STUDY QUESTIONS FOR EXAMINATION ON 2/3/03

1. Be able to explain and apply the various ethical systems: natural law ethics (human nature ethics), deontology, utilitarianism (consequentialism), and virtue ethics.
2. Be able to explain the various ethical principles, namely, autonomy, beneficence, and justice and be able to apply them in case analyses.

3.What are Rawls' principles of justice and do they help us in dealing with business practices in the corporation?

4.How does the principle of fidelity relate to the virtues of loyalty and integrity?

5. What is a right?
6. Distinguish between moral and legal rights; between inalienable and indefeasible rights.
7. How are rights connected with values?
8. Be able to identify the 3 articles from the UN Declaration of Human Rights that can legitimately be considered human rights. Explain the reason for your choices.
9.What does it mean for something to be a legitimate human right?

10. Be able to identify 3 articles from the UN Declaration of Human Rights that can act as effective guides for international business practices. Do these articles contain moral rights or legal rights? Explain.
11. What does it mean to say that the UN Declaration of Human Rights sets ideals for promoting the dignity of persons?
12. Identify the articles in the UN Declaration of Human Rights that lie at the heart of protecting human dignity?
13. Is the Declaration of Human Rights simply a extrapolation from the cultural values of a particular country (e.g. Western industrial)? Explain.
14. Look at the various Declarations of Rights and Bills of Rights on the website. Identify three (3) rights claims they hold in common and explain the significance of those rights claims as "human" rights and the significance of those rights claims for the conduct of business in the global marketplace.

15. Focus on the "Aboriginal Charter of Rights (2000)." Identify three (3) rights specified in the Charter that are true "human rights." How could respect for these rights be helpful in respecting human dignity and in guiding business practices in the global marketplace? 

16.Can "human rights" really serve as a sound ethical foundation for business practices in the global marketplace?
17. What is ethical relativism and can it serve as a sound foundation for international business practices?

18. What does Friedman consider to be the single objective of corporations?
19. How does Heath relate the notions of moral responsibility and social responsibility?

OMIT FOR THIS EXAM. 20. How does the NASDAQ Credo give moral guidance to the exercise of corporate responsibility?

21. Explain the stakeholder theory of the corporation and the ethical framework that seems to underlie it. What particular ethical problems are present in the stakeholder theory?

22. What are the elements necessary for establishing trust in corporate activity? How does trust relate to the principle of fidelity?
OMIT FOR THIS EXAM. 23. Do you think that corporations that engage in sound ethical practices can be economically successful? Or must they pursue self-interest regardless of the outcome? Present a philosophical analysis in your answer.

ARTICLES FOR REVIEW

EIB = Ethical Issues in Business (Donaldson and Werhane)
ER = ERESERVE
RW = Readings Webpage
WUC = Wake up Calls (Newton and Schmidt)

EIB. Pages 12-19.
EIB. Pages 1-11.
Ulrich, LP. "Ethical Systems in Business Ethics." Readings Webpage.
WUC. Newton & Schmidt. Pages 3-19.

Rachels, J. "The Challenge of Cultural Relativism." EIB. Pages 410-419.

Donaldson and Dunfee. "A Social Contracts Approach to Business Ethics." EIB. Pages 419-424.

Donaldson, T. "Values in Tension: Ethics Away from Home." EIB. Pages 471-481.

Facione, P.A. "Rights and Duties." ERESERVE.
United Nations Declaration of Human Rights. EIB. Pages 424-428.
UN Declaration of Human Rights (1948)
Declaration of the Rights of Man and the Citizen (French Revolution) (1789).
Rights of Women (1791)
Constitution of Virginia (1776)
US Bill of  Rights (1789)
English Bill of Rights (1689)
Magna Carta (1215)
Aboriginal Charter of Rights (2000).

Ulrich, LP. "Ethical Principles in Business  Ethics." Readings Webpage.
Rawls, J. "Distributive Justice." EIB. Pages 193-202.

Heath, Eugene. "Corporate Responsibility." ERESERVE.

NASDAQ Credo (Slides).
Friedman, M. "The Social Responsibility of Business is to Increase Its Profits." EIB. Pages 33-38.

Freeman, R.E. "Stakeholder Theory of the Modern Corporation." EIB Pages 38-48.

Brenkert, G.G. "Trust, Morality and International Business." EIB. Pages 118-128.

TRUST (Slides).

OMIT FOR THIS EXAM. Sen, A. "Does Business Ethics Make Economic Sense?" EIB. Pages  244-251.

CASES
Italian Tax Mores. EIB, 98-100.
H.B. Fuller in Honduras: Street Children and Substance Abuse. EIB, 20-32.

REQUIRED CASE (This case will be reprinted on the examination.)

Pegasus International Inc. is a leading manufacturer of integrated circuits (chips) and related software for such specialty markets as communications and mass storage as well as PC-based audio, video, and multimedia. With a focus on innovation, Pegasus is committed to "technology leadership in the new millennium." Its long-standing strategy has been to anticipate changes in existing and emerging growth markets and to have hardware and software solutions ready before the market needs them. The company has also made significant strides in wireless communications.
The systems and products of Pegasus's wireless business have been selling well in its already existing markets in the Unites States, Japan, and Europe. But like any company, Pegasus is eager to grow the business. At a strategy session with the Wireless Division, Pegasus CEO Tom Oswald and division managers decide to explore the potential of expanding their business to China.
Initial research indicates that China is likely to develop into a huge market for wireless because its people do not currently have this capability and the government has made spending on wireless a priority. Wireless is really the only choice for China because of the high cost of burying the communications cables necessary in wired systems; further, in underdeveloped countries, copper wires are often stolen and sold on the black market.
Subsequent research does raise a concern for Pegasus wireless managers. They tell Oswald, "We have this problem. China allocates frequencies and makes franchise decisions city by city, district by district. A 'payoff' is usually required to get licenses."
The CEO says, "A lot of companies are doing business with China right now. How do they get around the problem?"
His managers have done their homework: "We believe most other companies contract with agents to represent them in the country and to get the licenses. What these contractors do is their own business, but apparently it works pretty well because the CEOs of all those companies are able to sign the disclosure statement required by law saying that they know of no instance where they bribed for their business."
"I wonder if paying someone else to do the crime is the same as our doing the crime," Oswald says. "I'm just not very comfortable with the whole question of payoffs. So, let me ask you, if we don't expand into China, how much business will we lose, potentially?"
His Wireless Division Manager responds, "It will be huge not to do business in all the countries expecting payoffs. China alone represents easily $100 million of business per year. It's not life and death, but it is a sizable incremental opportunity for us, not to mention potential Japanese partners who will make significant capital investments. All we have to do is add our already-existing technology. When you consider all that, we have a lot to gain. What will we really lose if our local contractors are forced to make payoffs every now and then?"
Oswald wants his company to succeed, he wants to maximize shareholder value, he wants to keep his job, and he wants to model ethical leadership. He has made an effort to build a corporate culture characterized not only by aggressive R&D and growth but also by integrity, honesty, teamwork, and respect for the individual. As a result, the company enjoys an excellent reputation among its customers and suppliers, employee morale is high, and ethics is a priority at the company.

[From: Issues in Ethics, Spring/Summer 1998.]