BCOR 380 1st Edition Exam 5 Study Guide 1 What are examples of political systems Dictatorship Monarchy Oligarchy Bureaucracy Japan before WWII Plutocracy government by the rich Republicanism representative govt Democracy referendums 2 What are examples of economic systems Libertarianism Free enterprise Free markets Capitalism Socialism Communism 3 What is Libertarianism The view that individuals should as much as possible be free of government and social initiatives 4 What is libertarian Robert Nozick s entitlement theory The distribution of goods should be made not by a principle but by a validity based upon antecedent events 5 What is free enterprise That economic system where the decision as to what is to be produced is determined by individual citizens allowed to own the tools of production 6 What are free markets That economic activity where the decisions to what is to be purchased is determined by individual citizens allowed to keep the major portion of their income 7 What is Adam Smith s invisible hand argument The collective good is maximized when each individual is allowed to pursue his or her own selfinterest within the law 8 What is Pareto Improvement Any free market exchange of goods which makes both parties better of 9 What is Pareto Optimality That point in free markets where the exchange of goods is so efficient that one more exchange would make someone feel worse of 10 What is Capitalism That free market system using money as an exchanged commodity 11 What is usury The rental of money at unfairly high interest rates 12 What is socialism 13 14 15 16 17 18 19 20 21 22 23 24 That economic system where the decision as to what is to be produced is determined by a government allocated the tools of production to itself and its own contractors What is communism Socialism joined to egalitarianism defined as equal outcome The view that for socialism to work government must also direct individual career choices What is zero sum game An exchange of goods which makes one party better of and one worse of What is the labor theory of value This holds the view that profits generated by capitalism are unethical in that only labor created wealth What is Karl Marx s dictum From each according to ability to each according to need What is John Rawls veil of ignorance A theory of justice the suggestion that one should promote a society in which he or she would want to live regardless of his or her status at birth What is Egalitarianism The view that a society should promote the equal treatment of every citizen What is the economic debate within Egalitarianism Should equal treatment of every citizen be defined as equal opportunity Rawls or equal outcome Marx What is management by inclusion An equal opportunity approach to business emphasizing proactive eforts to integrate the disadvantaged into every part of its value supply chain What is the rationale behind management by inclusion 1 Actions of corporations impact customers employees suppliers and communities 2 Many groups can be positively impacted 3 Involving these groups can help build the community 4 Strong local communities are good for all businesses What are the nine social interactions of human social contract theory 1 Person person 2 Organization organization 3 Person organization 4 Government government 5 Government person 6 Government organization 7 Person environment 8 Organization environment 9 Government environment What are forms of contracts All have in common the idea that they exist to regulate the interactions between two or more people spoken promises buyer s agreements warranties a governmental constitution What is social contract theory 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 The view that there is within the human nature an unwritten law requiring we do not harm each other John Locke Two Treaties of Government Argued that the government should not detract from the state of nature rights of life and liberty Jean Jacques Rousseau Social Cntract Saw society as corrupting our state of nature innocence What was Thomas Hobbes idea of social contract Self interest requires each citizen to give his natural rights to his king in exchange for a secure and orderly society John Stewart passive point of view J S Mill s no harm principle The social contract need go no further than a commitment to not endanger the wellbeing of others What is nomology The study of the laws governing the workings of the mind What is Kant s categorical imperative A maxim which states that one should only do that which one would wish to see become a universal law What is a maxim A rule What does categorical mean Without exception What is Kant s ethical perspective Morality is to be found in the way the mind makes sense of things What is normative ethical thought The use of reasoning in a way which causes one to conform to accepted ethical standards In what three ways does workplace bullying difer from schoolyard bullying 1 It is goal driven rather than psychologically driven 2 It is more stubble It operates within the established rules and policies of both the organization and existing laws 3 In most cases the bullying bullies is not a peer but a boss or manager What are the six elements most commonly found in cases of bullying 1 Disproportionate power 2 A disregard for one s personhood 3 And absence of individuals able or willing to defend the victim 4 A conscious efort on the part of the bull to not empower the victim with a legal resource 5 A disregard for one s property 6 A disregard for one s rights What were Dr Heams three main points 1 CSR is defined as a commitment to improve community well being 2 Philanthropy is one of the six CSR strategies 3 CSR increases corporate efficiency through increases employee morale What is Proactive CSR The actions on an organization that are targeted towards the achievement of a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations What is passive CSR 40 41 42 43 44 45 46 47 48 49 50 51 52 53 The perspective that the only obligation of a corporation is to maximize profits for its shareholders in the provision of goods and services that meet that needs of their customers What is the proactive approach The perspective that a corporation has an obligation to society over and above the expectation of its shareholders What is the pre depression model for corporate social responsibility The pursuit of profit is constructed by an b obligation to do no harm