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70 Cards in this Set
- Front
- Back
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Ethics are defined as... |
the values which an individual uses to interpret whether any particular action or behaviour is acceptable or appropriate |
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Business ethics are the.... |
collective values of a business organization that can be used to evaluate whether the behaviour of the collective members of the organization are considered acceptable or appropriate |
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Stakeholders are |
an individual or group who can influence and/or is influenced by the achievement of an organization's purpose |
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CSR is... |
the way a corporation achieves a balance among its economic, social, and environmental responsibilities in its operations so as to address stakeholder expectations. |
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Corporate sustainability is... |
the business activities that demonstrate the inclusion of social, environmental, and economic responsibilities in operations as they impact all stakeholders to ensure the long-term survival of the corporation |
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the 3E triple bottom line is.... |
evaluation of firms economic, environmental, and ethical performance |
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the 3P triple bottom line is... |
evaluation of firm's profit, people, and planet performance |
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What is corporate citizenship? |
A corporation that demonstrates that it takes into account its role in and complete impact on society and the environment as well as its economic influence. |
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What are the 3 components of individual moral values |
1. Individuals principles 2. Individuals character 3. The consequences of a particular action |
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What are the 3 approaches to ethical thinking? |
1. Deontological/Rules-Based 2. Teleological/Consequential 3. Virtue Ethics |
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What is the Deontological/Rules-based theory of ethical thinking (i.e., focus on the ______)? What are the frameworks? |
Focus on the act/duty. Existentialism - Only person who can decide what is right or wrong is me. Contractarianism/Social Contract Theory - All individuals agree to social contracts to be members within society Kant's Ethics - We have free will (existentialism), but should also consider society (contractarianism) |
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What is the teleological/Consequential theory of ethical thinking (i.e., focus on the ________). What are some of the frameworks? |
Focus on the outcome or consequences. Ethical Egoism - everyone should act in a way that promotes themselves and net result of act should be positive Utilitarianism - Use whichever action provides the greatest amount of good to the greatest amount of people. |
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What is the virtue ethics theory of ethical thinking (i.e., focus on the __________)? |
Focus on the character or being rather than the doing. |
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What is the social license? |
Operating within society with minimal formalized restrictions based on maintaining public trust by doing what is acceptable to stakeholders in business and society relationship |
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What is an economic system? |
Arrangement using land, labor, or capital to produce, distribute, and exchange goods and services to meet needs and wants of society |
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What is laissez-faire capitalism? |
Economic system with minimum interference by government in the affairs of business (so, government is for public services such as policing etc.) |
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What is stakeholder capitalism? |
Economic system where corporations accept broader obligations beyond financial ones for shareholders (i.e., companies have to care about environment, society etc.) |
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What are the integrity heuristic tests? What are they? |
Publicity test - Would you be ok if action was shown on TV? Trusted fried test - would you tell your friend you did it? Universality test - Would it be ok if others did it? Reciprocity test - Would it be ok if someone did it to you? Obituary test - If you looked back on your actions, would you be OK with them? |
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What are the 4 avenues in which unintentional unethical behavior can develop? |
1. Implicit prejudice - you're born with unconscious beliefs 2. In-group favouritism - hive mind 3. Claiming credit for others' actions 4. Conflicts of interest |
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What are the barriers to ethical organizations |
Ill-conceived goals Motivated blindness Indirect blindness Slippery slopes Overvaluing outcomes |
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Canadian economic system is largely comprised of business enterprises operating in a ________ system. |
Market |
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What is capitalism? |
An economic system that allows for private ownership of the means of production and assumes economic decision-making is in the hands of individuals or enterprises that make decisions expecting to earn a profit |
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What are the 8 fundamental elements of the theory of capitalism? |
1. The Right of Private Property 2. Individualism and Economic Freedom - Individual is the decision-maker, not society 3. Equality of Opportunity 4. Competition 5. Work Ethic 6. Consumer Sovereignty - Consumers have and exercise power over producers through decision 7. Profits 8. Role of Government - Laissez-Faire approach |
