the following best defines propriety as Smith uses the term?
The appropriateness of one's emotional response to one's circumstances, as judged by a neutral observer
Smith argues that humans desire not only to be loved, but to be "lovely." What does he mean by this distinction?
That people want to actually be worthy of love and esteem, not merely to receive empty approval
Workers narrowed by routine lose wholeness was a concern of whom?
Richard Gunderman
Friedman argues that a corporate executive who spends company money on social causes is effectively doing what?
Spending someone else's money for a social interest
According to Smith, how does beneficence (doing good for others) differ from justice?
Beneficence improves society but cannot be strictly demanded the way justice can
What is the primary function of the Impartial Spectator in Smith's moral philosophy?
To guide individuals toward morally acceptable behavior by representing an objective point of view
The inherent human tendency to look after oneself and one's own interests
Prudence
According to Adam Smith what is the definition of self-command?
The ability to control one’s emotions and desires, particularly in challenging situations
Friedman describes the relationship between a corporate executive and the business owners as that of:
An agent and the principals who own the corporation
Smith identifies four key virtues in The Theory of Moral Sentiments. Name them?
Justice, Beneficence, Prudence and Self Command
Adam Smith opens The Theory of Moral Sentiments by acknowledging that humans may be selfish, but argues they possess certain principles that interest them in the fortune of others. What does he call this foundational moral capacity?
Sympathy
In Smith's framework, "prudence" refers primarily to?
The inherent human tendency to look after oneself and one's own interests
Smith distinguishes between passions he labels "social," "unsocial," and "selfish." Which of the following is an example of an unsocial passion?
Resentment toward someone who has harmed you
According to Friedman, who is the appropriate agent for pursuing social causes?
Individual shareholders, customers, and employees spending their own money
Smith describes justice as uniquely important among the virtues. What is his main reason?
Because it is essential to the survival of society — it prevents the harm we can impose on others
According to Smith, how do we exercise sympathy toward another person?
By imagining ourselves placed in their position and feeling what they might feel
Who stated the following: Wealth creation shifted from zero-sum (I gain only if you lose) to positive sum we both gain through exchange?
Johan Norberg
What did Smith state was the role of religion / God in regards to rules.
Strengthens moral motivation
When Friedman says businesses must stay within "the rules of the game," what specifically does he mean?
Engage in open and free competition without deception or fraud
According to Smith, how does beneficence (doing good for others) differ from justice?
Beneficence improves society but cannot be strictly demanded the way justice can
Smith's concept of the "Impartial Spectator" refers to?
An imaginary, objective witness to our actions that functions as our conscience
Adam Smith refuted the argument by _________, who stated that all virtue was truly vanity. (The only act virtuous only to gain self-approval)
Bernard Mandeville
The feelings of approval or disapproval that arise in response to the actions of ourselves or others. These are the emotional responses that guide moral judgments, formed through the interactions of sympathy and the impartial spectator.
Moral Sentiments