Chapter 3: Ethics And Shit

Question 1

Ethical climate

Answer 1

Employees perceptions about the extent to which work environments support ethical behavior

Question 2

Triple bottom line

Answer 2

Representing people, planet, and profit (3 P’s). Measures an organizations social, environmental, and financial performance

Question 3

Social audit

Answer 3

Systematic assessment of a company’s performance in implementing socially responsible programs, often based on predefined goals

Question 4

Stakeholders

Answer 4

People whose interests are affected by an organizations activities

Question 5

Internal stakeholders

Answer 5

Employees, owners, and the board of directors

Question 6

Owners

Answer 6

All those who can claim the organization as their legal property

Question 7

Sole proprietorship

Answer 7

One man operation

You running your own business

Question 8

Partnership

Answer 8

2 people in a byusiness together

Question 9

External stakeholders

Answer 9

People or groups in the organizations external environment that are affected by it

Question 10

Task environment

Answer 10

Eleven groups that present you with daily tasks to handle: customers, competitors, suppliers, distributors, strategic allies, employee organizations, local communities, financial institutions, government regulators, special interest groups, and mass media

Question 11

Customers

Answer 11

Those who pay to use an organizations goods or services

Question 12

Competitors

Answer 12

People or organizations that compete for customers or resources

Question 13

Supplier

Answer 13

People or organizations that provide supplies - that is raw materials, services, equipment, labor, or energy to other organizations

Question 14

Distributor

Answer 14

People or organization that help another organization sell its good and services to customers

Question 15

Strategic allies

Answer 15

The relationship of two organizations who join forces to achieve advantages neither can perform as well alone

Question 16

Claw backs

Answer 16

Rescinding (cancelling) the tax breaks when firms don’t deliver promised jobs

Question 17

Venture capital

Answer 17

Is money provided by investors to start up firms and small businesses with high risk but perceived long term growth potential, in return for an ownership stake

Question 18

Crowdfunding

Answer 18

Raising money for a project by obtaining small amounts of money from many people

Kickstarter

Question 19

Government regulators (external stakeholder)

Answer 19

External stakeholders

Regulatory agencies that establish ground rules under which organizations may operate

Question 20

Special-interest groups

Answer 20

Groups whose members try to influence specific issues

PETA, MADD

Question 21

General environment / macro environment

Answer 21

In contract to the task environment

Includes: economic, technological, sociocultural, demographic, political-legal, and international

Question 22

Economic forces

Answer 22

General economic conditions and trends - unemployment, inflation, interest rates, economic growth - that may affect an organizations performance

Question 23

Technological forces

Answer 23

New developments in methods for transforming resources into goods and services

Question 24

Sociocultural forces

Answer 24

Influences and trends originating in a country’s, society’s, or a cultures human relationships and values that may affect an organization

Question 25

Demographic forces

Answer 25

Influences on an organization arising from changes in the characteristics of a population, such as age, gender, or ethnic origin

Question 26

Political- legal forces

Answer 26

Changes in the way politics shape laws and laws shape the opportunities for the threats in an organization

Question 27

International forces

Answer 27

Changes in the economic, political, legal, and technological global system that may affect an organization

Question 28

Ethical dilemma

Answer 28

A situation in which you have to decide weather to pursue a course of action that may benefit you or your organization but that is unethical or even illegal

Question 29

Ethics

Answer 29

Standards of right and wrong that influence behavior

Question 30

Ethical behavior

Answer 30

Behavior that is accepted as “right” as opposed to “wrong” according to those standards

Question 31

Abusive supervision

Answer 31

Subordinates perception of the extent to which supervisors engage in the sustained display of hostile verbal and non verbal behaviours, excluding physical contact

Question 32

Workplace cheating

Answer 32

Unethical acts that are intended to create an unfair advantage or help attain benefits that an employee would not otherwise be entitled to receive

Question 33

Value system

Answer 33

The pattern of values within an organization

Question 34

Values

Answer 34

Abstract ideas that guide one’s thinking and behavior across all situations; the relatively permanent and deeply held underlying belief and attitudes that help determine a persons behavior

Question 35

Utilitarian apporach

Answer 35

One of four approaches to solving ethical dilemmas; ethical behavior is guided by what will result in the greatest good for the number of people

Question 36

Individual approach

Answer 36

One of four approaches to solving ethical dilemmas; ethical behavior is guided by what will result in the individuals best long term interest, which ultimately are in everyone’s self interest

Question 37

Moral rights approach

Answer 37

One of four approaches to solving ethical dilemmas; ethical behavior is guided by respect for the fundamental rights of human beings

Question 38

Justice approach

Answer 38

One of four approaches to solving ethical dilemmas Ethical behaviours is guided by respect for impartial standards of fairness and equity

Question 39

Insider trading

Answer 39

Illegal trading of a company’s stock by people using confidential company information

Question 40

Sarbanes-Oxley ACT of 2002

Answer 40

Established requirements for proper financial record keeping for public companies and penealties for noncompliance

Question 41

Kohlberg Stage one

Answer 41

Preconventional - follows rules

Question 42

Kohlberg stage 2

Answer 42

Level 2, conventional - follows expectations of others

Question 43

Kohlberg stage 3

Answer 43

Level 3, postconventional - guided by internal values

Question 44

4 ways a organization can promote ethics

Answer 44

1) create a strong ethical climate 2) screening prospective employees 3) instituting ethic codes and training programs 4) protecting whistleblowers

Question 45

Code of ethics

Answer 45

A formal, written set of ethical standards that guide an organizations actions

Question 46

Whistle blower

Answer 46

An employee who reports organizational misconduct to the public

Question 47

Social responsibility

Answer 47

Managers duty to take actions that will benefit the interest of society as well as of the organization

Question 48

Corporate social responsibility (CSR)

Answer 48

The notion that corporations are expected to go above and beyond folllwing the law and making a profit, to take actions that will benefit the interests of the society as well as the organization

Question 49

Corporate social responsibility pyramid

Answer 49

Philanthropic Responsibility Ethical responsibility Legal responsibility Economic responsibility

Question 50

Natural capital

Answer 50

The value of natural resources, such as topsoil, air water, and genetic diversity which humans depend on

Question 51

Philanthropy

Answer 51

Making charitable donations to benefit humankind

Question 52

Corporate governance

Answer 52

The system of governing a company so that the interests of corporate owners and other stakeholders are protected