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Understanding Business Ch. 4
RCC BUS 10. Nickels
15
Business
Undergraduate 1
01/07/2014

Additional Business Flashcards

 


 

Cards

Term
Define: Ethics
Definition
Standards of moral behavior, that is, behavior accepted by society as right versus wrong.
Term
Three questions to ask yourself in an ethical dilema
Definition

1. Is my proposed action legal?

 

2.Is it balanced, Am I acting fairly?

 

3.How will it make me feel about myself?

 

Term
An ethic of justice is
Definition

based on principles like justice, fairness, equality, or authority.

 

The advantage of this approach is that it looks at a problem logically and impartially.

 

 

People with this style try to be objective and fair, and above any specific individual's interests.

 

Disadvantage is that they lose sight of immediate interests of individuals

Term
ethic of care
Definition

 is based on a sense of
responsibility to reduce actual harm or suffering

 

People who prefer this style see moral dilemmas as conflicts of duties or responsibilities.

 

The disadvantage Is that, when carried to an extreme, this style can produce decisions that seem not simply subjective, but arbitrary.

Term
Define: compliance-based ethics codes
Definition
Ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers.
Term
Define: integrity-based ethics codes
Definition
Ethical standards that define the organization's guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees.
Term
six steps many believe can improve U.S. business ethics
Definition

1. Top management must adopt and unconditionally support an explicit corporate code of conduct

 

2. Employees must understand ·that expectations for ethical behavior begin at the top and that senior management expects all employees to act accordingly

 

3. Managers and others must be trained to consider the ethical implications of all business decisions.

 

4. An ethics office must be set up with which employees can communicate anonymously.

 

5. Outsiders such as suppliers, subcontractors, distributors, and customers must be told about the ethics program.

 

6. The ethics code must be enforced with timely action if any rules are broken.

Term
Define: Whistle blowers
Definition
insiders who report illegal or unethical behavior
Term
The Sarbanes-Oxley Act
Definition

protects whistleblowers by

 

requiring all public corporations to allow employee concerns about accounting and auditing to be submitted confidentially and anonymously.

 

 requires reinstatement and back pay to people who were punished by their employers for passing information about fraud on to authorities

Term
Why should a business be managed ethically
Definition

  a.     To maintain a good reputation.

b.   To keep existing customers.

c.   To avoid lawsuits.

 d.   To reduce employee turnover.

 e.   To avoid government intervention.

 f.    To please customers, employees, and society.

g.   Simply to do the right thing.

Term
4 dimensions of corpoare responsibility
Definition

Corporate Philanthropy - Charitable donations by the company or its owners

 
corporate social initiatives -  Enhanced forms of corporate philanthropy directly related to the company's competencies.
 

 

Corporate Responsibility - Making safe products, responding quickly to dangerous defects, utilizing fair and equitable employment practices
 

 

•Corporate Policy - Position corporation takes on social and political issues

 

Term
3 Non-Social Corporate Responsibilities
Definition

 

•Responsibility to Customers - Satisfy customers with goods of real value that are safe.  Create trust with customers
 

 

•Responsibility to Investors - Generate profits and police insider trading
 

 

•Responsibility to Employees - Create jobs, fair rewards for hard work and talent, respect for employees

 

Term
Define: Insider Trading
Definition
An unethical activity in which insiders use private
company information to further their own fortunes or those of their family and friends.
Term
Define: social audit
Definition
A systematic eva luation of an organization's progress
toward implementing socially responsible and responsive programs.
Term
what four groups serve as watchdogs for companies ethical and social responsibility policies
Definition

 

 

SOCIALLY CONSCIOUS INVESTORS: insist that companies extend the company’s own high standards to all their suppliers.

 

ENVIRONMENTALISTS: apply pressure to companies that don’t abide by the environmentalists’ standards

 

 

UNION OFFICIALS: hunt down violations and force companies to comply to avoid negative publicity.

 

CUSTOMERS: take their business elsewhere if a company demonstrates socially irresponsible practices.

 

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