Study Guide - Unit 2 Flashcards
Define ethics (U2, M1, L1)
Ethics encompasses the principles that guide a person’s behaviors. Reflects ones beliefs about what is righht and wrong, what is just and unjust.
Define legal (U2, M1, L1)
Denotes an act that is permissible or in conformity with the law of the land. An illegal act is in defiance of the stated or established laws of a defined jurisdiction.
What is an example of legal-ethical? (U2, M1, L1)
Law and ethics are in line. This doesn’t cause many problems.
What is an example of legal-unethic (U2, M1, L1)
Actions that don’t break any laws but pose other unethical questions/concerns.
What is an example of illegal-unethical? (U2, M1, L1)
Things that conflict with a person’s conscious and are in the defiance of the law.
Define values. (U2, M1, L1)
Values are the stable, enduring goals that a person has for life. Priciniples that are counted as most important to the individual.
Define morals. (U2, M1, L1)
Morals are sets of rules that individuals can develop based on cultural norms and beliefs. They are individual characteristics that can affect an individual’s ethics.
Define organizational ethics. (U2, M1, L1)
Branch of applied ethics that focuses on rules, principles, and standards, in the context of business activities.
What are the four main levels of ethical issues? (U2, M1, L1)
Societal, Stakeholder, Policy, Personal.
What is an example of Societal Issues? (U2, M1, L1)
Concerns issues relating to the world as a whole - involvement happens because of the ethics the organization creates out of care and concern for individuals.
What is an example of Stakeholder Issues? (U2, M1, L1)
Concerns policies that affect its customers, employees, suppliers, and people within the community.
What is an example of Internal Policy Issues? (U2, M1, L1)
Concerns interal relationships between a company and it’s employees. Examples include fairness in management, pay, and employee participation.
How does a company’s ethical behavior impact organizational outcomes? (U2, M1, L2)
Ethics and integrity start from the top down.
How does a company’s unethical behavior impact organizational outcomes? (U2, M1, L2)
Unrealistic business objectives are the most common factor to cause employees to compromised their ethical standards. 75% of employees identified senior or middle management as a primary source of such pressure to compromise standards of an organization.
Speaking the truth, respecting my elders, and never hurting someone are examples of _________ ethics. (Unit 2, Module 1)
Personal
Offering paid services on your time off to a company customer is an example of a __________. (Unit 2, Module 1)
Conflict of interest.
______ reflects beliefs about what is right and what is wrong. (Unit 2, Module 1)
Ethics
Being punctual, refraining from gossip, and having good time management are examples of _____ ethics. (Unit 2, Module 1)
Professional
_____ are the principles that are counted as most important to the individual. (Unit 2, Module 1)
Values
_____ are sets of rules that individuals develop based on cultural norms and beliefs. (Unit 2, Module 1)
Morals
What are some benefits to an organization that has high organizational ethics? (Unit 2, Module 1)
Business ethics offer companies a competitive advantage. Consumers learn to trust ethical brands and remain loyal to them, even during difficult periods. Employees feel more at ease, are more open to taking educated changes, and have a more pleasant work experience.
Where do an organization’s ethics tend to start? (Unit 2, Module 1)
They start at the top and trickle down?
Define corporate social responsibility (CSR). (Unit 2, Module 2, Lesson 3)
Philosophy in which a company voluntarily engages in actions that benefit society at large.
How is a company’s CSR approach shaped? (Unit 2, Module 2, Lesson 3)
Can be framed as a response to the backlash many corporations face for a long track record of harming environments and communities in their efforts to be more efficient and profitable. In it’s ideal form, focuses mangers’ attention on demonstrating social good of their new product and endevors.
Who is considered a company stakeholder? (Unit 2, Module 2, Lesson 3)
Includes unions, company’s employees, investors, suppliers, consumers, local and national governments, and communities that may be affected by corporate activities such as construction, manufacturing, and pollution.
What is the aim of CSR? (Unit 2, Module 2, Lesson 3)
Increase long-term profits and shareholder trust through positive public relations and high ethical standards to reduce business and legal risks by taking responsibility for corporate actions.
What is the purpose of the World Trade Organization (WTO)? (Unit 2, Module 2, Lesson 3)
Functions as internal instruments governing global trade by overseeing implementation of trade agreements between nations. MIssion is to improve the stability and predictability of global trade.
What is a code of ethics? (Unit 2, Module 2, Lesson 4)
Begins by established the organization’s key values and describes the copany’s obligation to it’s stakeholders.
What is included in a company’s code of ethics? (Unit 2, Module 2, Lesson 4)
Publicly available and addressed to anyone with an interest in the company’s activities and the way it does business. Includes details for how to company plans to implement its values and vision, as well as guidance for the staff on ethical standards and ways to achieve them.
Define the term greenwashing. (Unit 2, Module 2, Lesson 4)
Ethical committments and statements run contrary to actual principles (saying one thing and doing/practicing another).
Define the term internal transparency/ (Unit 2, Module 2, Lesson 4)
Ability of all individuals in an organization to exist in a system of openness, communication, and accountability. Operating in such a way that is easy for others to see the actions are performed. Simply put, the perceived quality of intentionally shared information.
What steps can organizations take to encourage transparent practices? (Unit 2, Module 2, Lesson 4)
Encourage quality intentionally shared information between company leadership and all employees of the company.
Why was Sarbanes-Oxley Act (SOX) passed? (Unit 2, Module 2, Lesson 4)
In response to several highly publicized corporate fraud cases. The law mandates reporting transparency in areas ranging from finance to accounting to supply chain activity. Makes it both unethical abd illegal to device shareholders, creditors, and the public at large.
Who is considered a whistleblower? (Unit 2, Module 2, Lesson 4)
Those who tell the public or authorities about allged misconduct in a government department, private company, or organization.
“Which of the following is true about Corporate Social Responsibility?
(A) It can be framed as a response to public backlash for a long track record of harming environments; (B) It guarantees the company is acting ethically; (C) It encourages promotion from within the organzation; (D) It comes at little additional cost to the organization. “ (Unit 2, Module 2)
D - It comes at little additional cost to the organization.
Why is Corporate Social Responsibility important to an organization and its local community? (A) It helps promotes a caring company culture; (B) It immediately increases the profit margin; (C) Increase long-term profits and shareholder trust; (D) It provides good marketing material and ways for the company to advertise. (Unit 2, Module 2)
C - It increases long-term profits and shareholder trust
XYZ Inc. uses images of a leafy forest to promote their Green-Clean Cleaning Wipes. They advertise the wipes as being biodegradable, but the chemicals in the wipes do not break down well in the environment and the plastic container is definitely not biodegradable. This is an example of _______ (A) code of ethics, (B) greenwashing, (C) whistleblowing, (D) Morals
(Unit 2, Module 2)
B - greenwashing
Cheyenne Jenkins, VP for a large gas company, wrote a letter to her boss regarding the extremely fraudulent accounting practices in their publicly traded company. She demanded that the company take action. Her letter became public five months after she wrote it and was fodder for national outrage. This is an example of ______________. Cheyenne continues to work while the matter is investigated. She is likely protected under ________ (A) whistleblowing, Sarbanes-Oxley Act; (B) internal transparency, Sally Mae Act; (C) code of ethics, Securites and Exchange Commision; (D) whistleblowing, Title VII.
(Unit 2, Module 2)
A - whistleblowing
