Chapter 4: Managing Ethics and Social Responsibility Flashcards
the code of moral principles and values that govern the behaviors of right or wrong; set standards as to what is good or bad in conduct and decision making.
ethics
T or F: An ethical issue is present in a situation when the actions of a person or organization may harm or benefit others.
True
What are the three domains of human action?
- Domain of Codified Law
- Domain of Ethics
- Domain of Free Choice
The Domain of Codified Law covers _______ ________ and has (high/middle/low) explicit control.
legal standards; high
The Domain of Ethics covers _______ _______ and has (high/middle/low) explicit control.
social standards; middle
Which domain of human actions has no specific laws, but has standards of conducts based on shared principles/values?
Domain of Ethics
The Domain of Free Choice covers ________ ________ and has (high/middle/low) explicit control.
personal standards; low
An organization’s choice of which of two well qualified suppliers to use is in the domain of:
free choice
More than ____% of people agree that corporate America’s moral compass is “pointing in the wrong direction”.
75%
Managers and organizations engage in unethical behavior for any number of reasons including an overemphasis on pleasing _________.
shareholders
What are the 4 types of Ethical Manager Behavior?
- Displays honesty and integrity
- Communicates/enforces ethical standards through behavior
- Fair in decisions and distributions of rewards
- Shows kindness, compassion, and concern for the needs and feelings of others
T or F: The question of whether it is ethical and socially responsible for managers to earn huge sums of money compared to other employees is of growing concern.
True
Research has generally found a positive relationship between ethical and socially responsible ________ and a firm’s ________ performance.
behavior; financial
People prefer to work for companies that demonstrate a high level of ______ and _______ ___________.
ethics; social responsibility
arises in a situation concerning right or wrong when values are in conflict. (right and wrong can’t be clearly distinguished)
ethical dilemma
The individual who must make an ethical choice in an organization
moral agent
What are the 5 frameworks for ethical decision making?
- Utilitarian approach
- Individualism approach
- Moral rights approach
- Justice approach
- Practical approach
What framework for ethical decision making does this describe?
contends that acts are moral when they promote the individual’s best long-term interests.
Individualism approach
What framework for ethical decision making does this describe?
holds that moral behavior produces the greatest good for the greatest number
Utilitarian approach
What framework for ethical decision making does this describe?
sidesteps debates about what’s right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account.
Practical approach
What framework for ethical decision making does this describe?
asserts that human beings have fundamental rights and liberties that cannot be taken away by an individual’s decision.
Moral rights approach
What framework for ethical decision making does this describe?
holds that moral decisions must be based on standards of equity, fairness, and impartiality.
Justice approach
What are the 3 types of justice in the justice approach?
- Procedural justice
- Distributive justice
- Compensatory justice
What type of justice does this describe?
argues that individuals should be compensated for the cost of their injuries by the party responsible.
compensatory justice
What type of justice does this describe?
requires that different treatment of people not be based on arbitrary characteristics. (ex: short vs. tall; blonde vs. brown haired)
distributive justice
What type of justice does this describe?
requires that rules be administered fairly.
procedural justice
A decision to monitor employees’ nonwork activities violates the right to privacy. The right of free speech would support whistle-blowers who call attention to illegal or inappropriate actions within a company. These are examples of the ___________ approach.
moral rights
Lying and cheating for immediate self-interest just causes business associates to lie and cheat in return. Thus, proponents say, _______ ultimately leads to behavior toward others that fits standards of behavior that people want toward themselves.
individualism approach
Men and women should not receive different salaries if they have the same qualifications and are performing the same job. This is an example of ________ justice.
distributive
When a manager makes decisions on how to allocate annual raises he/she should utilize ___________ justice to ensure fairness.
procedural
What are Kohlberg’s Levels of Moral Development?
- Pre-conventional
- Conventional
- Post-conventional
What are the 2 stages of the Pre-conventional level of moral development?
- Obedience and Punishment
- Individualism and Exchange (when children take actions to meet their needs)
T or F: Children are usually in the post-conventional level of moral development.
False; PRE-conventional
What are the 2 stages of the Conventional level of moral development?
