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100 Cards in this Set
- Front
- Back
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4-94
Voluntary Practices |
Beliefs, values, voluntary contractual obligations of a business. All businesses engage in some level of commitment to voluntary activities to benefit both internal and external stakeholders
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4-94
Philanthropy |
Giving back to community and causes
Evidence suggests both law and sense of ethics increase voluntary corporate social responsibility practices |
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4-94
Core Practices |
Documented best practices encouraged by legal and regulatory forces as well as industry trade associations
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4-94
Better Business Bureau |
Leading self-regulatory body that provides directions for managing customer disputes and reviews advertising cases
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4-94
Mandated Boundaries |
Externally imposed boundaries of conduct, such as laws, rules, regulations, other requirements.`
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4-94
Ways organizations maintain ethical culture |
Corporate governance
Compliance Risk Management Voluntary activities |
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4-95
Key elements of organizational culture |
Values
Norms Artifacts Behaviors |
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4-96
Civil Law |
Defines rights and duties of individuals and organizations
Includes businesses Enforced by individuals, usually in court |
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4-96
Criminal Law |
Prohibits specific actions, such as fraud, theft, securities, trading violations, also imposes fines or imprisonment as punishment for breaking law
Enforced by state or nation |
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4-96
4 sources Criminal and Civil laws are derived from |
U.S Constitution (constitutional law)
Precedents established by judges (common law) Federal and state laws or statutes (statuatory law) Federal and state administrative agencies (administrative law) |
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4-96
T/F: Primary method of resolving conflicts and serious business ethics disputes is through lawsuits in which one individual or organization uses civil laws to take another individual or organization to court. |
True
Typically, businesses try to avoid this because it costs a high amount of money |
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4-97
5 groups laws and regulations fall into |
1) Regulation of competition
2) Protection of consumers 3) Promotion of Equity and Safety 4) Protection of natural environment 5) Incentives to encourage organizational compliance programs to deter misconduct |
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4-97
T/F: Intense competition encourages companies to remain more ethical |
False
Managers may feel their company's very survival is at stake Managers may view unacceptable alternatives as acceptable 4-98: Intense competition may lead to corporate espionage |
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4-98
Procompetitive Legislation |
Laws meant to prevent establishment of monopolies, inequitable pricing practices, and other practices that reduce or restrict competition among businesses
Enacted to encourage competition and prevent activities that restrain trade Sherman Antitrust Act of 1890 Robinson Patman Act of 1936 4-99: McCarran FErguson Act of 1944` |
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4-100
Consumer Protection Law |
First one passed in 1906
Response to Upton Sinclair's The Jungle Unsanitary conditions of meatpacking industry in Chicago |
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4-101
Groups with legal protection |
Young consumers
Senior citizens |
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4-101
FTC's Bureau of Consumer Protection |
Protects consumers against unfair deceptive, or fraudulant practices
Divided into 5 divisions, including FDA an Division of Enforcement |
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4-102
Title VII of Civil Rights Act |
Most important law to business in 1960s/70s period
Specifically prohibits discrimination in employment based on race, sex, religion, color, national origin Act also created Equal Employment Opportunity Commission to enforce provisions of Title VII |
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4-103
Equal Pay Act of 1963 |
Mandates women and men receive equal pay
Wage differences ARE allowed based on seniority, performance, qualifications |
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4-103
Occupational Safety and Health Admin |
Enforces the Occupational Safety and Health Act of 1970
Makes surprise inspections to ensure that businesses maintain safe working environments |
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4-103
Sustainability |
Meeting the present needs without compromising the ability of future generations to meet their own needs
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4-104
Environmental protection Agency |
Created in 1970 to coordinate environmental agencies involved in enforcing nation's environmental laws.
Major areas are air, water land |
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4-106
T/F: One solid waste problem is result of rapid innovations in computer hardware, which render machines obsolete after 18 months |
True
Many computers become obsolete very quickly |
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4-106
Gatekeepers |
People must trust and be trusted to make business work.
