New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Chapter 2: Ethical Theories

by: Shannon Panagopoulos

Chapter 2: Ethical Theories BLW 201

Marketplace > DePaul University > BLW 201 > Chapter 2 Ethical Theories
Shannon Panagopoulos
GPA 3.52
View Full Document for 0 Karma

View Full Document


Unlock These Notes for FREE

Enter your email below and we will instantly email you these Notes for Business Law 201

(Limited time offer)

Unlock Notes

Already have a StudySoup account? Login here

Unlock FREE Class Notes

Enter your email below to receive Business Law 201 notes

Everyone needs better class notes. Enter your email and we will send you notes for this class for free.

Unlock FREE notes

About this Document

Ethical Fundamentalism Ethical Relativism Situational Ethics Utilitarianism Deontology
Business Law 201
Daniel T. Gillespie
Class Notes
BLW 201




Popular in Business Law 201

Popular in Department

This 4 page Class Notes was uploaded by Shannon Panagopoulos on Thursday January 14, 2016. The Class Notes belongs to BLW 201 at DePaul University taught by Daniel T. Gillespie in Winter 2016. Since its upload, it has received 19 views.


Reviews for Chapter 2: Ethical Theories


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 01/14/16
Ch. 2: Business Ethics Ethical Theories Ethics — study of what is right or good for human beings. Business Ethics — study of what is right and good in a business setting. Ethical Fundamentalism — individuals look to a central authority or set of rules to  guide them in ethical decision making. Ethical Relativism — actions must be judged by what individuals subjectively feel is  right or wrong for themselves. Situational Ethics — one must judge a person's actions by first putting oneself in the  actor's situation. Utilitarianism — moral actions are those that produce the greatest net pleasure  compared with net pain. – Act Utilitarianism — assesses each act according to whether it maximizes  pleasure over pain. –  Rule Utilitarianism — supports rules that on balance produce the greatest pleasure for society.  Cost­Benefit Analysis — quantifies the benefits and costs of alternatives. Deontology— actions must be judged by their motives and means as well as their  results. – Kant’s categorical imperative John Stuart Mill (1806­1873) • Disciple of Jeremy Bentham • Author of “Utilitarianism” – Rejects concepts of natural law – Describes the “pleasure principle” • Author of “On Liberty” – Describes the “harm principle” • One should be free to do as he wishes as long as he doesn’t harm  someone else.  John Austin (1790­1859) • Systematic exponent of “legal positivism.” • Main points of Austin’s theory of law: 1. The law is a command issued by the uncommanded commander­the  sovereign. 2. Such commands are backed by sanctions. 3. A sovereign is one who is habitually obeyed.  Kant’s Categorical Imperative (1724­1804) • Enlightenment Philosopher • Act only according to that maxim by which you can, at the same time, will that it  should become a universal law. • Act as never to treat another human being as just a means to an end. – This has been described as a variation of the Golden Rule. Social Ethics Theories • Focus is on a person's obligations to other members in society and also on the  individual's rights and obligations within society. Social Egalitarians — believe that society should provide all its members with  equal amounts of goods and services regardless of their relative contributions.  Distributive Justice — stresses equality of opportunity rather than results.  Libertarians — stress market outcomes as the basis for distributing society's  rewards. Other Theories  Intuitionism:  – A rational person possesses inherent power to assess the correctness of  actions.  Good Person: – Individuals should seek out and emulate good role models. “Television Test”: – Imagine that every ethical decision we make is broadcast on TV. – An appropriate ethical decision is one we would be comfortable seeing  broadcast on TV. Kohlbergs’s Stages of Moral Development Levelsls Perspective Justificationcation K Preconvventi(Chididhodo)) Self Puuniihmmentt/ewwa Connventional Addolescent) GGroupp Grouup Normss Postconveento(Adult) lt) Unniversal MooralPrincipes Ethical Standards in Business accepted model. cal System — Kohlberg's stages of moral development is a widely  is not clear whether it should be held morally responsiblestatutorily created entity, it  Ethical Responsibilities of Business because all the conditions for perfect competition have not been satisfied and  free competition cannot by itself achieve other societal objectives. Corporate Governance — vast amounts of wealth and power have become  concentrated in a small number of corporations, which are in turn controlled by a  small group of corporate officers. Arguments Against Social Responsibility Profitability — because corporations are artificial entities established for profit­ making activities, their only social obligation should be to return as much money  as possible to shareholders. (Milton Friedman).  Unfairness — whenever corporations engage in social activities such as  supporting the arts or education, they divert funds rightfully belonging to  shareholders and/or employees to unrelated third parties Accountability — a corporation is subject to less public accountability than  public bodies. Expertise — although a corporation may have a high level of expertise in selling  its goods and services, there is absolutely no guarantee that any promotion of  social activities will be carried on with the same degree of competence. Stakeholder Model: Managers Suppliers Employees Corporation Responsible T o: Customers Community Stockholders


Buy Material

Are you sure you want to buy this material for

0 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Janice Dongeun University of Washington

"I used the money I made selling my notes & study guides to pay for spring break in Olympia, Washington...which was Sweet!"

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.