Term
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Definition
| broad group of people and other organizations, interest groups, a community, a nation |
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Term
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Definition
| collection of private commercially oriented organizations |
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Term
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Definition
| the total environment outside the firm |
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Term
4 areas of Macroenvironment (PETS) |
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Definition
Political: focus on the process by which laws get passed and officials get elected and all others aspects of the interaction between the firm, political process, and government.
Economic: focuses on the nature and direction of the economy in which business operates.
Social: focuses on demographics, lifestyle, and social values of society. e.g., diverse population
Technological: represents the total set of technology-based advancements taking place in society. |
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Term
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Definition
| diffusion of power amongst society’s many groups and organizations |
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Term
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Definition
1. Prevents concentrations of power 2. Maximizes freedom of expression and action 3. Disperses individual allegiances 4. Created diversified set of loyalties 5. Provides checks and balances |
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Term
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Definition
1. Pursuit of self-interest 2. Proliferates organizations and groups with overlapping goals 3.Forces conflicts to center stage 4. Promotes inefficiency |
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Term
| What does it mean to business to operate within a special interest society? |
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Definition
| Catering to different special interest groups in society. |
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Term
What are the factors that lead to business criticism? (AAEERRV) |
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Definition
1. Affluence 2. Awareness 3. Education 4. Entitlement Mentality 5. Rights Movement 6. Rising Expectations 7. Victimization Philosophy |
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Term
Draw the graph that demonstrates society´s expectations of business will always outpace business´s actual social performance.
Describe this graph. |
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Definition
| The graph shows the expected social performance and the actual social performance. In between lays the social problem which describes society’s expectations of social conditions and the current social realities or society’s expectations of a firm’s social performance and its actual social performance. |
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Term
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Definition
| The ability or capacity to produce an effect or to bring influence. |
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Term
| Iron Law of Responsibility |
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Definition
| In the long run, those who do not use power in a manner society considers responsible will tend to lose it. |
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Term
| Iron Law of Responsibility Example |
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Definition
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Term
| What is meant by the social contract between business and society? |
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Definition
| A shared understanding that reflects mutual expectations regarding each other’s roles, responsibilities and ethics. |
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Term
| What happened in the Pullman village? |
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Definition
| George Pullman created his own town in which his employees lived. |
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Term
| Corporate Social Responsibility |
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Definition
| Seriously considering the company’s actions on society. |
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Term
| Corporate Social Responsibility (Archie Carroll) |
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Definition
| The economic, legal, ethical and discretionary expectations that society has of organizations at a given point in time. |
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Term
| What are the 4 parts of Archie Carroll CSR |
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Definition
1. Econmic (required) – Be profitable, maximize sales, minimize cost. 2. Legal (required) – Obey laws, adhere to regulations. 3. Ethical (expected) – Avoid questionable practices. Do what is right, fair and just. 4. Philanthropic (desired/expected) – Be a good corporate citizen. Give back. |
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Term
| Define the three corporate citizenship concepts (CSR, CSR and CSP)? |
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Definition
1. Corporate Social Responsibility: obligation, accountability 2. Corporate Social Responsiveness: action, activity 3. Corporate Social Performance: outcomes, results |
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Term
| What led to the modification of the Economic Model? |
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Definition
| The modification of the economic model began with the emergence of large corporations in the late 1800’s. As power began to concentrate on these large corporations, questions of the responsibility of business to society surfaced. In the 1920’s business leaders became involved with other nongovernmental groups for a common, nonbusiness purpose that necessitated their contribution of time and money to community welfare projects. By 1950 CSR grew to include employee welfare, medical care, safety, retirement and so on. According to Neil J. Mitchell, as business leaders began to recognize that the government had the power to intervene in the economy, they attempted to persuade those affected by business power that such power was being used appropriately and by doing so try to keep the government at arm’s length. |
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Term
| When it comes to legal responsibilities of business, why isn´t that enough to protect society? |
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Definition
| It does not embrace the full range of behaviors expected of business by society. First, law cannot possibly address all topics or issues that businesses may face. Second, law often lags behind more recent concepts of what is considered appropriate behavior. Third, laws are made by lawmakers and may reflect the personal interest or political motivation of legislators rather than appropriate ethical justifications. |
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Term
List and describe four arguments against CSR according to text and lecture. (DBTCG) |
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Definition
1. Dilutes Business Purpose: dilutes the primary purpose of business
2. Business Not Equipped: managers don’t have the necessary expertise to make social decisions
3. Too Much Power: Increases the power of business by adding social power to their list of economic, technological and environmental powers.
