Exam Flashcards
(25 cards)
Triple Bottom Line
people, planet and profit. It measures an organizations social, environmental, and financial performance.
Social Audit
a systematic assessment of a companies performance in implementing socially responsible programs.
Ethical Dilemmas
a situation in which you have to decide whether to pursue a course of action that may benefit you or the organization
What are Ethics?
the standards of right and wrong that influence behaviors
Ethical Behaviors
Behavior that is accepted as right as opposed to wrong according to set standards
Values?
A set of beliefs or traits that are at the core of a organization
What are the 4 approaches to ethical dilemmas?
The utilitarian approach, the individual approach, the moral rights approach and the justice approach.
Utilitarian
what will result in the greatest good for the greatest number of people. Managers often take this route such as efficiency and profit to constitute the greatest good for the greatest number
Individual Approach
what will result in the individual’s best long-term interest. The assumption is that you will act ethically in the short run to avoid other harming you in the long run. The problem is that ones short term goal may not be good for everyone in the long run.
Moral Rights Approach
respect for the fundamental rights of human beings, such as the ones in the bill of rights.
Justice Approach
respect for impartial standards of fairness and equity. One consideration’s here is whether an organizations policy such as those governing promotions are administered impartially.
Insider Trading
the illegal trading of a company’s stock by people using confidential company information to gain an edge.
Ponzi Scheme
when cash was used from newer investors to pay off older ones that had yet to receive dividends.
What is the Sarbanes-Oxley act?
established requirements for proper financial record keeping for public companies and penalties for 25 years. It also requires the CFO and CEO to verify financial reports, prohibits taking personal loans, etc.
What are Kohlberg’s 3 levels of personal social moral development
preconventional, conventional and postconventional
Level 1
preconventional (follows rules), people who have achieved this level follow rules and obey authority to avoid consequences. These managers seen to to autocratic or coercive , expecting employees to be obedient for obedience’s sake.
Level 2
conventional (follows expectations of others). People whose moral development has reached this level are conformist but not slavish. These managers lead by encouragement and cooperation and are more group and team oriented.
Level 3
postconventional (guided by internal values). This is the furthest along in moral development. These managers follow their own values and standards. They focus the needs of their employees and lead by empowering those who work for them. One 1/5 of American mangers get to this level.
How can organizations promote better ethics?
By creating a strong ethical climate, screening prospective employees, instituting ethics codes and training programs and rewarding ethical behavior
What is Corporate Social Responsibility ?
a manager’s duty to take actions that benefit the interest of society as well as the organization.
What are the responsibilities of an organization as said by Archie B. Carroll?
be a good global corporate citizen, be ethical in it its practices, obey the law and make a profit.
What are the responsibilities of an organization as said by Milton Friedman?
the social responsibility of a business is to make profits, unless it is focuses on maximizing profits, then it will become distracted and fail to provide goods and services and pay stockholders.
What are the responsibilities of an organization as said by Paul Samuelson?
a company needs to try its best to engage in social responsibility, which means as much focus is put into making profits should be the same energy into social responsibility.
How does being good in a company pay off?
There are effects on customers, employees’ work effort, job applications and employee retention, sales growth, company efficiency, company revenue, stock price and profits
