Term
| "CSR as a Competitive Advantage" - describe the basics and list some benefits |
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Definition
| Do well AND Do good, "Creative Capitalism", Social benefit and profit // BENEFITS: Attract employees, improve corporate culture, PR, sustainability of business, attract customers, attract investors (i.e., socially responsible funds) |
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Term
| "CSR is a Myth" - describe the basics |
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Definition
| Profits>Principles, Corporations CANNOT act outside of financial interests, ST>LT, Consumers want cost&convenience NOT values, Companies will not compete to be "most ethical" |
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Term
| "CSR is a Myth" - offer two solutions |
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Definition
| Regulation/Labeling, Reinventing the corporation (i.e., B-Corps, L3C's) |
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Term
| "CSR as a Competitive DISadvantage" - describe the basics and the "collective action problem" |
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Definition
| Market failures: self-interest won't achieve public goods // Problems: Prisoners dilemma (if you do CSR but competitors dont, you may lose competitive edge) |
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Term
| What did research determine about consumer values and their willingness to pay/punish for certain ethical/unethical products? |
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Definition
| HIGH willingness to pay for ethical (and willingness to punish for unethical products), LOW effect of ethical actions compared to HIGH effect of unethical actions (e.g., more willing to punish a company, whereas 10% organic may achieve the same as 100% organic, for example) |
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Term
| T/F: Consumers are willing to pay higher for ethical products, and that consumer market is significant |
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Definition
| False: Even though consumers "would" pay more for ethical products, they often don't, and the consumers that do represent a very small niche market |
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Term
| What are three key drivers of globalization? |
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Definition
| Technology, Free trade, and FDI |
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Term
| Globalization: List the arguments favoring a NEGATIVE "race to the bottom" view for AMERICA |
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Definition
| "WalMart effect", low prices=cheap labor=outsourcing, lost American jobs, lower wages, imports UP exports DOWN |
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Term
| Globalization: List the arguments favoring a NEGATIVE "race to the bottom" view for THE WORLD (not just America) |
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Definition
| Anti-democratic (privatization = fences > freedom), Disruption & inequality (local indigenous people & cultures) |
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Term
| What is the most plausible solution for "race to the bottom" globalization? |
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Definition
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Term
| Globalization: List the arguments favoring a POSITIVE "race to the top" view for AMERICA |
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Definition
| Growth/prices/inflation, workers in import industries |
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Term
| Globalization: List the arguments favoring a POSITIVE "race to the top" view for THE WORLD (not just America) |
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Definition
| GDP growth lifts people out of poverty, "spreads the wealth" |
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Term
| What is the most plausible remedy for "race to the top" globalization? |
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Definition
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Term
| How does free trade affect American jobs? |
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Definition
| Not impacted (net basis) historically, Wages: Avg increases |
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Term
| What types of American jobs are being exported? |
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Definition
| Finished goods and Skill intensive jobs |
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Term
| Describe a key argument for how globalization serves the Christian ethical mission? |
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Definition
| Promotes human flourishing - investment in poor countries, positive cultural change in corrupt countries, promotes growth and jobs in those countries |
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Term
| What are the implication of Wydick's 3 biblical principles: (1) Poor people and our response, (2) Interdependence is good, and (3) God is not a patriot |
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Definition
| Trade is generally good, Policies to help harmed people, Wrong to favor our own interests ("Good for America?"), Oppose policies that harm developing countries (i.e., tariffs and farm subsidies) |
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Term
| What does Biblical Economic Justice say about dignity, wealth, and sin? |
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Definition
| Dignity: Workers should have freedom & interdependence, meaningful work (vs. "factors of production) // Wealth: bridge the gap between rich and poor // Sin: exploitation and rationalizations |
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Term
| In global development, what is the issue with charity? |
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Definition
| By giving them money, it fails to reward them for producing a product/service and selling it. Instead, they are a charity-case, not an innovative business person. |
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Term
| Describe the CHARACTER of Justice |
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Definition
| We should have a special concern for the poor, We should seek to restore what was lost (promote growth and distribution, not just charity) |
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Term
| Describe the CONTENT of Justice |
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Definition
| Need based (vs. merit/equality), Resources (like capital, knowledge, etc) |
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Term
| How do factories (outsourcing) promote DELIVERANCE? |
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Definition
| Labor is a key export (comparative advantage - ex: bananas vs guns), Promotes economic growth/GDP, Higher wages & develop long-term skills |
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Term
| How do factories (outsourcing) promote EXPLOITATION? |
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Definition
| Poor countries have a vulnerable workforce, "Better" may not be "good enough", GDP is not the only relevant measure |
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Term
| In outsourcing, what are two things that must be promoted in demonstrating corporate purpose & responsibility? |
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Definition
