58 terms

Business Ethics

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corporate culture
can be defined as a set of values, norms, and artifacts, including ways of solving problems that members (employees) of an organization share
education
Generally, the more education or work experience that a person has, the better he or she is at ethical decision making.
ethical awareness
is the ability to perceive whether a situation or decision has an ethical dimension
ethical culture
is the component of corporate culture that captures the values and norms an organization defines and is compared to by its industry as appropriate conduct
ethical issue intensity
can be defined as the relevance or importance of an event or decision in the eyes of the individual, work group, and/or organization
normative approach
A normative approach to business ethics examines what ought to occur in ethical decision making
obedience to authority
is another aspect of the influence significant others can exercise
opportunity
describes the conditions in an organization that limit or permit ethical or unethical behavior
significant other
Those who have influence in a work group, including peers, managers, coworkers, and subordinates, are referred to as significant others
act deontologist
holds that individual actions, not their consequences, are the proper basis to judge morality or ethicalness
act utilitarian
utilitarian philosophers who have argued that the rightness of each individual action must be evaluated to determine whether it produces the greatest utility for the greatest number of people
categorical imperative
Immanuel Kant: Act as if the maxim of thy action were to become by thy will a universal law of nature
consequentialism
Teleological philosophies assess the moral worth of a behavior by looking at its consequences, and thus moral philosophers today often refer to these theories as consequentialism
deontology
Refers to moral philosophies that focus on the rights of individuals and the intentions associated with a particular behavior rather than its consequences
distributive justice
is based on the evaluation of the outcomes or results of a business relationship
economic value orientation
is associated with values quantified by monetary means; according to this theory, if an act produces more value for its effort, then it should be accepted as ethical
egoism
defines right or acceptable behavior in terms of its consequences for the individual
enlightened egoism
Enlightened egoists take a long-range perspective and allow for the well-being of others although their own self-interest remains paramount
goodness theory
typically focus on the end result of actions and the goodness or happiness created by them
hedonism
the idea that pleasure is the ultimate good, or the best moral end involves the greatest balance of pleasure over pain. Hedonism defines right or acceptable behavior as that which maximizes personal pleasure
idealism
is a moral philosophy that places special value on ideas and ideals as products of the mind
instrumentalist
A more modern view is expressed in the instrumentalist position. Sometimes called pragmatists
interactional justice
is based on the relationships between organizational members, including the way employees and management treat one another
justice
is fair treatment and due reward in accordance with ethical or legal standards, including the disposition to deal with perceived injustices of others
monist
one who believes only one thing is intrinsically good
moral philosophy
refers to the specific principles or values people use to decide what is right and wrong
nonconsequentialism
a system of ethics based on respect for persons
normative relativism
Normative relativists assume one person's opinion is as good as another's
pluralist
Hold the position that no one particular thing is intrinsically good
procedural justice
the processes and activities that produce a particular outcome
qualitative hedonist
those who believe it is possible to get too much of a good thing (such as pleasure)
quantitative hedonist
those who believe more pleasure is better
realism
is the view that an external world exists independent of our perceptions
relativist perspective
definitions of ethical behavior are derived subjectively from the experiences of individuals and groups
rule deontologist
Rule deontologists believe conformity to general moral principles based on logic determines ethicalness
rule utilitarian
rule utilitarians 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
teleology
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
utilitarianism
is concerned with consequences, but unlike the egoist, the utilitarian seeks the greatest good for the greatest number of people
virtue ethics
argues that ethical behavior involves not only adhering to conventional moral standards but also considering what a mature person with a goodmoral character would deem appropriate in a given situation
white-collar crime
crimes perpetrated by nonviolent business criminals. So-called white-collar crime (WCC) does more damage in monetary and emotional loss in one year than violent crimes do over several years combined
code of conduct
Most companies begin the process of establishing organizational ethics programs by developing codes of conduct, or formal statements that describe what an organization expects of its employees
code of ethics
A code of ethics is the most comprehensive and consists of general statements, sometimes altruistic or inspirational, that serve as principles and as the basis for rules of conduct
compliance orientation
A compliance orientation creates order by requiring employees identify with and commit to specific required conduct
ethics officers
Organizational ethics programs must have oversight by high-ranking persons known to respect legal and ethical standards. These individualsoften referred to as ethics officers are responsible for managing their organizations' ethics and legal compliance programs
statement of values
The final type of ethical statement is a statement of values that serves the general public and also addresses distinct groups such as stakeholders
values orientation
strives to develop shared values among all stakeholders
Business for Social Responsibility
BSR tracks emerging issues and trends, provides information on corporate leadership and best practices, conducts educational workshops and training, and assists organizations in developing practical business ethics tools
Consumerism
Consumerism is the belief that the interests of consumers, rather than those of producers, should dictate the economic structure of a society
Dumping
Dumping is the practice of charging high prices for products in domestic markets while selling the same products in foreign markets at low prices, often at below cost
global business
a practice that brings together people from countries with different cultures, values, laws, and ethical standards
global common values
certain values broadly accepted worldwide
human rights
is defined as an inherent dignity with equal and inalienable rights and the foundation of freedom, justice, and peace in the world
International Monetary Fund
The International Monetary Fund (IMF) originated from the Bretton Woods agreement of July 1944 when a group of international leaders decided the primary responsibility for the regulation of monetary relationships among national economies should rest in an international body, the IMF
made-to-break
made-to-break , or planned obsolescence, products are better for business since they keep consumers returning to buy more
multinational corporation
Multinational corporations (MNCs) are public companies that operate on a global scale without significant ties to any one nation or region
national culture
National culture is a much broader concept than organizational culture and includes everything in our surroundings made by peopleboth tangible items, such as artifacts, and intangible entities, such as concepts and values
Self-reference criterion
In business, the idea that we differ from them is called the self-reference criterion (SRC). The SRC is an unconscious reference to one's own cultural values, experiences, and knowledge
United Nations Global Compact
To support business as a driver for positive change, the UN created the United Nations Global Compact, a set of 10 principles that promote human rights, sustainability, and the eradication of corruption