70 terms

Ethics Final


Terms in this set (...)

what is an ethical decision
right or wrong
whether consideration takes place
decision when significant effects, choice, ethically relevant to someone
framing effect
in which people react to a particular choice in different ways depending on how it is presented

e.g. go to greater lengths to avoid a loss than to obtain a gain of a smaller size
overvaluing outcomes
individuals tend to punish outcomes more harshly than bad intentions

"management by objectives" leads to focus on ends rather than means
status quo tendency
e.g. contributions to retirement place, choice of Internet privacy policies and the decisions to become an organ donor
self-enhancement bias
individuals tend to describe themselves as better people than they really are
egocentric bias
self interested outcomes are not only desirable but morally justified
escalation of commitment
individuals develop attachments to programs, activities, and investments when we feel financially, emotionally, or psychologically "invested" we retain an unreasonable commitment to that thing, remaining engages long after we should
omission bias
tendency to judge acts that are harmful as worse than omissions that are equally harmful or even more harmful.

most have to goal not to harm people but sometimes doing nothing causes harm
stages in EDM
recognize moral issue
moral judgement
intention to act
individual factors that influence EDM
unique characteristics of the individual making the relevant decision

i.e. old vs young, education or not, personal values, locus of control, personal integrity
situational factors that influence EDM
particular features of the context that influence whether the individual will make an ethical decision

i.e. authority, rewards, work roles, moral intensity and moral framework, organizational culture
external locus of control
go with the flow because that's all they can do
internal locus of control
believe they can control events; are masters of their destinies and trust in their capacity to influence their environment
Kohlberg's Model of Cognitive Moral Development
punish and obedience
individual instrumental purpose and exchange
mutual interpersonal expectations, relationships, and conformity
social system and conscience maintenance
prior rights, social contract, or utility
universal ethical principles
moral disengagement
process that enables people to engage in negative behaviors from small misdeed to great atrocities, without believing that they are causing harm or doing wrong
8 methods of moral disengagement
moral justification
euphemistic labeling
advantageous comparison
distortion of consequence
displacement of responsibility
diffusion of responsibility
attribution of blame
moral justification
process of framing harmful or morally wrong acts to be in the service of a greater good

using the "greater good" as an excuse to do something wrong
euphemistic labeling
the practice of using pleasant language to rename harmful or morally wrong acts to make them appear more benign

language to "sugar coat" the behavior
advantageous comparison
using the contrast between a behavior and an even more reprehensible behavior to make the former seem innocuous

exaggerated comparisons to make action seem less wrong
distortion of consequence
minimizing the seriousness of the effects of one's actions to feel better about it
framing the victims of one's actions as members of an outgroup that is undeserving of basic human consideration and unworthy moral regard
displacement of responsibility
displacement of responsibility
attributing the responsibility for one's action to authority figures who may have tactically condoned or explicitly directed one's behavior
diffusion of responsibility
spreading blame for actions to others or assuming that that is what people would do
attribution of blame
assigning responsibility for one's actions to the victims themselves
using a framework to create better choices
understand the situation
generation alternatives
improve alternatives
craft a recommendations
stakeholder theory
someone who has a "stake" or claim in some aspects of a company's products, operations, markets, industry and outcomes

are affected by the business
primary stakeholders
those whose continued association is absolutely necessary for a firm's survival
secondary stakeholder
don't typically engage in transactions with a company
high power; low interest
keep satisfied
low power; low interest
monitor (minimum effort)
high power; high interest
manage closely
low power; high interest
keep informed
implementing stakeholder perspective
assessing corporate culture
identify stakeholder groups
identify stakeholder issues
assess current practices, select initiatives
identify resources, determine urgency
stakeholder feedback
the voluntary activities undertaken by a company to operate in an economic, social and environmentally sustainable manner
nature of CSR
why do firms have social responsibility
enlightened self interest
need solve social problems they face
great power
rely on stakeholders
argument against CSR
only human beings have a moral responsibility for their actions
manager's responsibility to act solely in the interest of the shareholders
social issues and problems are the proper province of the state rather than corporate managers

