Summary: Business Transformation 2

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• 1 Week 12

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• What are the different types of values discussed in the context of business ethics?

  - Values are ultimate goals in life like happiness and self-fulfilment.
  - Instrumental values guide how we should live, e.g., honesty and respect.
  - Moral values help differentiate between right and wrong, e.g., honesty.
  - Competence values relate to abilities and skills, e.g., behaving imaginatively.
  - Personal values are individual beliefs guiding attitudes, e.g., peace of mind.
  - Social values are ideals society deems important, e.g., world peace.

• What are the different moral foundations influencing ethical decision-making?

  1. Care/Harm related to our evolution as mammals, underlies kindness.
  2. Fairness/Cheating linked to reciprocal altruism, generates ideas of justice.
  3. Loyalty/Betrayal connected to tribal history, underlies virtues of patriotism.
  4. Authority/Subversion shaped by hierarchical social interactions, underlies leadership virtues.
  5. Sanctity/Degradation shaped by psychology of disgust, underlies religious notions of living nobly.
  6. Liberty/Oppression about feelings of resentment towards dominance.

• Define instrumental values and provide examples in the context of business ethics.

  - Instrumental values guide how we should live or behave, e.g., honesty and respect. They help us achieve our end goals.

• How do moral values assist in guiding actions and decisions in life?

  Moral values differentiate between right and wrong, guiding our actions and decisions. For example, honesty is a moral value that helps guide ethical behavior.

• What is the concept of information asymmetry in the principle-agent theory, and how does it manifest in the relationship between the principal and the agent?

  1. Information asymmetry is when one party has more information than the other, affecting decision-making and trust in relationships.
  2. Example: In the medical field, the dentist (agent) has more knowledge about the treatment options than the patient (principal), which creates an imbalance in power as the patient has no reason to mistrust the advice of the dentist.

• What is the significance of competence values in business ethics?

  Competence values relate to abilities and skills, guiding us to improve and excel in what we do. For instance, behaving imaginatively is an example of a competence value.

• Explain the concept of social values in relation to business ethics.

  Social values are the ideals and principles that society deems important to guide interactions with others. For instance, world peace is an example of a social value.

• How does the moral foundation of loyalty/betrayal influence ethical behavior?

  - The moral foundation of loyalty/betrayal is related to our history as tribal creatures and underlies virtues like patriotism and self-sacrifice for the group.

• What is the Triple Bottom Line concept in business?

  - Firms should consider their social and environmental impact, not just financial performance
  - Broken down into profit, people, and the planet
  - Helps conceptualize environmental responsibility and identify negative social impacts

• What foundation was shaped by the psychology of disgust and contamination, underlying religious notions of striving to live in a less carnal, more elevated way?

  • Sanctity/Degradation foundation
  • Striving to live in an elevated, less carnal way
  • A more noble way