LA Final exam chp 3 Pt 2 Making ethical business decisions Flashcards

1
Q

To help corporate employees judge their actions, George S. May international company provides 6 basic guidelines to consider

A
  1. the law
  2. rules and procedures
  3. values
    4.conscience
  4. promises
  5. heroes
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2
Q

Is the action you are considering legal

A

the law

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3
Q

are you following the internal rules and procedures that have already been laid out by your company

A

rules and procedures

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4
Q

laws and internal company policies reinforce society’s values

A

values

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5
Q

if you feel any guilt, let your conscience be your guide

A

conscience

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6
Q

every business organization is based on trust

A

promises

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7
Q

we will have heroes who are role models for us. Is what you plan on doing an action that your hero would take?

A

heroes

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8
Q

One of the most important ways to create and maintain an ethical workplace is for

A

top-level management

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9
Q

The attitude and behavior of each business manager and owner are

A

vital to a company’s ethical success or failure

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10
Q

management behavior sets the

A

ethical tone of a firm, employees take their cues from management

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11
Q

a manager who looks the other way when they know about an employees unethical behavior

A

sets an example

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12
Q

Discharging an employee for ethical reasons has deterrent to unethical behavior in workplace

A

if management does not enforce company code, the code is basically non-existent

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13
Q

Business owners and managers can play a big part in encouraging bad behavior thats

A

against the rules and morals

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14
Q

requires companies to set up confidential systems so that employees and others can raise red flahs about suspected illegal or unethical auditing and accounting practices

A

The sarbanes-oxley act of 2002

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15
Q

Corporate ethics officers and ethics committees require a practical method to investigate and solve specific ethics prolems and make

A

ethical business decision

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16
Q

Leonard H. Bucklin of corporate ethics US has devised a procedure called

A

business process pragmatism

17
Q

business process pragmatism involves

A

inquiry, discussion, decision, justification, and evaluation

18
Q

An understanding of the facts must be initial action, the parties involved might be mass media, public, employees, or customers

19
Q

a list of action options is developed

A

discussion

20
Q

working together, those participating in the process craft a consensus decision

21
Q

At this point of process, reasons should be attached to each proposed action or series of actions

A

Justification

22
Q

Consensus resolution to the corporate ethics problem withstand the moral scrutiny of the decisions taken and the process used to reach those decision

A

evaluation

23
Q

Many U.S businesses now contract with companies in developing nations to produce goods because

A

the wage rates in those nations are significantly lower than the wages in the US

24
Q

Given today’s global communications network, a few companies can assume that their actions in other nations will go unnoticed by “corporate watch” groups that

A

discover and publicize unethical corporate behavior

25
Another ethical problem in international business dealing has to do with the legitimacy of certain "side"
payments to government officials
26
In many countries, government regulation and control over trade and industry are much more extensive than in the US
so governemnt officials make the decisions on most major construction and manufacturing contracts
27
Side payments to government officials in exchange for favorable business contracts are not unusual in such countries,
where they aren't considered to beunethical
28
Prohibits U.S. businesspersons from bribing the foreign officials to secure advantageous contracts
foreign corrupt practices act
29
The foreign corrupt practices act does not say you cant give big amounts of money to small gov. workers who just do basic tasks
these payments are sometimes called grease or helping payments
30
The foreign corrupt practices act also doesnt stop companies from paying private foreign companies or other unless they know the money will
end up going ot a foreign government against the FCPA rules
31
All companies must keep detailed records that "accurately and fairly" reflect the company's
financial activities
32
all companies must have an accounting system that provides
reasonable assurance, that all transactions entered into by the company are accounted for and legal
33
The FCPA further prohibits any person from making false statements to accountants or
false entries in any record or account
34