4. Classical Economics: restricts the goal of profit maximization
5. Global Competitiveness - Limits the ability to compete in a global market because of higher cost |
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Term
List and describe four arguments for CSR. (PPEWRR) |
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Definition
1. Proactive: addresses issue by anticipating and initiating
2. Public Support: public strongly supports it
3. Enlightened Self-Interest: protect self-interest and long-term viability
4. Warding Off Government: wards off future government intervention and regulation
5. Reacting: Address social issues brought on by business, and allows business to be part of the solution
6. Resources Available: addresses issues by using business resources and expertise |
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Term
| List and describe two internal drivers of corporate citizenship. |
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Definition
1. Traditions and Image: positive company image
2. Recruiting/Retaining Employees: improved retention, recruiting, loyalty and productivity |
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Term
| List and describe two external drivers of corporate citizenship. |
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Definition
1. Consumers and Customers: customer loyalty
2. Expectations in the Community: what the community expects |
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Term
| What is meant by the “triple bottom line”? |
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Definition
Encapsulate 3 key spheres of sustainability.
Economic: the firm’s creation of material wealth Social: the quality of people’s lives and the equity between people, communities and nations Environmental: protection and conservation of the natural environment |
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Term
| What is meant by the “multiple bottom line”? |
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Definition
To truly operate with a stakeholder prospective.
Owner “bottom line” Consumer “bottom line” Employee “bottom line” Community “bottom line” Other stakeholders “bottom line” |
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Term
| List the three Social and Financial Performance prospectives and explain why “perspective 3” is probably the closest to reality. |
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Definition
Draw the figure on page 70 and describe it.
Perspective 1: CSP Drives the Relationship
Perspective 2: CFP Drives the Relationship
erspective 3: Interactive Relationships Among CSP, CFP, and CR |
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Term
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Definition
| Social screening is the backbone of the socially conscious investment movement. Investors screen in/out companies that they consider socially irresponsible or socially responsible. |
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Term
| List two reasons for the upsurge in social responsible investing. |
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Definition
1. There is more reliable and sophisticated research on CSP than in the past.
2. Investment firms using social criteria have established a solid track record and investors don’t have to sacrifice gains for principle.
3. The socially conscious 1960’s generation is now making investment decisions. |
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Term
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Definition
| Individual or group that has one or more of the various kinds of stakes in the organization. |
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Term
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Definition
| Interest in or a share in an undertaking. |
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Term
| Give ten examples of different stakeholders in typical business. |
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Definition
Employees Customers Consumers Competitors The Community in which the organization operates. Stockholders Owners Global Community Suppliers Special-interest groups Society Government |
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Term
| Describe how views of business evolved from a “production view” to a “stakeholder view”. |
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Definition
Draw and explain the figure on page 3 slides. In the traditional productions view of the firm, owners thought of stakeholders as only those individuals or groups who supplies resources or bought products or services. As corporations grew the separation of ownership and control developed into the managerial view of the firm. Finally as major internal and external changes occurred in business and its environment, management have to take a different prospective on they viewed their relationship with stakeholder groups. The result was stakeholder view.
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Term
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Definition
| Essential for the survival of the organization. |
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Term
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Definition
| Vital to the organizations success. |
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Term
| Environmental Stakeholders |
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Definition
| All other stakeholders who are not core or strategic. |
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Term
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Definition
| Perceived validity of a stakeholder’s claim to a stake. |
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Term
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Definition
| The ability to produce an effect – to get something done that otherwise may not be done. |
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Term
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Definition
| The degree to which the stakeholder claim on the business calls for the business’s immediate attention or response. |
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Term
| What are the five questions of stakeholder management? |
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Definition
1. Who are our stakeholders?
2. What are our stakeholders’ stakes?
3. What opportunities and challenges do our stakeholders present to the firm?
4. What responsibilities (economic, legal, ethical and philanthropic) does the firm have to its stakeholders?
5. What strategies or actions should the firm take to best address stakeholders’ challenges and opportunities? |
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Term
| Define two of the three levels of stakeholder management capability. |
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Definition
Level 1 – The Relational Level: entails the company identifying who their stakeholders are and what their stakes happen to be.
