143 terms

BADM 4101

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Morals
Refer to a persons personal philopophies about what is right and wrong
Key assumption when making an ethical decision
We are free,bounded, (limited in your freedom) by that decision
We are rational, bounded (limited in that rationality)
Business Ethics
Comprises organizational principles, values, and norms that may originate from individuals organizational statements or from the legal system that primarily guide individual and group behavior in business
Principles
Specific and pervasive boundaries for behavior that should not be violated. Often become the basis for rules
Values
Enduring beliefs and ideals that are socially enforced. Example Teamwork, trust, and integrity
Corporate social responsibility
And organizations obligation to maximize its positive impact on stakeholders and minimize its negative impact
Defense industry initiative on business ethics and conduct
Developed to guide corporate support for ethical conduct
Sarbanes-Oxley act
The most far reaching change in organizational control and accounting regulation since the securities and exchange act of 1934
The Dodd Frank Wall Street reform a consumer protection act
The most sweeping financial legislation since the Sarbanes-Oxley act and possibly since law put into effect during the great depression. It was designed to make the financial services industry more ethical and responsible.
Consumers bill of rights
Outlined four basic consumer rights; the rate for safety, the right to be informed, the right to choose, and the right to be heard
Ethical culture
Acceptable behavior as defined by the company in the industry. The component of culture that captures the values and norms in organization to find and is compared to buy it in the street as appropriate conduct
Employee commitment comes from workers who believe
Their future is tied to that of the organization and from a willingness to make personal sacrifices for the organization
Employees perception that a firm has an ethical culture leads to
Performance-enhancing outcomes within the organization
Corporate culture that intergrade strong ethical values and positive business practices have been found to
Increase group creativity and job satisfaction and decreased turnover
Ethical awareness
The ability to perceive wheter a situation or decision has an ethical dimension
Familiarizing employees with company values and training them to recognize common ethical scenarios can?
Help them develop ethical awareness
Ethical issue intensity
The perceived importance to the decision-maker of an events or decision
Moral intensity
Relates to individuals perception of social pressure and the harm they believe their decision will have on others
Six spheres of influence
The workplace, family, religion, legal system, community, and profession
The perception of an ethical issues intensity can be influenced by management use of
Rewards and punishment, corporate policies, corporate values to sensitize employees
Good person about he's been found to
Decrease unethical practices and increased positive
Gender in the context of ethical decision-making
There is no substantial difference between men and women, but when differences are found women are generally more ethical than men
Education in the context of ethical decision-making
The more education and work experience people have the better they are at making ethical decisions. The type of education someone receives has little or no effect on
Nationality in the confines of ethical decision-making
Today's multinational companies look for business people that make decisions regardless of nationality
Age in the context of ethical decision-making
For Several decades we believed that age was positively correlated with ethical decision-making. However recent research suggests that it is probably a more complex relationship between ethics and Age
Locus of control
Relates to how people view themselves in a relationship the power
Those who believe in external control
See themselves as going with the flow because that is all they can do
Those who believe in internal controls
Believe they control the events in their lives and their own effort and skill viewing themselves as masters of their own destinies and trusting in their capacity to influence their environment
Internal versus external control individuals in making ethical decisions
Those believe they form their own destiny were more ethical than those who believe that their fate was in the hands of others
Corporate culture
A set of values norms and artifacts including ways to solving problems that members of an organization share
Ethical culture
Reflects the integrity of decisions made and is a function of many factors, including corporate policies, top management leadership on ethical issues, the influence of coworkers, and the afternoon for unethical behavior
There is a positive correlation between effective communication and
Empowerment and the development of an organizations ethical climate
Significant others
Those who have influence of the work group, including peers managers coworkers and subordinates
Obedience to authority
Another aspect of the influence significant others can exercise
Opportunity
Describes the conditions in an organization that limit or permit ethical or unethical behavior
Normative approach
Describe how an organizational decision-maker should approach and ethical issue.
Institutional theory
states that organizations operate according to taken for granted rulrd and institutional. Norms and rules
Moral philosophy
Refers to the specific principles or values people used to decide what is right and wrong
Distinction between moral philosophy and business ethics
Moral philosophy is person specific while business ethics is based on a decision made by groups or when caring out task to meet business objectives
Moral philosophy present guidelines for
Determining how conflicts in human interest are to be settled and for optimizing mutual benefits of people living together
Economic value orientation
Associated with values quantified by monetary means; according to this theory if an act produces more value for its effort than it should be accepted as ethical
Idealism
Places special value on ideas and ideals as products ofas products of minds
Realism
The view that an external world exist independent from our perceptions, realist assume humankind is not naturally benevolent and kind but instead inherently self-centered and competitive
Monoist believe only one thing is
intrinsically good and Pluralist believe two or more things aren't tragically good
Instrumentalist
Reject the idea that ends can be separated from the means that produce them and ends, purposes, or outcomes are intrinsically good in and of themselves
Goodness theory
Typically focuses on the end result of actions and the goodness or happiness created by them
Obligation theories
Emphasize the means and motives by which actions are justified and are divided into the categories of teleology and dnetologies
Teleology (Consequentialist)
Refers to moral philosophy 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
Egoism
Defines right or acceptable behavior in terms of its consequences for the individual. Maximize own self interest
Enlightened egoism
Long-range perspective and allows for well-being of others although their own self interest remains Paramount
Utilitarianism
Concerned with consequences, serve the greatest good for the greatest number of people.
