Chapter 4 Flashcards
What is ethics?
- the code of moral principles and values that govern the behaviors of right or wrong
- set the standard
What is the difference between ethics and law?
Ethics - rules of conduct
Laws - rules developed by governments to provide balance in society and protection
What is Corporate Social Responsibility?
management’s obligation to make choices and take
actions that will contribute to the welfare and
interests of society (not just the organization)
What do people think about the USA’s moral compass?
- more than 75% believe it is pointing in the wrong direction
- USA does not consider public good
- 94% executives make decisions to advance their careers
What is an ethical dilemma?
arises in a situation concerning right or wrong when values are in conflict
What is triple bottom line?
measuring an organization’s social performance, its
environmental performance, and its financial
performance
What is whistle-blowing?
employee disclosure of illegal, unethical, or illegitimate practices on the employer’s part
What is the code of ethics?
formal statement of a company’s values concerning ethics and social issues; communicates to employees what the company stands for
What are the 5 frameworks for ethical decision making?
1) Utilitarian Approach - moral behavior produces the greatest good for the greatest number
2) Individualism approach - acts are moral when they promote the individual’s best long-term interest
3) Moral-rights approach - human beings have fundamental rights and liberties that cannot be taken away
4) Justice approach -moral decisions must be based on standards of equity, fairness, and impartiality
5) Practical approach -bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders
What are Kohlberg’s 3 levels of personal moral development?
1) Pre-conventional - external rewards and punishments and obey authority to avoid consequences
2) Conventional - conform to the expectations of good behavior (defined by family, friends, and society)
3) Post-conventional -guided by an internal set of values based on universal principles of justice
Understand the difference between Stockholders and Stakeholders
Stockholders/shareholders - direct financial stake within an organization
Stakeholders -any group or person within or outside the organization that has some type of investment or interest in the organization’s performance
What are the criteria for Corporate Social Performance?
You need sustainability and the triple bottom line all encompassing 3 elements
- people (measuring social performance)
- planet (measuring environmental performance)
- profit (measuring financial performance)
Who is milton friedman?
- advocated for free-market capitalism
- believed governments control the amount of money in circulation
