Chapter 5 Flashcards
(21 cards)
What are the Sullivan principles?
Companies can operate in South Africa as long as they don’t obey apartheid laws and do anything in their power to abolish apartheid laws
What is the Tragedy of the Commons?
occurs when a resource held in common by all but owned by
no one is overused by individuals, resulting in its degradation
What are facilitating payments?
Money used to make sure that companies are given the proper inspections/procedures
What are the determinants of ethical behavior?
- Societal Culture
- Decision Making
- Leadership
- Unrealistic Performance Goals
- Organizational Culture
- Personal Ethics
How can personal ethics affect ethical behavior?
Managers might be asked to violate their personal ethics
How does the decision making process affect ethical behavior?
Businesspeople may behave unethically because they fail to ask relevant questions
How does organizational culture affect ethical behavior?
Firms might not promote ethical behavior
What does the Friedman doctrine state?
A company has a social responsibility to increase profits as long as it stays within the rules of law
What is cultural relativism?
Ethics are culturally determined, and companies should follow the ethics of the culture around them
What is righteous moralism?
Ethics should be followed as they would be in their home country
What is naive immoralism?
If a manager sees another firm acting immorally, he should as well.
What is the utilitarian ethical approach?
Actions are desirable when they benefit the greatest number of people
What are Kantian Ethics?
People should be treated as ends and never as means to ends
What is the Rights Theory?
Humans have fundamental rights and privileges that transcend national boundaries and cultures
What is the veil of ignorance?
Everyone is imagined to be ignorant of all their particular characteristics
What is the difference principle?
Inequalities are justified if they benefit the least-advantaged person
What is the five-step process of thinking through ethical decisions?
- How would they affect stakeholders?
- Judge ethics of proposed strategic decision
- Establish moral intent
- Engage in ethical behavior
- Audit decisions
What is an ethics officer?
Acts as an internal ombudsperson. Encourages ethical behavior
What is moral courage?
Going against those acting unethically
What is corporate social responsibility?
A company’s obligation to do good for society
What are sustainable strategies?
When a company make profits without harming the environment,
while ensuring company operates in a socially responsible manner with regard to its stakeholders
