Classroom Discussions and Recordings Midterm Flashcards
What is a cognitive bias?
Involuntary form of thinking that leads to distorted perceptions of things.
What is the tangible and abstract cognitive bias?
People remember immediate and tangible factors at the expense of removed and abstract factors.
What is the loss aversion cognitive bias?
We are more likely to take a risk when there is something to loose. We hate losses twice as much as we enjoy gains.
What is the framing cognitive bias?
Framing a dilemma to fit the needs of an individual rather than viewing the situation objectively.
What is the overconfidence cognitive bias?
Our tendency to be more confident in our ability in ethics than actuality.
What is behavioral ethics?
People make decisions on instinct and emotions, people think they lead ethical lives while living unethical lives, unethical decisions are impacted by biases pressures and situations.
How do most business structures from top down?
Board of directors, CEO, R&D production marketing sales finance administration.
What did Citibank do that was unethical?
They have risky mortgages trying to make as much money as possible in the short term instead of looking out for long-term interests.
What is conscious capitalism?
Organization has higher purpose not just bottom line, stakeholder orientation, leadership leads by example, caring culture and great place to work.
What is the stakeholder orientation?
When you go beyond the bare minimum ethical requirements, maximizes positive outcomes to meet stakeholders needs.
What are the DFEI principles?
Integrity, trust, accountability, transparency, fairness, respect, rule of law, viability.
What is my integrity principle?
To always be honest with myself and others while always accepting personal responsibility.
What is the Dodd-Frank act?
Program where whistleblowers get a percentage of funds demanded by government as result of white collar crime and arose from Citibank fiasco.
What happened to Enron?
They developed poor culture as execs were given great benefits to success and lied about earnings. Exec’s ignored questionable accounting practices. Initially looked at as model company.
What is Ethisphere?
Measures ethicality of companies and recognizes companies excelling in ethics.
