Exam 2 Flashcards
Publics Opinion of Business Ethics - 2 things
1 - Are the media reporting bus ethics more rigorously?
2- Is it society that is changing?
Define Ethics
Standards of conduct that originate from some external group or source such as society in general, or business in particular.
Define morals
Standards of conduct that originate within the individual
Define business ethics
Concerned with rightness, wrongness, fairness, or justice of actions, decisions, policies, and practices that take place within a business context or the work place
Define descriptive ethics
Concerned with describing, characterizing, and studying the morals of people, an organization, culture or society
Descriptive ethics vs Normative ethics
Describes what is occurring vs what ought to be
Define Normative ethics
Concerned with supplying and justifying a coherent moral system of thinking and judging
What is the conventional approach to business ethics
To compare a decision, practice, or policy that is being used in practice with prevailing norms of acceptability in society
Ethics and the Law - what do they have in common?
Both have to do with what is considered right in the eyes of society (NOT always true for law)
What questions do you ask when making ethical judgements
1 - What is the true nature (Observe/participate in an action)
2 - What are societies norms
3 - What value judgements are made by someone
Define ethical relativism
The idea of picking and choosing which set of norms we wish to apply on the basis of our current action (for making ethical judgements) - BE WARY
What are the 3 central values of business ethics? How do they overlap?
Ethics, Economics, and Law
Ideal: All 3 overlap
Caution: Legal and profit; profit and ethic
Seek profit: Legal and ethical
List the three models of MGT Ethics
Immoral, Moral, Amoral
Define immoral mgt
An approach to MGT devoid of ethical principals or precepts and at the same t, imposes a positive and active opposition to what is ethical.
SELFISH MGT and knows right from wrong - just goes against it
Define moral management
An approach to MGT that conforms to the highest standards of ethical behaviour/professional standdards of conduct
FAIR/BALANCED MGT that wants to succeed in confines of ethics & law
Define Integrity strategy
Characterized by a conception of ethics as the driving force of an organization - used in moral management
What are the 7 habits of moral leaders
Passion to do right Morally proactive Consider all SH Strong ethical character Obsession w/fairness Undertake principle decision making Integrate ethics wisdom w/mgt wisdom
Define Amoral MGt
Not just a middle ground - 2 kinds intentional & unintentional
Define Unintentional Amoral MGT
Do not think of business in ethical terms because they are casual, careless, or inattentive on the fact that their decisions may have a negative effect on ethics
Define intentional amoral MGT
Do not use ethics because they believe its outside the business sphere
Define unconscious bias and its importance
It is part of the way management is - part of amoral mgt
Define compliance strategy
submission to law as driving force - MGT as rational maximizer of self interest w/indifference to moral legitimacy of choices
Used in amoral mgt
List the 2 hypothseis of the Models of MGT Morality
Population hypothesis and Individual hypothesis
Define the population hypothesis of the Models of MGT Morality
Distribution of 3 models might approximate a normal curve within MGR pop - Amoral large middle with moral and immoral on outskirts
Define the individual hypothesis of the Models of MGT Morality
Each manager has a normal curve with the 3 styles w/in - amoral large middle, moral and immoral outskirts
How many levels/stages are in Kohlberg’s Levels of Moral Development
3 levels with 6 stages (2 per level)
List the levels/stages of Kohlberg’s Levels of Moral Development
Preconventional - Reaction to punishment, Seeking of rewards
Conventional - Good boy/nice girl, law and order making
Post conventional/Autonomous/Principled - social contract orientation, universal ethical principle orientation
Preconventional level of Kohlberg’s Levels of Moral Development
Including the stages (1&2) of Reaction to punishment and Seeking of rewards, the focus mainly on the self
Typical of infants and children
Conventional level of Kohlberg’s Levels of Moral Development
Including the stages (3&4) of Good boy/nice girl and law and order making, the individual learns the importance of conforming to the conventional norms of the group/society
Post conventional/Autonomous/Principled level of Kohlberg’s Levels of Moral Development
Including the stages (5&6) of social contract orientation and universal ethical principle orientation, it is the level at which morality becomes self-acceptable. Few reach this level
Define ethics of care - Jill
View that women use ethics as relationship maintenance/hurt avoidance, composed of three levels
What are the three levels of the ethics of care
1- self
2- establish connections and principles
3- own needs and needs of others
What are the sources external to the organization in the web of values
Religious (fairness) Philosophical (reason) Cultural (traditions, societies influence) Legal (minimal codification) Professional (prof org/leaders)
What are the sources internal to the organization (ethical values)
Respect for authority Loyalty to bosses and org Conform to principles Performance counts above all else Results above all else
What is the bottom line mentality in the internal org. ethical value view
The internal sources of ethics that work together as area influential on behaviour
Define moral imagination
Ability to perceive that a web of competing economic relationships is at the same time, a web of moral/ethical relations
What is Moral identification and ordering
A practical decision phase of moral judgements and entails essential skills, such as coherence and consistency that have proved to be effect principles in other contexts
What is tolerance of moral disagreement and ambiguity
The extension of a managerial aptitude that is present in practically all decision-making strategies mgrs face, including ability to hear, discuss and be respectful towards other perspectives
What is integration of managerial and moral competence
Capability to make ethical decisions in an organization
What is a sense of moral obligation
Requires the intuitive or learned understanding that moral threads are woven into the fabric of managerial decision making and are the integral components that hold systems together
What are the 4 main levels ethical issues can appear at within a business
Personal
Managerial and Organizational
Industry/Professional
Societal and Global
What is the personal level an ethical issues can appear at within a business
Occur outside of employment but with implications on job
What are the questions of the managerial and organizational level an ethical issues can appear at within a business
Should I set high goals even thought might require cutting corners? Should I authorize a subordinate to side-step company policy to close a deal before months end?