Includes Accountants Financial Rating Agencies Financial Reporting Services |
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4-108
Rating Shopping |
Companies "shopping" for best deal among rating agencies
Creates conflicts of interest |
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4-108
Sarbanes Oxley Act |
Signed by President Bush in 2002
Supported by both Dems and Reps, enacted to restore stakeholder confidence after Enron debacle |
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4-108
Public Company Accounting Oversight Board |
Heart of Sarbanes Oxley Act
Monitors accounting firms that audit public corporations and establishes standards and rules for auditors in accounting firms |
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4-109
Concerns/complaints about Sarbanes Oxley |
Complex, additional costs on executives
Firms must restate financial reports Biggest complaint: Execs able to discover new loopholes that allow them to engage in misconduct that contributed to global financial crisis |
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4-109
Section 201 of Sarbanes Oxley..... |
Prohibits registered public accounting firms from providing both non-audit and audit services to a public company
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4-110
Whistle Blower Protection |
Sarbanes-Oxley motivates employees
Granted remedy of special damages and attorney's fees |
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4-110
T/F: Overall, respondents believe cost of Sarbanes Oxley is greater than its benefits |
False
While 61% of respondents believe Sarbanes Oxley's cost exceeded benefits in first year, today about 70% believe benefits outweigh costs |
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4-111
FSOC |
Responsible for maintaining stability of the financial system in the U.S, promoting market discipline among public, and responding to major risks that threaten stability
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4-111
Consumer Financial Protection Bureau |
Independent agency within Federal Reserve that regulates offering and provision of consumer financial products or services under Federal consumer financial laws
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4-112
Whistle blower Bounty Program |
Ppl who report financial fraud to SEC and CEC are eligible to get 10% - 30% fines and settlements if their reports result in convictions of more than $1 mill in penalties
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4-117
Businesses that address their voluntary responsibilities provide 4 major benefits to society |
1) Improve quality of life and improve communities
2) Reduce government involvement 3) Develop employee leadership skills 4) Create ethical culture and values that act as buffers against organizational misconduct |
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4-118
Cause related marketing |
Companies tying an organization's product directly to a social concern through a marketing program
To be successful, people must sympathize with the cause, must perceive brand and cause to be a good fit. |
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4-118
Strategic Philanthropy |
Synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits
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5-129 Ethical Issue Intensity
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Relevance or importance of ethical issue in the eyes of the individual,
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5-129
T/F: Managers are not held liable for unethical and illegal actions of subordinate |
False
They are |
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5-130
6 Spheres of Influence |
Work place, family, religion, legal system, community, profession
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5-130
Moral Intensity |
Individual's perceptions of social pressure and harm they believe their decisions will have on others
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5-130
1st significant step toward developing ability to make ethical decisions? |
Identifying ethical issues that employees might encounter
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5-130
T/F: Good personal values have been found to decrease unethical practices and increase positive work behavior |
True
But keep in mind values are subjective (5-131) |
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5-131-32
Gender, Education, Nationality, Age linkes |
Gender: women generally more ethical (more sensitive to ethical scenarios)
Education: Smarter you are, better you are at making ethical decision Nationality: N/A b/c of cultural differences Age: Older= generally more ethical |
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5-132
Locus of Control |
Individual differences in relation to generalized belief about how one is affected by internal vs external events or reinforcements. How people view themselves in relation to power
External Control: Events in life uncontrollable Internal Control: People control own events in life |
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5-133
Corporate Culture |
Set of values, norms, artifacts, including ways of solving problems that members of an organization share
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5-133
Ethical Culture |
Reflects whether from also has an ethical conscience.