Level 2 – The Process Level: organizations develop and implement approaches, procedures, policies and practices by which the firm may scan the environment and receive relevant information about stakeholders, which is then used for decision-making purposes. |
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Term
| How does a firm develop a stakeholder culture (from agency to altruism)? |
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Definition
| First is the agency culture which basically is not concerned with others. Next are both corporate egoist and instrumentalist who focus on the firm’s stockholders and important stakeholders. They focus on the short-term profit maximization. The last two cultures are broadly moral – moralist and altruism. These cultures are morally based and provide the broadest concern for stakeholders. |
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Term
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Definition
| An approach by which companies implement a transactional level of strategic management capability. |
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Term
| Give a Stakeholder Engagement example. |
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Definition
| When McDonald’s entered into an allegiance with the Environmental Defense Fund to eliminate polystyrene packaging that was not biodegradable. |
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Term
| Stakeholder Inclusiveness |
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Definition
| In the future, development of loyal relationships with customers, employees, shareholders, and other stakeholders will become one of the most important determinants of commercial viability and business success. Increasing shareholder value will be best served if your company cultivates the support for all who may influence its importance. |
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Term
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Definition
| An idea that recognizes that all stakeholders depend on each other for their success and financial well-being. |
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Term
List and briefly describe five of Clarkson`s Principles of Stakeholder Management. (LAAAAWR) |
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Definition
P1: Managers should ACKNOWLEDGE and MONITOR the concerns of legitimate stakeholders and should take their interests appropriately into account.
P2: Managers should LISTEN and COMMUNICATE with stakeholders about their concerns and risks they assume by their involvement with the firm.
P3: Managers should ADOPT processes and behaviors that are sensitive to the concerns and capabilities of each stakeholder constituency.
P4: Managers should RECOGNIZE THE INTERDEPENDENCE of efforts and rewards among stakeholders and should attempt to achieve a fair distribution of the benefits and burdens of corporate activity accounting for risks and vulnerabilities.
P5: Managers should WORK COOPERATIVELY with public and private entities, to ensure that risks minimized and, where avoidable, appropriately compensated.
P6: Managers should AVOID ALTOGETHER activities that jeopardize inalienable human rights such as the right to life. |
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Term
Create the Diagnostic Typology of Organiza9onal Stakeholders |
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Definition
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Term
| Describe ethical issue in the relationship: Employee – Employer |
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Definition
| Cheating on expense accounts. |
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Term
| Describe ethical issue in the relationship: Employer – Employee |
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Definition
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Term
| Describe ethical issue in the relationship: Company – Customer |
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Definition
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Term
| Describe ethical issue in the relationship: Company – Shareholder |
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Definition
| Excessive compensation for top management. |
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Term
| Describe ethical issue in the relationship: Company – Community |
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Definition
| Injury to the environment. |
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Term
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Definition
| The discipline that examines good or bad practices within the context of moral duty and obligation. |
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Term
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Definition
| Principles of right and wrong in behavior. |
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Term
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Definition
| Concerned with good and bad or right and wrong behavior and practices that take place in business. |
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Term
| Explain the difference between Descriptive and Normative ethics. |
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Definition
| Descriptive Ethics involves describing, characterizing and studying morality and focuses on the “what is” and Normative Ethics Concerned with supplying and justifying moral systems and focuses on “what ought or ought not to be”. |
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Term
| List and briefly describe four potential sources of ethical norms. |
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Definition
1. Faith/Religious Beliefs 2. Family 3. Region of Country 4. Employer |
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Term
| Why is it interesting to consider a person’s favorite saying and who taught them this saying? |
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Definition
| e. “A penny saved is a penny earned”; speaks to the thrift nature of their family and culture. “A bird in the hand is better than two in the bush”; indicates risk avoidance by valuing what you have rather than risking it with the hope to receive more. Often these are learned from family, teachers and friends and they tell a lot about what is valued most and considered ethical by the person and the culture they grew up in. |
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Term
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Definition
| A positive and active opposition to what is moral (ethical). |
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Term
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Definition
| Neither moral nor immoral, these are decisions outside the sphere of business decisions. |
