Ethical Descision Maimg Flashcards
What is ethics?
A set of moral principles or values
This definition is subjective as moral values vary from person to person.
How is ethical decision-making defined?
The principles, norms and standards of conduct governing an individual or group
Definition by Treving and Nelson.
According to Manuel Velasquez, what is true about ethical standards?
There are no ethical standards that are true absolutely
The truth of all ethical standards depends on what a particular culture accepts.
What do organizations develop regarding ethical conduct?
Rules of ethical conduct that include:
* Corporate values
* Norms of dealing with suppliers and customers
* Professionally accepted behavior
* Gift policies
* Other rules as to what is allowed or not within the working premises.
What is required for high ethical standards in business?
Conformity to moral principles and values.
How do businesses develop an honorable reputation?
By conforming to ethical standards.
What are the benefits of a high ethical standing in the corporate world?
Leads to:
* Increased profits
* Growth.
How does a commitment to ethical behavior impact relationships with stakeholders?
Builds positivity in relationships with:
* Employees
* Customers
* Investors
* General public
* Other stakeholders.
What factor contributes to employee commitment?
Trust that the company is working for the benefit of employees and the public.
What happens when employees feel their employer is not ethical?
They are more likely to break the ethical code of conduct and compromise the company’s values.
What do investors look for in a company beyond financial fundamentals?
A strong ethical foundation.
What risks does an organization without ethical standards face?
Exposure to:
* Lawsuits
* Bad reputation
* Loss of customers
* Loss of profits.
What is crucial for customer satisfaction?
Trust in the company.
What can lead to significant loss for a company?
Unethical decisions potentially leading to litigation.
What should companies do to maintain a good relationship with suppliers?
Pay suppliers on time and treat them fairly.
What is an ethical issue?
A problem, situation, or opportunity requiring a choice among actions evaluated as right or wrong.
Definition by Fraedrich and Ferrell
What distinguishes normal circumstances regarding ethical decisions?
There is a clear distinction between what is right and wrong.
What are ethical dilemmas?
Situations where norms and values conflict, and alternatives lie between right and wrong.
What characterizes the alternatives in ethical dilemmas?
They are not entirely right or wrong but fall somewhere in between.
What is the goal when selecting an option in ethical dilemmas?
To select the best option among all possibilities.
What does the decision-making process in ethical dilemmas often lead to for decision-makers?
A state of confusion requiring guidance.
What is the origin of the American Accounting Association (AAA) Model?
A report by Langenderfer and Rockness in 1990.
What is the first step in the AAA Model for ethical decision-making?
What are the facts of the case?
What questions should be asked to identify facts in the AAA Model?
What? Who? Where? When? How?
What is the second step in the AAA Model?
What are the ethical issues in the case?
What does the second step involve?
Examining facts and identifying ethical issues at stake.
What is the focus of the third step in the AAA Model?
What are the norms, principles, and values related to the case?
What should be discussed in the third step of the AAA Model?
Governance, transparency, obedience, independence, etc.
What is the fourth step in the AAA Model?
What are the alternative courses of action?
What should be compiled in the fourth step?
A complete set of major practical alternatives.
What should the alternatives in the fourth step not consider?
The norms, principles, and values identified in Step 3.
What is the fifth step in the AAA Model?
Matching norms, principles, and values to options.
What is analyzed in the sixth step of the AAA Model?
The consequences of each course of action.
What is the final step in the AAA Model?
The decision.
What should the decision in the last step analyze?
Implications and consequences of each alternate course of action.
What aspects should be considered for the analysis in the last step?
Short and long run, positive and negative.
What is excellence described as?
A continuous process and not an accident
On what basis is an intended decision assessed?
Law of the land, professional body codes
What does rule ethics intend to follow?
The duty and norms relevant to the problem
What is the goal of utilitarianism or end-point ethics?
Seek the greatest benefit for the greatest number of stakeholders
How does utilitarianism differ from egoism?
Utilitarianism focuses on the greatest good, while egoism focuses on self-interest
What must one concentrate on to determine if an action is right or wrong?
Its likely consequences
What does value analysis help with?
Making a balanced decision for all stakeholders
What two approaches can explain the Tucker Model?
Value judgment and sustainability
What are the five questions in the Tucker Model used for?
To identify the best possible choice to make
List the types of values considered in the Tucker Model.
- Environmental values
- Personal values
- Legal values
- Social values
- Market values
What should a final decision demonstrate?
That the selected option is a well-informed ethical decision
What does continuing professional development involve?
Knowledge and experience gained during initial professional development
What is required for the final decision in the Tucker Model?
Application of professional judgment
Fill in the blank: The _______ approach seeks the greatest benefit for the greatest number of stakeholders.
Utilitarianism
True or False: Rule ethics focuses on individual self-interest over the common good.
False
