Term
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Definition
| individuals and groups that cause and respond to external issues, opportunities and threats |
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Term
| environmental forces and stakeholders |
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Definition
1) economic environment
2) technological environment
3) govt and legal environment
4) legal
5) demographic and social environment |
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Term
| 5 myths about business ethics |
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Definition
1) individual ethics are based on religious beliefs
2) business and ethics do not mix
3) ethics in business is relative
4) good business means good ethics
5) information and computing are amoral |
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Term
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Definition
| argues that corporations should treat all their constituencies fairly and that doing so can enable the companies to perform better in the marketplace |
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Term
| stakeholder management approach |
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Definition
ethical imperative that mandates that businesses in their fiduciary relationships to their stockholders:
1) act in the best interests of and for the benefit of their customers, employees, suppliers and stockholders
2) respect and fulfill these stakeholder rights |
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Term
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Definition
| any interest, share or claim that a group or individual has in the outcome of a corporation's policies, procedures or actions toward others |
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Term
| four different types of stakeholders |
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Definition
1) supportive
2) nonsupportive
3) mixed blessing
4) marginal |
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Term
| 8 types of power stakeholders can use |
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Definition
1) voting power
2) political power
3) economic power
4) technological power
5) legal power
6) environmental power
7) cultural power
8) power over individuals and groups |
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Term
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Definition
1) scan and identify issues
2) issues analysis
3) issues ranking and prioritizing
4) issues resolution strategizing
5) issues response and implementation
6) issues evaluation and monitoring |
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Term
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Definition
| a turning point for better or worse, a decisive moment or crucial time or a situation that has reached a critical phase |
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Term
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Definition
1) prodromal (precrisis)
2) acute
3) chronic
4) resolved |
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Term
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Definition
| warning stage, observe clues carefully |
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Term
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Definition
| damages have been done. control as much damage as possible |
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Term
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Definition
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Term
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Definition
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Term
| ethical issues can occur at what levels |
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Definition
1) individual level
2) organizational level
3) industry level
4) societal and global level |
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Term
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Definition
- greatest good for greatest number of people
- estimate costs and benefits of actions |
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Term
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Definition
| - everyone should act the same way in the same circumstances |
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Term
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Definition
- rights can be used to manipulate
- protection of rights can exaggerate certain entitlements in society at the expense of others |
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Term
| justice (procedures, compensation, retribution) |
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Definition
1) compensatory justice
2) retributive justice
3) distributive justice
4) procedural justice |
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Term
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Definition
| compensation for past harm or injustice |
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Term
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Definition
| serving punishment for harming |
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Term
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Definition
| fair distribution of benefits and burdens |
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Term
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Definition
| designates fair decision practices, procedures, etc among parties |
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Term
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Definition
| focuses on the type of person we ought to be, not specific actions that should be taken |
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Term
| the common good constraints |
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Definition
1) not viable in a pluralistic society
2) individualistic society rewards on independent basis
3) free riders abuse
4) unequal sharing of burdens and sacrifices |
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Term
| ethical relativism (self interest approach) |
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Definition
- no universal standards or rules can be used to guide or evaluate the morality of an act
1) laziness explains lack of moral standards
2) contradicts everyday experience
3) can become absolutists--their act is always right or wrong regardless of how other view it |
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Term
| four social responsibility roles |
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Definition
A) stockholder model
1) productivists
2) philanthropists
B) stakeholder model
1) progressivists
2) ethical idealists |
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Term
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Definition
1) free market ethic
2) profit maximization |
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Term
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Definition
| 1) moral duty to help less-advantaged members of society through tax deductible charity |
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Term
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Definition
1) motive of self interest
2) take a broader view of social change |
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Term
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Definition
| 1) transform businesses where workers can realize their full potential |
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Term
| individual ethical decision making styles |
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Definition
1) individualists
2) altruists
3) pragmatists