What is the industry/professional level an ethical issues can appear at within a business
Regulate, insurance, etc
What is the societal and global level an ethical issues can appear at within a business
MGTS acting in concert through company and industries
Define managerial ethics
Entails making decisions with ethical implications or consequences
Define conflict of interest
Present when an individual has to chose b/t his or her interest and the interests of someone else/some other group
Define the principles approach to ethics
Based on the idea that employees and mgrs desire to anchor their decisions and actions on more solid foundation than that provided with the conventional approach
What is an ethics principle
Concept, rule, or guideline that, if applied when faced with ethical decision, will assist you in taking the ethical course of action
List the types of ethicals or theories
Teleological
Deontological
Aretaic
Define teleological theories (ethical principles)
Focus on the consequences or results the actions they produce - UTILITARIAN
Define deontological theories (ethical principles)
Focus on the duties
Define aretaic theories (ethical principles)
Aristotle’s view that sees the individual as a member of a social unit and moral virtue as a behavioral habit
What is the principle of utilitarianism
A consequential principal that asserts “we should always act as so to provide the greatest ration of good to evil for everyone”
What is Kant’s Categorical Imperative
A duty-based principle of ethics with 3 formulations, including the principles of ends and principle of autonomy
What is the first formulation of Kant’s Categorical Imperative
only act on rules that you would be willing to see all follow
What is the second formulation of Kant’s Categorical Imperative
The principle of ends - treat people as an ends not just means
What is the third formulation of Kant’s Categorical Imperative
the principle of autonomy - we do not need an external authority to determine the nature of moral law
What is the principle of rights
Rights can only be overridden by a more basic or important right
what are moral rights
important, justifiable claims or entitlements
What are legal rights
Rights that a governing authority has
Qhat are negative rights
Right to be left alone - think and act free of concern
what are positive rights
Right to something, such as food, Healthcare, etc
Define competing rights
The dilemma that is made when not a clear “right vs wrong” but is actually a “right vs right”
What are the 2 steps to determine competing rights
1 - eliminate the conflict by reframing it
2 - Decide what is “more right”
Dfine principle of justice
Involves the fair treatment of each person based on type of work, effort, merit needed, time spent, etc
Define distributive justice
Distribution of benefits and burdens in society and organizations
Define compensating justice
compensating someone for a past injustice
define procedural justice/ethical due process
fair decision making procedures, practice, or agreements based on three factors - input included? Decisions implemented appropriately? Do mgrs provide explanations/treat others with respect?
Define Rawl’s Principle of Justice
Based on idea that what we need first is a fair method by which we may choose the principles and through conflicts will be resolved
What are the 2 components of Rawls’ Principle of Justice
1 - Each person has equal right to basic liberties
2 - Social and economic inequalities are arranged so they a) reasonably expected to be everyone’s advantage and b) attached to positions
Define Virtue Ethics
Focuses on the individual becoming imbued with virtues
What are the virtues of virtue ethics
Honesty Fairness truthfulness trustworthiness benevolence respect
Define Servant leadership
An approach to ethical leadership decision-making based on serving others first
What are the 10 key characteristics to servant leadership?