| Wages and Work conditions |
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Term
| What's the difference between fair trade and FairTrade? |
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Definition
| Fair trade is a practice, FairTrade is a certification given to suppliers that meet certain standards |
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Term
| Describe the PROS of fair trade |
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Definition
| Protects farmers from exploitation, Fights poverty, Environmental benefits (e.g., shade grown, organic), More sustainable than charity |
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Term
| Describe the CONS of fair trade |
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Definition
| Interrupts efficient markets (disallows markets that should fail due to obsolescence), Favors some farmers over others, Unfairly blames roasters/retailers (they didn't cause the price collapse, beans are a small cost of overall cost), Limited market for "fair trade" customers |
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Term
| Describe the CONS of FairTrade (the brand) |
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Definition
| Unfair criteria for selection, Coops are the new middlemen (i.e., unfair treatment of farmers, selective, expensive), Puts non "FairTrade" coffee (i.e., fair trade in general) in a bad light relatively |
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Term
| As globalization expands, how does this affect groups? |
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Definition
| The world comes together (i.e., nations/trade), but groups are separating (i.e., Sunni, Shiite, Al Qaeda, Tea Party) |
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Term
| What is Americanization and what are its effects? |
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Definition
| American culture spreading into other countries. It has the ability to both influence and change cultures (which can be good or bad). We give our bad traits (consumption, individualism). Languages disappear (to English). Culture erodes. |
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Term
| What is the effect of cultural exchange? |
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Definition
| Good things are exchanged between cultures (e.g., foods, art, business practices), Better to exchange cultures than to force one culture onto another |
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Term
| Explain why someone might disagree with the degree of the effect of globalization |
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Definition
| "10% presumption," Borders still matter, Extreme local connectivity, Importing/Exporting does not necessarily mean connectedness |
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Term
| What are two major concerns with globalization's cultural effects? |
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Definition
| Individualism and Consumerism |
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Term
| What are the criticisms of marketing? |
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Definition
| Motive to sell (vs serve), Shapes culture ("Who we should be"), Promotes consumerism, Manipulative (creates needs instead of meeting them), Exploits vulnerabilities, Deceptive, Clutter |
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Term
| What are the arguments FOR marketing as a vocation? |
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Definition
| Increases standard of living, Consumers are willing participants (we WANT to buy stuff), Reflects (not creates) culture ("we were born consumers") |
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Term
| What is the most intense NEGATIVE perspective of marketing? |
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Definition
| Harms people (things > people), Leads to narcissism (self-obsession), Establishes identity in products |
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Term
| What is the POSITIVE perspective of marketing? |
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Definition
| Promotes efficient commerce, Gets information in the hands of the consumer, Gives us what we want (even if unspoken, e.g., 50/50 Lemon/Lime 7UP based on color of can), Not very powerful (3000 but low response rate), Large # of product failures, Consumers are smart |
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Term
| Describe the "marketing as a vocation" process |
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Definition
| Marketing -> Exchange -> Reconciliation -> Vocation ........(i.e., interdepdence) |
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Term
| What aspects of marketing does the AMA emphasize? |
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Definition
| Creating, communicating, delivering, and EXCHANGING offerings that have value for the buyer |
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Term
| What would the Flow Motors president emphasize as important in marketing? |
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Definition
| Establish a relationship, Enable the buyer to choose, Sell products that add value and enhance life, Transparency/honesty |
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Term
| Management theory: What does Scientific Management emphasize? |
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Definition
| Efficiency. Manager control > Dignity/autonomy, No meaning in task |
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Term
| Management theory: What does Human Relations emphasize? |
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Definition
| Recognition of psychological factors (achievement, recognition, responsibility, advancement, growth) - but manipulative? |
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Term
| Management theory: What does Whole Person Engagement emphasize? |
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Definition
| Enriched content/genuine interest in employee, TRUST = (1) Credibility, (2) Respect, (3) Fairness |
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Term
| What management theory seems to have (re)emerged with technology in the workplace? |
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Definition
| Scientific management (dehumanizing, increased control) |
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Term
| Describe the Anthropocentric view |
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Definition
| Nature serves humans. ST > LT. "Dominion" |
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Term
| Describe the Biocentric view |
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Definition
| Nature has intrinsic rights, Market & technology create problems, Some blame toward Christianity (i.e., "dominion" is wrong) |
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Term
| What are some criticisms of the Biocentric view |
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Definition
| Falsely blames Christianity, Nature is given value (not intrinsic), No consistent ethic, Stewardship is sufficient -- (this should be straightforward if you understand the difference between the two) |
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Term
| From a Christian perspective, what are the two perspectives of our responsibility for nature? |
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Definition
