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Business Ethics Chapters 5-8
Terms in this set (102)
When corporations are held accountable for their conduct to stakeholders, they are?
Organizational ethics program
Establishing, communicating, and monitoring the ethical values and legal requirements that characterize the organizations history, culture, industry, and operating environment, to promote legal and ethical conduct, is?
Uniform standards and policies of conduct
Showing employees what behaviors are acceptable, so they don't make decisions based on coworkers and superiors behavior
A program that strives to develop shared values. Employees learn to make decisions based on values such as fairness, compassion, respect, and transparency. Creates ethical reasoning.
A program that requires employees identify with and commit to specific conduct + Uses legal terms, statutes, and contracts to teach the rules and penalties for noncompliance. Consistent enforcement and disciplinary action are essential
Codes of conduct
A tool that helps employees and managers deal with ethical dilemmas by prescribing or limiting specific activities. Should be specific enough to be reasonably capable of preventing misconduct.
6 core values of Codes of ethics
Trustworthiness, Respect, Responsibility, Fairness, Caring, and Citizenship.
Organizational ethics programs must have oversight by high-ranking persons, known to respect legal and ethical standards? They develop an distribute the code, asses needs and risks, monitor and auditgethical conduct, act upon code violations, review and update the code, and ensure government compliance
Educating employees about the firm's ethical standards, is a foundation, a code of ethics, a procedure for airing ethical concerns, line and staff involvements, and executive priorities on ethics that are communicated to employees, known as?
Common mistakes in implementing an ethics program
Most common observed forms of conduct
personal business on company time, abusive behavior, sing to employees, discrimination, health/safety violations, company resource abuse, internet abuse, are all types of?
The pressure to succeed creates opportunities that reward unethical decisions and creates?
What does a Strong ethics program include?
clear, written codes of conduct, ethics officers, careful delegation of authority, formal ethics training, and monitoring, enforcement, and revision of the program standards.
Effective programs to monitor and enforce ethical standards
methods such as: observing employees, internal audits and investigations, surveys, reporting systems, and external audits are used for?
A compliance section that requires firms to adopt a set of values that forms a portion of the company's culture
An assessment of an organization's values
A culture that shows a minimal concern for people and performance
A culture that shows a high concern for people but minimal concern for performance issues
A culture that exhibits a high concern for performance but low concern for people
A culture with a high concern for people and performance
Values-based ethics culture
A missions statement that defines the values of the firm and how employees and customers are to be treated
An idea when people learn ethical or unethical behavior while interacting with people in the same role-set or personal groups
Whistle-blowing (qui tam relator)
A term used for exposing an organizationals unethical practices to outsiders such as the media or government agencies
A person's ability to influence the behavior of offers by offering them something desirable
The ability to penalize a person's actions in order to change behavior
A belief that a certain person has the right to exert influence and certain others have obligation to accept it
A person perceives that his or her goals or objectives are similar to another's
A force within an individual that focuses his or her behavior toward achieving a goal
A function of ability and motivation
Needs that are satisfied by social and interpersonal relationships
Needs that are satisfied by creative or productive activities
An organizations decision-making decision utilize a top-down approach
An organization decision-making is delegated as far down as the chain of command as possible
An assembly of individuals with an organization structure that is explicitly accepted by the group
An assembly of two or more individuals with a common interested but without an explicit organizational structure
refers in particular to the specific principles or rules that people use to decide what is right or wrong. Many theories associated with moral philosophies refer to a value orientation and such things as economics, idealism, and relativism.
_____________ are person specific while business ethics is based on decisions made by groups or when carrying out tasks to meet business objectives.
a person's principles and values
Should be assessed on a continuum
Economic Value Orientation
general moral philosophy associated with values quantified by monetary means; If an act produces more value for its effort, then it should be accepted as ethical
general moral philosophy that places special value on ideas and ideals as products of the mind. Refers to the the efforts required to account for all objects in nature and experience and to assign to them a higher order of existence
Positive relationship between this and ethical decision making.
Realism (survival of the fittest)
general moral philosophy with the view that an external world exists independent of our perceptions. Assumes humankind is not naturally benevolent and kind, but instead inherently self centered and competitive. Each person is guided by his or her own self interest.