` |
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5-133
Significant Others |
Those who have influence in work group, including peers, managers, coworkers, and subordinates
Corp culture and ethical culture closely associated with idea that significant others help determine ethical decisions within that organization |
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5-134
Obedience to authority |
Explains why employees resolve ethics issues by following directives of a superior
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5-134
Opportunity |
Conditions in an organization that limit or permit ethical or unethical behavior
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5-134
Immediate Job Context |
Where individual works, whom they work with, nature of the work
Includes "carrot and stick" |
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5-136
Last steps in ethicial decision making process |
Individual's intentions and final decision regarding acton he will take
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5-137
T/F: An organization's ethical problems are solved by having a thorogh knowledge about how ethical decisions are made |
False
Not enough |
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5-138
Leadership |
Ability or authority to guide/direct others towards acheivement of a goal
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5-140
6 Leadership Styles |
1) Coercive
2) Authoritative 3) Affiliative 4) Democratic 5) Pacesetting 6) Coaching |
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5-140
Transactional vs Transformative Leader |
Transactional: Create employee satisfaction through negotiation for desired behaviors or levels of performance
Transformational: Strive to raise employees' level of commitment and foster trust and motivation |
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5-141:43
7 Habits of strong ethical leaders |
1) Strong personal character
2) Passion to do right thing 3) Proactive 4) Consider stakeholder's interests 5) Role models for organizations's values 6) Transparent and actively involved in decision making 7) Competent and take holistic view of ethical culture |
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6-162
Virtue Ethics |
Ethical behavior involves not only adhering to conventional moral standards but also considering what a mature person with a "good" moral character would deem appropriate in a given situation
Virtues considered praiseworthy b/c it is an achievement that an individual has developed through practice and committment |
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6-163
What if Sam Colt was a virtue ethicist? |
Would consider elements of honesty and trust and tell prospective customer about the defect rate and his concern regarding the building of the bridge
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6-163
Justice |
Fair treatment and due reward in accordance with ethical or legal standards, including the disposition to deal with perceived injustices of others
Justice of situation based on the perceived rights of individuals and intentions of ppl invilved n a business interaction |
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6-164
Distributive Justice |
Based on the evaluation of the outcomes or results of a business relationship. If some employees feel that they are paid less than their coworkers for the same work, they have concerns about the distributive justice
Boss who forces his employees to do more work so he can take more time off would be unjust Based on evaluation of outcomes or results |
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6-165
Procedural Justice |
Considers processes and activities that produce a particular outcome. Visibility of supervisors and the work group's perceptions of its own cohesiveness are products of a climate of procedural justice
Based on process or activities, openness and participation |
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6-165
Interactional Justice |
Based on relationship between organizational members, including ways employees and management treat one another
Based on relationships and treatment of others |
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6-166
Two reasons people may choose to use different moral philosophies |
1) Some goals and pressures for success differ from the goals, and pressures in a person's life outise of work.
2) Corporate culture people in which they work *Moral philosophies must be assessed in a continuum |
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6-169
White collar crime |
Tend to be done by highly educated people and involves abusing trust and authority normally associated with their positions
does more damage in monetary and emotional loss in one year than violent crimes do over several years combined |
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7-181
Culture |
Word people use in relation to geneology, country of origin, language and the way people speak, types of food they eat, other customs
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7-181
Corporate culture |
Shared beliefs top managers in a company have about how they should manage themselves and other employees and how they should conduct their business.
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7-182
T/F: Not all organizations have some sort of culture |
False, all do
Therefore, we use the terms organizational culture and corporate culture interchangably |
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7-183
3 shared elements of culture |
1). Culture is shared among individuals belonging to a group or society
2). Culture is formed over a long period of time 3). Culture is relatively stable *Culture has a significant effect on the ethical decision making process of those in business |
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7-184
Tone at the top |
Determining factor in the creation of a high integrity organization. When leaders are perceived as trustworthy, employee trust increases
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7-185
Apathetic culture |
Shows minimal concern for either people or performance.
Individuals focus on own self interest ie Gestures of anniversary watches, birthday cards being dropped |
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7-185:6
Caring culture |
Exhibits high concern for people but minimal concern for performance issues.
Caring culture seems appealing but hard to find a company that has little or no concern for performance |
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7:186
Exacting Culture |
Shows little concern for people but a high concern for performance
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7-186
Integrative culture |
Combines high concern for people with one for performance.
Becomes integrative when superiors recognize that employees are more than interchangable parts |
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7-186
Cultural audit |
Assessment of an organization's values.
Conducted by outside consultants but may be performed internally as well 7-187: Management's sense of an organization's culture may not be in line with the values and ethical beliefs that are actually guiding a firm's employees |
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7-189
Compliance culture |
Using legalistic approach to ethics
use of laws and regulatory rules to create codes and requirements |
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7-189
Differential association |
Idea that people learn ethical or unethical behavior while interacting with others who are part of their role sets or who belong to other intimate personal groups.