4) idealists |
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Term
| individualists decision making style |
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Definition
1) driven by natural reason
2) self is the source and justification |
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Term
| altruists decision making style |
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Definition
| 1) concerned with other people |
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Term
| pragmatist decision making style |
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Definition
concerned with the situation at hand
- deals with needs at the moment |
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Term
| idealist decision making style |
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Definition
- driven by principles and rules
- duties are absolute |
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Term
| illegal downloading music facts |
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Definition
1) RIAA sued over 20,000 people
2) some hide behind the university--RIAA issued subpoenas
3) RIAA uses "John Doe" suing method
4) Brennan was showed but did not show up in court. RIAA used default judgment. courts found it wrong (songs only on computer)
5) RIAA wants IP addresses, but only used in criminal cases |
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Term
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Definition
| - owners, management, suppliers, and customers |
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Term
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Definition
| media, society, any special interest group, media, and the community |
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Term
| why does business ethics matter |
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Definition
1) increases recruitment and retention
2) increase engagement (synced values)
3) employees attracted to ethical companies (flextime, benefits, flexibility, etc) |
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Term
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Definition
1) punishment avoidance
2) reward seeking |
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Term
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Definition
1) acceptance from others
2) law and order |
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Term
| postconventional (principled) stage |
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Definition
1) social contract (relative values)
2) universal ethics principles |
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Term
| stakeholder management analysis steps |
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Definition
1) map the stakeholder relationships
2) map the stakeholder coalitions
3) assess the nature of each stakeholders interest
4) asses the nature of each stakeholders power
5) identify stakeholder ethics and moral responsibilities
6) develop specific strategies and tactics
7) monitor shifting coalitions |
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Term
| 6 steps of the issue management approach |
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Definition
1) environmental scanning and issues identification
2) issues analysis
3) issues ranking and prioritizing
4) issues resolution strategizing
5) issues response and implementation
6) issues evaluation and monitoring |
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Term
| how do executives respond to a crisis |
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Definition
1) reaction
2) defense
3) insight range
4) accommodation
5) agency |
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Term
| 3 criteria for ethical reasoning |
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Definition
1) moral reasoning must be logical
2) factual evidence to support judgment
3) ethical standards used in reasoning should be consistent |
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Term
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Definition
| relates to the need for and skill of recognizing the complexity of some ethical dilemmas that involve interlocking conflicting interests and relationships from the point of view of the person, group and/or organization facing a decision to be made |
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Term
| free-market theory: assumptions, optimal conditions, problems |
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Definition
1) primary aim of business is to make profit
2)assumes: balance of power; knowledge; and sofistication of choice
3) conditions to bloom: minimal moral restraints, full competiveness, relevant info to all, and accurate reflection of all production costs
4) problems: businesses are not on equal footing, thin line between advertising and exaggeration, imperfect markets |
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Term
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Definition
1) based on implicit and explicit agreements
2) act in an ethical manner to promote public trust
3) often involves a quid pro quo |
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Term
| conventional ethic theory |
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Definition
| focuses on the importance of relationships. (social, and economic) |
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Term
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Definition
1) people expect that corporations give back
2) giving back to the community (at all levels) |
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Term
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Definition
1) legal compliance
2) rules and legal based
3) courts, regulations, congressional oversight |
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Term
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Definition
1) voluntary self-regulation
2) ethical and values based
3) vision/mission/values, ethical programs, risk management, philanthropy |
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Term
| arguments for Sarbanes-Oxley |
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Definition
1) costs are minimal compared to the costs of not having them
2) better internal control--more accurate info
3) many view the act as positive
4) if used for a reason to not go public then you should not go public |
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Term
| arguments against Sarbanes-Oxley |
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Definition
1) too costly
2) negative impact on global competiveness
3) government costs increase
4) smaller companies pay higher fees |
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Term
| major accounting scandals |
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Definition
| Enron, WorldCom, Adelphia, Tyco, Martha Stewart, Qwest Communication, Credit Suisse First Boston |
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Term
| what are laws designed to do |
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Definition
1) regulate competition
2) protect consumers
3) promote equity and safety
4) protect the natural environment
5) ethics and compliance programs to deter enforcement |
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Term
|
Definition
- financial accounting standards board
- SEC delegated GAAP standard setting to them |
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Term
|
Definition
- american institute of certified public accountants
- lost is power due to SOX
- once regulated accounting profession and established GAAS |
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Term
|
