Seven steps in Ethics Exam:

Step 2: Recognize All Moral Impacts
Only do stakeholder table including: benefits, harms, rights exercised and denied

Step 3: Define Complete Moral Problem
State moral problem in question form - “Is it ethically permissible to… Given that…”
Why it’s a moral problem, why does it involve ethics
Why it’s a moral dilemma
Two-sentence review > not full review of main points

Step 4: Determine the Economic Outcomes
“Pareto Optimality” > The rule is that you should always take the action that will generate the greatest profits for the company because this will also generate the greatest benefits for the society, provided it can be shown that all markets are fully competitive, all customers are fully informed, and all external and internal costs are fully included.
Are any of the 3 conditions violated?
1) All markets must be competitive. Open and competitive product markets must exist for all output goods and services, and open and competitive factor markets must exist for all input capital, labour and material to generate a true net benefit for society.
2) All customers and all suppliers must be informed. All customers in the output product markets and all suppliers in the input factor markets must be knowledgeable about the featuers of the products and the standards of the supplies.
3) All costs must be included. External costs are those outside the productive process, they are frequently ignored because no one in the producing firm has to write out a check as they must to purchase capital, labour, and material.
Why cant be resolved only using this > ex. Maximum profits doesn’t mean it is good for heath

Step 5: Consider the Legal Requirements
What are they? Have they been met?
Are any of the 5 problems of the law relevant?
• Inadequate Information: the goals, norms, beliefs, and values, and consequently the moral standards of the members of society may be based upon a lack of information relative to issues of importance; it is difficult for personal moral standards to actively influence the formation of the law if some information is missing
• Incomplete Participation: the moral standards of some members of society may not be included in the formation of the small groups that subsequently influence the formal organizations and the legal institutions – some viewpoints can be excluded
• Inarticulate Representation: the moral standards of some groups within society may not be fully represented in the consensus of the formal organizations that subsequently influence the legal institutions; the preferences of some groups are not conveyed effectively
• Inconsistent Formulation: the moral standards of some organizations within society may not be equally considered in the agreements of the political institutions that result, or should result, in the formation of the law – there is no guarantee that all organizations have equal influence, or even equal influence weighted by size or need in determining the final provisions of the law
• Indefinite Wording: the wording of legal requirements, of laws and contracts, is not a theoretical problem and has nothing to do with the proposition that laws should be obeyed because they either represent or should represent the minimal moral standards of a large percentage of the population
Why can’t be solved legally?

Step 6: Evaluate the Ethical Duties
Are any of these principles violated? Why or why not?
• Personal Virtues: Never take any decision or action that is not open, honest, and truthful, and one that you would feel proud to see widely reported on the front pages of national newspapers and in the evening broadcasts of national news programs.
• Utilitarian Benefits: Never take any decision or action that dos not generate greater benefits than harms for the society of which you are a part.
• Universal Duties: Never take any decision or action that you would not be willing to see others, faced with the same or a closely similar situation, be free and even encouraged to take.
• Distributive Justice: Moral standards are based upon the primacy of a single value, which is justice. Everyone should act to ensure a more equitable distribution of benefits, because this promotes individual self-respect, which is essential for social cooperation.
• Contributive Liberty: Moral standards are based upon the primacy of a single value, which is liberty. Everyone should act to ensure greater freedom of choice, because this promotes market exchange, which is essential for social productivity.

Step 7: Propose and Defend a Solution
What is your recommendation? Why is it the best alternative?
SWOT