week 5 Flashcards
define primary stakeholders
those whose continued association is absolutely necessary for a firm’s survival
define secondary stakeholders
do not typically engage in transactions with the firm and are not essential to a firm’s survival
explain stakeholder orientation and csr
organization’s obligation to maximize its positive impact on stakeholders and minimize its negative impact
Shareholder versus stakeholder models
profits versus social welfare
framework for understanding ethical decision making in businesses
jazzie baby
explain ethical issue and moral intensity
Ethical issue intensity is the perceived relevance or importance of an ethical issue to the individual, work group, and/or organization.
Reflects the ethical sensitivity of the individual or work group and triggers the ethical decision process
Positive or negative incentives can affect the perceived importance of an ethical issue.
Employees need education regarding potential problem areas.
Moral Intensity relates to a person’s perception of social pressure and the harm decision will have on others
explain indivdual factors
People base their ethical decisions on their own values and principles of right or wrong
Values are learned through socialization
Good personal values decrease unethical behavior and increase positive work behavior
Values are subjective; vary across cultures
How people resolve ethical issues in their daily lives is often based on values and principles learned through family socialization.
In the workplace, ethical issues involve honesty, conflicts of interest, discrimination, nepotism, and theft.
The individual’s stage of cognitive development can affect conduct (see also page 169).
indivdual factors may also include
gender education work expierence nationality age
locus of control - internal and external
explain ethical issue intensity
Ethical issue intensity relates to a person’s perception of social pressure and the harm the decision will have on others
explain situational intensity
social concencus - degrees of social agreement that about the moral value of a proposed act
Magnitude of consequences: the sum of benefits/harms done to victims / beneficiaries of the moral act in question
concertation of effect - how spread or concentrated are the harms/benefits of the proposed act
probability of affect
temporoal immediacy - The length of time between the present and the onset of consequences of the moral act in question
Proximity - The feeling of neamess or that the moral agent has for the victoms/beneficaries of th good/evil act in question
define cooperate culture
A set of shared values, norms, and artifacts that influence organisational behaviour
Organizational culture has a stronger influence on employees than individual values
explain’significant others’
work group, which includes people such as peers, managers, and subordinates
Help on a daily basis with unfamiliar tasks and provide advice and information formally and informally
Have more influence on daily decisions than any other factor
explain opportunity
An aspect of influence that significant others can exercise
Helps us explain why many employees resolve business issues by simply following the directives of a superior
explain normative values: political
Political influences can take place within the organization
An ethical organization has policies and rules in place to determine appropriate behavior
Often the compliance component of the firm’s organizational culture
Failure to abide by these rules results in disciplinary action
Legal issues such as price fixing, antitrust issues, and consumer protection are important in maintaining a fair and equitable marketplace
explain normative values
Competition affects how a company operates as well as the risks employees take for the good of the firm
Amount of competition in an industry can be determined/described according to…
Barriers to entry into the industry
Available substitutes for the products produced by the industry rivals
Power of the industry rivals over their customers
Power of the industry rivals’ suppliers over the industry rivals
explain jojn rawls viel of ignorance
John Rawls
Veil of ignorance: A thought experiment that examined how individuals would formulate principles if they did not know what their future position in society would be
Two main principles of justice
Liberty principle (equality principle): States that each person has basic rights that are compatible to the basic liberties of others
Difference principle: States that economic and social equalities (or inequalities) should be arranged to provide the most benefit to the least-advantaged members of society
