Shared Flashcard Set

Details

Ethics Final
N/A
36
Business
Undergraduate 3
04/27/2014

Additional Business Flashcards

 


 

Cards

Term
Illegal Insider Trading
Definition
The buying or selling of stocks by insiders who possess information that is not yet public
Term
Legal Insider Trading
Definition
Legally buying and selling stock in an insider's own company, but not all the time
Term
Conflict of Interest
Definition
Exists when and individual must choose whether to advance his or her own interests, those of the organization, or those of some other group
Term
Social Responsibilty
Definition
An organization's obligation to maximize its positive impact on stakeholders and to minimize its negative impact
Term
Role of Board of Directors
Definition
  • Holds the ultimate responsibilty for their firms' success or failure
  • Assume legal responsibility for the firm's resources and decisions, and appoint its top executive officers
  • Meets only a few times a year, which percludes them from managing effectively
Term
Sarbanes-Oxley Act
Definition
  • Made securities fraud a criminal offense and stiffened penalties for corporate fraud
  • ¬†Also created an accounting oversight board that requires corporations to establish codes of ethics for financial reporting and to develop greater transparency in financial reports to investors and other interested parties
Term
Affirmative Action
Definition
Involve efforts to recruit, hire, train, and promote qualified individuals from groups that have traditionally been discriminated against on thebasis of race, gender, or other characteristics
Term
Active vs. Passive Bribery
Definition

(A) The person who promises or gives a bribe commits the offense

(P) An offense committed by the official who receives the bribes

Term
What constitutes philanthropic activity?
Definition

(Def) Giving back to communities and causes

Both law and a sense of ethics increase voluntary corporate social responsibility practices

Term
Civil Rights Act
Definition
Provides monetary damages in cases of intentional employment discrimination
Term
Corporate Governance
Definition
To remove the opportunity for employees to make unethical decisions, most companies have developed formal systems of accountabilty, oversight, and control
Term
Consumer Fraud
Definition
Occurs when consumers attempt to deceive businesses for their own gain
Term
Apathetic Culture
Definition
Shows minimal concern for either people or performance; individuals focus on their own self-interest
Term
Caring Culture
Definition
Exhibits high concern for people but minimal concern for performance issues
Term
Exacting Culture
Definition
Shows little concern for people but a high concern for performance; it focuses on the interests of the organizations
Term
Integrative Culture
Definition
Combines a high concern for people with one performance
Term
Transactional Leaders vs. Transformational Leaders
Definition

(Actional) Attempt to creat employee satisfaction through negotiating, or "bartering," for desired behaviors or levels of performance

(Mational) Strive to raise employees' level of commitment and to foster trust and motivation

Term
Leadership
Definition
The ability or authority to guide and direct others toward achievement of a goal, has a significant impact on ethical decision making because leaders have the power to motivate others and enforce the origanization's norms and policies as well as their own viewpoints
Term
Corporate Culture
Definition
Values, norms, artifacts, and rituals all play a role in culture
Term
White-Collar Crime
Definition
  • Does more damage in monetary and emotional loss in one year than violent crimes do over several years combined
  • Highly educated people who are in positions of power, trust, respectability and responsibilty within a business or organization
  • Abuse trust and authority normally associated with their positions
Term
Differential Association
Definition
Influences ethical decision making, and superiors in particular have a strong influence on the ethics of their subordinates
Term
Distributive Justice
Definition
  • Based on the evaluation of the outcomes or results of a business relationship
  • Difficult to effect when one member of the business exchange intends to take advantage of the relationship
Term
Procedural Justice
Definition
Considers the processes and activities that produce a particular outcome
Term
Interactional Justice
Definition
  • Based on the relationship between organizational members, including the way employees and management treat one another
  • Linked to fairness within member interactions
Term
Obedience to Authority
Definition
Another aspect of the inflence that signicant others can exercise; helps to explain why many employees resolve business ethics issues by simply following the directives of a superior
Term

External Control

(Locus of Control)

Definition
  • Going with the flow
  • Events happen due to uncontrollable forces
  • Luck, chance, and power
Term

Internal Control

(Locus of Control)

Definition
  • Believe they can control events in life with effort and skill
  • Masters of their own destinies
Term
Centralized Organization
Definition
  • Decision-making authory is concentrated in the hands of top-level managers
  • Suitable for organizations in which the production processes are routine and efficiency is of primary importance
  • Each worker knows his or her job and what is expected
Term
Decentralized Organization
Definition
  • Decision-making authority is delegated as far down the chain of command as possible
  • Relatively few formal rules
  • Coordination and control are informal and personal
  • Strength is adaptability and early recognition of external change
Term
Ethics Officer's Responsilbilities
Definition
  1. Assessing the needs and risks that an organization-wide ethics program must address
  2. Developing and distributing a code of conduct or ethics
  3. Conducting training programs for employees
  4. Confidental service to answer employees' questions about ethical issues
  5. Making sure company is in compliance with government regulations
  6. Monitoring and auditing ethical conduct
  7. Taking action on violations of company's code
  8. Reviewing and updating the code
Term
Compliance Orientation vs. Values Orientation
Definition

(C) Creates order by requiring that employees identify with and commit to specific required conduct; uses legal terms, statutes, and contracts that teach employees the rules and penalties for noncompliance

(V) Strives to develop shared values; focus is more on an abstract core of ideals such as accountability and commitment

Term
Dumping
Definition
The practice of charging high prices for products in domestic markets while selling the same products in foreign markets at low prices
Term
Multinational Corporations
Definition
  • Public companies that operate on a global scale without significant ties to any one nation or region
  • Represent the highest level of international business commitment and are characterized by a global strategy of focusing on opportunities throughout the world
Term
Global Business
Definition
A practice that brings together people from countries that have different cultures, values, laws, and ethical standards
Term
Self-Reference Criterion
Definition
  • The idea that "we" differs from "them"
  • The unconscious reference to one's own cultural values, experiences, and knowledge
Term
Seven Steps in an Audit
Definition
  1. Secure commitment of top management
  2. Establish an ethics audit oversight committee
  3. Define the "scope" of the audit
  4. Review the organizaed documents (laws, policies, etc.)
  5. Collect and analyze information
  6. Verify results of the study
  7. Report findings and recommendations
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