Ch 4 Flashcards
(19 cards)
One’s personal beliefs about whether a behavior, actions, or decisions, is right or wrong
Ethics
Behavior that conforms to generally accepted norms
Ethical Behavior
Standards of behavior that guide individual managers in their work
Managerial Ethics
Written statements of the values an ethical standards that guide a firm’s actions
Code of Ethics
3-step model for applying ethical judgement to a situation:
1) Gather relevant/factual information
2) Determine most appropriate moral value
3) Make an ethical judgment based on the rightness/wrongness of the proposed activity or policy
The perception of people in an organization regarding fairness
Organizational Justice
Types of Organizational Justice
Distributive Justice
Procedural Justice
Interpersonal Justice
Informational Justice
Act that requires CEOs and CFOs to personally vouch for the truthfulness and fairness of their firm’s financial disclosures
Sarbanes-Oxley Act
Set of obligations an organization has to protect and enhance the societal context in which it functions.
Social Responsibility
Organizational Stances to Approach Social Responsibility
1) Obstructionist Stance
2) Defensive Stance
3) Accommodative Stance
4) Proactive Stance
Stance in which a firm does as little as possible
Obstructionist Stance
Stance in which an organization does everything that is legally required of it
Defensive Stance
Stance in which an organization meets legal an ethical obligations but will also go beyond the obligations in selected cases
Accommodative Stance
Stance in which an organization views itself as a citizen in a society and proactively seeks opportunities to contribute
Proactive Stance
How does the government influence businesses?
- Environmental protection legislation
- Consumer protection legislation
- Employee protection legislation
- Securities legislation
- Tax Code
How do businesses influence the government?
- Personal contacts and network
- Lobbying
- Political action committees (PACs)
- Favors and other influence tactics
Establishment of laws and rules by the government that dictate what organizations can and cannot do
Regulations
The extent to which the organization conforms to local, state, federal and international laws
Legal Compliance
The extent to which the members of the organization follow basic ethical (and legal) standards of behavior.
Ethical Compliance
