Exam #2 Study Guide – Business Ethics

Friedman – What are the responsibilities of managers, and why is it unethical for them to act for the sake of the social interest?

Freeman – What is a stakeholder? Who are they and what do they contribute to and receive from the corporation? What are the legal and economic reasons that support this shift in our conception of ownership?

Locke – How do we acquire property and why does this justify the possession of private property? Why is money necessary for great accumulation of wealth?

Smith – Why does the division of labor increase productivity? How does the invisible hand theory justify acting for the sake of self-interest?

Marx – What are the different ways in which the worker is alienated by private property?

Rawls – What is the veil of ignorance, and how does it lead to the institution of a just society?

Nozick – What is wrong with a large state that redistributes wealth among its citizens?

Radin and Werhane – What is the doctrine of employment at will and how can it be criticized from the concepts of individual rights and fairness?

McIntosh – What are the privileges of whites and men, and why do these groups seldom acknowledge these privileges?

Velasquez (Discrimination) – What are the two theories of the nature of discrimination? What evidence does Velasquez cite to support his view on the matter? What are the various stronger and weaker forms of Affirmative Action?

Wicks -- Describe the two types of sexual harassment and the four main elements of a good sexual harassment policy.

Velasquez (Product Liability) – Describe the three theories of the manufacturer’s responsibility for the consumer (contract, due care, and social costs) and explain the advantages and disadvantages of each view.

Donaldson – What are cultural relativism and absolutism, and how does he attempt to find a balance between the two?

Warren and Larson – What is sustainability and why, according to the Natural Step view, is it necessary for the continued health and survival of human beings? What competitive advantages does the Natural Step program provide companies?

Newton – What are the different ways that nature has value for us? Does it have a value independent from our interests, and members of Earth First! believe?

Frank – What are the relative benefits of cooperation and seeking an advantage over the party one is doing business with? What competitive advantages do socially responsible companies enjoy?

Essay Questions

1. Explain how socialism, liberalism, and libertarianism each define the just distribution of goods in society, and provide arguments in support of the view that you think is preferable.

2. Describe the three theories of product liability and argue for the view that you think is correct, while acknowledging the strengths and weaknesses of each of the positions.

3. Do businesspeople have a responsibility to act ethically even if this means acting against self-interest and doing things that are not required by the law? How far does this responsibility extend? Provide arguments to support your view and illustrate it with examples.