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What are some types of capitalism? |
Consumer capitalism - Limited government involvement (ex. usa, canada etc.) Producer capitalism - Government plays role in production, employment etc. (ex. Frace) Family capitalism - Outsiders not considered equal (ex. Taiwan, Malaysia etc.) Fronteir capitalism - Government pursues for-profit business activities (ex. China, Russia) Conscious capitalism - Reorientation of singular business focus on money, to now a more stakeholder type of approach (i.e., what consumer capitalism is turning into) Creative capitalism State capitalism - System where governments manipulate market outcomes for political purposes (ex. stimulus packages and bailouts) |
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What are stakeholders? |
Individuals, groups etc. who can influence and/or is influenced by the achievement of an organization's purpose |
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What are some reasons you should identify stakeholders? |
To obtain resources To get support for your organization |
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What is Freeman's stakeholder theory/concept? |
There are many groups that an organization should consider when making a decision. |
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What is the opposite of the stakeholder theory? |
The shareholder concept. |
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What are the arguments against the stakeholder concept? |
1. Problems with categorization - You can consider multiple groups, but which actually affect you, and how much? 2. Meeting their expectations - You can consider multiple groups, but you can't make everyone happy so what is the point? 3. Dilution fro top management focus - You can consider multiple groups, but this can be time-consuming and distracting. 4. Impracticality of shared governance - You can consider multiple groups, but at the end of the day the focus is still on your shareholders. |
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What are arguments for the stakeholder concept? |
1. Its simply good business 2. Ignoring certain stakeholder interests can have adverse economic consequences 3. Provides a more systematic approach to recognizing stakeholder expectations and deciding how to respond |
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What is the definition of issues management? |
Basically a PEST (political, economic, social, technological) analysis. |
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What is the purpose issues management? |
Minimize surprises to trends. Prompts managers to be systematic Mechanism for coordinating and integration management of issues. |
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What are the benefits of issues management? |
Competitive advantages Less likely to make ethical mistakes Can detect issues early and develop responses (proactive) Corporate behaviour more likely to align with stakeholder interests |
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What are the 6 processes to issues management? |
1. identify issue 2. analyze issue 3. rank/prioritize issue 4. formulate response to issue 5. implement response to issue 6. monitor/evaluate response to issue |
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What is a crisis? |
A turning point, crucial time, and situation that has reached a critical point. |
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What is crisis management? |
An approach involving planning and removing much of the risk and uncertainty, allowing the corporation to achieve more control over events. |
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What is stakeholder engagement? |
Efforts by a corporation to understand and involve relevant individuals, groups, or organizations by considering their moral concerns in strategic and operational initiatives |
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What is the stakeholder management capability process? (i.e., Ability of managers to....) |
Identify stakeholders and their influence
Develop the organizational practices to understand stakeholders Undertake direct contact with stakeholders |
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What are the x-axis and y-axis of the Stakeholder Matrix? |
x-axis = stakeholder importance (least to most) y-axis = Oppose or support corporation (support to oppose) |
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What is salience? |
Degree to which priority is given to competing stakeholders |
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What are the 3 attributes used in the stakeholder salience circle thing? |
Power Urgency Legitimacy |
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Stakeholder types: Latent stakeholder is... Expectant stakeholder is... Definitive stakeholder is... Non-stakeholder is... |
1 shared attribute 2 shared attributes and require more attention from managers 3 shared attributes (requires most attention) |
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What are some stakeholder influence strategies? (i.e., how can they influence you?) |
All of these have to do with power over resources Resource dependence - Stakeholder is supply a resource and can exert control over it Withholding strategy - Stakeholder discontinues providing a resource Usage strategy - Stakeholder continues to supply a resource by specifies how it is to be used Influence pathway - when withholding and usage strategies are being used by the ally of a stakeholder |
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What are the Stakeholder Collaboration process steps? |
1. Create a foundation 2. Organizational alignment 3. Strategy development 4. Trust building 5. Evaluation 6. Repeat the process |
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Ethical blind spots are... |
Gaps between who you want to be and who you actually are |
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Integrity is the basis for ethics in accounting, true or false? |
True! |
