Unit 2 Key Terms Flashcards
Ethics
code/moral principles, standards of good/bad instead of right/wrong
Ethical Behavior
what is good/right in the context of the governing moral code
Cultural Issues (UCC)
- Universalism - suggests ethical standards apply across all cultures
- Cultural Relativism - ethical behavior is always determined by cultural context (no culture’s ethics are superior, values in local setting determine right/wrong)
- Cultural Universalism - behavior is unacceptable in home environment shouldn’t be accepted anywhere else
Ethical Imperialism
certain truth apply everywhere (same), universal values go beyond cultures in determining right/wrong, ethics are not situational
4 Frameworks of Ethical Behavior (MUJI)
- Moral Rights: Does a decision/behavior support the fundamental rights of all human beings?
- Utilitarian view: Does a decision/behavior do the greatest good for most people?
- Justice view: Does a decision/behavior show fairness and impartiality?
- Individualism view: Does a decision/behavior promote long term self-interests?
Justice Views (DIP)
- Distributive Justice - degree where people are treated the same no matter what
- Interactional Justice - degree where people are treated with dignity and respect
- Procedural Justice - a degree where policies and rules are fairly administered
Ethical Dilemma
a situation that can be beneficial or for gain, can be unethical
Influencing Factors (POE)
- the person - family, religious values, personal standards & needs
- Organization - Supervisory behavior, peer group norms/behavior, and policy statements and written rules
- Environment - Government laws and regulations, societal norms & values and competitive climate in an industry
Ethics Training
- help participants understand ethical aspects of decision making
- help people add high ethical standards into daily life
- help people deal with ethical issues under pressure
Whistleblowers
To expose bad actions of people in organizations to preserve ethical standards and protects against harmful/illegal acts
Ethical Role Models
Managers - They influence the ethical behavior of people who work for and with them
Code of Ethics
Formal statement of an organization’s values and ethical principle (how to act in situations that might have ethical dilemmas)
Corporate Social Responsibility (CSR)
need for an organization to act in ways that serve their interest and the interest of society
Organizational Stakeholders
people, groups and other organizations directly affected by the behavior of the organization and holding stake in their performance
Corporate Governance
overseeing the top management of an organization by board of directors
They hire, fire & compensate CEO, assess strategy and verify financial records
how businesses can protect environment & save money
- Employees work best in healthy work environments (work/life balance)
- Healthy communities = productive organization
- Respecting natural environment = organizational gain
- Manage for long-term success
Protect organization’s reputation for consumer and stakeholder support
Perspectives on CSR
- Classical view - management’s only responsibility is to maximize profits
- Socioeconomic view - management is concerned for the broader social welfare not just profits
Government -> organizations
Common areas of government regulation of business affairs (ex. Occupational safety & health, fair labor practices, consumer and environmental protection)
Organization -> Government
- Personal contacts and networks
- Public relations campaigns
- Lobbying (attempt to influence someone on decision)
- Political action committees
- Illegal acts (bribery & illegal financial contributions to political campaigns)
