Mgmt Ch. 3

Front 1

What are ethics?

Back 1

Principles that explain what is good and right and what is bad and wrong and that prescibe a coade of behavior based on these definitions

Front 2

What are Business Ethics?

Back 2

Provide standards or guidelines for the conduct and decision making of employees and managers

Front 3

Ethical Dilemmas could be reduced by better communication and a serious commitment by managers to establishin ethical standards of conduct

Back 3

Many businesses have the potential for unethical behavior

Front 4

Ethics Approaches: What are the four key ethical approaches when making business decisions?

Back 4

Utilitarianism, individualism, the rights approach, and the justice approach

Front 5

Utilitarianism

Back 5

A means of making decisions based on whay is good for the greatest number of people

Front 6

What is Utilitarianism also known as?

Back 6

Calculus of pain because it tries to mimimize pain and maximize pleasure for the greatest number of people

Front 7

Individualism

Back 7

Believe that personal self interests should be promoted as long as they do not harm others

Front 8

Rights Approach

Back 8

the belief that each preson has fundamental human rights that should be respected and protected Ex. rights of freedom and speech. A decisions is unethical if it deprives an individual of fundamental human rights

Front 9

Justice Approach

Back 9

Treating all people fairly and consistently when making decisions.

Front 10

What are the two types of justice approaches?

Back 10

Distributive justice, procedural justice

Front 11

Distributive Justice

Back 11

examines the fairness of rewards, punishments, and outcomes in an organization. It asks whether am employee received compensation equitable with performance or whether the employee was overpaid or underpaid

Front 12

Procedural justice

Back 12

involves the fair and consistent application of rules and procedures, when an employee is disciplined for a safety rule infraction, the procedural justice standard would be violated if other employees who broke the rule were not simlilarly disciplined

Front 13

Code of Ethics

Back 13

A formal statement of ethics and values that is designed to guide employee conduct in a variety of business situations. It is used to deal with gift givning, communicating with partners, and dealing with conflict

Front 14

Corporate Credo

Back 14

A formal statement focusing on principles and beliefs, indicating the company's responsiblity to its stakeholders

Front 15

Ethical Policy Statement

Back 15

Provides specific formulas for employees ethical conduct.Answers questions such as whether a salesperson may offer a gift, how much techincal info can be shared with a competitor etc.

Front 16

Ethics Training

Back 16

A means of providing employees and managers practice in handling ethical dilemmas that they are likely to experience. Ex messages from top executives emphasizing ethical business practices, discussion of codes of ethics, and procedures for discussing or reporting unethical behavior

Front 17

Ethical Structure

Back 17

THe procedures and the division or department within a company that promotes and advocates ethical behavior

Front 18

One type of ethical structure uses an ethics officer with a title like director of ethics compliance. The individual deals with potential ethical violations and advises decision makers regarding ways to comply with the company's code of ethics.

Back 18

Another approach is to have a senior-level managers from different functions and units serve on an ethics committee that provides ethical oversight and policy guidance for management decisions

Front 19

Employees who are willing to disclose illegal, immoral, or illegitimate practices by their employer require the protection of a whistleblower policy.

Back 19

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Front 20

What is the whistleblower policy?

Back 20

A method by which employees who disclose the information can be protected; companies with whistleblower policies rely on whistleblowers to report unethical activities to the ethics officer or committee, which will then gather facts and investigate the situation in a fair and impartial way.

Front 21

Performance Appraisal

Back 21

A formal evaluation of an employee's performance provided on a recurring basis. Typically, an employee receives feedback regarding his or her strengths and weaknesses in a document summarizing the employees performance over the period of evaluation, which is usually one year

Front 22

What are the basic guidelines for giving employees discipline in a fair and impartial way?

Back 22

NOtify employee in advance of work rules and the consequences for violating them, investigate the facts of an employees misconduct before disciplining, be consistent in the response to rule violations

Front 23

Social Responsibility

Back 23

The duty a company has to conduct its affairs ethically in a manner that benefits both employees and the larger society

Front 24

Socail responsibility ultimately leads to improved odds of longterm survival for an organization.

Back 24

There are two aspects of social responsibility: The first is avoiding illegal and unethical activities and the second is spending money to support social good such as neighborhood clean up!

Front 25

Stakeholders

Back 25

the groups or individuals who have an interest in the performance of the enterprise and how it uses its resources including employees, customers, and shareholders.

Front 26

Stakeholders may be a part of either the internal or external environment of an organization.

Back 26

Stakeholder groups tend to have more specific interests that may not always be in agreement with the interests of management. For example shareholders may want a poorly performing company to close while the labor union wants to protect worker jobs

Front 27

Owners who have invested a portion of their wealth in shares of company stock want a reasonable financial return on their investment

Back 27

There are many different strategies for managing stakeholders.

Front 28

What are the four general approaches for managing stakeholders?

Back 28

Confrontation, damage control, accomodation, or being proactive

Front 29

Confrontation Strategy

Back 29

One means a firm may usae to deal with a stakeholder group whose goals are perceived to threaten company performance, the firm may use the courts, engage in publi relations or lobby. EX.for many years tobbacco companies used a confrontation stratefy to deal with antismoking groups. they spent millions of dollars trying to get the state legislatures to pass smokers rights laws

Front 30

Damange COntrol Strategy

Back 30

A means a firm may use to deal with a stakeholder group when it decides that it may have made mistakes and wants to improve its relationship with the stakeholders and to elevate its public image.

Front 31

Accomodation Strategy

Back 31

A means of dealing with stakeholder groups when a firm decides to accept social responsibility for its business decisions after pressure has been exerted by stakeholder groups. MCdonalds used this when it changed its packaging from polystyrene to paper which is less damaging to the environment

Front 32

Proactive Strategy

Back 32

A means of dealing with stakeholders when a firm determines that it wants to go beyond expectations