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Term
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Definition
| Actively conform to a standard of ethical, or right, behavior. |
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Term
| Example of Immoral Management |
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Definition
| Enron in which executives were getting rich while employees were losing their pension and jobs as the organization plummeted to nothing. I think this is a good example of immoral management because the documentary depicted executives and their opposition to what is ethical. |
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Term
| Example of Moral Management |
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Definition
| Merck & Co who produced a drug for treating “river blindness” and pledge to supply the drug for free forever when no government or aid organization agreed to buy the drug. This is a great example of moral management because they went far beyond industry standards. |
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Term
| Example of Amoral Management |
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Definition
| Videogame Industry and how they lack moral awareness on how developed games with extreme violence, sexism and aggression impact people who become addicted to them. |
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Term
| How can senior management make moral management actionable? |
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Definition
| Sshowing the way to an ethical organizational climate by leading the transition from amoral to moral management, either by business ethics training and workshops, code of conduct, mission/vision statements, officers, tighter financial controls, more ethically responsible decision-making or leadership by example. |
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Term
| Describe two internal sources of a manager’s values. |
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Definition
1. Respect for the authority structure. 2. Performance counts above all else. |
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Term
| Describe two external sources of a manager’s values. |
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Definition
| 2. Legal Values – The legal system continues to be the most powerful force defining what is ethical and what is not for managers and employees. Law represents the minimum ethic of behavior and it is among the most influential drivers of business ethics. |
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Term
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Definition
| Ability to perceive web of competing economic, moral and ethical relationships. |
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Term
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Definition
| Ability to discern the relevance or nonrelevance of moral factors that are introduced into a decision-making situations. |
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Term
| Sense of Moral Obligation |
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Definition
| “Get it”, that is, have a sense of integrity that oversees decision-making processes and understands what is at stake for all. |
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Term
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Definition
| is the practical, decision phase of moral judgment and entails essential skills, such as coherence and consistency, that have proved to be effective principles in other contexts. |
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Term
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Definition
| Have clear principles, develop processes for weighing ethical factors, develop way to identify ethical and economic outcomes. |
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Term
| Tolerance of Moral Disagreement and Ambiguity |
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Definition
| Ability to deal in “gray” areas and operate within disagreement. |
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Term
| Integration of Managerial and Moral Competence |
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Definition
| See each decision within a moral perspective that is integrated with a management perspective. |
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Term
| List and briefly describe two of the four levels at which business ethics might be addressed. Give example. |
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Definition
Personal Level: getting free cable and not telling the cable company.
Organizational Level: overestimating time worked on a project to get paid for overtime. |
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Term
| List and describe three principles of ethics that can help a person resolve and ethical problem. |
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Definition
1. The Professional Ethic: You should do only that which can be explained before a committee of your peers.
2. The Golden Rule: Do unto others as you would have them do unto you.
3. The Utilitarian Ethic: The greatest good for the greatest number. |
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Term
| List and describe five of the seven ethical tests. |
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Definition
1. Test of Common Sense: To ask oneself “Is this action I am getting ready to take really make sense?”
2. Test of One’s Best Self: To ask oneself “Is this action I am getting ready to take compatible with my concept of myself at my best?”
3. Test of Making Something Public: To ask oneself “How would I feel if others knew I was doing this?”
4. Test of Ventilation: Seek others opinion on what you are about to do.
5. Gag Test: If you “Gag” at the idea of carrying out an action, then don’t do it. |
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Term
| 4. When managers were asked to rank the factors they thought influence or contributed to unethical behavior, what did they list (list and describe four factors)? |
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Definition
1. Behavior of superiors 2. Ethical practices of one’s industry or profession 3. Behavior of one’s peers in the organization 4. Personal financial need |
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Term
| List and describe five questionable behaviors and practices of superiors or peers that make a workplace ethically challenging. |
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Definition
1. Acceptance of legality as a standard of behavior – if they are abiding the law, they are doing the most they ought to do.
2. “Bottom-line” mentality and expectations of loyalty and conformity – little value of doing what is right and on being sensitive to other stakeholders.
