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Business Ethics > Exam 3 > Flashcards

Exam 3 Flashcards

1
Q

Framework for understanding ethical decision making in business.

A 
Ethical issues intensity
Individual factors
Organizational factors
Opportunity
-> Business ethics evaluations and intentions
-> Ethical or unethical behavior
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2
Q

What’s ethical issue intensity?

A

The relevance or importance of an ethical issue in the eyes of the individual, group or organization

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3
Q

What are the individual factors that affect awareness, judgement, intent and behavior?

A 
Gender 
Education
Work experience
Nationality
Age
Locus of control
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4
Q

What’s moral intensity?

A

Relates to individuals’ perceptions of social pressure and the harm they believe their decision will have on others

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5
Q

What has been found in regards to gender and ethical decision making?

A

In many respects there are no differences between men and women, but when differences are found, women tend to be more ethical than men.

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6
Q

What is corporate culture?

A

A set of values, norms and artifacts including ways of solving problems, that employees of an organization share.

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7
Q

Who are significant others?

A

Those who have influence in a work group, including peers, managers, coworkers, and subordinates.

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8
Q

What is obedience to authority?

A

Influence that significant others can exercise

Helps to explain why many employees resolve business ethics issues by simply following the directives of a superior.

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9
Q

What are transactional leaders?

A

Attempt to create employee satisfaction through negotiating or bartering for desired levels of performance

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10
Q

What are transformational leaders?

A

Strive to raise employees level of commitment and to foster trust and motivation

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11
Q

What are the seven habits of strong ethical leaders?

A

Strong personal character
Passion to do right
Proactive
Consider stakeholders interests
Role models for the organization’s values
Transparent and actively involved in organizational decision making
Competent managers who take a holistic view of the firm’s ethical culture

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12
Q

What are 3 simple principles of transparency?

A

Tell the whole truth
Build a values-based culture
Hire “people people”

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13
Q

What shapes an organizations ethical culture?

A

Effective leadership

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14
Q

What does an ethical corporate culture need?

A

Shared values
Proper oversight
Strong ethics program

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15
Q

The first step in ethical decision making is to understand the individual factors that influence the process.

A

False. The first step is to become more aware that an ethical issue exists and to consider its relevance to the individual or work group.

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16
Q

Opportunity describes the conditions within an organization that limit or permit ethical or unethical behavior.

A

True

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17
Q

Transactional leader negotiate compliance and ethics.

A

True

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18
Q

The most significant influence on ethical behavior in an organization is the opportunity to engage in (un)ethical behavior.

A

False. Significant others have more impact on ethical decisions within an organization.

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19
Q

Obedience to authority relates to the influence of corporate culture.

A

False. Obedience of authority relates to the influence of significant others and supervisors.

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20
Q

What is moral philosophy?

A

Refers to the specific principles or rules that people use to decide what is right and wrong

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21
Q

What is idealism?

A

Moral philosophy that places special value on ideas and ideals as products of the mind

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22
Q

What is realism?

A

Is the view that an external world exists independent of out perception of it

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23
Q

What are monists?

A

Believe that only one thing is intrinsically good

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24
Q

What’s deontology?

A

Moral philosophies that focus on the rights if individuals and on the intentions associated with a particular behavior rather than its consequences

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25
Q

What is metaethical relativism?

A

Proposes that people naturally see situations from their own perspectives and that there is no objective way of resolving ethical disputes between different value systems and individuals.

26
Q

What’s utalitarianism?

A

Is concerned with consequences but unlike the egoist, the utilitarian seeks the greatest good for the greatest number of people.

27
Q

What’s egoism?

A

Defines right or acceptable behavior in terms of its consequences for the individual

28
Q

What is justice?

A

Fair treatment and due reward in accordance with ethical or legal standards, including the disposition to deal with perceived injustices of others

29
Q

What are virtue ethics?