Negative correlation between __________ and ethical decision making.
believe only one thing is intrinsically good. Not all of these are hedonists but often exemplified by hedonism
Good will towards men applied to accomplishment
referred to as non hedonists, believe that no one thing is intrinsically good. All of these are non hedonists
the idea that pleasure is the ultimate good, or the best moral end involves the greatest balance of pleasure over pain. Defines right or acceptable behavior as that which maximizes personal pleasure
those who believe more pleasure is better
Those who believe it is possible to get too much of a good thing (such as pleasure)
(pragmatists) reject the ideas that
1. ends can be separated from the means that produce them.
2. ends, purposes, or outcomes are intrinsically good in and of themselves.
typically focus on the end result of actions and the goodness or happiness created by them.
Consists of Monism and pluralism
emphasize the means and motives by which actions are justified, and are divided into the categories of teleology and deontology
(consequentialism) (from the Greek word for end or purpose) refers to moral philosophies in which an act is considered morally right or acceptable if it produces some desired result, such as pleasure, knowledge, career growth, the realization of self interest, utility, wealth, or even fame. Two philosophies
stipulates that acts are morally right or acceptable if they produce some desired result, such as the realization of self interest or utility
Defines right or acceptable behavior in terms of its consequences for the individual. Believe they should make decisions that maximize their own self interest , which is defined differently for each individual. Depending, self interest may be construed as as physical well being, power, pleasure, fame, a satisfying career, a good family life, wealth, or something else. Short Term oriented
Believed to be very unethical way of thinking
defines right or acceptable actions as those that maximize a particular person's self interest as defined by the individual.
take a LONG RANGE perspective and allow for the well being of others although their own self interest remains paramount. Means you may not do something if it comes back to bite you in the butt later or you may do something that is beneficial for others if it could produce something advantageous for you further down the road. As above only if it does not infringe on another's territory
concerned with consequences and seeks the greatest good for the greatest number of people.
defines right or acceptable actions as those that maximize total utility, or the greatest good for the greatest number of people
determine behavior on the basis of principles or rules designed to promote the greatest utility, rather than on individual examinations of each situation they encounter. Do not automatically accept conventional moral rules, however, if they determined an alternative rule would promote greater utility, they would advocate its use instead.
conformity to general moral principles
Examine specific actions, rather than the general rules governing them, to assess whether they will result in the greatest utility. Rules are more general guidelines.
(nonconsequentialism) moral philosophies that focus on the rights of individuals and the INTENTIONS associated with a particular behavior rather than its consequences. Equal respect must be given to all persons. There are some things that we should not do, even to maximize utility.
Immanual Kant - "Act as if the maxim of thy action were to become by thy will a universal law of nature". If you feel comfortable allowing everyone in the world to see you commit an act and if your rationale for acting in a particular manner is suitable to become a universal principle guiding behavior, then committing that act is ethical.
deontologists regard the ______ of moral principles as permanent and stable and they believe that compliance with these principles defines ethicalness.
Believe conformity to general moral principles based on logic determines ethicalness.
hold that actions are the proper basis to judge morality or ethicalness. Past experiences are more important than rules; rules serve only as guidelines in the decision-making process. People simply know that certain acts are right or wrong regardless of their consequences.
derived subjectively from the experiences of individuals and groups. They use themselves or the people around them as their basis for defining ethical standards, and the various forms of relativism include descriptive, meta ethical, and normative.
evaluates ethicalness subjectively on the basis of individual and group experience
problem is that it emphasizes peoples' differences while ignoring their basic similiarities
proposes that people naturally see situations from their own perspectives, and there is no objective way of resolving ethical disputes between different value systems and individuals. One culture's moral philosophy cannot logically be preferred to another's because no meaningful basis for comparison exists.
assume one person's opinion is as good as another's. Believe that we live in a world in which people have many different views and bases from which to justify decisions as right or wrong.
ethical behavior involves not only adhering to conventional moral standards but also considering what a mature person with a "good" moral character would deem appropriate in a given situation.
assumes societal moral rules form the foundation of virtue. Our political, social, and economic systems depend upon the presence of certain virtues among citizens in order to function successfully
Virtue Ethics to business
1. Good Corporate ethics programs encourage individual virtue and integrity
2. By the employee's role in the community (organization), these virtues form a good person
3. An individual's ultimate purpose is to serve society's demands and the public good and be rewarded in his or her career.
