chapter 3 Flashcards
ethics
The inner-guiding moral principles, values, and beliefs that people use to analyze or interpret a situation and then decide what is the “right” or appropriate way to behave
Stakeholders
The people and groups that supply a company with its productive resources and so have a claim on and a stake in the company
Ethical Dilemma
Quandary people find themselves in when they have to decide if they should act in a way that might help another person even though doing so might go against their own self-interest
stockholders want to ensure that managers
are behaving ethically and not risking investors’ capital by engaging in actions that could hurt the company’s reputation
stockholders want to maximize
their return on investment
managers are responsible for
using a company’s financial capital and human resources to increase its performance
managers have the right to expect
a good return or reward by investing their human capital to improve a company’s performance
managers frequently juggle
multiple interests
employees
Companies can act ethically toward employees by creating an occupational structure that fairly and equitably rewards employees for their contributions
suppliers
expect to be paid fairly and promptly for their inputs
distributors
expect to receive quality products at agreed-upon prices
who is the most critical stakeholder
customer
why must companies work to increase efficiency and effictiveness
in order to create
loyal customers and attract new ones
community
Refers to physical locations like towns or cities or to social milieus like ethnic neighborhoods in which companies are located
community provides
a company with the physical and social infrastructure that allows it to operate
utilitarian rule
an ethical decision should produce the greatest good for the greatest number of people
moral rights rule
an ethical decision should maintain and protect the fundamental rights and privileges of people
practical rule
an ethical decision should be one that a manager has no hesitation about communicating to people outside the company because the typical person in a society would think the decision is acceptable
justice rule
an ethical decision should distribute benefits and harm among people in a fair, equitable and impartial manner
trust
Willingness of one person or group to have faith or confidence in another person’s goodwill, even though this puts them at risk
reputation
Esteem or high repute that individuals or organizations gain when they behave ethically
societal ethics
the values and standards embodied in a societies laws, customs, practices and norms and values
professional ethics
the values and standards that groups of managers and workers use to decide how to behave appropriately
individual ethics
personal values and standards that result from the influence of family, peers, upbringing, and involvement in significant social situations