A

Argues that ethical behavior involved not only adhering to conventional moral standards but also considering what a mature person with a good moral character would deem appropriate in a given situation.

30
Q

According to Kohlberg’s model …

A

People make different decisions in similar ethical situations because they are in different moral developmental stages

31
Q

What are white-collar crimes?

A

Illegal acts for personal or organizational gains by abusing the trust and authority normally associated with their positions
Does more damage in monetary and emotional loss in one year than violent crimes over several years

32
Q

What’s the highest internet crime?

A

Non-delivery

Merchandise / Payment

33
Q

What’s the lowest internet crime?

A

Credit Card Fraud

34
Q

Teleology defines right or acceptable behavior in terms of its consequences for the individual.

A

False. That’s egoism.

35
Q

A relativist looks at an ethical situation and considers the individuals and groups involved.

A

True

36
Q

A utalitarian is most concerned with bottom-line benefits.

A

True

37
Q

Act deontology requires a person use equity, fairness, and impartiality in making decisions and evaluating actions.

A

True

38
Q

Virtues that support business transactions include trust, fairness, truthfulness, competitiveness and focus.

A

False. The characteristics include trust, self-control, empathy, fairness, and truthfulness - not competitiveness and focus.

39
Q

What’s apathetic culture?

A

Shows minimal concern for either people or performance

40
Q

What’s caring culture?

A

Exhibits strong concern for people but minimal concern for performance issues

41
Q

What’s integrative culture?

A

Combines a high concern for people with one for performance

42
Q

What’s exacting culture?

A

Shows little concern for people but a high concern for performance; it focuses on the interest of the organization

43
Q

What’s a compliance culture?

A

Organized around risk

Use laws and regulatory rules to create codes and requirements

44
Q

What’s reward power?

A

Refers to a persons ability to influence the behavior of others by offering them something desirable

45
Q

What is coercive power?

A

Coercive power penalizes actions and behavior (opposite of reward).
Lowest performing employees are fired annually
Relies on fear to change behavior

46
Q

What’s legitimate power?

A

A certain person has the right to exert influence and certain others have an obligation to accept it.

47
Q

What’s expert power?

A

Stems from a superior’s credibility with subordinates

48
Q

What’s referent power?

A

May exist when one person perceives that his or her goals or objectives are similar to another’s.

49
Q

What’s a centralized organization?

A

Decision-making authority is concentrated in the hands of top-level managers and little authority is delegated to lower levels

50
Q

What’s a decentralized organization?

A

Decision-making is delegated as far down the chain of command as possible

51
Q

What’s a formal group?

A

An assembly of individuals with an organized structure that is explicitly accepted by the group

52
Q

What’s an informal group?

A

Two or more individuals with a common interest but without an explicit organizational structure

53
Q

How do informal group held develop informal channels of communication (grapevine)?

A

Information flows up, down, diagonally, horizontally

Not necessarily following the communication lines on a company’s organizational chart

54
Q

How many percent employees follow their own values and beliefs; believe that their values are superior to those of others in the company?

A

10%

55
Q

Always try to follow company policy?

A

40%

56
Q

Go along with the work group?

A

40%

57
Q

Take advantage of situations if the penalty is less than the benefit and the risk of being caught is low

A

10%

58
Q

Decentralized organizations tend to put the blame for unethical behavior on lower-level personnel.

A

False. This is more likely to occur in centralized organizations.

59
Q

Decentralized organizations give employees extensive decision-making autonomy.

A

True

60
Q

Corporate culture provides rules that govern behavior within the organization.

A

True

61
Q

An integrative culture shows high concern for performance and little concern for people.

A

False. This describes eating culture. An integrative culture combines a high concern for people with a high concern for production.

62
Q

Coercive power works in the same manner as reward power.

A

False. Coercive power is the opposite of reward power. One offers rewards and the other responds with punishment to encourage appropriate behavior.

Business Ethics (4 decks)

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