"social responsibility of a business is to increase its profits"
arguments for CSR
companies cause problems therefore have a responsibility to address/prevent them
powerful social actors with access to significant resources that should be used responsibly
rely on a wider set of stakeholders than just shareholders and have a duty to take into account their interests and goals
enlightened self-interest (Business Case)
Arguments for CSR: The BC
brand value and reputation
employees and future workforce
operation effectiveness
direct financial impact
organizational growth
business opportunity
responsible leadership
risk reduction and management
marco-level sustainable development
the ability or authority to guide and direct others towards a goal. most people agree that effective leadership is essential for a company
7 habits of a strong ethical leader
strong personal character
passion to do the right thing
consider all stakeholders' interest
role model for the organization's values
transparent and actively involved in decision making
take a holistic view of the firm's ethical culture
two approaches to leadership
compliance based
integrity based
improving ethical decisions
formal codes, rules, compliance
informal relationships-encourage teamwork
recognize stakeholders
giving the right incentives
transforming principles to values
support from leadership
signs of ethical leadership failure
lack of vision
keeping quiet
double standards
unreflective obedience
Milgram's study
Stanford Prison Experiment
Barley and Batson 1973
Social loafing/bystander effect
tug of war
Kitty Genovese
smoke in room
explanation of social loafing/bystander problem
diffusion of responsibility
audience inhibition
social influence
ways to reduce social loafing/bystander problem
call to action
someone else helps first
actions known later
norms of social caring
groupthink symptoms
(Asch line study)
illusion of invulnerability
unquestioned belief in the group's inherent morality
pressure directed at those dissenting from majority view
shared illusion of unanimity
ways to avoid groupthink
eliminate leadership bias
express need to examine all alts
devil's advocate
implications for leaders
careful about relying heavily on their instinct
look ahead and anticipate ethically challenging circumstances
remember that personal values can have a powerful, shaping influence on their organizations
lead and manage their organization so that situational influences enable other people to make sound decisions
pay particular attention to their parts of an organization characterized by uncertainty, time and performance pressure, short term time horizon, and isolation
employees as stakeholders
legal level (regular regulation)
economic aspect (hidden costs - asset specificity)
moral hazard (employees, employers)
management of HR - an ethical problem
employees are subject to a strict managerial rationale of minimizing costs and maximizing the efficiency of the resource
employee rights as stakeholders
equal opportunities; affirmative action
reverse discrimination
employee privacy
health and drug testing
due process and layoffs
working conditions
flexible working patterns
attempts to rehumanized workplace
empower employee
job enlargement
job enrichment
wider employment
large #s of unemployed people becomes the norm in many countries due to mechanization

threatens: right to work, social fabric of particular communities, new tech herald the 'end of work'
green jobs
industries are making environmentally friendly products
and workplace and organization of labour is also more environmentally sustainable
10 popular negotiating actions all of which can be challenged on ethical grounds
weakening the opponent
strengthening one's own position
information exploitation
change of mind
practices incur costs for the negotiation
rigid negotiating
damaged relationships
sullied reputation
lost of opportunities
strategies people adopt in negotiations
importance of ethics in negotiation
how comfortable am i with making up a story and how do i feel about a negotiations partner who lies or threatens?
csr communication
provides the basis for informed decision making by interested parties who may wish to purchase a company's products, to invest in a company or to support a company's activities in their community.

goal = communicate progress in a meaningful way that will attract positive attention to a business and that will engage stakeholders
nature of csr
marketplace: support of local suppliers, working and living conditions
workplace: pay, benefits
community: community healthcare, quality of life
environment: increase energy or water conservation
csr audience
marketplace: employees, customers
workplace: employees, trade unions
community: employees, local organizations
environment: employees, business partners
why communicate csr actions with staff
productivity gains
how to communicate csr with staff
company value statement
regular all-staff meetings
new employee orientation
suggestion boxes
posters and banners
newsletters, memos, or emails
internal videos or brochures
communicate csr with community
company brochures
mailing lists, social media, website
product labels and packaging
media and events
sustainability and integrated reporting (annual reports)
point of sale materials and salesperson assistance
advertisements (trade-off problems)
consumer responses on csr
company specific: reputation, csr history
individual specific: demographics, personal values
cause specific: company/cause fit
good csr communication
starts at csr implementation

consistent, authentic, real
do what you say
openness and transparency
intersection of business and society
tied to overall strategy
myths and reality of csr communication
dont be afraid of media
dont underestimate the public
address big issues head on
don't present picture perfect comp
use whole org
don't focus only on report
set specific, actionable, and measurable targets (communicate results and point of failure)
2 way communication
different messages for different audiences
check codes of responsible marketing
make claims as specific as possible to avoid consumer confusion
don't over-communicate
be aware of greenwashing