Chapter 1 Flashcards
True or False - Ethics is a part of decision making at ALL levels of work and management?
True. Ethics questions whether practices are acceptable
There are (no/some) universally accepted principles for resolving issues
No. This is because everyone puts their values in different orders, so they may conflict with another party
Business Ethics - organizational principles, values, and norms that may originate from individuals, organizational statements, or from the legal system that (absolutely/primarily/both) guides individual and group behavior in business.
Primarily. These are sets of ideas that should normally guide group behavior.
Which two factors play a critical role when we make ethical decisions?
Values and Judgements
When does an ethical decision occur?
When accepted rules no longer serve and decision makers must weigh the values and arrive at a judgement.
Human rights, freedom of speech, and justice are examples of _____.
Principles. These should not be violated, but are not necessarily socially enforced
Enduring beliefs and ideals that are socially enforced are (values/principles)
Values. Principles should not be violated, but are not socially enforced at all times in group behavior.
Morals refer to (society’s/personal/both) philosophies about what is right or wrong.
Personal! Morals are personal and singular
Teamwork, trust, and integrity are examples of _____.
Values. These are socially enforced since they require a connection between two or more individuals.
True or false: Principles are specific and pervasive boundaries for behavior that should not be violated.
True
(More than/Nearly/Less Than) half of employees observe at least one form of misconduct in the workplace.
Nearly. Especially after the financial crisis, business decisions have come under more and more scrutiny. Financial sector hasn’t confidently gained all of stakeholder trust.
Global trust in industry sectors at a whole is on an (incline/decline)
Decline. Technology is the most trustful, whereas Banking and Financial Services are the lowest.
Investors, employees, customers, interest groups, the community, and the legal system are examples of people or groups that often determine whether something is ethical and right or wrong. Does that make them right?
Fuck no! But they often influence society’s acceptance or rejection of certain business behaviors.
Employee militancy, human rights, covering up rather than correcting, disadvantaged consumers, and transparency were pertinent ethical issues in which decade?
1970’s
True or False - Conflicts of Interests are considered observed misconduct in the workplace?
True
Environmental, civil rights, increased employee-employer tension, changing work ethic, and rising drug use issues were pertinent ethical issues in which decade?
1960’s
Having food individual morals (is/is not) enough to stop ethical misconduct
Is not
True or False - Defective products are considered observed misconduct in the workplace?
True
Sweatshops and unsafe conditions (espec. in 3rd world), financial mismanagement and fraud, organizational ethical misconduct, and rising corporate liability for personal damages (especially cigarette companies) were pertinent ethical issues in which decade?
1990’s
Deceptive advertising, financial fraud (especially savings and loan scandals), influence peddling, and bribes/illegal contracts were pertinent ethical issues in which decade?
1980’s
true or False: Bribery, price collusion, environment, product safety, and deceptive advertising are examples of issues with CSR.
True
In the 1970’s, Corporate Social Responsibilty was emphasized. Define CSR
an organization’s obligation to maximize positive impact and minimize negative impact on stakeholders. This propelled businesses to be concerned with public image.
Intellectual property theft, cybercrime, financial misconduct, Chinese product safety,and sustainabilty were pertinent ethical issues in which decade?
2000’s
Define JFK’s Consumer Bill of Rights
Right to safety, to be informed, to choose, and to be heard. New era of consumerism. Result of the social consciousness emerging with increased anti-business sentiment.
Ralph Nader is a part of _____ _______ groups, which fight for legislative changes for consumers
Consumer Protection Groups
True or False: Catholic social ethics and Protestant work ethics were traditions that provided a foundation for the future field of business ethics
True. Catholic ethics were concerned with morality in business, workers’ rights, and living wages. Protestants encouraged individuals to be frugal, work hard and attain success in the capitalistic system
The 1980’s really established Business Ethics as a field of study. True or False?
True. Firms started ethics committees, and the government introduced the DII - Defense Industry Initiative on Business Ethics and Conduct. This Foundation established Federal Sentencing Guidelines for Organizations to come in the 90’s. Reagan also introduce self-regulation that changed the rules of business.
What did the FSGO, Federal Sentencing Guidelines for Organizationals in 1991 do?
-Set tone for compliance -Preventative actions against misconduct -A company could avoid/minimize potential penalties
Ethical (values/standards/culture) _____ creates shared values and support for ethical decisions and is driven by top management
Culture. The goal of Ethical culture is to minimize the need for enforced compliance, and to maximize utilization of principles and ethical reasoning in difficult or new situations.
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 aimed to
making the financial industry more transparent/responsible
Define ethical culture:
acceptable behavior as defined by the company and industry.
Sarbanes-Oxley Act (2002) increased
accounting regulations
In the 21st century, FSGO reforms established
the requirement of governing authorities to be informed of business ethics programs.
Companies can demonstrate their commitment to social responsibility through adopting international standards like the
United Nations Global Compact
Can ethical culture lead to profits?
Yes. See image
The more company dedication to ethics, (the greater/lesser) the employee dedication.
Greater. Commitment comes from employees who are invested in the organization and willing to make personal sacrifices for the organization. Concerns include a safe work environment, competitive salaries and benefits packages, and fulfillment of contractual obligations
Gaining investors’ trust and confidence is vital to sustaining financial stability. True or falsE?
True. Investors recognize how:
- ethical culture provides a foundation for efficiency, productivity, and profitability
- negative publicity, lawsuits, and fines threaten a company’s long-term viability
A strong organizational ethical climate places customers’ interests first. True or false?
True.
Ethical conduct toward customers builds a strong competitive position shown to positively affect performance and innovation.
Companies seen to be socially responsible increase customer trust and satisfaction, so trust is key to long-term relationships
Ethics has moved from being a compliance standard to becoming an integral part of achieving a competitive advantage
True or False?
true.
Corporate concern for ethical conduct is being integrated with strategic planning
-Maximizing profitability
Just incase - see timeline attached
see attached
See picture for Role of Organizational Ethics in Performance
See attached
