Topic 2 - Making Ethical Decisions and Managing a Socially Responsible Business Flashcards
What is Ethics?
Set of moral standards for judging whether something is “good” or “bad” or “right” or “wrong” in one’s conduct.
What is Ethical Behavior?
It is what is accepted as good and right in the context of the governing moral code
Business ethics
Principles and standards that guide the behavior of individuals and groups in the world of business.
Ethical issues in Business
An ethical issue is a problem, situation, or opportunity requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical.
List
Ethical issues in business
- Honesty and fairness
- Conflict of interest
- Fraud
- Discrimination
- Information technology abuse
List
Factors that influence the ethical decision-making process
- Individual factors
- Organizational relationships
- Opportunity
Define
Utilitarianism
Moral Philosophies
Focuses on the consequences of an action taken by a person or organization. The notion that people should act so as to generate the greatest number is derived from utilitarianism.
List steps
How to create ethical Relationships in Business
- Listen and learnIdentify the ethical issues.
- Create and analyze options, Identify the best options.
- Explain the decision and reslove any differences that may arise.
List
**Opportunity **(Conditions that limit barriers or provide rewards)
- Financial gain
- Recognition
- Promotion
- Positive feelings from a job well done.
Define
Deontology
Moral Philosophies
The philosophy that people should meet their obligations and duties when analyzing an ethical dilemma. Actions or decisions based on duty or obligation.
Define
Consequentialism
Moral Philosophies
Prioritizes the outcomes or results of a decision. It is an ethical theory that judges whether or not something is right by what its consequences are.
Define
Egoism
Moral Philosophies
Actions or decisions are based on self-interest. It is the theory that one’s self is, or should be, the motivation and the goal of one’s own action.
Define
Ethical Formalism
Moral Philosophies
Defines morality based on universal absolutes. It is a type of ethical theory which defines moral judgments in terms of their logical form rather than their content.
Define
Justice theory
Moral Philosophies
What is fair according to prevailing standards of society. It is a philosophical framework for ethics focused on providing fair and equitable distribution of goods, services, and rights.
Define
Code of ethics
Provides employees with the knowledge of what is expected in terms of the responsibilities and behavior towards fellow employees, customers and suppliers.
Define
Social Entrepreneurship
A unique form of entrepreneurship that seeks novel ways to solve processing social problems at home and abroad.
Define
What is Corporate social responsibility (CSR)
Is the concern of businesses for the welfare of society as a whole. It consists of obligations
beyond those required by law or union contract.
What is social responsibility and corporate governance?
Looks at ethical issues on the organizational level Obliges organizations to act in ways that serve both its own interests and the interests of society at large.
Define
Classical View
Perspective on social responibility
Managements only responsibility is to maximize profits.
Define
Socioeconomic view
Perspective on social responibility
Management must be concerned for the broader social welfare, not just focus on the profits.
State
What are the arguments against social responsibility?
- Reduced business profit, Higher business costs
- Dilution of business purpose
- Too much social power for business
- Lack of public accountability.
Identify
Zone of Compliance
Criteria for evaluating corporate social perfromance
- Economic Responsibility: Be Profitable
- Legal Responsibility: Obey the Law
Identify
Zone of conviction
Criteria for evaluating corporate social perfromance
- Ethical Responsibility: Do what is right
- Discretionary Responsibility: Contribute to community.
Obstructionist
Strategies for pursuing social responsibility
Meets economic responsibilities.
Defensive
Strategies for pursuing social responsibility
Meets economical and legal responsibilities.
Accommodative
Strategies for pursuing social responsibility
Meets economical, legal and ethical responsibilities.
Strategies for pursuing social responsibility
Strategies for pursuing social responsibility
Proactive
Strategies for pursuing social responsibility
Proactive
Strategies for pursuing social responsibility
Meets economic, legal, ethical and discretionary responsibilities.
Strategic changes in corporate philanthropy
Trends in ethics and corporate social responsibility.
Strategic giving that ties philanthropy and CSR efforts closely to the mission or goals of a business.
A new social contract between employers and employee
Trends in ethics and corporate social responsibility.
Both groups have to be committed to working together in order for the organization to prosper.
The growth of global ethics and corporate social responsibility
Trends in ethics and corporate social responsibility.
Multinational corporations must implement ethical guidelines that foster respect for both local and international laws.
