Business Ethics Review
Test One

1) William Shaw (Book pages 3-9 & 22-27)
Ethics
- Greek term for the right action that turns on decision.

Fields of ethical inquiry
1. Normative Theory- what is right and wrong
2. Value Theory- what is worth wile
3. Practical/Applied ethics- putting to use

Structure of an argument
- An argument must be Valid and Sound
Valid
- Premise that is logically entailed
Sound
- A true premise and valid reasoning

2) Nickolas D. Kristof (A Battle with the Brewers) - Anheuser Bush is exploiting Native Americans by selling their product in a nearby store next to the to the Oglala tribe.
- Oglala Tribe has alcoholic issues
- Children and born with birth defects
- 90% of arrests are alcohol related
3) Milton Friedman (The Social Responsibility of a Business in to Increase its Profits)

His Thesis on Business Responsibility
- There is one and only one social responsibility of business - to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game. (Maximize profits, but Friedman said there are limits)

Managers Responsibility
- Look out for the company best interest, even if they feel it is wrong.

4) William Shaw (Book pages 59-64) Bentham and Mill
Utilitarianism
-What is good for the majority is good for all
1) 2 species of Utilitarianism
1. Act
-from each action what will the consequence be (stealing an iPod)
2. Rule
- identifying the rule (commonsense) that brings the best consequence (don’t steal the iPod, because it belongs to someone else)

2) 2 moral arguments
1. Utilitarianism
- Markets are a good means to maximize happiness (scalping tickets)
2. Libertarianism
- have the right to do whatever you want on your property, as long as it does not interfere onto someone else’s

5)