Real utilitarians
Believe the general rule should be followed to decide which actions are best
Act utilitarianism
Examine specific actions, rather than the general rules governing them, to assess whether they will result in the greatest utility. Rules such as bribery is wrong server only has guidelines for act utilitarianism
Deontology
Focus on the rights of individuals in the intentions associated with a particular behavior rather than its consequences. Equal respect must be given to all people
Non-consequentialism
The system of ethics based on respect for persons
Categorical imperative
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, and committing the act is ethical
Act dentologost
Actions are the proper basis to judge morale of the year
Relativist perspective
Definitions of ethical behavior are derived subjectively from the experiences of individuals and groups
Descriptive relativism
Different cultures exhibit different norms, customs, and values, but these observation say nothing about the higher question of ethical justifications
Meta-ethical relativism
Proposes that people naturally see situations from their own perspective, and there is no objective way of resolving ethical disputes between different value systems and individuals
Normative realism
Assumes one persons opinion is as good as another's
The problem with relativism is it
Emphasizes people's differences well ignoring their basic similarities
Virtue ethics
Argues that ethical behavior involves not only adhering to a conventional moral standards but also considering what a mature person with a good moral character would deem appropriate in a given situation
Justice
Fair treatment do reward in accordance with ethical or legal standards including the disposition to deal with perceived injustices for others
The justice of the situation is based on the
Perceived rights of individuals and on the intentions of the people involved with the business interaction
Distributive justice
Based on the evaluation of the outcomes or results of a business relationsh
Procedural justice
Considers the process and activities that produce a particular outcome
Interactional justice
Based on the relationship between organizational members, including the way employees and management treat one another.
Kohlberg's models cognitive moral development
People make different decisions and similar ethical situations because they are at differentmoral development stages.
The six stages of Kohlberg's model of cognitive moral development
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White-collar crime
Highly educated people in positions of power Who commit crimes
Apathetic culture
Shows minimal concern for either people or performance
Caring culture
Exhibit high concern for people but minimal concern for performance
Exacting culture
Shows little concern for people but a high concern for performance. It focuses on the interest of the organization
Integrative culture
Combines a high concern for people and performance. An organization becomes integrative when superiors recognize employees are more than interchangeable parts
Culture audit
Assessment of an organizations values
Compliance culture
Use a logistic approach to ethics and organized around risk. They use law and regulatory rules to create codes and requirements.
Values-based ethics sculpture
Approach to ethical corporate culture relies upon an explicit mission statement that defines the core values of the firm and how customers and employees should be treated
Differential association
The idea that people learn ethical or unethical behavior while interacting with others who are part of their rule set or belong to other intimate personal groups
Whistleblowing
Exposing employers wrongdoings to outsiders such as the media or government regulatory agencies
Reward power
Refers to a person's ability to influence the behavior of others by offering them something
Coercive power
Penalizes actions or behaviors
Legitimate power
Stems from the belief that a certain person has the right to exert influence in certain others have an obligation to except it
Referent power
May exist when one person perceives that his or her goals or objectives are similar to another. The second person may attempt to influence the first to take action that allows both to achieve theirObjective
Motivation
A force within the individual that forces his or her behavior toward
Job performance
Considered to be a function of ability and motivation
Centralized organization
Decision-making authority is concentrated in the hands of top-level managers, a little forward is delegated the lower levels.
Decentralized organization
Decision-making authority is delegated this far down the chain of command as possible. The organization has relatively few formal rules, and coordination and control are usually informal and personal
Formal group
And assembly of individuals with an organized structure that is explicitly excepted by the group
Informal group
Two or more individuals of the common interest but without an explicit organizational structure
Group norms
Standards of behavior groups except other members
There are three fundamental elements that motivate people to be fair
Equity, reciprocity, and optimization
Equity
The distribution of benefits and resources
Reciprocity
And interchange of giving and receiving and social relationships
Optimization
The trade-off between equity and efficiency.
Ethical dilemma
A problem, situation, or opportunity that requires an individual, group, or organization to choose among several actions that have negative outcomes.
