Chapter Two Flashcards Preview

Law > Chapter Two > Flashcards

Flashcards in Chapter Two Deck (29):

How do we make "Ethical" Decisions at work?

-Buisness norms and values
-the advice of "significant others" at work
- The immediacy or intensity of the ethical issue


What causes "unethical" conduct? (Why do we cheat?)

-"Greed" competition and the chance to "Get away with it"
-The lack of ethical role models


Business norms and values

-Mission and vision statements
-Corporate policies
-Legal Obligations


The importance of ethical leadership

-Managers who are not totally committed to maintaining an ethical workplace will rarely succeed in creating one


Kohlberg's Stages of moral development

Proposed that people make different decisions in similar ethical situations because they are at different stages of moral development


What are ethics

is the study of what is "right and wrong"


What plays a critical role in ethical decision making

Personal values and judgement


Business Ethics

means the principles and standards that guide buisness decisions


The difference between person ethical decision-making and business ethical decision-making

-Individual vs. collective interests
-just being a "good person" is not enough
-the ambiguity of ethical dilemmas in business


The advice of "significant others" at work

most business decisions are made jointly in work groups by co-workers and supervisors


The immediacy or intensity of the ethical issue

rewards or punishment for ethical/ unethical behavior


Ethical Issue

a problem, situation, or opportunity that requires an individual, group, or organization to chose among serval actions that must be evaluated as right or wrong, ethical or unethical.


Ethical Dilemma

is a problem, situation, or opportunity that requires an individual, group, or organization to choose among several wrong or unethical actions." Often involve "problem-solving situations in which decision-making rules or vague or in conflict


Foreign Corrupt Practices Act

Applies to all US companies and their, directors, officers, shareholders, employees, and agents


Foreign corrupt practices act prohibits

paying bribes to "officials of foreign governments if the purpose of the payment is to get the officials to act in their official capacity to provide business opportunities.


Foreign Corrupt practices act allows

"grease payments" does not generally prohibit bribe payments to private companies. To move along a business transaction more quickly


The importance of ethical leadership . Managers and employees

-employees take their cue from management.


Business ethicals v employee personal ethics

it is more than a sample extension of employees' personal ethics


Ethics definition

moral principals and values applied to social behavior


Buisness ethics definition

ethics in buisness context; a consensus as to what constitutes right or wrong behavior in the world of buisness and the application of moral principals to situations that arise in a business setting.


moral minimum

the minimum degree of ethical behvaior expected of a business firm, which is usually defined as compliance with law.


stock buyback

a company's purchase shares of its own stock on the open market


stock option

an agreement that grants owner the option to buy a given number of shares of stock, usually within a set time period


ethical reasoning

a reasoning process which an individual links his or her moral convictions or ethical standards to the particular situation at hand


categorical imperative

a concept developed by the philosopher Immanuel Kant as an ethical guideline for behavior. in deciding whether an action is right or wrong, or desirable or undesirable, a person should evaluate the action in terms of what would happen if everybody else in the same situation, or category, acted the same way


principal of rights

the principal that human beings have certain fundamental rights (to life, liberty, and the pursuit of happiness for example). Those who adhere to this "rights theory" believe that a key factor in determining whether a business decision is ethical is how that decision affects the rights of various groups, including employees, customers, and suppliers.



an approach to ethical reasoning that evaluates behavior in light of the consequences of that behavior for those who will be affected by it, rather than on the basis of any absolute ethical or moral values. In utilitarian reasoning, a "good" decision is one that results in the greatest good for the greatest number of people affected by the decision.


cost-benefit analysis

a decision-making technique that involves weighing the cost of a given action against the benefits of that action


corporate social responsibility

the idea that corporations can and should act ethically and be accountable to society for their actions.