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ATW394 Business Ethics > C2: Defining Business Ethics > Flashcards

C2: Defining Business Ethics Flashcards

1
Q

Business ethics

A

the application of ethical standard to business behaviour

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2
Q

2 approaches of business ethics from different perspectives

A

Descriptive

Normative

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3
Q

Descriptive perspective

A

we are documenting what is happening

summation of customs, attitude, and rules that are observed within a business situations

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4
Q

Normative (prescriptive)

A

recommending what should be happening

evaluation of degree to which the observed customs, attitudes and rules can be said ethical

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5
Q

Expectation of business ethics

A

should not be a separate set of standards from general ethics

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6
Q

It’s argued that BE

A

should be the same both inside and outside a business situation

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7
Q

Who are stakeholders?

A

Someone with a share or interest in a business enterprise

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8
Q

How many stakeholders in a business

A 
8 stakeholders
1. Stock/share holders
2, Employees
3. Customers
4. Suppliers/vendors
5. Retailer/wholesalers
6. Federal government
7. Creditors
8. Community
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9
Q

Stakeholder interest - Stock/shareholders

A
  • growth in the value of company stock

- dividend income

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10
Q

impact on unethical behaviour - shareholder

A
  • false misleading financial information on which to base for decision making
  • loss of stock value
  • cancellation of dividend
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11
Q

interest employees

A
  • stable employment at a fair pay rate

- a safe and comfortable working environment

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12
Q

impact unethical behavior - employee

A
  • loss of employment

- not enough money to pay severance packages and meet pension obligations

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13
Q

interests - customers

A

fair exchange - acceptable value and quality of products/services
safe and reliable products

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14
Q

IUB - Fed government

A

loss of tax revenue

failure to comply with all relevant legislation

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15
Q

Interest - suppliers/vendors

A

prompt payment for delivered goods

regular orders with an acceptable profit margin

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16
Q

IUB - suppliers/vendor

A

Delayed payments for delivered goods and services

unpaid invoices when the company declared bankruptcy

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17
Q

Interest - retailers/whosalers

A

accurate deliveries of quality products on time and at a reasonable cost
safe and reliable products

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18
Q

interest - federal government

A

Tax revenue

operation in compliance with all relevant legislation

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19
Q

IUB - customers

A

poor service quality

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20
Q

interest - creditors

A

principal and interest payments

repayment of debt according to the agreed schedule

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21
Q

IUB - Community

A

Unemployment of local residents

Economic decline

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22
Q

interest - community

A

employment of local residents
economic growth
protection of the local government

23
Q

IUB - creditors

A

loss of principal and interest payments

failure to repay debt according to the agreed schedule

24
Q

Oxymoron

A

The combination of two contradictory terms

ex: defeaning silence, pretty ugly

25
Q

Corporate governance

A

the system by which business corporations are directed and controlled

26
Q

Code of ethics

A

a company’s written standards of ethical behaviour that are designed to guide managers and employees in making the decisions and choices that face every day

27
Q

code of ethics serve a dual function

A
  • as a message to organization’s stakeholders (represent a clear corporate commitment to the highest standards of ethical behaviour)
  • an internal document (represent a clear guide to managers and employees in makin decisions and choices every day)
28
Q

History BE - 1960s

A

Increased presence of employees voice made more employees more comfortable speaking out against actions of their employers that they feel irresponsible/unethical.

29
Q

Major Ethical Dilema (MED) - 1960’s

A
  • Pollution
  • Profits over people
  • civil rights
  • products safety
  • product safety
  • job security
30
Q

BE Development (BED) - 1960’s

A
  • consumers bill of rights
  • corporate codes of conduct
  • expectations of equality, social justice & economic stability
31
Q

HBE - 1970s

A

Issue of CSR has advanced from an abstract debate to a core performance-assessment issue with clearly established legal liabilities

32
Q

MED - 1970s

A

pollution
labour issues: workplace safety, wage equality, forced labour
covering up unethical conduct to protect corporate image

33
Q

BED - 1970s

A

1977 Foreign Corrupt Practice Act (FCPA)
BE gains credence as a distinct area of academic study
1977 Ethics Resource Center (ERC)

34
Q

1980s

A

Corporate ethics have moved from the domain of legal and human resource departments into the organizational mainstream with the appointment of corporate ethics officers with clear mandates

35
Q

MED - 1980s

A

Savings & loans scandal
Bribery and corruption in international contracts
waste and fraud in government contracting and defense spending

36
Q

BED - 1980s

A

1986 Defense Industry Initiative on BE and Conduct

1986 False Claims Act amended to control waste, fraud and abuse in federal

37
Q

1990s

A

Codes of ethics have matured from cosmetic public relations documents into performance-measurement documents that an increasing number of organizations are now committing to share with all their stakeholders

38
Q

MED - 1990s

A

Financial fraud
avoidance of regulations by opening manufacturing plants in developing countries
corporate liability for personal damage

39
Q

BED - 1990s

A

Ethical performance documented in annual report

40
Q

2000s

A

greater accountability for chief executives officers and BODs in signing off the financial performance records of the organizations they represent

41
Q

MED - 2000s

A 
cyber crime
falsifying financial reports
privacy issues (data mining & identity protection)
International corruption
Loss of privacy
42
Q

BED - 2000s

A

2002 Sarbanes-Oxley Act
Anti corruption efforts grow
emphasis on CSR
2010 Dodd-franks Wall Street Reform and Consumer Protection Act

43
Q

Ethical Dilemma

A

A situation in which there is no obvious right or wrong decision, but rather a right or right answer

44
Q

Resolution

A

Resolution of an ethical dilemma can be achieved by first recognizing the type of conflict you are dealing with

45
Q

4 types of Conflict

A

Truth vs loyalty
Short term vs long term
Justice vs mercy
individual vs community

46
Q

Truth vs loyalty

A

Do you tell the truth or remain loyal to the person or organization that is asking you not to reveal the truth?

47
Q

Short term vs Long term

A

Consequences of decision have shorter or longer term

48
Q

Justice vs mercy

A

do you perceive this issues as a question of dispensing justice or mercy?

49
Q

Individual vs Community

A

Will your choice affect one individual or a wider group of community

50
Q

3 resolution principles

A

Ends based
Rules based
The Golden Rule

51
Q

Ends based

A

which decision would provide the greatest good for the greatest number of people?

52
Q

Rules based

A

What would happen if everyone made the same decision as you?

53
Q

The Golden Rule

A

Do unto others as you would have them do unto you

54
Q

Justifying Unethical Behaviour

A
  1. A belief that the activity is within reasonable ethical and legal limits
  2. A belief that the activity is in the individual’s or the corporation’s best interest - ind expected to take
  3. A belief the the activity is safe because it will never be found out or publicized - a classic crime-and-punishment issue of discovery
  4. A belief that the activity helps the company - co condone and even protects the ind who commit it

ATW394 Business Ethics (4 decks)

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