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20 terms

Chapter 4: Managing Ethics and Social Responsibility

STUDY
PLAY
ethics
code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong
ethical dilemma
situation in which all alternative choices or behaviors have potentially negative consequences. Right and wrong cannot be clearly distinguished
utilitarian approach
this approach to ethical decision making says that the ethical choice is the one that produces the greatest good for the greatest number
individualism approach
this approach suggests that actions are ethical when they promote the individual's best long-term interests, because with everyone pursuing self-interest, the greater good is ultimately served; not considered appropriate today because it is easily misused to support one's personal gain at the expense of others
moral rights approach
some managers rely on this approach which holds that ethical decisions are those that best maintain the fundamental rights of the people affected by them
justice approach
this approach says that ethical decisions must be based on standards of equity, fairness, and impartiality
distributive justice
requires that different treatment of individual not be based on arbitrary characteristics
procedural justice
holds that rules should be clearly stated and consistently and impartially enforced
compensatory justice
argues that individuals should be compensated for the cost of their injuries by the party responsible, and individuals should not be held responsible for matters over which they have no control
virtue ethics approach
this approach says that moral behavior stems from personal virtues. If a manager develops good character traits and learns to overcome negative traits, he or she will make ethical decisions based on personal virtue
practical approach
today's managers also use this approach which sidesteps debates about what is right, good, or just, and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account
corporate social responsibility
refers to the obligation of organizational managers to make choices and take actions that will enhance the welfare and interests of society as well as the organization
stakeholder
refers to any group within or outside the organization that has a stake in the organization's performance
sustainability
refers to the economic development that generates wealth and meets the needs of the current population while preserving the environment for the needs of future generations
discretionary responsibility
purely voluntary and is guided by the organization's desire to make social contributions not mandated by economics, laws, or ethics
code of ethics
formal statement of the organization's values regarding ethics and social issues
ethics committee
group of executives charged with overseeing company ethics by ruling on questionable issues and disciplining violators
chief ethics officer
some organizations have ethics offices headed by a..., a manager who oversees all aspects of ethics and legal compliance
ethics training
used to help employees deal with ethical questions and translate the value stated in a code of ethics into everyday behavior
whistle-blowing
managers who want ethical organizations support..., the disclosure by employees of unethical, illegitimate, or illegal practices by the organization