lesson 3-4 Flashcards
refer to a person’s personal philosophies about what is right or wrong. It is
personal or singular. relate to you and you alone
Morals
comprises organizational principles, values, and norms that may
originate from individuals, organizational statements, or from the legal system that
primarily guide individual and group behavior in business
Business ethics
are specific and pervasive boundaries for behavior that should not be
violated. often become the basis for rules. could include human rights, freedom of speech and fundamentals of justice
Principles
are enduring beliefs and ideals that are socially enforced. Several
desirable or ethical values for business today are teamwork, trust and integrity. often based on organizational or industry best practices
Values
defined as behavior or decisions made within a group’s values – decisions
made in the course of business by groups of people that represent the business
organization.
Ethics
values and standards are
written into the legal system
and enforceable in the courts.
In this area, lawmakers set rules
that people and corporations
must follow in a certain way,
such as obtaining licenses for
cars or paying corporate taxes
Domain of Codified Law
Legal Standard
Between the domains of
codified law and free choice
This domain has no specific
laws, yet it does have
standards of conduct based
on shared principles and
values about moral conduct
that guide an individual or
company
Domain of Ethics
Social Standards
the opposite end of the scale
and pertains to behavior
about which the law has no
say and for which an individual
or organization enjoys
freedom.
A manager’s choice of where
to eat lunch or a music
company’s choice of the
number of CDs to release is an
example of free choice.
Domain of Free choice
Personal Standards
conflict between the needs of the part and the
whole—the individual versus the organization or the organization versus
society as a whole
ETHICAL DILEMMA
would use an autocratic or coercive
leadership style, with employees oriented
toward dependable accomplishment of
specific tasks
PRE-CONVENTIONAL
meeting social and interpersonal obligations
is important. Work group collaboration is the
preferred manner for accomplishment of
organizational goals, and managers use a
leadership style that encourages
interpersonal relationships and cooperation
CONVENTIONAL
individuals are guided by an internal set of
values and standards and will even disobey
rules or laws that violate these principles.
Internal values become more important than
the expectations of significant others
PRINCIPLED
- a person comes to an organization with a
relatively entrenched set of personal values
which represent basic convictions of what is
right and wrong - develop from a young age based on what
we see and hear from parents, teachers,
friends, and others (SOCIALIZATION - people often base their decisions on their
own values and principles of right and wrong - Good personal values have been found to
decrease unethical practices and increase
positive work behavior
VALUES
measures the strength of a person’s
convictions (IF HIGH, likely to resist impulses to
act unethically and instead follow their
convictions)
Ego strength
s the degree to which people
believe they control their own fate/destiny.
Locus of control
more likely to take
responsibility for consequences and rely on
their own internal standards of right and
wrong to guide their behavior/consistent in
their moral judgment & action
INTERNAL LC
what happens to them is due
to luck or chance; less likely to take personal
responsibility for the consequences of their
behavior and more likely to rely on external
forces
EXTERNAL LC
- structures that minimize
ambiguity and uncertainty
with formal rules and
regulations - continuously remind
employees of what is
ethical - Goals
- performance appraisal
systems - reward allocation
procedures
STRUCTURAL VARIABLES
Shared organizational
values
ORGANIZATION’S CULTURE
set of
values, norms, and
artefacts, including ways of
solving problems
CORPORATE CULTURE
perceived relevance or
importance of an ethical
issue to an individual or
work group
- reflects the ethical sensitivity
of the individual or work
group that triggers the
ethical decision-making
process
ISSUE INTENSITY
Six (6) CHARACTERISTICS
that determines issue of
intensity
(1) greatness of
harm; (2) consensus of
wrong; (3) probability of
harm; (4) immediacy of
consequences; (5) proximity
to victim/s; and (6)
concentration of effect
- moral behavior produces the greatest good for the greatest number/one that
optimizes the satisfaction for the greatest number of people (Jeremy
Bentham and John Stuart Mill) - Concept of justice is foreign to utilitarianism - concerned with the
maximization of happiness and not with the distribution of it
Utilitarian
approach
- acts are moral when they promote the individual’s best long-term interests
(self-direction) - action that is intended to produce a greater ratio of good to bad for the
individual compared with other alternatives is the right one to perform.
Individualism
approach
- human beings have fundamental rights and liberties that cannot be taken
away by an individual’s decision. Thus, an ethically correct decision is one
that best maintains the rights of those affected by it. SIX MORAL RIGHTS:
(1) Right of free consent, (2) right to privacy, (3) Right of freedom of
conscience, (4) right of free speech, (5) Right of due process, and (6) Right
to life and safety.
Moral-rights
approach
- moral decisions must be based on standards of equity, fairness, and
impartiality - Three (3) types of Justice: (1) Distributive Justice, (2) Procedural justice,
and (3) Compensatory justice
Justice
approach
- The simplest form of business:
Ease of formation (registration with the Department of Trade and Industry);
Owner has full control, authority and responsibility over all the assets and liabilities;
Owner has full control and authority to make decisions for the business; - All profits go to the owner;
- Owner is solely liable for all business risks and losses;
- Business and owner are merged in one person and are taxed as one person.
Individual tax rates apply;
Sole Proprietorship
Article 1767 of the Civil Code of the Philippines
Judicial personality
Money, property, or
industry
Divide profit
Partnership
