Once the Explicit Rules and Implicit Understandings That Govern All

question 21

Multiple Choice

Once the explicit rules and implicit understandings that govern all the transactions of a firm are in place, there must be:

• A)a system of controls that rewards appropriate behaviour and punishes inappropriate behaviour.
• B)a discussion on the necessity of following ethical practices in business.
• C)weekly reminder seminars to enforce guidelines.
• D)commitment from customers to accept these rules.
• E)cooperation from competitors to avoid conflicting outcomes.

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Definitions:

Ethical Relativism

The belief that morality varies between individuals and cultures and that there are no universal moral principles.

Cultural Relativism

The belief that a person's beliefs, values, and practices should be understood based on that person's own culture, rather than be judged against the criteria of another.

Ethical Absolutism

The ethical belief that there are absolute standards against which moral questions can be judged, and that certain actions are right or wrong regardless of the context of the act.

Individual Relativism

The philosophical idea that ethical beliefs and values are relative to the individual's subjective preferences.