session 4 Flashcards
(16 cards)
What is Business Ethics?
A standard organizations hold pertaining to their behavior during normal and adverse organizational situations
It includes parameters of ethical behavior called ‘Codes of Conduct’ or ‘Corporate Credo’ that guide actions related to personnel behavior, processes, and long-term strategy.
What are Codes of Conduct?
Statements that openly illustrate the company’s principles and values
They often offer a forward-thinking approach to conduct business while maintaining the principles closest to the company’s mission.
What is a Corporate Credo?
Also referred to as Mission Statements or Statements of Corporate Values, illustrating the principles and ethical values a company holds
It emphasizes the company’s foundational vision.
What are Ethics Programs?
Formal programs where employees review ethical decision-making as it relates to stakeholder expectations
These programs prepare employees for ethical dilemmas.
Why are Business Ethics important?
They link business practices to societal norms and expectations, influencing what society deems good or bad
Businesses have a responsibility to align their operations with public expectations.
What areas can Business Ethics include?
Areas include:
* Treatment of employees
* Environmental concerns
* Product pricing fairness
* Executive behavior
* Business relationships
Business Ethics is a broad term encompassing various aspects of organizational behavior.
What are the four main categories of ethical practice?
The four categories are:
* Obstructionist
* Defensive
* Accommodative
* Proactive
These categories define a company’s level of ethical assertiveness.
What characterizes an Obstructionist Stance?
Involves doing as little as possible, potentially denying or covering up regulatory violations
Characteristics include low customer satisfaction, frequent lawsuits, and often moving operations abroad.
What characterizes a Defensive Stance?
Complies with minimum legal regulations without extending efforts beyond legal requirements
This stance reflects a lack of proactive engagement with community or environmental issues.
What is an Accommodative Stance?
Follows regulatory minimums and actively participates in social efforts with contributions
This stance seeks to meet societal expectations and desires.
What defines a Proactive Stance?
Seeks to be recognized as leaders in corporate social responsibility (CSR) within communities
Proactive organizations often have CSR as a foundational principle.
What was the Exxon Valdes Oil Spill incident?
A 1989 crisis where Exxon took an obstructionist and defensive stance towards the spill and its aftermath
It resulted in a damaged reputation and significant financial liabilities.
What was Ford’s response during the Tire Separation Crisis?
Initially defensive, denying responsibility and blaming the tire manufacturer
This led to a decline in corporate reputation and customer trust.
What happened during the Union Carbide Bhopal gas leak?
A 1984 incident where the company acted as an obstructionist and defensive, avoiding responsibility for the disaster
The leak resulted in thousands of deaths and long-term health consequences.
Fill in the blank: Business ethics must remain compliant with the norms and expectations of the _______.
[public]
True or False: Business ethics only concern the treatment of employees.
False
Business ethics encompass a wide range of areas, including environmental concerns and product pricing.