3. Absence of Ethical Leadership – The absence of moral management.
4. Inadequate formal ethics policies – the absence of a clear code of conduct.
5. Amoral decision making – failure to factor ethical consideration in actions, decisions and behavior. |
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Term
| 6. List and describe five ways to improve an organization’s ethical climate or culture. |
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Definition
1. Ethics Programs and Officers: Ethical programs within an organization that embrace both compliance and ethics. These programs include features like written standards of conduct, ethics training, mechanisms to seek ethics advice or information, methods of reporting misconduct anonymously, discipline of violators, and inclusion of ethics in the evaluation of employees.
2. Ethics Audits and Risk Assessments: it includes assessing an organization’s current ethics program and climate. Ethics audits are intended to carefully review such ethics initiatives as ethics programs, code of conduct, hotlines and ethics training programs. Risk assessment is intended to detect compliance and ethics threats and allow companies to correct them before they occur or get worse.
3. Ethics Training: Organizations educate their employees on the company’s standards and policies through publications and training as well as web-based applications.
4. Code of Conduct: Standards of behavior or code of ethics that should be followed by members of the organization. Most large organizations have a code of conduct.
5. Discipline of Violators: Organizations must discipline violators in order for members of the organization to believe in it ethics climate. |
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Term
| Please re-create the figure on page 328 and apply it to the following ethical question: Should a pharmaceutical company give expired drugs to impoverished nations for distribution to those in need of such drugs who could otherwise not afford them? |
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Definition
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Term
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Definition
| Standards of behavior established by top management in the organization. They serve to raise the level of ethical behavior in the organization by clarifying what is meant by ethical conduct and encouraging moral behavior. |
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Term
| List two things important to know about ethics code of conduct. Give an example. |
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Definition
1. Ethics codes vary considerably from company to company.
2. Ethics codes vary in their focus.
Example: To instill trust and honesty throughout the organization. |
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Term
| Describe the evolution from moral decision to moral organizations. |
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Definition
| A moral decision is made by a manager, then a manager adopts the characteristics of moral management and finally the organization is dominated by the presence of moral managers making moral decisions and creating a moral climate in the organization. |
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Term
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Definition
| “totality of the means employed to provide objects necessary for human sustenance and comforts”. A scientific method used in achieving a practical purpose. |
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Term
| Technological Determinism |
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Definition
| The imperative that what can be developed will be developed or scientist and those who work with technologies are driven to push back the frontiers of technological development without consideration of ethical issues or side effects. |
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Term
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Definition
When the speed of technological change outpaces that of ethical development. |
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Term
| List and describe three benefits of technology. |
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Definition
1. Increased Production of Goods and Services: machines do most of the works in many industries, including farming, manufacturing, mining and others.
2. Increased Productivity: technology has reduced the amount of labor needed to produce goods and services increasing production and productivity.
3. Increased Standard of Living: technology has made labor easier and safer and economies that have been able to take advantage of technology live fuller healthier lives. |
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Term
| List and describe three side-effects of technology. |
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Definition
1. Environmental Pollution: Due to technology most industrial nations face significant air, water, soil, solid waste and noise pollution.
2. Depletion of Natural Resources: Technology continually threatens the supply of natural resources. Fuel shortage and power shortage.
3. Technological Unemployment: happens when machines take the place of humans. |
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Term
| List and describe four key issues in the ethics of e-Commerce. |
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Definition
1. Access: difference in computer access between the rich and poor
2. Intellectual Property: file sharing
3. Privacy and Informed Consent: cookies to collect consumer behavior and store it on our computers.
4. Protection of children: Free to access all content on the web |
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Term
| 4. Briefly describe two aspects of the Financial Services Modernization Act of 1999. |
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Definition
1. Allowed financial companies to combine forces and allow consumers multiple services such as mortgage, credit cards, etc.
