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Project Management 412 > Ethics > Flashcards

Ethics Flashcards

1
Q

The Classical View of Social Responsibility

A
  • Management’s only social responsibility is to maximize profits (create a financial return) by operating the business in the best interests of the corporation
  • Expending the firm’s resources on doing “social good” unjustifiably increases costs that lower profits to the owners and raises prices to consumers
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2
Q

The SocioEconomic View of Social Responsibility

A
  • Management’s social responsibility goes beyond making profits to include protecting and improving society’s welfare
  • Corporations are not independent entities responsible only to stockholders
  • Firms have a moral responsibility to larger society to become involved in social, legal, and political issues
  • “to do the right thing”
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3
Q

Social Responsibility: Economic

A 
Required by society
• Be profitable
• Make sound strategic
decisions
• Provide adequate and
attractive returns on investments
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4
Q

Social Responsibility: Legal

A

Required by society
• Obey all laws and regulations
• Fulfill all contractual obligations
• Honor warranties and guarantees

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5
Q

Social Responsibility: Ethical

A 
Expected by society
• Avoid questionable practices
• Respond to spirit as well as
letter of law
• Assume law is floor of
behavior and operate above
minimum required
• Do what is fair, right, and
just
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6
Q

Social Responsibility: Philanthropic

A

Desired/expected by society
• Be a good corporate citizen • Give back
• Improve quality of life overall

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7
Q

Arguments for social responsibility

A 
Public expectations
Long-run profits
Ethical obligation
Public image
Better environment
Discouragement of further governmental regulation
Balance of responsibility and power
Stockholder interests
Possession of resources
Superiority of prevention over cure
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8
Q

Arguments against social responsibility

A 
Violation of profit maximisation 
Dilution of purpose
Costs
Too much power
Lack of skills
Lack of accountability
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9
Q

Social Obligation

A

The obligation of a business to meet its economic and legal responsibilities and nothing more

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10
Q

Social Responsiveness

A

When a firm engages in social actions in response to some popular social need

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11
Q

Social Responsibility

A

A business’s intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society

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12
Q

Value-Based Management

A

An approach to managing in which managers establish and uphold an organization’s shared values

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13
Q

The Bottom Line on Shared Corporate Values

A

An organization’s values are reflected in the decisions and actions of its employees

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14
Q

Purposes of Shared Values

A
  • Guiding managerial decisions
  • Shaping employee behavior
  • Influencing the direction of marketing efforts
  • Building team spirit
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15
Q

Definition of Ethics

A
  • The established customs, morals, and fundamental human relationships that exist throughout the world
  • Principles, values, and beliefs that define what is right and wrong behavior
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16
Q

Ethical Behaviour

A

• Behaviour that is morally accepted as good or right as opposed to bad or wrong such as

  • Corruption (e.g., bribery and improper payments)
  • Inadequate labour conditions
  • Environmental responsibility
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17
Q

Ethical Dilemma

A

A situation in which a person must decide whether or not to do something that, although beneficial to oneself or the organization, may be considered unethical and perhaps illegal
• Should I conduct personal business on company time?
• Should we spend more on pollution control?
• Is it okay to give a friend a special rate?
• If I find out that my boss took a bribe, should I tell someone?

18
Q

Moral development

A

• A measure of independence from outside influences
• Research conclusions
- People proceed through the stages of moral development sequentially
- There is no guarantee of continued moral development
- Most adults are in Stage 4 (“good corporate citizen”)

19
Q

Stages of Individual Moral Development

A 
• Preconventional level
• Conventional level
• Principled level
Interacts with
• Individual characteristics
• The organization’s structural design
• The organization’s culture
• The intensity of the ethical issue
20
Q

Values

A

Basic convictions about what is right or wrong on a broad range of issues

21
Q

Personality Variables

A
  • Ego strength

* Locus of Control

22
Q

Ego Strength

A

A personality measure of the strength of a person’s convictions

23
Q

Locus of Control

A

A personality attribute that measures the degree to which people believe they control their own life

24
Q

Internal locus

A

the belief that you control your destiny

25
Q

External locus

A

the belief that what happens to you is due to luck or chance

26
Q

Structural Variables

A

Organizational characteristics and mechanisms that guide and influence individual ethics
• Performance appraisal systems
• Reward allocation systems
• Behaviours (ethical) of managers

27
Q

Determinants of Issue Intensity

A 
• Greatness of Harm
- How many people will be harmed?
• Consensus of Wrong
- How much agreement is there that this action is wrong?
• Probability of Harm
- How likely is it that this action will cause harm?
• Immediacy of Consequences
- Will harm be felt immediately?
• Proximity of Victim(s)
- How close are the potential victims?
• Concentration of Effect
- How concentrated is the effect of the action on the victim(s)?
28
Q

Ethical Leadership

A

Managers must provide a good role model by:
• Being ethical and honest at all times
• Telling the truth; don’t hide or manipulate information
• Admitting failure and not trying to cover it up
• Communicating shared ethical values to employees through symbols, stories,
and slogans
• Rewarding employees who behave ethically and punish those who do not
• Protecting employees (whistleblowers) who bring to light unethical behaviours or
raise ethical issues.

29
Q

How Managers Can Improve Ethical Behaviour in An Organization

A
  1. Hire individuals with high ethical standards
  2. Establish codes of ethics and decision rules
  3. Leadbyexample
  4. Set realistic job goals and include ethics in performance appraisals
  5. Provide ethics training
    - Practical application of ‘tests’
  6. Conduct independent social audits
  7. Provide support for individuals facing ethical dilemmas
30
Q

Subjects Addressed by Most Codes of Ethics

A
  • Bribery/improper payments
  • Conflict of interest
  • Security of proprietary information
  • Receiving gifts
  • Discrimination/equal opportunity
  • Giving gifts
  • Environment
  • Sexual harassment
  • Antitrust
  • Workplace safety
  • Political activities
  • Community relations
  • Confidentiality of personal information
  • Human rights
  • Employee privacy
  • Whistle-blowing
  • Substance abuse
  • Nepotism
  • Child labour
31
Q

Tests to Guide Ethical Decision Making

A
  1. Harm test: Do the benefits outweigh the harms, short term and long term?
  2. Reversibility test: Would I think this choice was good if I traded places?
  3. Colleague test: What would professional colleagues say?
  4. Legality test: Would this choice violate a law or a policy of my employer?
  5. Publicity test: How would this choice look on the front page of a newspaper?
  6. Common practice test: What if everyone behaved in this way?
  7. Wise relative test: What would my wise old aunt or uncle do?
32
Q

Harm test

A

Do the benefits outweigh the harms, short term and long term?

33
Q

Reversibility test

A

Would I think this choice was good if I traded places?

34
Q

Colleague test

A

What would professional colleagues say?

35
Q

Legality test

A

Would this choice violate a law or a policy of my employer?

36
Q

Publicity test

A

How would this choice look on the front page of a newspaper?

37
Q

Common practice test

A

What if everyone behaved in this way?

38
Q

Wise relative test

A

What would my wise old aunt or uncle do?

39
Q

ECSA Rules of Conduct: Ethics

A
  • Competency
  • Integrity
  • Public Interest
  • Environment
  • Dignity of the Profession
40
Q

What is Business Ethics?

A

The study of proper business policies and practices regarding potentially controversial issues

  • Corporate governance
  • Insider trading
  • Bribery
  • Discrimination
  • Corporate social responsibility
  • Fiduciary responsibility
  • Data protection
41
Q

Why is Business Ethics important?

A

It enables you to make responsible decisions and maintain highly ethical behavior when running a business (and running projects)

Project Management 412 (16 decks)

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