Conflict of interest
When an individual must choose whether to advance his or her own interests, those of the organization, or those are some other
Bribery
The practice of offering something in order to gain and a listed advantage from someone in authority
Active bribery
The person who promises or gives the bride commits
Passive bribery
An offense committed by the official who receives the bride
Facilitation payments
Made to obtain and retain business or other improper advantages do not constitute bribery for the US companies in some situations. Such payments are often made to induce public officials to perform their function, such as issuing license permits
Corporate intelligence
The collection and analysis of the information on markets, technologies, customers, and competitors, as well as on socioeconomic an external political trends.
Social engineering
The tricking of individuals into revealing their password or other valuable corporate information
Age discrimination in employment act
Outlawed hiring practices that discriminate against people 40 years of age or older
Affirmative action programs
Efforts to recruit hire train and promote qualified individuals from groups that are traditionally been discriminated against on the basis of race gender and other characteristics
Stakeholders
Individuals or groups that have a stake or claim in some aspect of the company's products operations markets and industry
Primary stakeholders
Are those whose continued association is absolutely necessary for the firm survival
Secondary stakeholders
Do not typically engage in transactions with the company and are therefore nonessential to it survival
Stakeholder orientation
The degree to which a firm understands and addresses their Stakeholders demands
Corporate citizenship
Used to express the extent to which businesses strategically meet the economic, legal, ethical, and philanthropic responsibilities placed on them by various stakeholders
Corporate governance
Involves the development of formal systems of accountability, oversight, and controls
Strong corporate governance mechanisms remove
The opportunity for employee to make unethical decisions
Shareholder model of corporate governance
Is founded in classic economic precepts including the goal of maximizing was for investors and owners
The stakeholder model of corporate governance
Adopts a broader view of the purpose of business. although a company certainly has a responsibility for economic success and viability to satisfy its stockholders, it must also answer others stakeholders, including employees, suppliers, government regulators
Interlocking directorate
The concept of broad members being link to more than one company
Compliance orientati
Create order by requiring employees identify with and commit to specific required conduct
Values orientation
Strives to develop shared values. Although penalties are attached the focus is more on an abstract core of ideal such as accountability and commitment
Code of conduct's
Formal statement that describes what an organization expects of its employees
Code of Ethics
Consist of general statements, something all to restrict or inspirational, that serves as principal and as the basis for rules of conduct
A code of ethics generally specifies methods for
Reporting violations, disciplinary actions for violations, and a structure of due process
Statements of value
Serves the general public and also addresses distinct groups such as stakeholders. Value statements are conceived by management and fully developed with input from all stakeholders.
Ethics officer's
Responsible for managing their organizational ethics and legal compliance programs
Transactional leaders
Attempt to create an employee satisfaction through negotiating, or bartering, for desired behaviors or levels of performance
Transformational leader
strive to raise employees levels of commitment and Foster trust and motivation
Authentic leaders
Passionate about the company, live out in corporate values daily in their behavior in the workforce, and for long-term relationship with employees and other stakeholders
Cultural relativism
The concept that mortality varies from one culture to another that right and wrong or defined differently
Risk Compartmentalization
Occurs when profit centers with and corporations or unaware of the overall consequences of their actions on the firm as a whole. As a result know one person, company, or agency should be blamed The problems were systematic
Laissez faire
Critical to capitalism because it assumes the market, though its own inherent mechanisms, keeps commerce in equilibrium.
Socialism
Refers to economic theories advocating the creation of the society would wealth and power or shared and disturbuted evenly based on the amount of work expended in production
Social democracy
Allows private ownership of property and also features a large government equipped offer subservices his education and healthcare to its citizens
Bimodal wealth distribution
Occurs when the middle class shrinks resulting in highly concentrated wealth among the rich and increased numbers of poor people a few resources
Rational economics
Based on the assumption that people are predictable and will maximize the utility of their shareholders relative to their needs and wants
Behavioral economics
Assumes humans act irrationally because of genetics emotions, learned behaviors and heuristics
Multinational corporation's
Public companies that operate on a global scale without sufficient ties to any one nation a region
Dumping
Practice of charging high prices for products and to domestic markets while selling the same product for market at low prices often at a below cost
Hedonism
The Idea that pleasure is the ultimate good, or the best moral end involves the feast balance of pleasure and pain.
Quantitative Hedonism
believe more pleasure is better
Qualitative Hedonism
You can get too much of a good thing
Pluralist
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Moral Intuition
Immediate response to a moral dilemma, built on habit or familiarity with the situation
The anatomy of a choice
Starts with a trigger, which is then followed by reflection
Then you make a decision, must be within a context
Followed by an action and finally consequences
5 Principles to decision making
Promise Keeping
Fairness
Doing No Harm
Contributing
Honesty/truth telling
Most Important thing in the ****ing world
Treat others as an end rather than a means