7-190: Studies show that employees tend to go along with their superiors' moral judgements to demonstrate loyalty |
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7-191
Whistle Blowing |
Exposing an employer's wrongdoing to outsiders such as the media or government regulatory agencies
Can be used to refer to internal reporting of misconduct to management, specially through anonomyous reporting mechanisms called hotlines |
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7-195:96
Power Shapes |
Reward: Offering desirables
Coercive: Punishing actions or behaviors Legitimate Power: Stems from belief that a certain person has right to exert or influence and that certain others have an obligation to accept it Expert Power: Person in power due to their superior credibility with subordinates Referent Power: Once person perceives that his or her goals or objectives are similar to another. 2nd person attempts to influence 1st person to take action that will further both of their objectives |
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7-197
Related and Growth need |
Related: Satisfied by social and interpersonal relationships
Growth: Satisfied by creative or productive activities |
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7-198
Centralized organization |
Decision making authority is concentrated in the hands of top level managers, little authority is delegated to lower levels.
Responsibility both external and internal rests with top level managers |
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7-198
Decentralized Organization |
Decision making authority is delegated as far down the chain of command as possible.
Such organizations have relatively formal rules and coordination and control are usually informal and personal. |
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7-201
Formal vs informal group |
Formal group: Defined as an assembly of individuals with an organized structure that is explicitly accepte bu the group
Informal group: Defined as two or more individuals with a common interest without an explicit organizational structure |
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7-201
Committee |
Formal group of individuals assigned to a specific task
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7-202
Work groups and teams |
Workgroup: used to subdivide duties within specific functional areas of company
Teams: bring together the expertise of employees fro several different areas or the organization |
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7-203
Group norms |
Standards of behavior that groups expect of their members
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10-275
Global business |
Practice that brings together people from countries that have different cultures, laws, values, and ethical standards.
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10-275
Country culture values |
Subjective, based on social environment, and are used to develop norms that are socially and legally enforced.
Values can be specific to countries, regions, sects, or groups |
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10-275
National culture |
Broader concept than organizational culture.
Includes everything in our surroundings that are made by people, both tangible items such as artifacts, intangible entities, such as concepts and values |
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10-276
Uncertainty avoidance |
Refers to how members of a society respond to uncertainty or ambiguity. Cultures that score high on the uncertainty avoidance dimension tend to want to avoid risk taking
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10-277
Self reference criterion |
Unconscious reference to one's own cultural values, experiences, and knowledge
Our reactions are based on meaning, values, and symbols that relate in a certain way to our culture but may not have the same relevance to people of other cultures. |
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10-278
Cultural relativism |
Concept that morality varies from one culture to another and that right and wrong are therefore defined differently
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10-278
Global common values |
Shared across most cultures. Most laws are directly or indirectly the result of values derived from the major religions of Hinduism, Buddhism, Confucianism, Judaism, Islam, and Christianity
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10-279
Compartmentalization` |
Occurs when various profit centers within corporations become unaware of the overall consequences of their actions on the firm as a whole. As a result, no one person, company, agency should be blamed. Problems were systemic
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10-289
four of 10 areas of international risk requiring organizations to make "fundamental ethical choices" when doing business globally |
1). G-Zero
2). Internet security and privacy 3). Relations with China 4). Emerging markets |
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10-290
Bribery |
Acceptance varies from country to country
Companies must determine what constitutes as a bribe 10-291: U.S Foreign Corrupt Practices |
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10-292
U.K AntiBribery Act |
British residents and businesses, as well as foreign companies with operations in the U.K, can all be held liable for bribery, no matter where the offense is committed or who in the company commits the act, even if the bribe itself has no con
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10-293
Vertical system |
Where a channel member has control of the entire business system, via ownership or contract, or through its purchasing ability
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10-294
Human rights |
Defined in a UN document as an inherent dignity with equal an inalienable rights and the foundation of freedom, justice, and peace in the world.
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10-297
Living wage |
Refers to minimum wage that workers require to meet basic needs.
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