| Dominion (rule over it), or Dominion AND Stewardship (rule and serve, serve it because it also serves us - mutual) |
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Term
| What are the three stances of environmental stewardship? |
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Definition
| (1) Minimal/react to consumers, (2) Precautionary principle, (3) Pro-active leadership |
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Term
| List a few emerging business practices in sustainability |
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Definition
| Energy savings, Byproducts (e.g., plastic), Future growth areas (GE - wind power, solar power, etc) |
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Term
| What is a major emerging business practice (related to the environment) for companies? |
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Definition
| REC's (Renewable Energy Credits) traded to "offset" their carbon usage. |
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Term
| What are some criticisms of emerging environmental business practices? |
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Definition
| Too easy (ST focus), Window dressing, "less bad", Does not change their existing practices that may be damaging |
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Term
| Regarding raw materials, what is an emerging business practice that seems to be the highest aspiration of environmental business practices? What are some aspects of it? |
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Definition
| Cradle to Cradle - What is used must be reusable ("Waste = food"). Not "less bad" but actually positive impact. Less focus on "end of pipe" and more on curing the front end issue. |
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Term
| What are some challenges facing businesses that want to implement Cradle to Cradle? |
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Definition
| Expensive, Limited availability of reusable resources, Hard to measure, Low ROI (sometimes), Prisoners Dilemma (may lose competitive edge), Consumers ultimately want low prices not environmentally friendly |
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Term
| List the six rationalization tactics (in making unethical decisions) |
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Definition
| Denial of Responsibility, Denial of Injury, Denial of Victim, Social weighting, Appeal to higher loyalties, Balancing the ledger |
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Term
| Describe "Denial of Responsibility" |
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Definition
| Just obeying orders, Everyone does it (i.e., assign responsibility to others) |
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Term
| Describe "Denial of Injury" |
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Definition
| No one was really hurt (i.e., employee theft) |
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Term
| Describe "Denial of Victim" |
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Definition
| They had it coming, psychological distancing (i.e., theft, tax evasion) |
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Term
| Describe "Social Weighting" |
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Definition
| Condemning the condemner (i.e., "Well, it was unfair anyways, so it's okay because I'm just breaking a corrupt rule") |
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Term
| Describe "Appeal to higher loyalties" |
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Definition
| More loyal to something else (i.e., it's okay to steal this item because it will help my brother, whom I'm more loyal to) |
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Term
| Describe "Balancing the ledger" |
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Definition
| "I've earned it" - i.e., stealing an item when you believe you're underpaid ("I'm just making my pay more fair") |
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Term
| What are the two factors contributing to unethical decisions and organizational corruption? |
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Definition
| Rationalization and Socialization |
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Term
| Socialization: What is co-optation (in making an unethical business choice) |
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Definition
| Joining a group (for economic rewards) |
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Term
| Socialization: What is incrementalism (in making an unethical business choice) |
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Definition
| Taking small steps at a time, gradual commitments |
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Term
| Socialization: What is compromise (in making an unethical business choice) |
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Definition
| "Back into" corruption, Gradually progress toward "bad" from "good" by meeting halfway |
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Term
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Definition
| Joining a group and sharing thoughts, feeling competitive to people outside the group |
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Term
| Define euphemistic language |
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Definition
| Rewording something to make it seem less bad - ex: Bribes, or "auditioning fees?" |
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Term
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Definition
| Delegating responsibility UPWARDS to management ("they made me do it, I was just doing my job") |
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Term
| What are the three organizational influences of unethical behavior (as discussed in class)? |
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Definition
| (1) Culture/peers, (2) Metrics/rewards/incentives, (3) Leadership/authority |
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Term
| What did the Milgram experiment demonstrate? |
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Definition
| Our obedience of authority, even when the task is morally wrong (i.e., Obedience > Ethics). We see ourselves as not having responsibility if we're "just doing what we're told" |
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Term
| What are some of the broader organizational practices that can align ethics with employees? |
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Definition
| Purpose/mission, Moral leadership, Strategy, Culture, Hiring, Ethics program, Performance evaluation (& Rewards system beyond just numbers) |
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Term
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Definition
| A statement of the company's values |
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Term
| What are the strengths and weaknesses of a company ethics program? |
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Definition
| STRENGTH: Audits, Training (Awareness/guidance, Consider outside perspectives) // WEAKNESS: May miss some specific issues |
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Term
| What are is a strength and weakness with a Code of Conduct? |
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Definition
| STRENGTH: General guideline of how to act // WEAKNESS: May not actually do anything (not referenced by employee), Legalism/Narrow focus |
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