M2 Chapter 6 Managing Organizational Ethics Flashcards
Ethics
The code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong.
Ethical dilemma
A situation concerning right or wrong when values are in conflict
- when the actions of a person or organization may negatively influence or impact another individual.
Teleological Ethics
Focuses on the consequences, or end result, of an action
Deontological Ethics
Focuses on moral obligations and responsibilities of individuals to do the right thing
Stages of Moral Development
Preconventional (Fear)
Conventional (Duty)
Postconventional (Love)
Individualism
Every person should act in a way that best promotes him or herself as long as the net result generates a positive outcome.
Utilitarianism
Seeks to provide the greatest good for the greatest number of people.
Sidgwick’s Dualism
Seeks to bridge gap between individualism and utilitarianism
Kant’s Ethics
Decisions should be based on whether an action is right or wrong in and of itself.
Moral Rights Approach
Individuals have fundamental rights and liberties that cannot be taken away.
Justice Approach
All members of society should be treated fairly.
How to Create an ethical culture
- Create a positive work environment
- Hire ethical individuals
- Provide ethical training
- Label and model ethical behavior
- Create a well-defined code of ethics
- Establish an open-door policy
- Provide an employee assistance program (EAP)
Business ethics
The values and principles that are used to evaluate whether the collective behavior of members of an organization are appropriate.
Distributive justice
States that the treatment of individuals should not be based on arbitrary characteristics.
Procedural Justice
Asserts that all rules should be distributed equally to all members of society.
Moral Philosophy
Refers to the principles, rules and values that individuals use in deciding what is right or wrong.
employee assistance program (EAP)
A formal program designed to help employees deal with personal problems and challenges.
employee awareness training
Educates new employees about what is acceptable and unacceptable behavior within the organization.
Modeling
Refers to the behavior, or example, of an individual.
Labeling
Refers to what an individual says, or communicates, to others.
code of conduct
Also referred to as a code of ethics, a code of conduct is a formal written document that communicates to employees what is acceptable and unacceptable behavior.
open door policy
a transparent and open communication policy where employees have access to management.
corporate social responsibility
Management’s obligation to make choices and take actions that will contribute to the welfare and interests of society as well as the organization.
stakeholder
A group or individual who have a direct or indirect relationship with an organization. Consequently, stakeholders can affect or can be affected by the actions of an organization.
shareholder
Refers to the financial owner(s), or stockholders, of an organization.
stakeholder approach
Examines how all stakeholders, not just shareholders, are impacted by business decisions.
5 Areas of CSR:
1) Strategy (long term in many aspects?)
2) Financial
3) Customer and Product
4) Governance and Stakeholder (high standards?)
5) Human (maintain employee satisfaction?)
reactive strategy
Suggests that an organization is involved in little or no corporate social responsibility initiatives.
responsive strategy
Refers to organizations that may engage in some social initiatives but, for the most part, believe that these efforts distract from making a profit.
accommodative strategy
These organizations often engage in social initiatives, although social initiatives are not the focus of their existence.
proactive strategy
These firms actively engage and proactively search for ways to incorporate corporate social responsibility into their everyday operations.
