lesson 3-4

Question 1

refer to a person’s personal philosophies about what is right or wrong. It is
personal or singular. relate to you and you alone

Answer 1

Morals

Question 2

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

Answer 2

Business ethics

Question 3

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

Answer 3

Principles

Question 4

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

Answer 4

Values

Question 5

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.

Answer 5

Ethics

Question 6

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

Answer 6

Domain of Codified Law
Legal Standard

Question 7

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

Answer 7

Domain of Ethics
Social Standards

Question 8

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.

Answer 8

Domain of Free choice
Personal Standards

Question 9

conflict between the needs of the part and the
whole—the individual versus the organization or the organization versus
society as a whole

Answer 9

ETHICAL DILEMMA

Question 10

would use an autocratic or coercive
leadership style, with employees oriented
toward dependable accomplishment of
specific tasks

Answer 10

PRE-CONVENTIONAL

Question 11

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

Answer 11

CONVENTIONAL

Question 12

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

Answer 12

PRINCIPLED

Question 13

• 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

Answer 13

VALUES

Question 14

measures the strength of a person’s
convictions (IF HIGH, likely to resist impulses to
act unethically and instead follow their
convictions)

Answer 14

Ego strength

Question 15

s the degree to which people
believe they control their own fate/destiny.

Answer 15

Locus of control

Question 16

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

Answer 16

INTERNAL LC

Question 17

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

Answer 17

EXTERNAL LC

Question 18

• 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

Answer 18

STRUCTURAL VARIABLES

Question 19

Shared organizational
values

Answer 19

ORGANIZATION’S CULTURE

Question 20

set of
values, norms, and
artefacts, including ways of
solving problems

Answer 20

CORPORATE CULTURE

Question 21

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

Answer 21

ISSUE INTENSITY

Question 22

Six (6) CHARACTERISTICS
that determines issue of
intensity

Answer 22

(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

Question 23

• 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

Answer 23

Utilitarian
approach

Question 24

• 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.

Answer 24

Individualism
approach

Question 25

• 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.

Answer 25

Moral-rights
approach

Question 26

• 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

Answer 26

Justice
approach

Question 27

• 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;

Answer 27

Sole Proprietorship

Question 28

Article 1767 of the Civil Code of the Philippines
Judicial personality
Money, property, or
industry
Divide profit

Answer 28

Partnership