This document contains discussion questions and excerpts about externalities, cost-benefit analysis, exploitation, ethics, and corporate decision making. It defines an externality as an unintended effect on others from a decision, discusses the Anderson v. General Motors case involving externalities, and explores the "science of exploitation" using cheap foreign labor. It also examines ethics, morality, utilitarianism, and how corporations can make ethical decisions through representatives despite their non-physical nature.

1. CHAPTER 3 DISCUSSION QUESTIONS
1) Explain what an "externality" is.
2) Explain what happened in the Anderson v. General Motors
case.
3) What is meant by "the science of exploitation?"
4) What happened in the 1911 Triangle Shirtwaist Factory
disaster?
5) What was passed in 1938 by President Roosevelt's
administration that banned sweatshops, child labor, &
industrial homework?

2. WHAT IS AN EXTERNALITY?
-AN EFFECT ON AN ENTITY FROM A DECISION THAT THE
ENTITY DID NOT PLAY A ROLE IN MAKING & WHOSE
INTERESTS WERE NOT TAKEN INTO ACCOUNT WHEN
MAKING THE DECISION.
WHAT ENTITIES ARE AFFECTED BY EXTERNALITIES?
1) EMPLOYEES
2) CUSTOMERS
3) ENVIRONMENT
CLIP 4: EXTERNALITIES

3. ANDERSON V. GENERAL MOTORS

4. COST-BENEFIT ANALYSIS:
-“A REPORT GENERATED TO DETERMINE HOW WELL, OR HOW POORLY, A
PLANNED ACTION WILL TURN OUT.”
1) IDENTIFIES, QUANTIFIES, & ADDS ALL THE POSITIVE FACTORS (BENEFITS).
2) IDENTIFIES, QUANTIFIES, & SUBTRACTS ALL THE NEGATIVE FACTORS (COSTS).
3) THE DIFFERENCE BETWEEN THE 2 INDICATES WHETHER THE PLANNED ACTION
IS ADVISABLE.

5. WHAT IS THE “SCIENCE OF EXPLOITATION?”
“A BUSINESS PRACTICE WHEREBY CORPORATIONS TAKE ADVANTAGE
OF CHEAP, FOREIGN LABOR IN ORDER TO MANUFACTURE PRODUCTS
CHEAP & MAXIMIZE PROFIT.”

6. CLIP 7: MONSTROUS OBLIGATIONS

7. ETHICS
-A SYSTEM OF MORAL PRINCIPLES RELATING TO HUMAN CONDUCT.
-A BRANCH OF PHILOSOPHY.
-KNOWN AS “MORAL PHILOSOPHY.”
-SEEKS TO ADDRESS HOW A MORAL OUTCOME CAN BE ACHIEVED IN A
SPECIFIC SITUATION.
MORALITY:
-A CODE OF CONDUCT ABOUT WHAT IS RIGHT VS WHAT IS WRONG.

8. THE GOLDEN RULE
“ONE SHOULD TREAT OTHERS AS ONE WOULD LIKE
OTHERS TO TREAT ONESELF.”
“ONE SHOULD NOT TREAT OTHERS IN WAYS THAT ONE
WOULD NOT LIKE TO BE TREATED.”

9. UTILITARIANISM
“THE PROPER COURSE OF ACTION IS THE ONE THAT
MAXIMIZES THE GREATEST GOOD FOR THE GREATEST
NUMBER.”

10. WHAT ARE ETHICAL/MORAL DECISIONS THAT “CORPORATIONS” NEED
TO MAKE?

11. OFFSHORING
“THE RELOCATION BY A COMPANY OF A BUSINESS
PROCESS FROM ONE COUNTRY TO ANOTHER.”

12. LAYOFFS

13. ANIMAL TESTING

14. INDIRECTLY MARKETING ADULT PRODUCTS TO MINORS

15. CORPORATIONS LEGALLY ARE A “PERSON” BUT THEY ARE NOT
PHYSICALLY A PERSON.
THEY DO NOT HAVE THE ABILITY TO MAKE ETHICAL/MORAL DECISIONS,
BUT………………..
PEOPLE DO.

16. WHY DOES OUR SOCIETY HAVE LAWS & RULES?
OBJECTIVE VS SUBJECTIVE DECISION MAKING
OBJECTIVE:
-”NOT INFLUENCED BY PERSONAL FEELINGS OR PREJUDICE.”
SUBJECTIVE:
-”INFLUENCED BY PERSONAL FEELINGS OR PREJUDICE.”
RIGHT VS WRONG
RATIONALIZE:
-”TO INVENT PLAUSIBLE EXPLANATIONS FOR ACTIONS,
DECISIONS, ETC.”