Listening Empathy Healing Persuasion Awareness Foresight Conceptualization commitment to growth of people stewardship building community
Define the golden rule and 4 reasons why to follow it
Do unto others as you would have them do unto you 1 - accepted by most people 2 - easy to understand 3 - win/win philosophy 4 - acts as a compass when you need one
What is the test of common sense
Does the action I am getting ready to take really make sense? (smell test)
What is the test of on’es best self
Is this decision I am about to take compatible with myself at my best
What is the test of making something public (disclosure rule)
How would I feel if others knew I was doing this (MOST POWERFUL TEST)
What is the test of ventilation
Expose your proposed action to others and get their thoughts o nit before acting
What is the test of a purified idea
If a person of authority says it is acceptable (BUT BE CAUTIOUS OF WHO YOUR AUTHORITY FIGURE IS)
What is the test of the big 4
Greed, speed, laziness and haziness - has your action fallen victim to any of these?
What is the gag test
Gag at prospect of carrying out the task - not always effective depending on what the task is
What ethical test should be utilized for decision making?
No one test alone should be used, but multiple in conjunction.
What is the “hierarchy” of influence on an individuals moral climate within an organization
Societies moral climate Business moral climate Industries moral climate Organizational moral climate Superiors, policies, and peers influence on the individuals moral climate
What is an organizations ethical culture
Refers to shared beliefs, values, behaviour and ways of doing things in an organization
What are the concerns w/ compliance method of ethics
1 - could undermine the ethical way of thinking
2 - compliance can squeeze out ethics
3 - false consciousness
What are the 3 key elements to the best practices for improving organizational ethics
1 - presence of ethical leadership
2- existence of core ethical values by policies, processes, and practices
3 - formal ethics program
Moral manager vs moral person
2 important pillars to leadership
moral manager: recognizes the importance of using ethics
moral person: traits, behaviour, and decision making
What are the three important communication principles of ethical messages
1 - candor: mgr is forthright, sincere, and honest in communication
2 - fidelity: communicator is faithful to detail, accurate, and avoids deception
3 - confidentiality: exercise care in disclosure
What are ethical compliance programs
Organizations, managers, people, or departments that have responsibility of monitoring and improving ethics in an organization
What are ethics and compliance officers
In charge of implementing the array of ethics and compliance initiatives in an organization
What is an ethics screen
Consists of several standards against which the proposed course of action is to be compared
Ethics check
Is it legal, is it balanced, how will it make me feel about myself
Ethics quick test - 7 Qs
Legal Comply with values? Will you feel bad if you do it? How will it look in the news? If you know its wrong, dont do it If youre not sure, ask Keep asking until you get an answer
How do you discipline violators of ethical standards
Be clear in what ethics are and take action when not followed
How should business ethics training be
1 - be specific 2 - two-way converstaion 3 - interactive 4- memorable, use situations 5 - relatable 6- reinforced 7 - repeated 8 - visible 9 - Enforce ethics hotlines
What are ethical audits
Intended to carefully review ethics initiatives, such as ethic programs, codes of conduct, hotlines and training programs to determine their effectiveness and results
What is a fraud riska ssessment
the review process designed to carefully ID and monitor conditions and events that may have some bearing on the compliance/misconduct risk and review methods for dealing with those concerns
What is corporate transparency
Refers to a quality, characteristic, or state in which activities, promises, practices, and decisions that take place be open to the outside
What is behaviour ethics
descriptive in nature, it helps us to understand at a deeper level many of the behavioural processes that research has shown are actually taking place in people and society
Bounded ethicality
tends to occur when managers and employees find that even when they aspire to behave ethically it is different due to a variety of different organizational processes and psychological tendencies that interfere
Conformity bias
tendency to take ethical cues from peers rather than using their own independent judgement
Define overconfidence bias
Tendency of people to be more confident of their own moral behaviour than they have objective view to be
Self-serving bias
propensity of people to process info in a way that aligns with their current beliefs
Framing
peoples ethical judgements are affected by how a Q is proposed
Incrementalism
predisposition toward the slippery slope
Role morality
tendency some people have to use different ethical standards as they move through different roles in their life
Moral equilbrium
the penchant for people to keep an ethical scoreboard in their heads and use this info when making future decisions
What are the 5 barriers to an ethical organization
1 - ill-conceived goals
2 - motivated blindness (overlook others questionable behaviours when it is i n ones own best interest)
3 - indirect blindness ( when one holds others less accountable for unethical behavior)
4- slippery slope
5 - overcoming values (act of letting questionable behaviours pass if outcome is good)
