Chapter 5 Flashcards
True or false: The framework for ethical decision making describes how to make ethical decisions
False! it only outlines the factors and processes related to ethical decision making
Organizational pressures have a strong influence, thus people make decisions differently in business than at home. True or false?
True
What four factors are included in the ethical decision making process?
Ethical issue intensity Individual factors Organizational factors Opportunity see image attached (slide 3)
Define Ethical-Issue Intensity
The perceived relevance or importance of an ethical issue to the individual, work group, and/or organization. It reflects the ethical sensitivity of the individual and/or work group, while triggering the ethical decision-making process.
What are the six spheres influence affecting individuals?
Workplace Legal system Family Community Religion Profession
Individual factors play a part in ethical decisions - true or false?
True. People base their ethical decisions on their own values and principles of right or wrong. Though values are subjective and vary across culture, dood personal values decrease unethical behavior and increase positive work behavior. Values are also learned through socialization.
What is a Moral intensity?
Relates to a person’s perception of social pressure and the harm his/her decision will have on others
True or false: men are more ethical than women
False. Women are more ethical. Education, work experience, nationality, and age also affect ethical decision making
Difference between Corporate Culture and Ethical Culture
A set of values, norms, and artifacts that members of an organization share is a Corporate Culture. An Ethical Culture reflects whether the firm has an ethical conscience; is a function of many factors
A significant other is those who have influence in a work group. True or False?
True
True or false: Organizational culture has a stronger influence on employees than individual values
True.
Define a Locus of Control
Relates to individual differences in relation to a general belief about how one is affected by internal versus external events or reinforcements. There is an unclear relationship between locus of control and ethical decision making
Differences between managers with External and Internal locus of Control.
External locus of control go with the flow because that’s all they can do Internal locus of control believe they can control events; are masters of their destinies and trust in their capacity to influence their environment
An opportunity can be defined as a condition in an organization that can both limit or permit both ethical and unethical behavior. True or false?
True
Where employees work, with whom they work, and the nature of the work is known as the
Immediate job context
Is there a way to explain why many employees unquestionable follow superior’s orders?
Yes - obedience to authority
How can an organization reduce opportunities for misconduct?
by establishing formal codes, policies, and rules
Knowledge can (never/always/sometimes) lead to unethical behavior
sometimes. A person who has an information base, expertise, or information about competition has an opportunity to exploit knowledge
True or false: Ethical dilemmas involve situations where rules are vague or in conflict
True
Are post-it notes the most common office supplies stolen by employees?
Yes, see picture attached (slide 14)
What is the first sign that an unethical decision has occurred?
Guilt or uneasiness
(Most/all/less than half/no) business people will make ethical mistakes
most
The (final/first) step is deciding what action to take based on a person’s intentions.
Final. Critical thinking skills and ability to take responsibility are important
Is it impossible to objectively determine if a business decision is right or wrong?
Yes. Understanding how ethical decisions are made will not solve ethical problems. Business ethics involves value judgments and collective agreement about acceptable patterns of behavior.
True or false: Concepts like fairness and justice are highly important in a normative structure
True
How organizational decision makers should approach an issue is known as the
normative approach.
Ethical decision making in business (does/does not) rely on personal values and morals
Does not. Organizations take on cultures of their own. Informal relationships enforce an ethical culture
What is the descriptive approach?
examines how organizational decision makers approach ethical decision making
Are institutions important in establishing a foundation for normative values?
Yes, organizations face certain normative pressures from different institutions to act a certain way both internally and externally.
(Most/none/all/less than half) organizations develop a set of core values to provide enduring beliefs about appropriate conduct
Most. Core values are central to an organization and provide direction for action. By incorporating stakeholder objectives into corporate core values, companies begin to view stakeholders as significant
What are the three types of institutions
Political, social, and economic
Can the amount of competition in an industry can be determined/described according to available substitutes for the products produced by the industry rivals?
Yes. Competition amount can be determined according to the following: -Barriers to entry into the industry -Available substitutes for the products produced by the industry rivals -Power of the industry rivals over their customers -Power of the industry rivals’ suppliers over the industry rivals
(Competition/Ethics) affects how a company operates as well as the risks employees take for the good of the firm
Competition
price fixing, antitrust issues, and consumer protection are important in maintaining a (fair/equitable/neither/both) marketplace
Fair and Equitable. These issues must be major considerations for business when making ethical decisions
religion, education, and individuals such as the family unit are considered what type of institutions?
Social
True or false: there are laws saying people should do to others as they would prefer to have done to them.
False. There are laws meant to ensure an organization acts fairly, but there are no laws saying people should do to others as they would prefer to have done to them. Many cultures adopt this rule that with standards on competing fairly, being transparent with consumers, and treating employees with respect.
Who the fuck is John Rawls?
one of the most influential philosophers in his research on how principles support the concept of justice. Made the Veil of Ignorance experiment
When values from political/economic/social/all three) institutions are embedded into the organizational culture to provide incentives for appropriate behavior, firms tend to act (more/less) socially responsible
All three / more. If incentives do not align with institutional normative values or if they contradict these values, then misconduct is likely
Industry shared values promote organizational effectiveness when linked to goals. True or false?
True. Important that organization does not stray too far from industry norms and values
What is the Veil of Ignorance
Veil of Ignorance A thought experiment that examined how individuals would formulate principles if they did not know what their future position in society would be, made by John Rawls. Identified principles that were not biased by one’s social position
Define the Difference Principle
Principle of justice that states that economic and social equalities (or inequalities) should be arranged to provide the most benefit to the least-advantaged members of society. Does not advocate for the complete elimination of inequalities in society.
The most ethical decision seeks to benefit and not harm disadvantaged populations, according the difference principle. true or False?
True
The two main principles of justice are the
Liberty principle (equality principle) Difference principle
Value practices (evolve/devolve/neither) and are translated into normative definitions of ethical or unethical
Evolve
The liberty, or equality principle, states that
each person has basic rights that are compatible to the basic liberties of others
Difference between Principles and values?
See picture attached (slide 30)
(Leaders/stakeholders/organizational culture/all) impact the development of core values
All three impact core values - leaders -stakeholders -organizational culture
Core values provide the abstract ideals that are (distinct/similar) from individual values and daily operational procedures
Distinct. Companies take basic principles and translate them into core values
Top level support is (required/not required) for ethical behavior
required. An organizational ethical culture is shaped by effective leadership. An ethical corporate culture needs shared values and proper oversight
Can individual and organizational values differ significantly?
Sure. Individual and organizational values can differ significantly because of ethical diversity among individuals.