- Interpersonal Relationships (people worry about how others perceive them)
- Maintaining Social Order (people take actions that benefit society)
First, a manager wants to be liked by her employees, so she lets them leave early. But, later she asks the group to work the same hours as the CEO for the good of the group. This exemplifies which level of moral development?
Conventional
What are the 2 stages of the Post-conventional level of moral development?
- Social Contracts and Individual Rights (understanding that everyone’s values differ; they believe it’s good to have laws, but since individuals differ, the laws must differ too)
- Universal Principles (people follow what they know is right, regardless of the rules)
In what level of moral development do people act in their own self-interest, and have obedience for their own sake?
Preconventional
Preconventional Level:
1. Leader style?
2. Employee behavior?
- autocratic/coercive
- task accomplishment
In what level of moral development do people learn to conform to the expectations of good behavior as defined by others, fulfills duties and obligations of social system, and upholds laws?
Conventional
T or F: Most managers operate at the post-conventional level.
False; CONVENTIONAL level
Conventional:
1. Leader Style?
2. Employee behavior?
- Guiding/encouraging, team oriented
- work-group collaboration
In what level of moral development are people guided by an internal set of values based on universal principles, people are aware that people hold different values and seek creative solutions to ethical dilemmas, and balances concern for individuals with concern for common good?
Pre-conventional
Post-conventional:
1. Leader style?
2. Employee behavior?
- Transforming, or servant leadership
- Empowered employees/ full participation
When the USS Indianapolis sank after being torpedoed, one Navy pilot disobeyed orders and risked his life to save men who were being picked off by sharks. The Navy pilot was operating from the __________ level of moral development.
post-conventional
management’s obligation to make choices and take actions that will contribute to the welfare and interests of society, not just the organization.
corporate social responsibility (CSR)
Can be difficult to understand and apply CSR because managers must confront the question:
“Responsibility to whom?”
any group or person within or outside the organization that has some type of investment or interest in the organization’s performance and is affected by the organization’s actions.
stakeholders
provides a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders.
stakeholder mapping
following organizational policies and practices that both enhance the economic and social conditions of the communities in which the company operates
conscious capitalism
the ability to generate wealth without compromising environmental responsibility and social stewardship.
sustainability
measuring an organization’s social performance, environmental performance, and its financial performance.
triple-bottom line
What are the Three P’s of the Triple Bottom Line?
- People (social)
- Planet (environmental)
- Profit (financial)
honest and trustworthy, fair in dealings with employees and customers, and ethical in both personal and professional lives.
ethical leadership
What are the 7 Steps in Building an Ethical Organization?
- Ethical Leadership
- Code of Ethics
- Ethics Committee
- Chief Ethics Officer
- Ethics Hotline
- Ethics Training
- Support for Whistle-Blowers
formal statement of a company’s values concerning ethics and social issues; communicates to employees what the company stands for
code of ethics
What type of statements are designed to affect corporate culture?
Principle-based statements
What type of statements generally outline the procedures to be used in specific ethical situations?
Policy-based statements
group of executives (and sometimes lower-level employees as well) appointed to oversee company ethics
ethics committee
company executive who oversees all aspects of ethics and legal compliance
chief ethics officer
employee disclosure of illegal, unethical, or illegitimate practices on the employer’s part
whistle-blowing
because __________ is easily misinterpreted to support immediate self-gain, it is not popular in the highly organized and group-oriented society of today.
individualism approach
Which framework for ethical decision making does this describe? A decision would be considered ethical if it is one that would be considered acceptable by the professional community, one that the manager would not hesitate to publicize on the evening news, and one that a person would typically feel comfortable explaining to family and friends.
practical approach
T or F: CSR can be a difficult concept to grasp because different people have different beliefs as to which actions improve society’s welfare.
True
A for-profit organization that has a stated purpose of creating a positive impact on society; is required to consider the impact of decisions on all stakeholders; and voluntarily holds itself to high standards of accountability and transparency.
benefit corporation
Efforts to portray a company as being more environmentally minded that it actually is.
greenwashing
