7. Ethics Flashcards

1
Q

What is ethics?

A
  • Governing right or wrong conduct, reflected explicitly in opinions, actions and behaviours.
  • Closely related to culture, values and morals.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are ethical norms?

A
  • Expectations or standards of behaviour in society
  • Some are legally enforced, others simply concern treating people fairly and with respect
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are ethical standards?

A
  • Not always universal and can change over time;
    1. Society changes
    2. Social Trends
    3. Environmental context (war)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the three main sources of ethical norms?

A
  1. Ethical Universalism
  2. Ethical Relativism
  3. Ethics and Integrated Social Contracts Theory
    - 3 theories differ as to the extent to which ethical norms & standards are relevant across cultures, countries, industries or individual orgs; i.e., whether they are global or local, universal or specific.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What quote explains what ethics is?

A

“Ethics is the application of general ethical principles to the actions and decisions of businesses and the conduct of their personnel” - Thompson, Strickland, Gamble, Peteraf, Janes & Sutton.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Why is ethics important?

A
  1. How organisation conduct themselves or how they should in their strategic approach.
  2. General ethical principles - what is right & wrong?
  3. Society & social norms tend to dictate what is acceptable behaviour in business practice, however can vary in different areas of industry, professions & countries; LOSS ADJUSTING - AVOID BRIBERY.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

For the loss adjusting industry managing ethical risk is very important and is likely to include;

A
  1. Deal with conflicts of interest
  2. Claims management
  3. Confidentiality and disclosure of information
  4. Beneficial interests
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

For loss adjusters they must not only be ethical in practice but also?

A

Be seen to be conducting their business ethically by its key stakeholders, e.g integrity, fairness, objectivity, reputation, image etc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Who are the stakeholders?

A
  1. Any groups or individuals who have a stake, interest in or expectation of an organisation, it’s activities, performance or it’s operations
  2. Can be internal or external
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Is it possible to satisfy needs of all stakeholders?

A

No, prioritise most important stakeholders. Level of power stakeholders has to influence an organisation in a specific situation or strategic decision.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Is it common for stakeholders to have conflicting interests or expectations?

A

Yes for example, the EU referendum

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Are customers stakeholders?

A

Most businesses value customers as one of the key stakeholders, therefore aspects such as customer service and good relationships are essential.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Why have ethics become increasingly more important over recent years?

A
  1. Increased stakeholder scrutiny (eg customers and media)
  2. Increasing focus on CSR of organisations
  3. Impact of communications/internet/social media
  4. Highly publicised non-ethical behaviour of some large organisations (eg Enron).
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What industries have become a key focus on for ethical behaviours in recent years?

A
  1. Accountancy
  2. Insurance
  3. Financial
  4. Legal
  5. Medical
  6. Media
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Who has been given increased powers within the financial services industry and why?

A
  • FCA to make organisations reform their practices, to fine them and to make them open to massive compensation claims and pay-outs.
    Because the financial services industry has been in the public spotlight
How well did you know this?
1
Not at all
2
3
4
5
Perfectly