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Flashcards in Chapter 3 Deck (55)
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1

An ____ is a problem, situation,
or opportunity that requires an individual
or group to choose among actions

ethical issue

2

What mindset leads companies to ignore ethical issues?

The perception that business is a game to be won.

3

Uncompromising adherence to
ethical values

integrity

4

How does integrity relate to virtue?

One of the most important terms relating to virtue

5

Truthfulness or trustworthiness, to the best of one's knowledge

honesty

6

A lack of integrity, incomplete
disclosure, or an unwillingness to tell the truth

dishonesty

7

The quality of being just, equitable,
and impartial

fairness

8

How wealth or income is distributed

equitableness

9

Occurs when an action that has an
effect upon another is returned

reciprocity

10

The tradeoff between equity and
efficiency

optimization

11

a is a problem, situation, or
opportunity that requires an individual or group
to chose among several wrong or unethical
actions

ethical dilemmas

12

How many ethical choices in an ethical dilemmas

None

13

What is the leading form of observed misconduct

misuse of company resources

14

What is a major part of misuse of company resources

time theft (billions of dollars annually)

15

What is one of the most common ethical problems

aggressive behavior and intimidation

16

What are some examples of aggressive behavior and intimidation?

Can be physical threats, false accusations,
profanity, insults, harshness, ignoring
someone, or unreasonableness

17

What is an important metric in determining abuse?

intent

18

What is a growing problem
that Is associated with a hostile workplace

bullying

19

What are the three types of lying?

Joking w/o malice
Commission Lying
Omission Lying

20

is creating a false
perception with words that deceive the
receiver--Creating noise

commission lying

21

is intentionally not
informing channel members of problems
relating to a product that affects awareness,
intention, or behavior

omission lying

22

What exist when an individual must choose
whether to advance his/her personal
interests, those of the organization, or
some other group

conflicts of interest

23

How can a person avoid conflicts of interest

Individuals must separate personal interests
from business dealings

24

The practice of offering something in
order to gain an illicit advantage

Bribery

25

The person who promises or
gives the bribe commits the offense

active bribery

26

An offense committed by the
official who receives the brib

passive bribery

27

What are payments made to retain or obtain business/advantage--must be small

facilitation payments

28

What is the collection and analysis of information
on markets, technologies, customers, and competitors, as well as on socioeconomic and external political trends

Corporate Intelligence

29

What are the three corporate intelligence models?

 Passive monitoring system for early warning
 Tactical field support
 Support dedicated to top management
strategy

30

A company can be sued for discrimination if
it

 Refuses to hire an individual for discriminatory
reasons
 Unreasonably excludes an individual from
employment
 Unreasonably discharges an individual
 Discriminates against an individual with respect
to hiring, employment terms, promotion, or
privileges
18
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31

A repeated, unwanted behavior of a sexual
nature perpetrated upon an individual by
another

Sexual Harassment

32

What does Sexual Harassment entail?

Hostile work environment

33

What are the three criteria for a hostile work environment

 The conduct was unwelcome
 The conduct was severe, pervasive, and regarded
by claimant as hostile/offensive
 The conduct was such that a reasonable person
would find it hostile or offensive

34

A personal, loving, and/or sexual
relationship with someone with whom
you share professional responsibilities

dual relationship

35

The
relationship causes a conflict of interest or
impairment of professional judgment

unethical dual relationship

36

What does a firm need to avoid sexual harassment?

Statement of policy
2. Definition of sexual harassment
3. Non-retaliation policy
4. Specific procedures for prevention
5. Establish, enforce, and encourage victims to
report
6. Establish a reporting procedure
7. Timely reporting requirements to the proper
authorities

37

Any purposeful communication that
deceives, manipulates, or conceals facts in
order to create a false impression

fraud

38

 Misrepresentation of company’s financial reports
 Dramatic changes in accounting field
 Increased competition and pressures to perform
can create opportunities for misconduct
 Accountants should abide by a strict code of ethics

accounting fraud

39

The process of dishonestly creating,
distributing, promoting, and pricing
products

marketing fraud

40

Claims can be divided into tests
prove (establishment claims) and bald assertions
(non-establishment claims)

literally false

41

An advertising message that
misleads, confuses, or deceives the public

implied falsity

42

Exaggerated advertising claims,
blustering, and boasting

puffery

43

When consumers attempt to deceive
businesses for personal gain

consumer fraud

44

What are some examples of consumer fraud?

Price tag switching, item switching, or lying to
obtain discount

45

involves an employee who helps a
consumer commit fraud

collusion

46

involves a consumer duping a
store

duplicity

47

is associated with a person who uses
tricks to obtain an unfair advantage

guile

48

What caused the recent financial crisis?

The failure to understand and manage ethical
risks was a key problem in the recent
financial crisis

49

What are the two types of insider trading?

Legal and illegal

50

Involves legally buying
and selling stock in an insider’s own company, but
not all the time

legal insider trading

51

The buying or selling of
stocks by insiders who possess material that is not
public

illegal insider trading

52

Involve the legal protection of intellectual
properties

Intellectual Property

53

 Employee use of technology
 Consumer privacy
 Can be challenging for businesses today to meet
the needs of consumers while protecting privacy

privacy issues

54

Most ethical issues become visible through

stakeholder concerns

55

The ethical decision making process starts
when

ethical issue awareness occurs and a
discussion begins