Week 3-4 Flashcards
Basic Approaches to Ethical Decision Making
- The Utilitarian Approach
- The Moral Rights Approach
- The Universal Approach
- The Justice Approach
Managerial Ethics
It is concerned with morality and standards of business conduct, especially among individuals.
The utilitarian approach focuses on consequences of an action.
You try to make decisions that result “in the greatest good.”
The Utilitarian Approach
This approach focuses on an examination of the moral standing of actions independent of their consequences.
According to this approach, some things are just “right” or “wrong,” independent of consequences.
The Moral Rights Approach
This was imperative to “do unto others as you would have them do unto everyone, including yourself.”
The Universal Approach
It focuses on the equity of process and outcomes.
The Justice Approach
Types of Justice Approach:
Distributive Justice
Procedural Justice
Compensatory Justice
Managers ascribing to distributive justice distribute rewards and punishments equitably based on performance.
Distributive Justice
Managers ascribing to procedural justice make sure that people affected by managerial decisions consent to the decision-making process and that the process is administered impartially.
Procedural Justice
The main thesis of compensatory justice is that if distributive justice and procedural justice fail or are not followed as they should be, then those hurt by the inequitable distribution of rewards should be compensated.
Compensatory Justice
is concerned with the obligation corporations have to constituencies and the nature and extent of those obligations.
Corporate social responsibility
The concept that a manager’s responsibility is to maximize profits for the owners of the business.
The Efficiency Perspective
Types of the Efficiency Perspective
Managers as Owners
Managers as Agents
the efficiency perspective argues that the self-interests of the owner are best achieved by serving the needs of society.
Managers as Owners
In most large organizations today, the manager is not the owner.
Managers should “conduct business in accordance with [owners’] desires, which will generally be to make as much money as possible while conforming to the basic rules of society, both those embodied in law and those embodied in ethical custom.
Managers as Agents
argues that society grants existence to firms.
The Social Responsibility Perspective
Is an individual or group that has an interest in and is affected by the actions of an organization.
Stakeholder
Other stakeholders include current and future customers and employees; financiers; ________; the media; the communities in which the business operates; and society at large.
Media
A formal settlement that outlines the types of behavior that are and are not acceptable.
Code of Ethics
How to Successfully Implement Code of Ethics?
Communication
Training
Reward and Recognition
Whistle-blowing
Examples Set by Top Managers
is an employee who discloses illegal or unethical conduct on the part of others in the organization.
whistle-blower
The company must repeatedly communicate the code in memos, company newsletters, videos, and speeches by senior executives over a period of time if people are to embrace and internalize the message.
Communication
For the code of ethical conduct to be effective, people will likely need __________.
Training
refers to the flow of goods and services, capital (money), and knowledge across country borders.
Globalization
refers to the flow of goods and services, capital (money), and knowledge across country borders.
Globalization
3 STAGES OF GLOBALIZATION
- INTERNATIONALIZATION OF COUNTRIES
- COMPANIES MOVING TO INTERNATIONAL MARKETS
- INDIVIDUALS COLLABORATING (AND COMPETING) ON GLOBAL BASIS
consists of a country’s rules, policies, and enforcement processes.
Institutional Environment
is a learned set of assumptions, values, and beliefs that have been accepted by members of a group and that affect human behavior.
Culture
3 CLASSIFICATIONS OF COUNTRY ECONOMIES:
- Developed economies
- Emerging economies
- Developing economies
Tend to have the weakest and less-developed economies.
Examples: Sudan and El Salvador
Developing economies
They often have rapidly growing economies and their capital markets tend to be young and underdeveloped.
Examples: China and India
Emerging economies
It tends to be larger and have more effective capital markets.
Examples: USA, Countries in Western Europe.
Developed economies
4 PROMINENT DIMENSIONS OF NATIONAL CULTURE:
Power distance
Uncertainty avoidance
Individualism vs Collectivism
Gender focus
It represents the extent to which people in a country value masculine and feminine traits.
Gender focus
is the extent to which people’s identities are self-oriented and people are expected to take care of themselves and immediate families.
Individualism
is the extent to which a person’s identity is a function of a group(s) to which the person belongs and the extents to which group members are expected to look after each other.
Collectivism
It is the extent to which cultures differ which are then need to clarify or can tolerate ambiguity.
Uncertainty avoidance
It is the extent to which people accepts power and authority differences among people.
Power distance
INTERNATIONAL MARKET-ENTRY STRATEGIES
-Exporting
-Licensing
-Creating Strategic Alliances
-Establishing New, Wholly Owned Subsidiaries
involves manufacturing products in a firm’s home country and shipping them to a foreign market.
Exporting
allow a local firm in the new market to manufacture and distribute its product.
Licensing arrangements
A strategic alliance is a cooperative arrangement between two firms in which they agree to share resources to accomplish a mutually desirable goal.
Creating Strategic Alliances
When a company creates a wholly owned subsidiary in a foreign country, it makes a direct investment to establish a business that it solely owns and controls.
Establishing New, Wholly Owned Subsidiaries
3 Different approaches in managing international operations:
-Taking a global focus
-Taking a region-country focus
-Taking a transnational focus
In a globally focused organization, the firm’s home office makes major strategic decisions.
Taking a global focus
In an organization using a region–country focus, the primary authority to determine competitive strategy rests with the managers of its international subsidiary based in a region of the world or a specific country.
Taking a region-country focus
In these organizations, strategic decisions are decentralized. Nonetheless, the organizations usually try to achieve global efficiency by having their subsidiaries share resources.
Taking a transnational focus