Definition
- public company accounting oversight board
- now establishes GAAS
- inspects registered accounting firms and registers them
- 5 members
- no more than 2 members may be CPAs |
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Term
| is the SEC reactive or proactive |
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Definition
- reactive
- "management by walking around" |
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Term
| what are the SEC's main goals |
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Definition
1) protect investors and ensure the integrity of business
2) creates agencies to help compliance |
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Term
| why are independent auditors important |
|
Definition
| provide investor assurance |
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Term
| why is corporate governance needed |
|
Definition
| asymmetry of power and knowledge between absentee owners and management |
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Term
| the Securities Act of 1933 |
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Definition
- covers initial public offerings (IPOs)
- disclosure requirements for newly registered companies
- does not provide a judgment
- investor loss recovery for misleading financial statements |
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Term
| accountants role in the securities act of 1933 |
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Definition
- must audit prospectus
- must issue a comfort letter to underwriters |
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Term
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Definition
provides negative assurance
- there is no false info in here |
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Term
|
Definition
1) deals with trading on the secondary markets
2) created to SEC
3) registration requirements to brokers, analysts, companies and exchanges
4) forbids market making
5) forbids insider trading |
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Term
| purpose of the Sarbanes-Oxley Act |
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Definition
1) to restore public confidence
2) prevent future frauds |
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Term
|
Definition
1) created the PCAOB
2) delegates what auditors cannot do
3) audit partner rotation
4) executives must sign off on financial statements
5) CEO is not the chairman of the board
6) audit committee is a subset of the board of directors |
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Term
| Foreign Corrupt Practices Act (1977) |
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Definition
- prohibit the bribery of foreign officials for the purpose of retaining or obtaining business
- excludes "greasing payments" expedites already occurring business transactions |
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Term
| critique of the stockholder theory |
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Definition
1) corporations should only serve the stockholders
2) negates and weakens fiduciary duties managers owe to stockholders
3) weakens the influence and power of stakeholder groups
4) weakens the firm
5) changes the long-term character of the capitalistic system |
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Term
| not only should companies act in socially responsible ways because "it is the right thing to do" but also because |
|
Definition
| it ensures their legitimacy |
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Term
|
Definition
| analytical concepts and methods for identifying, mapping, and evaluating corporate strategy with stakeholders |
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Term
| synonyms for each step of a crisis |
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Definition
1) warning; symptoms
2) point of no return
3) self doubt; self-analysis
4) return to normalcy |
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Term
| questions to ask yourself when doing moral creativity |
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Definition
- 3 questions under each question
1) who am i?
2) who are we?
3) who is the company? |
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Term
| rule based utilitarianism |
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Definition
| general principles are used as criteria for deciding the greatest benefit to be achieved from acting a certain way |
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Term
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Definition
| analyze a particular action or behavior to determine whether the greatest utility or good can be achieved |
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Term
| what ethical decision making principle do businesses use |
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Definition
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Term
| rights (ethical principle) in business decisions |
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Definition
| useful when conflicting legal and moral rights of individuals occur or when rights may be violated if a certain course of action is pursued |
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Term
| what to ask using the social contract approach |
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Definition
1) what is the nature of the contract?
2) are all parties satisfied with it?
3) then break down primary and secondary stakeholders and ask questions accordingly |
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Term
| what matter more: compliance programs or ethics programs |
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Definition
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Term
| the iron law of responsibly |
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Definition
| "if a business has the power, then a just relationship demands that business also bear the responsibility for its actions in these areas" |
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Term
| five broad guidelines or obligations businesses have |
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Definition
1) "trustee for society's resources" this satisfy interests of all stakeholders
2) open receipt of inputs from society and open disclosure
3) all costs must be calculated (social and benefits, etc)
4) social costs will be priced into the good
5) social involvement in areas of their competence where social need exists |
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Term
|
Definition
| accounting fraud of 11 billion |
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Term
|
Definition
| - conspiracy, insider trading, fraud, etc |
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Term
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Definition
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Term
|
Definition
| conspiracy and bank and securities ffraud |
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Term
|
Definition
| CEO inflated earnings to meet wall street expectations |
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Term
|
Definition
| social and economic growth |
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Term
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Definition
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Term
|
Definition
| prohibits price discrimination, exclusivity, and restricting competition |
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Term
|
Definition
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Term
|
Definition
- Bernie Madoff
- regulation in the early 2000's |
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