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Business Ethics Exam 1
BUS 308, Ethics, Berry College, Dhir
55
Business
09/29/2011

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Term
Business Ethis
Definition
Comprises principles, values, and standards that guide behavior in the world of business
Term
Principle
Definition
Specific boundaries for behavior that are universal and absolute (freedom of speech, civil liberties, etc.)
Term
Value
Definition
Used to develop socially enforced norms (integrity, accountability, trust)
Term
1960s
Definition
Environmental Issues; Civil Rights Issues; Increased Employee-Employer Tension; Chaning Work Ethic; Rising Drug Use
- Social Issues in Business: social consciouness emerges; JFKs consumer bill of rights (saftey, informed, heard); consumer protection groups
Term
1970s
Definition
- Employee Militancy; Human Rights Issues; Covering Up Issues; Disadvantage Consumer
- Business Ethics as an Emerging Field
- Professors write about Social Responsibility
- Philosophers become involved
- businesses become concerned with public image
Term
1980s
Definition
- Bribes and Illegal Contracting; Influence Peddling; Deceptive Advertising; Financial Fraud; Transparency Issues
- Membership in Business Ethics Organization increases; firms establish ethics committees; corporate support for ethics
- Defense Industry Initiative on Business Ethics and Conduct emereges - foundation for the federal sentencing guidelines for organizations
Term
Before 1960s
Definition
-Theological Discussions of Ethics: Catholic Social Ethics (morality of business, workers' rights, living wages); Protestants (develop ethics courses, encourage hard work)
Term
1990s
Definition
- Sweatshops and Unsafe Working Conditiosn in 3rd-World Countries; Rising Corporate Liability for Personal Damages; Financial Mismanagement and Fraud; Organizational Ethical Misconduct
- Institutionalization of Business Ethics
- Federal Sentencing Guildelines for Organization set tone for compliance
- Preventative actions against misconduct
Term
2000s
Definition
- Cybercrime; Financial Misconduct; Global Issues, Chinese Product Safety; Sustainability; Intellectual Property Theft
- Sarbanes-Oxley Act 2002
= FSGO Reform 2004
Term
Social Responsibility
Definition
An organization's obligation to maximize positive impact and minimize negative impact on stakeholders
Term
Federal Sentencing Guidelines for Organizations
Definition
- standards and procedures capable of detecting and preventing misconduct
- high level of oversight
- care in delegation of authority
- effective communication
- systems to monitor, audit, and report misconduct
- consistent enforcement
- continuous improvement
Term
Ethical Culture
Definition
the component of corporate culture that captues the values and norms that an organization defines as appropriate conduct
Term
Ethics contributes to...
Definition
- Employee Committment
- Investor Loyalty
- Customer Satisfaction
- Profits
Term
Stakeholder Framework
Definition
- helps identity internal and external stakesholders
- helps monitor and respond to needs, values, and expectations of stakeholder groups
Term
Stakeholders
Definition
those who have a stake or claim in some aspect of a company's products, operations, markets, industry, and outcomes
Term
Primary Stakeholders
Definition
those whose continued association is necessary for a firm's survival
Term
Secondary Stakeholdesr
Definition
those who are not essential to a company's survival (media, trade associations, etc.)
Term
Stakeholder Orientation
Definition
The degree to which a firm understand and addresses stakeholder demands
- 3 activities: generation of data; distribution of information; organization's responsiveness
Term
4 levels of social responsibility
Definition
Economic
Legal
Ethical
Philanthropic
Term
Corporate Citizenship
Definition
the extent to which businesses strategically meet their economic, legal, ethical and philanthropic responsibilities
Term
Corporate Governance
Definition
accountability
oversight
control
Term
Accountability
Definition
refers to how closely workplace decisions are aligned with a firm's stated strategic direction
Term
Oversight
Definition
provides a system of checks and balances that limits employees and minimizes opportunities for misconduct
Term
Control
Definition
the process of auditing and improving organizational decisions and actions
Term
Reactive
Definition
Deny Responsibility
Doing less than required
Term
Defensive
Definition
Admit repsonsibility, but fight it
Doign the least that is required
Term
Accomodative
Definition
Accept responsibility
Doing what is required
Term
Proactive
Definition
Anticipate responsibility
Doing more than is required
Term
Ethical Issue
Definition
situation or a problem that requires thought, discussion, or investigation to make a decision
Term
Ethical Dilemma
Definition
problem, situation, or opportunity that requires an individual or group to choose among several wrong or unethical actions
Term
Abusive or Intimidating Behavior
Definition
- one of the most common ethical problems
- anything from physical threats, false accusations, profanity, insults, etc.
- intent is important in determining abuse
Term
3 Types of Lies
Definition
- Joking without malice
- Commission Lying: creating a false perception by choosing words that intentionally deceive the receiver
- Omission Lying: intentionally not informing channel members of problems, related to product that affects awareness, intention, or behavior
Term
Conflicts of Interest
Definition
exist when an individual must choose whether to advance his or her own personal interests, those of the organization, or some other group
Term
Bribery
Definition
the practice of offering something in order to gain an illicit advantage
Term
Corporate Intelligence
Definition
the collection and analysis of information on: markets; technologies; customers and competitors; socioeconomic and external political trends
Term
Hostile Work Environment
Definition
- conduct was unwelcome
- conduct was severe, pervasive, and regarded as so hostile as to alter conditions of employment
- conduct was such that a reasonable person would find it hostile or offensive
Term
Dual Relationship
Definition
- a personal, loving, and/or sexual relationship with someone with whom you share professional responsibilities
- could cause a conflict of interest or impairment of professional judgement
Term
Fraud
Definition
any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression
Term
Puffery
Definition
exaggerated calims, blustering, or boasting
Term
Implied Falsity
Definition
an advertising message has a tendency to mislead, confuse, or deceive the public
Term
Literally False
Definition
claims can be divided into tests prove and bald assertions (non-establishment claims)
Term
Collusion
Definition
employee helps a consumer commit fraud
Term
Duplicity
Definition
consumer duping a store
Term
Guile
Definition
person uses tricks to obtain an unfair advantage
Term
insider trading
Definition
buying or selling of stocks by insiderswho possess material that is still not public
Term
intellectual property rights
Definition
legal protection of intellectual properties such as movies, books and music
Term
3 dimensions to effective business ethics compliance
Definition
voluntary practices
mandated boundaries
core practices
Term
voluntary practices
Definition
the beliefs, values, and voluntary contractual obligations
Term
mandated boundaries
Definition
externally imposed boundaries of conduct (laws and regulations)
Term
core practices
Definition
documented best practices, often encouraged by legal and regulatory forces
Term
Types of Laws
Definition
Civil law: defines the rights and duties of individuals and organizations; enforced by individuals generally in court
Criminal Law: prohibits specific actions and imposes punishment for breaking the law; enforced by state or nation
Term
5 Categories of Business Laws
Definition
Regulating Competition
Protecting Consumers
Protecting Equity and Safety
Protecting the Environment
Those that encourage ethical conduct
Term
Laws Regulating Competition
Definition
prevent the establishment of monopolies, inequitable pricing practices, and other practices that reduce or restrict competition; procompetitive legistlation
Term
Laws Protecting Consumers
Definition
require business to provide accurate information about products and services and to follow safety standards
Term
Laws Promoting Equity and Safety
Definition
Title VII of the Civil Rights Act
EEOC
Affirmative Action Programs
The Equal Pay Act
OSHA