bmgt study guide

bmgt study guide - Business Study Guide CHAPTER 1 1. 5...

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Business Study Guide CHAPTER 1 1. 5 Different Ethical Perspectives Self-Interested Decision-Making o Decide in favor of actions which are expected to maximize their own estimated welfare o Stereotypically classical approach taken by many businesses o Adam Smith, his “rational man” and “invisible hand” are most often cited as the philosophical justification for this approach o Have I maximized my return? Utilitarianism o Decide in favor of actions which are expected to maximize the welfare of all of the parties affected by the decision including but not limited to the decision-maker o Jeremy Bentham and John Stuart Mill are most often cited as the philosophical justification for this approach o Have I maximized the aggregate return for everyone? Individual rights o Decide in favor of actions which respect all affected parties’ legitimate rights o Have I violated anyone’s rights, including their legal rights? Trust and Caring o Concerned about respecting the trust placed in them by all parties affected by their decisions o Carol Gilligan is most associated with the “caring” approach o Have I violated any trust placed in me? Justice o Decide in favor of actions which distribute costs and benefits equally, or as equally as possible, among all affected parties
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o John Rawls is often cited as a modern philosopher who has stated a comprehensive theory of justice o Have I treated everyone as equally as possible? 2. Other Ethical Norms Social contracts o Famously applied in a purely political context (Jean-Jacque Rousseau) o Example: individuals enter into a social contract when they- or their ancestors- abandon their means of subsistence in exchange for participation in the market economy Survival of the fittest o Can be applied to explain the outcome of combative and competitive activities (Herbert Spencer) 3. The Self-Interested Decision Maker Managers can take advantage of powerful quantitative tools available through the financial reporting system to understand a decisions probable effect on
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This note was uploaded on 12/15/2011 for the course BMGT 198f taught by Professor Staff during the Spring '08 term at Maryland.

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bmgt study guide - Business Study Guide CHAPTER 1 1. 5...

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