Introduction Flashcards
What is morality?
Morality is concerned with the norms, values and beliefs embedded in social processes which define right and wrong for an individual or a community
What is business ethics?
The study of business situations, activities and decisions where issues of right and wrong are addressed
What is ethics?
Ethics is concerned with the study if morality and the application of reason to elucidate specific rules and principles that determine right and wrong for a given situation. These rules and principles are called ethical theories.
Why is business ethics important?
1) the power and influence of business in society is greater than ever before
2) business has the potential to provide a major contribution to our society eks jobs, taxes, environment
3) business malpractice can infect harm on individuals, communities and environment
4) few business people have this training
5) ethical violations continue to occur
6) demand on businesses of being ethical is becoming more complex
7) BE can provide the ability to assess the benefits and problems associated with different ways of managing ethics in organizations
8) provides us with knowledge that transcends the traditional framework of business studies and confront us with some of the most important questions faced by society
Main priorities in addressing ethical issues in large corporations?
Financial integrity, employee/customer issues
Main priorities in addressing ethical issues in small businesses?
Employee issues
Approach to managing ethics in large corporations?
Formal, public relations and/or system based
Approach to managing ethics in small corporations?
Informal, trust based
Responsible and/or accountable to (small businesses)?
Owners
Main constraints for business ethics in large corporations?
Shareholder orientation, size and complexity
Main constraints for business ethics in small businesses?
Lack of resources and attention
What is globalization?
A process which diminishes the necessity of a common and shared territorial basis for social, economic and political activities, processes and relations
Why is globalization relevant for business ethics?
1) cultural issues
2) legal issues
3) accountability issues
Ethical impacts of globalization for shareholders?
Provides potential for greater profitability but also greater risk
Ethical impacts of globalization for employees?
Outsourcing can reduce cost and therefore provide jobs but also raise the potential for exploitation
Ethical impacts of globalization for consumers?
Provides social benefits but also cultural imperialism and wearernization
Ethical impacts of globalization for suppliers and competitiors?
Suppliers in developing countries face regulation form MNCs through supply chain management. Small scale indigenous competitors are exposed to powerful global players
Ethical impacts of globalization for civil society?
Brings companies in direct interaction with local communities thereby raising the possibilities for erosion of traditional community life
Ethical impacts of globalization for government and regulation?
Weakens governments and increases the corporate responsibility. Confront government with corporations form regions with different cultural expectations
Who is responsible for ethical conduct in business? Europe, North America, Asia
E) Social control by the collective
NA) the individual
A) top managment
Who is the key actors in business ethics? Europe, North America, Asia
E) government, trade unions, corporate associations
NA) the corporation
A) government, corporation
What are the key guidelines for ethical behavior? Europe, North America, Asia
E) negotiated, legal framework of business
NA) corporate codes of ethics
A) managerial discretion
What are the key issues in business ethics? Europe, North America, Asia
E) social issues in organizing the framework of business
NA) misconduct and immorality in single decisions situations
A) corporate governance and accountability
What is the dominant stakeholder management approach? Europe, North America, Asia
E) formalized multiple stakeholder approach
NA) focus on shareholder value
A) implicit multiple stakeholder approach, benign managerialism
What is sustainability?
Sustainability refers to the long-term maintenance of system according to environmental, economic and social considerations
What is the triple bottom line?
John Elkington - businesses does not have one single goal, namely adding economic value, but it has an extended goal set which necessitates adding environmental and social value too
Responsible and/or accountable to (large corporations)?
Shareholders and others stakeholders