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Values are.... |
Basic and fundamental beliefs that guide or motivate attitude or actions |
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What is ethical relativism? |
A theory that holds that morality is relative to the norms of one's culture |
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What is the argument against ethical relativism? |
The application of moral principles will often change from one culture to the next, but, the principles of those morals overlap (ex. the golden rule) amongst cultures |
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What are situational ethics? |
Theory that recognizes the existence of certain principles, but questions whether they should be strictly applied or used as guidelines. |
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What are some of the cultural dimensions? |
Individualism Power Distance Masculinity Uncertainty avoidance |
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Loyalty should never take precedence over other values, true or false and why? |
True. Loyalty blinds judgment. |
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What is Kohlberg's view of moral reasoning? |
It becomes more complex and sophisticated with development (i.e., the more we learn, the more we change....we evlove) |
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What is Gilligan's view of ethics/moral reasoning? |
He argued that Kohlberg ignored the female "care-and-response" orientation. So while he was OK with part of Kohlberg's theory, he said females have a tendency to look for a solution where no one gets hurt. |
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What are the 3 stages of Kohlberg's model? |
1. Pre-conventional (kids) 2. Conventional (growing up, learning) 3. Post-conventional (now they understand) |
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What are the 4 ethical decision making components in James Rest's Model of Morality? |
1. Moral Sensitivity - Ability to identify what is moral 2. Moral Judgment - Ability to reason through different courses of action and make the right decision 3. Moral Motivation - Willingness to place ethical values ahead of non-ethical values 4. Moral Character - Ones ethical intentions match actions taken |
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What is Kahneman's model of decision-making? (hint: 2 "systems") |
We have 2 systems: System 1 - Intuitive system of processing info; fast, automatic, effortless (can lead to shortcuts) System 2 0 Slow, conscious, effortful, explicit (more systematic) |
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What is the comprehensive ethical decision-making model? |
1. Fame the ethical issue 2. Gather all the facts 3. Identify the stakeholders and obligations 4. Identify the accounting and auditing issues 5. Identify the operational issues 6. Identify the relevant accounting ethics standards in the situation 7. List all the possible alternatives of what can be done 8. Compare and weigh the alternatives 9. Decide on a course of action 10. Reflect on the decision |
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What is a statement of values? |
a description of the beliefs, principles, and basic assumptions about what is desirable or worth striving for in an organization |
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What is a code of conduct? |
A document that explicitly states what appropriate behaviour is by identifying what is acceptable and what is unacceptable. |
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What is a code of ethics? |
A statement of principles or values that guide behaviour by describing the general value system within which a corporation attempts to operate in a given environment. |
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Who imposes a code of conduct and code of ethics? |
Code of conduct imposed by others Code of ethics imposed by you |
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What is whistle-blowing? |
An act of voluntary disclosure of inappropriate behaviour or decisions to persons in positions of authority in an organization. |
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What is immoral, amoral, and moral? |
Immoral - devoid of ethical principles Amoral - Without ethics, but not actively immoral Moral - Conform to high standards of ethical behavior |
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What are the 3 ethical program approaches? |
Formal - based on organizational norms Monological - Allows organizational members to determine for themselves what is right and wrong Dialogical - Emphasizes communication before decisions are made and implemented |
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What are some of the signs for ethical collapse? |
1. Pressure to maintain numbers 2. Fear and silence 3. Newbies and bigger than life CEO 4. Weak board of directors 5. Conflicts of interest ignored 6. Innovation like no other company 7. Goodness in some areas atones for evil in other areas |
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What is the ethical dissonance model? What are the categories? |
an "ethical fit" model that measures compatibility between an individuals ethics and their organization's ethics. 4 categories (organization-person): low-low high-high low-high high-law |
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What is corporate governance? What are some controls used? |
A set of rules that define the relationship between stakeholders, management, and board of directors of a company and influence how that company is operating. Compensation plans Internal audits External audits Internal controls Good management etc. |
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What is the agency theory? |
Corporate managers and directors of an organization are agents, shareholders are the principal |
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What is the agency problem? |
Agents may act in their own best interest and not in the best interest of shareholders. |