2. Gave companies more power and access to a customer’s entire financial profile. |
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Term
| Briefly describe two aspects of the Gramm-Leach-Bliley Act. |
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Definition
1. Requires financial institutions to provide privacy notices to consumers
2. Gave customers, to some extent, to choose if their information is share with third parties. |
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Term
| What has the Federal Trade Commission done to protect consumer’s privacy (list two things)? |
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Definition
1. Creating a National Do-Not-call List
2. Helping Victims of Identity Theft |
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Term
| What has business done to protect consumer’s privacy (list two things)? |
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Definition
1. Privacy policies design to protect consumers
2. Data security so customer information is not stolen |
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Term
| List and briefly describe four of the ten commandments of computer ethics. |
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Definition
1. Thou shall not use a computer to harm other people.
2. Thou shall not snoop around in other people’s computer files.
3. Thou shall not use a computer to steal.
4. Thou shall not interfere with other people’s computer work. |
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Term
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Definition
| A field that has emerged to deal with ethical issues embedded in the use of biotechnology. |
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Term
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Definition
| The use of elaborate protocols to ensure that classical safeguards, such as informed consent, are not violated. |
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Term
| List and describe two issues with genetically modified foods. |
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Definition
1. Safety issues: Scant information is available to the public as to the actual safety or lack of safety of these products, because field-testing is continue – dangerous to human health.
2. Labeling issues: many consumer activists think that, at a minimum, foods that contain genetically engineered contents ought to be labeled as such. |
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Term
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Definition
A process by which firms increase their awareness of the influence of international activities on their future and conduct transactions with firms from other countries. |
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Term
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Definition
The global economic integration of many formerly national economies into one global economy. |
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Term
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Definition
| 1994 trade agreement that integrated the US, Canadian and Mexican economies. |
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Term
| Contrast the views of globalists and anti-globalists along three dimensions. |
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Definition
Dimension: - Globalists - Anti Globalists
Consumers: - promotes lower costs - penefits the wealthy at the expense of the poor
Employees: - higher wages, improved working conditions, faster economic growth - places profit avobe people
Environment: - creates resources needed to address environmental issues - exploits and destroys ecosystems, more pollution |
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Term
| Describe the dilemma of the multinational corporation. |
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Definition
| They must deal with stakeholder pressures from their home country as well as the host countries in which they operate. Pressures include standards, practices, ethics, laws, culture, customs, system of government, and socioeconomic system. |
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Term
| List and describe two ethical issues in the global environment and give an example for each. |
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Definition
Questionable Marketing: The Infant Formula Controversy (Nestle)
Plant Safety: The Bhopal Tragedy - Killed 2k poeple and injured 200k. Met standard based on the host country but not US standards. |
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Term
| Describe Social Accountability 8000 (SA8000). |
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Definition
Launched in 1997.
1. Child Labor: No workers under the age of 14.
2. Forced Labor: No forced labor, including prison or debt bondage labor.
3. Health and Safety: Provide a safe and healthy work environment, prevent injury, health/safety training, access to bathrooms and potable water.
4. Freedom of Association and Right to Collective Bargaining: Right to form and join a trade union and bargain collectively.
5. Discrimination: No discrimination based on race, origin, religion, disability, gender, sexual orientation, union of political affiliation or age.
6. Discipline: No corporal punishment, mental or physical coercion, or verbal abuse.
7. Working Hours: No more than 48 hours per week. Day off in 7 day period, overtime max 12 hours.
8. Compensation: Wages must meet legal and industry standard and sufficient to meet basic need of workers and their families.
9. Management Systems: Certification to integrate the standard into their management system and practices. Certification to SA800 requires semi-annual reviews and visits. |
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Term
| Give two arguments for bribery. |
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Definition
1. Common practice. 2. Accepted practice. |
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Term
| Give two arguments against bribery. |
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Definition
1. Wrong and illegal in most developed nations 2. Compromise personal beliefs |
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Term
| What does the Foreign Corrupt Practices Act mean for an agent of an American corporation? |
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Definition
| Passed in 1977 makes it a criminal offense for a representative of an American corporation to offer or give payments to the officials of other governments for the purpose of getting or maintaining business. Includes a series of fines and prison terms that can result if a company or management is found guilty. |
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Term
| Draw the model that shows the pressures under which multinational corporations must operate. |
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Definition
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Term
|
Definition
| MNCs follow it’s home country’s ethical standards while operating in another country. |
|
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Term
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Definition
| MNCs follow the host country’s ethical standards. |
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Term
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Definition
| Operation headquarters launched in July of 2000 and reside in New York. Today thousands of companies from all over the world, international labor, and civil society organizations are engaged in the Global Compact, working to advance 10 universal principals in the areas of human rights, labor, the environment and anticorruption. |
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