4. The well-being of the community goes hand in hand with individual excellence.
fair treatment and due reward in accordance with ethical or legal standards, including the disposition to deal with perceived injustices of others.
Based more on deontological moral philosophies than on teleological or utilitarian philosophies
considers the processes and activities that produce a particular outcome. Positively influences employees' attitudes and behaviors toward work group cohesion.
Evaluates ethicalness based on fairness. It focuses on the process rather than the outcomes of an act.
based on the relationships between organizational members, including the way employees and management treat one another.
Evaluates Ethicalness based on fairness. It focuses on the communication process used in a relationship.
Kohlberg's model of cognitive moral development (CMD)
people make different decisions in similar ethical situations because they are in different moral developmental stages.
Kohlberg's 3 levels of ethical concern
1. Concern with immediate interests and with rewards and punishments
2. Concern with "right" as expected by the larger society or some significant reference group
3. Seeing beyond norms, laws, and the authority of groups or individuals
The importance of this is that individuals in a company can change or improve their moral development, and so managers can develop employees through applicable strategies by providing training for cognitive moral development.
White Collar Crime
does more damage in monetary and emotional loss in one year than violent crimes do over several years combined. Tends to be highly educated people in positions of power, trust, respectability and responsibility within a business or organization.
Deontologists absolute rights
Freedom of Conscience
Freedom of Consent
Freedom of Privacy
Freedom of Speech
Relates to observing cultures. Different cultures exhibit different norms, customs, and values
based on the evaluation of outcomes or results of the business relationship. If some employees feel they are paid less than their coworkers for the same work, they have concerns with this.
Evaluates ethicalness based on fairness. It focuses on outcomes or results of an act
Teleogical VS Deontological
___________ philosophies consider the ends associated with an action, whereas __________ philosophies consider the means
the variable that differentiates business from other situations
managers who are nonviolent, selfish, and remorseless, exist in many large corporations
_____ involves subordinates simply following the directives of a superior without question. It demonstrates the influence that significant others can exert in the workplace.
Obedience to authority
_____ is an organizational factor that gives a company specific characteristics. Over time, stakeholders begin to see the company as like a living organism with a mind and will of its own.
Familiarizing employees with company values and training them to recognize common ethical scenarios helps them generate
According to the ethical decision-making framework, the absence of punishment provides a(n) _____ for unethical behavior.
Multiple elements work on individuals to affect their behavior. While an individual may intend to do the right thing, _____ can alter this intent.
organizational or social forces
_____________ is/are important in establishing a foundation for normative values.
Which of the following is not an individual factor that affects business ethics?
Which of the following is the first step in the ethical decision making process?
Recognizing that an ethical issue exists
The ethical decision making process in business includes all of the following
Society's view of the decision
The _____ can be defined as a set of values, norms, and artifacts, including ways of solving problems shared by members of an organization.
______________ are central to an organization and provide directions for action.
Which of the following would not be considered a negative reinforcement of employee behavior?
Ignoring the behavior
What is the last step in the ethical decision-making process?
Individuals' intentions and what action they are going to take
Employees who believe they control the events in their lives by their own effort and skill have a(n)
internal locus of control.
For people who begin the value shift that leads to unethical decisions, which of the following is not a usual justification to reduce and eliminate guilt?
This is in keeping with my personal morals and the code of conduct, so it is okay.
_____ is the first sign that an unethical decision has occurred.
Organizations that have ethics programs based on a _____ orientation are found to make a greater contribution than those based simply on compliance, or obeying laws and regulations.
Which of the following is not considered a significant other group in the workplace?
Values have all the following characteristics except
Studies have shown that _____ within the organization have more impact on a worker's decisions on a daily basis than any other factor.
_____ institutions include religion, education, and individuals such as the family unit.
The relationship between business ethics and age
is complex, although experience helps older employees make ethical decisions.
Following the ethical directives of a superior relates to
obedience to authority.
People who believe in _____ go with the flow because they feel the events in their lives are uncontrollable.
external locus of control
_____ have been found to decrease unethical practices and increase positive work behavior.
Good personal values
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