Ethics Flashcards
(15 cards)
List and describe Davis’ 7 tests that can be applied in Ethical Decision Making.
- Harm test: Do the benefits outweigh the harms, short term and long term?
- Reversibility test: Would I think this choice was good if I traded places?
- Colleague test: What would professional colleagues say?
- Legality test: Would this choice violate a law or a policy of my employer?
- Publicity test: How would this choice look on the front page of a newspaper?
- Common practice test: What if everyone behaved in this way?
- Wise relative test: What would my wise old aunt or uncle do?
What is an Ethical Dilemma
A situation in which a person must decide whether or not
to do something that, although beneficial to oneself or the
organization, may be considered unethical and perhaps
illegal.
Kohlberg defines three (3) levels of Moral Development. Name the three levels. Also describe the six (6) associated stages of Moral Development.
Level 1-> Preconventional:
1. Sticking to rules to avoid physical punishment
2. Following rules only when doing so is in your immediate interest
Level 2 -> Conventional:
3. Living up to what is expected by people close to you
4. Maintaining conventional order by fulfilling obligations to which you have agreed
Level 3 -> Principled
5. Valuing rights of others and upholding absolute values and rights regardless of the majority’s opinion
6. Following self-chosen ethical principles even if they violate the law
Name the 4 Core Values of PMI (Project Management Institute) Code of Ethics.
- Responsibility
- Respect
- Fairness
- Honesty
Discuss both the Classical View and the Socioeconomic View Social Responsibility.
Classical View
Management’s sole responsibility is to maximize profits for the company’s owners. Using company resources for social causes is seen as inappropriate because it increases costs, reduces owner profits, and leads to higher prices for consumers
Socioeconomic View
Management’s responsibility extends beyond profit-making to include enhancing societal welfare. Corporations are accountable not just to stockholders but to society as a whole, carrying a moral obligation to act ethically and “do the right thing.”
To whom is Management responsible?
List the 4 stages.
Lesser is Stage 1, Greater is Stage 4
Stage 1
Owners and management
Stage 2
Employees
Stage 3
Constituents of the Specific Environment
Stage 4
Broader Society
List the 4 faces of social responsibility
Legal/Responsible
Legal/Irresponsible
Illegal/Response
Illegal/Irresponsible
List Arguments For and Against Social Responsibility
For
* Public expectations
* Long-run profits
* Ethical obligation
* Public image
* Better environment
* Discouragement of further
governmental regulation
* Balance of responsibility and
power
* Stockholder interests
* Possession of resources
* Superiority of prevention over
cure
- Against
- Violation of profit
maximization - Dilution of purpose
- Costs
- Too much power
- Lack of skills
- Lack of accountability
List and explain the four perspectives of Social Responsibility, and mention the societal expectation of each.
Economic -> Required by society
Be profitable. Make sound strategic decisions. Provide adequate and
attractive returns on investment.
Legal -> Required by society
Obey all laws and regulations. Fulfill all contractual obligations.
Honor warranties and guarantees.
Ethical -> Expected by society
Avoid questionable practices.
Respond to spirit as well as letter of law.
Assume law is floor of behaviour and operate above minimum required.
Do what is right, fair, and just.
Philanthropic -> Desired/Expected by society
Be a good corporate citizen.
Give back. Improve quality of life overall.
Under the topic of “Social Responsibility Journey”
Explain the concepts below:
- Social Obligation
- Social Responsiveness
- Social Responsibility
- Social Obligation
The obligation of a business to meet its economic and legal
responsibilities and nothing more. - Social Responsiveness
When a firm engages in social actions in response to some popular social need. - Social Responsibility
A business’s intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society.
Describe Values-Based Management and “The Bottom Line on Shared Corporate Values”
- Values-Based Management
An approach to managing in which managers establish and uphold an organization’s shared values. - The Bottom Line on Shared Corporate Values
An organization’s values are reflected in the decisions and actions of its employees
Name 4 purposes of Shared Values
- Guiding managerial decisions
- Shaping employee behavior
- Influencing the direction of marketing efforts
- Building team spirit
Define Ethics.
Also define “Ethical Behavior”
- Ethics
Principles, values, and beliefs that define what is right and wrong
behaviour. - Ethical Behavior
Behavior that is morally accepted as good or right as opposed to bad or wrong
Mention 6 ways managers can be a “good role model”
- Being ethical and honest at all times.
- Telling the truth; don’t hide or manipulate information.
- Admitting failure and not trying to cover it up.
- Communicating shared ethical values to employees through symbols, stories, and slogans.
- Rewarding employees who behave ethically and punish those who do not.
- Protecting employees (whistleblowers) who bring to light unethical
behaviors or raise ethical issues.
Mention 7 ways Managers Can Improve Ethical Behavior in An Organization
- Hire individuals with high ethical standards.
- Establish codes of ethics and decision rules.
- Lead by example.
- Set realistic job goals and include ethics in performance
appraisals. - Provide ethics training
- Conduct independent social audits.
- Provide support for individuals facing ethical dilemmas.
