Chapter 3: Ethics And Shit Flashcards
Ethical climate
Employees perceptions about the extent to which work environments support ethical behavior
Triple bottom line
Representing people, planet, and profit (3 P’s). Measures an organizations social, environmental, and financial performance
Social audit
Systematic assessment of a company’s performance in implementing socially responsible programs, often based on predefined goals
Stakeholders
People whose interests are affected by an organizations activities
Internal stakeholders
Employees, owners, and the board of directors
Owners
All those who can claim the organization as their legal property
Sole proprietorship
One man operation
You running your own business
Partnership
2 people in a byusiness together
External stakeholders
People or groups in the organizations external environment that are affected by it
Task environment
Eleven groups that present you with daily tasks to handle: customers, competitors, suppliers, distributors, strategic allies, employee organizations, local communities, financial institutions, government regulators, special interest groups, and mass media
Customers
Those who pay to use an organizations goods or services
Competitors
People or organizations that compete for customers or resources
Supplier
People or organizations that provide supplies - that is raw materials, services, equipment, labor, or energy to other organizations
Distributor
People or organization that help another organization sell its good and services to customers
Strategic allies
The relationship of two organizations who join forces to achieve advantages neither can perform as well alone
Claw backs
Rescinding (cancelling) the tax breaks when firms don’t deliver promised jobs
Venture capital
Is money provided by investors to start up firms and small businesses with high risk but perceived long term growth potential, in return for an ownership stake
Crowdfunding
Raising money for a project by obtaining small amounts of money from many people
Kickstarter
Government regulators (external stakeholder)
External stakeholders
Regulatory agencies that establish ground rules under which organizations may operate
Special-interest groups
Groups whose members try to influence specific issues
PETA, MADD
General environment / macro environment
In contract to the task environment
Includes: economic, technological, sociocultural, demographic, political-legal, and international
Economic forces
General economic conditions and trends - unemployment, inflation, interest rates, economic growth - that may affect an organizations performance
Technological forces
New developments in methods for transforming resources into goods and services
Sociocultural forces
Influences and trends originating in a country’s, society’s, or a cultures human relationships and values that may affect an organization
Demographic forces
Influences on an organization arising from changes in the characteristics of a population, such as age, gender, or ethnic origin
Political- legal forces
Changes in the way politics shape laws and laws shape the opportunities for the threats in an organization
International forces
Changes in the economic, political, legal, and technological global system that may affect an organization
Ethical dilemma
A situation in which you have to decide weather to pursue a course of action that may benefit you or your organization but that is unethical or even illegal
Ethics
Standards of right and wrong that influence behavior
Ethical behavior
Behavior that is accepted as “right” as opposed to “wrong” according to those standards
Abusive supervision
Subordinates perception of the extent to which supervisors engage in the sustained display of hostile verbal and non verbal behaviours, excluding physical contact
Workplace cheating
Unethical acts that are intended to create an unfair advantage or help attain benefits that an employee would not otherwise be entitled to receive
Value system
The pattern of values within an organization
Values
Abstract ideas that guide one’s thinking and behavior across all situations; the relatively permanent and deeply held underlying belief and attitudes that help determine a persons behavior
Utilitarian apporach
One of four approaches to solving ethical dilemmas; ethical behavior is guided by what will result in the greatest good for the number of people
Individual approach
One of four approaches to solving ethical dilemmas; ethical behavior is guided by what will result in the individuals best long term interest, which ultimately are in everyone’s self interest
Moral rights approach
One of four approaches to solving ethical dilemmas; ethical behavior is guided by respect for the fundamental rights of human beings
Justice approach
One of four approaches to solving ethical dilemmas
Ethical behaviours is guided by respect for impartial standards of fairness and equity
Insider trading
Illegal trading of a company’s stock by people using confidential company information
Sarbanes-Oxley ACT of 2002
Established requirements for proper financial record keeping for public companies and penealties for noncompliance
Kohlberg Stage one
Preconventional - follows rules
Kohlberg stage 2
Level 2, conventional - follows expectations of others
Kohlberg stage 3
Level 3, postconventional - guided by internal values
4 ways a organization can promote ethics
1) create a strong ethical climate
2) screening prospective employees
3) instituting ethic codes and training programs
4) protecting whistleblowers
Code of ethics
A formal, written set of ethical standards that guide an organizations actions
Whistle blower
An employee who reports organizational misconduct to the public
Social responsibility
Managers duty to take actions that will benefit the interest of society as well as of the organization
Corporate social responsibility (CSR)
The notion that corporations are expected to go above and beyond folllwing the law and making a profit, to take actions that will benefit the interests of the society as well as the organization
Corporate social responsibility pyramid
Philanthropic Responsibility
Ethical responsibility
Legal responsibility
Economic responsibility
Natural capital
The value of natural resources, such as topsoil, air water, and genetic diversity which humans depend on
Philanthropy
Making charitable donations to benefit humankind
Corporate governance
The system of governing a company so that the interests of corporate owners and other stakeholders are protected
