Flashcards in Chapter 4 Deck (83)
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1
What are the three dimensions of institutionalizaion of business ethics
Voluntary Practices
Core Practices
Mandated Boundaries
2
Beliefs, values, and
voluntary contractual obligations of a business
voluntary practices
3
Documented best practices,
often encouraged by legal and regulatory forces
and trade associations
core practices
4
Externally imposed
boundaries of conduct (e.g. laws, rules,
regulations and other requirements)
mandated boundaries
5
What do Government established laws/regulations
Set minimum compliance
6
What are the five categories of laws?
Regulating competition
Protecting consumers
Promoting equity and safety
Protecting the environment
Incentives to encourage organizational
compliance programs to deter misconduct
7
Laws passed to prevent monopolies,
inequitable pricing, and other practices
that reduce or restrict competition
Regulating competition/procompetitive
legislation
8
require businesses
provide accurate information about products
and services and follow safety standards
Protecting consumers
9
The FTC’s Bureau of Consumer Protection guards
against unfair, deceptive, or fraudulent practices
The FDA regulates food safety, human drugs, and
tobacco, among other things
a
10
Groups with specific vulnerabilities have
higher levels of legal protection
a
11
is the glue that holds businesses and
their stakeholders together
trust
12
Overseers of business actions (Accountants, regulators, etc
Gatekeepers
13
authority to monitor
accounting firms that audit public companies
Public Company Accounting Oversight
Board (PCAOB)
14
Business’s contributions to stakeholders
Four major benefits to society
Improves communities quality of life
Reduces government involvement
Develops employee leadership skills
Helps create an ethical culture
15
Ties an
organization’s product(s) to a social concern
through a marketing program
Cause-related marketing:
16
The synergistic and
mutually beneficial use of core competencies
and resources to deal with stakeholders,
benefit the company and society
Strategic philanthropy:
17
How are business ethics institutionalized
Involves embedding values, norms, and
artifacts in organizations, industries, and
society
18
The ethical decision making process includes
Ethical issue intensity
Individual factors
Organizational factors
19
The perceived relevance or importance of
an ethical issue to the individual, work
group, and/or organization
Ethical Issue Intensity
20
What triggers ethical decision making process
Ethical Issue Intensity
21
Individuals are subject to six spheres of
influence…
Workplace Legal system
Family Community
Religion Profession
22
Relates to a person’s
perception of social pressure and the harm
his/her decision will have on others
Moral Intensity
23
Research shows that various factors influence
ethical behavior
Gender—women are more ethical than men
Education, work experience, nationality, and age
affect ethical decision making
24
Relates to individual differences in
relation to a general belief about how one
is affected by internal versus external
events or reinforcements
locus of control
25
go with the flow
because that’s all they can do
External Locus
26
believe they can
control events; are masters of their destinies and
trust in their capacity to influence their
environment
Internal Locus
27
Organizational culture has a stronger
influence on employees than individual
values
Organizational Factors
28
A set of values, norms,
and artifacts that members of an
organization share
corporate culture
29
Reflects whether the firm has an
ethical conscience; is a function of many factors
Ethical Culture
30
Those who have
influence in a work group
Significant Others
31
Helps to explain
why many employees unquestioningly follow
superior’s orders
Obedience to authority
32
The conditions in an organization that
limit/permit ethical/unethical behavior
Immediate job context:
Opportunities
Knowledge
33
How
organizational decision makers should
approach an issue
Normative approaches
34
examines how organizational decision makers
approach ethical decision making
descriptive
35
Concepts like fairness and justice are highly
important in a _____ structure
normative
36
was one of the most influential
philosophers in his research on how
principles support the concept of justice
Rawls
37
A thought experiment that
examined how individuals would formulate
principles if they did not know what their
future position in society would be
veil of ignorance
38
Two main principles of justice…
Liberty Principle and Difference Principal
39
States that
each person has basic rights that are compatible
to the basic liberties of others
Liberty Principle
40
States that economic and
social equalities (or inequalities) should be
arranged to provide the most benefit to the leastadvantaged
members of society
Difference principle:
41
What do economic systems do?
allocate resources/products
42
What do economic systems affect, and are affected by?
