MKT341 1st EditionExam # 1 Study Guide Need to know if this class will teach you to behave ethical- Relativism: Justify why you break the law/rule- Absolutism: Right and wrong (follow the rules)Ethical practice is good for long-term success?- The most ethical business people will always be the most successfulDoes the good guy always win? If you always behave ethical will nothing bad happen?Definition of ethics- A personal choice and form of decision making. It is a system for making the right decisions. Definition of globalization- Connection of economic and social systems so that goods, services, intellectual capital and financial capital move more freely and rapidly towards nations. Definition of justice and social Darwinism and efficiency - Justice: just behavior or treatment- Social Darwinism: economic competition produces progress, but only the strongest companies and individuals survive. - Efficiency: the state of quality of being efficient (achieving maximum productivity with minimum wasted effort or expense Can government actions can impact savings, demand, unemployment, employment Is the internet is a good source for sound moral reasoning? Facts are not all accurateWhere do you get moral virtue according to Aristotle?- Moral virtue is an acquired distribution that we must work on our entire life and is distributive in life Who is John Maner Keens and Adam Smith - Keens: Government has to be involved and play a role in demand and savings- Smith: Father of modern economicso Free markets and utilityo Invisible Hand o Government interference in the market is bad John Hicks - Prices and wages aren’t always determined by market wages - Wages and stuff are not independent, union determines supply, in todays economy not everything is determined by competitive forcesWhy you are bourgeois (wealthy/rich) or proletarian (working class/poor)?Difference between descriptive ethics - Descriptive: what it is - Normative: what it should beDifferences between countries on moral values and virturesRetributive justice, distributive, etc- Distributive: Distributing justly- Compensatory: Getting your fair share (paid)- Retributive: To be punished for things done wrong Know what a maxim is- Reason for doing somethingDifference between negative, positive and legal rights- Negative: you have the right to be left alone, but don’t bother others- Positive: what you and others provide to one another (being treated right)- Legal: granted by government Utilitarianism, feminist ethics, john rauls, etc., good and bad things- Utilitarianism: Do the most good for the most peopleo 2 problems: how do you define good It’s the majority, and ignore minorities - Feminist ethics: they are more caring- John Rauls: justice is fairness (everyone has to have an equal right and access to opportunities)o We have to give benefits to the less advantaged Universal ability - Moral imperative applies equally to everyoneTrump ethic (Justice trumps everything)- Justice and fairness trumps other ethical issues Characteristics of moral standards and the 4 basic kinds of moral standards (Utilitarism, etc.)Characteristics of moral standards- Serious injury or benefit derived- Not established by law or legislative action- Value as a culture, more than self-interest- Impartial, applies equally to everyone- Special vocabulary or emotion attached to it 4 Basic kinds of moral standards - Utilitarianismo Limits things to moral valueo Rules that society goes by - Rights- Justice- Caring Kind of business ethical issues (corporate, systemic, individual)- Corporate: what the company thinks is right- Systemic: the system or process- Individual: precedent (in the workplace if you do something for one person you have to do it for another)Puritan work ethic and corollary in japan (Shintoism)- Puritan work ethic: Hard work is a duty to give back Difference between socialism, communism, capitalism - Socialism, communism: everyone should be given equal shares of societies benefits and burdens - Capitalism: The harder you work the more you earn Aristotles 4 cardinal virtues and what 3 did Saint Thomas added - Courage: stand up for what you believe in- Temperance: moderation of what you do- Justice- Prudence: careful with decisions, take your time- Faith, Hope, Love (Charity)Know about David Ricardos theory - Absolute advantage: Florida has an absolute advantage over Oklahoma in beach resorts- Comparative advantage: University of Alabama has a comparative over Troy for education What integreity is that mr. ford said- Behavior consistent with your espoused values, if those values have a positive impact onsociety John Rauls veil of ignorance - You make your decisions based on what you do not know. - You think it would be right for everyone- Equals for equals, unequal for unequal Libitarism- Freedom from constrainto When does it start to interfere with someone else who doesn’t want