Ethics Exam 2

Front 1

B-corp

Back 1

companies that are certified by the nonprofit B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency (ex. Ben and Jerry’s)

Front 2

Behavioral economics

Back 2

assumes that humans may not act rationally because of genetics, learned behavior, and heuristics or rules of thumb

Front 3

bimodal wealth distribution

Back 3

occurs when the middle class shrinks, resulting in highly concentrated wealth amongst the rich and large numbers of poor people with very few resources

Front 4

code of ethics or code of conduct

Back 4

company statement and/or guidelines describing acceptable behavior for employees, it may also contain rules for behavior in certain scenarios or situations

Front 5

conflict of interest

Back 5

when an individual must choose whether to advance his or her own interests, those of the organization, or those of some other group

Front 6

consumerism

Back 6

the belief that consumers, rather than the interests of producers, should dictate the economic structure of a society; the theory that an increasing consumption of goods is economically desirable and equates personal happiness with the purchase and consumption of material possessions

Front 7

core human values

Back 7

according to Donaldson, these are values that should inform any company’s actions: they include respect for human dignity, respect for basic rights, and good citizenship

Front 8

country common values

Back 8

values that are specific to groups, sects, regions, or countries that express actions, behavior, and intent

Front 9

cultural relativism

Back 9

the concept that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures

Front 10

culture

Back 10

everything in our surroundings that is made by people—both tangible items and intangible things like concepts and values; includes language, law, politics, technology, education, social organizations, general values, and ethical standards

Front 11

dumping

Back 11

the practice of charging high prices for products in domestic markets while selling the same products in foreign markets at low prices, often below cost

Front 12

failure to report

Back 12

provision in some university honor codes that says that failing to report an Honor Code violation is itself an Honor Code violation (lying to cover up another person’s violation)

Front 13

Foxconn

Back 13

electronics manufacturing company in China that supplies product to Apple and other major consumer electronics companies worldwide. Foxconn is accused of unsafe and unethical labor practices

Front 14

Framing effect

Back 14

concept of behavioral economics that the way something is presented to a consumer can affect choice

Front 15

global common values

Back 15

values that are shared across most cultures

Front 16

honor code

Back 16

code of conduct at some universities that prohibit and define penalties for cheating, lying, plagiarism, and other forms of academic misconduct

Front 17

human rights

Back 17

the concept of an inherent dignity with equal and inalienable rights as the foundation of freedom, justice and peace in the world

Front 18

international monetary fund

Back 18

organization dedicated to the concept that the primary responsibility for the regulation of monetary relationships among national economies should rest in an extra-national body

Front 19

John Keynes

Back 19

economist who argued that the state could stimulate economic growth and improve stability in the private sector through such means as controlling interest rates, taxation and public projects

Front 20

laissez fare

Back 20

theory that assumes the market, through its own inherent mechanisms, will keep commerce in equilibrium

Front 21

Milton Friedman

Back 21

economist whose ideas were guiding principles for government policy making in the U.S., and increasingly throughout the world, starting in the second half of the 20th century; believed in deregulation and that the system could reach equilibrium without government intervention

Front 22

multinational company

Back 22

public companies that operate on a global scale without significant ties to any one nation or region

Front 23

outsourcing

Back 23

the practice of hiring another company to perform some part of your value chain activities, such as manufacturing

Front 24

Plagiarism

Back 24

taking credit for someone else’s ideas by using them without citing the original source

Front 25

rational economics

Back 25

based upon the assumption that people are predictable and will maximize the utility of their choices relative to their needs and wants

Front 26

relativism

Back 26

holds that definitions of ethical behavior are derived subjectively from the experiences of individuals and groups, and varies from place to place and culture to culture

Front 27

risk compartmentalization

Back 27

situation where various profit centers within corporations become unaware of the overall consequences of their actions.

Front 28

self-reference criterion

Back 28

an implied perspective of ethical superiority based on the idea that “we” differ from “them”

Front 29

shared value

Back 29

concept advanced by Porter and Kramer that companies can and should address societal needs at the same time as creating economic value

Front 30

socialism

Back 30

economic theories advocating the creation of a society in which wealth and power are shared and distributed evenly based on the amount of work expended in production

Front 31

sustainable development

Back 31

a systematic approach to achieving human development in such a way that the earth’s resources are preserved for future generations

Front 32

“when in Rome, do as the Romans”

Back 32

Saying used to explain the practice of following local customs in the international business environment without questioning whether they are ethical or measure up to home standards

Front 33

whistleblower bounty program

Back 33

Federal program that rewards whistleblowers in cases of government fraud by paying up to 30% of the recovered money or fine to the whistleblower

Front 34

whistleblower protection

Back 34

Federal laws that prohibit employers from taking or threatening to take retaliatory action against employees who report wrongdoing in their companies such as fraud or safety violations. Employers may not fire, demote, harass, or threaten the employee who reports the wrongdoing