Individual’s actions and beliefs (morals)
Society (laws) as a whole
43
Values that
can be quantified by monetary means
Economic value orientation:
44
Places special value on ideas and
ideals as products of the mind (+ Correlation with ethical decision making)
Idealism
45
The view that an external world
exists independent of our perceptions, self-interest, negative correlation
Realism
46
believe that only one thing is
intrinsically good
Monists
47
Pleasure is the ultimate good
Hedonism
48
believe that no one thing is
intrinsically good
Pluralists
49
rejects the ideas that
Ends can be separated from the means
Ends, purposes, or outcomes are intrinsically good
in and of themselves
instrumentalism
50
Focus on the end result
of actions and the goodness or happiness
created by them
goodness theories
51
Emphasize the means
and motives by which actions are justified
Obligation Theories
52
What are the two types of Obligation theories?
Teleological and Deontological
53
Considers acts as morally right or
acceptable if they produce a desired result
teleology
54
_______ philosophies assess the moral
worth of a behavior by looking at the
consequences, so these theories are often
referred to as ________
Telelogical; consequentialism
55
Two important teleological philosophies are
egoism and utilitarianism
56
defines right or acceptable behavior
in terms of consequences to the individual
egoism
57
Take a long-term
perspective and allow for the well-being of
others though their own self-interests remain
paramount
enlightened egoists
58
seeks the greatest good
for the greatest number of people
utilitarianism
59
Determine behavior
based on principles designed to promote the
greatest utility
Rule utilitarians
60
Examine a specific action
itself; not the rules governing it
Act Utilitarians
61
Moral philosophies focusing on the rights
of individuals and on the intentions
associated with a particular behavior
Deontology
62
What are three major beliefs of deontology
Believe individuals have certain absolute rights
Believe compliance with stable moral principles
defines ethicalness
Sometimes referred to as nonconsequentialism,
a system of ethics based on respect for persons
63
Ethical acts can be viewed by everyone and the
rationale behind the act is suitable as a universal
principle
Immanuel Kant--Categorical Imperative
64
Conformity to general
moral principles determines ethicalness
rule deontology
65
Actions are the proper
basis on which to judge morality
act deontology
66
Individuals and groups derive definitions
of ethical behavior subjectively from
experience
relativism
67
Relates to
observations of other cultures
Descriptive relativism
68
Proposes people
see situations from their own perspectives
Metaethical relativism:
69
Assumes one
person’s opinion is as good as another’s
Normative relativism
70
Ethical behavior follows conventional
moral standards and compares behavior
against a standard “good” moral character
Virtue Ethics
71
How can Virtue Ethics be summarized?
Good corporate ethics programs encourage
individual virtue and integrity
The virtues associated with appropriate conduct
form a good person
The ultimate purpose is to serve the public good
The well-being of the community goes together
with individual excellence
72
justice
Fair treatment and due reward in
accordance with ethical or legal standards
73
An evaluation of the
results of a business relationship
Distributive justice:
74
Considers the processes
and activities that produce desired outcomes
Procedural justice:
75
Based on relationships
between organizational members, including
employees and managers
Interactional justice:
76
Six Stages of Kohlberg's model of Cognitive Moral Development
1. Punishment and obedience
2. Individual instrumental purpose and
exchange
3. Mutual interpersonal expectations,
relationships, and conformity
4. Social system and conscience maintenance
5. Prior rights, social contract, or utility
6. Universal ethical principles
77
How can Kohlberg's model be reduced to three levels of ethical concern
Concern with immediate interests and
rewards and punishments
2. Concern with right as expected by the larger
society or some significant reference group
3. Seeing beyond norms, laws, and the
authority of groups or individuals
78
What can we learn from Kohlberg's theory?
Shows that individuals can change their values
through moral development
Supports management’s development of
employee’s moral principles
79
What are the three weaknesses of Kohlberg's CMD theory?
Kohlberg used questionable research methods
His theory contradicts basic moral philosophy
His theory, while reliable, may not be valid
80
Illegal acts committed for personal and/or
organizational gain by abusing the trust and
authority associated with a given position
White Collar Crime
81
The _________ sector has a high level of WCCs
Financial
82
What are four possible reasons for WCC
Patterns of activities become institutionalized
and may encourage unethical behaviors
Undecided employees go along with the
majority, whether ethical or unethical
WCCs increase after economic recessions
Some businesspeople may have inherently
criminal personalities, corporate psychopaths
83
