Chapter 4 Flashcards
Caux Principles for Business
Kyosei Human dignity
Company mechanisms designed to instill in people a personal responsibility for ethical behavior
Integrity-based ethics programs
A philosophy that bases ethical behaviors on the opinions and behaviors of relevant other people
Relativism
Ethical decisions
Moral awareness Moral Judgement Moral character
The moral principles and standards that guide the behavior of the individual or group
Ethics
Pyramid of global corporate social responsability
Bottom: Economic responsibility Legal responsibility Ethical responsibility Top: Philanthropic responsibility
Ethical principles established by international executives base in Caux Switzerland, in cooperation with business leaders from Japan, Europe and the United States
Caux principles for business
Obligation towards society assumed by business
Corporate social responsibility
Theory of corporate social responsibility that holds that managers are agents of shareholders whose primary objective is to maximize profit
Shareholder model
An ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers
Utilitarism
Economic growth and development that meet present needs without harming the needs of future generations
Sustainable growth
The moral principles and standards that guide behavior in the world of business
Business ethics
Additional behaviors and activities that society finds desirable and that the values of the business support
Philanthropic responsibilities
Kohlberg’s Stages of Moral Development
Pre-conventional Stage Conventional Stage Principled Stage
The ethical system stating that all people should uphold certain values that society needs to function
Universalism
A perspective that what is moral comes from one a mature person with “good” moral character would deem right
Virtue ethics
An education with 5 higher goals that balance self interests with responsibility to others
Transcendent education
Theory of corporate social responsibility that suggests that managers are obliged to look beyond profitability to help their organizations succeed by interacting with groups that have a stake in the organization
Stakeholder model
Classification of people based on their level of moral judgment
Kohlberg’s model of cognitive moral development
Principles, rules, and values people use in deciding what is right or wrong
Moral philosophy
An ethical principle holding that individual self-interest is the actual motive of all conscious action
Egoism
Company mechanisms typically designed by corporate counsel to prevent, detect, and punish illegal violations
Compliance-based ethics programs
One who is both a moral person and a moral manager influencing others to behave ethically
Ethical leader
Kyosei
living and working together for the common good, allowing cooperation and mutual prosperity to coexist with healthy and fair competition.
An act that established strict accounting and reporting rules to make senior managers more accountable and to improve and maintain investor confidence
Sarbanes-Oxley act
To produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors
Economic responsibilities
Meeting other social expectations, not written as law
Ethical responsibilities
Its goal is the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders
Eco-centric management
Transcendent Education
Empathy Generativity Mutuality Civil Aspiration Intolerance of ineffective humanity
To obey local, state, federal, and relevant international laws
Legal responsibilities
In an organization, the processes by which decisions are evaluated and made on the basis of right and wrong
Ethical climate
A process of analyzing all inputs and outputs, through the entire “cradle-to-grave” life of a product, to determine total environmental impact. LCA considers the extraction of raw materials, product packaging, transportation, and disposal.
Life cycle analysis (LCA)
A situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong
Ethical issue
