Chapter 6 - Ethics Flashcards
Values
Relatively permanent values and attitudes
Internal stakeholders
Employees, owners
External stakeholder
Task environment
4 ethic approaches
Utilitarian, individual, moral rights and justice
Utilitarian Approach
For the greatest good. Efficiency and profit, cost benefit analysis.
Individual approach
Act ethically in the short run to avoid others harming you in the long run
Moral rights approach
Guided by respect for the fundamental rights of human beings
Justice approach
Take the impartial and fair with a case
Why are people unethical?
- Holier than thou effect: excessively favorable bias about ourselves.
- Fundamental Attribution Error: tendency to overestimate the effect of disposition and underestimate the effect of the situation
- Motivated Blindness: tendency to overlook information that works against our best interest.
3 levels of ethical behavior
- Pre-conventional: Follow the rules to avoid unpleasant consequences.
- Conventional: adhering expectations of others
- Post-conventional: follow their own values and standards.
Ethics is not…
The law
Following cultural accepted norms
Whistleblowing
Social responsibility (2)
Sustainability and Philanthropy
Ethics
standards of rights and wrong that influence behavior