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Ethics
Business Ethics
39
Business
Undergraduate 2
09/17/2013

Additional Business Flashcards

 


 

Cards

Term
What is Ethics?
Definition

The study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad.

Term
definition of ethics
Definition

(often called morality) refers to our efforts to figure out what we should do and how we should live.  Specifically, it involves the challenge of figuring out how to justify our behavior – both to ourselves and to others (in business, e.g. to shareholders, employees, and the public)

Term
Corporate Social Responsibility (CSR) aka Sustainability
Definition

The way a corporation achieves a balance among its economic, social, and environmental responsibilities in its operations so as to address shareholder and other stakeholder expectations. – Robert W. Sexty

Term
What is Ethics?
Definition
Our efforts to figure out: what we should do and how we should live; how to justify our behavior
Term
3 traditions in Ethics
Definition
1.Deontology – looks at the actions or “means” people use to achieve their goals (does an action)
2.Character (Virtue) Ethics – looks at the agents or “persons” who are acting in the situation (person/agent)
3.Consequentialism (Utilitarianism) – looks at the ends or “goals” that are outcomes of actions (end result)
Term
Actions (deontology
Definition
deon - duty or obligation to follow standards; evaluates actions based on standards of right and wrong
Term
Agents (Character/Virtue Ethics)
Definition
A person of good character demonstrates virtues i.e. fairness, trustworthiness, courage

This person has
integrity – high moral standards and the strength to act according to his beliefs
Term
Ends (Consequentialism)
Definition

Focuses on the end result or consequences produced by an action
An action which creates more good than bad in terms of achieving our goals is considered good

Term
Utilitarianism (a branch of consequentialism)
Definition
seeks to create the most favourable balance of benefit over harm
Term
a society needs shared moral standards
Definition
to keep people safe and to allow for free expression
Term
firms need shared moral standards
Definition
to support conditions of efficient trade, to create a productive work environment
Term
5 core principles of standards of conduct
Definition
1.Beneficence – People should provide help to others
2.Nonmaleficence – People should avoid causing harm to others
3.Autonomy – People should be free to make their own choices
4.Justice – People ought to give others what they are due and operate with fairness
5.Responsibility – People have certain expectations of themselves, which they expect in return from others
Term
tests for ethical decisions
Definition

decision guides: standards, character, goals/purpose

did i use fair process?

consistent with laws & values of firm?

tests publicity, reversibility, generalizability

Term
reversibility
Definition
asks whether someone adversly affected could endorse the reasons for the decision
Term
generalizibility test
Definition
raises the issue of consistency by asking whether you could defend your decision using the same reasoning in similar cases
Term
publicity test
Definition
could you defend your choice if it was made public?
Term
Barriers to Ethical Decision Making
Definition

Personal - narrow self-interest, stunted moral development, rationalization, distancing from responsibility

 

interpersonal & organizational - external pressure, authority, tunnel vision, communication breakdown

Term
Kohlberg's Six Stages of Moral Development
Definition

1. punishment and obedience

2.  individual instrumental purpose & exchange

3. mutual interpersonal expectations, relationships, & conformity

4. universal ethical principles

5. prior rights, social contract, or utility

6. law and order orienation

Term
Preconventional Stages “Self-Centered”
Definition
Stage 1:Children are obedient because they are afraid of beingpunished or want to be rewarded - punishment and obedience
Stage 2: A person determines what is right by the action that gets his/her needs met - individual instrumental purpose and exchange
Term
Conventional Stages
“Social-Centered”
Definition

Stage 3: “Good” behaviour is defined as living up to the expectations of others - mutual interpersonal expectations, relationships, & conformity

 

  Stage 4: People determine what is right by considering their duty to society at large - law and order orientation

Term
Postconventional Stages
“Ethics-Centered”
Definition
Stage 5: Upholding the basic rights, values, and legal contracts of society - prior rights, social contract, or utility

Stage 6: Right actions are determined by universal ethical principles i.e. justice, societal welfare, equality, respect for human dignity - universal ethical principles
Term
Forces Affecting Decision Making In Organizations
Definition
authority, commuication breakdowns, distancing from responsibility, tunnel vision, rationalization, external pressure
Term
relativism
Definition
the answer to any ethical problem is relative, whether to the individual, the group, or the culture. There is no answer to questions of values, so any answer is as good as the next.
Term
ethnocentrism
Definition
what is right is fixed and is based on my (or my culture's) values and that dictates correct behavior regardless of where I am
Term
naive relativism
Definition
the idea that what is right is based oneahc individual's values and that we should make our decisions based on our values and not question the values used by others.
Term
role relativism
Definition
the idea that what is right is dictated by our role in an organization (ex: follow orders at work)
Term
social group relativism
Definition
the idea that what is right is determined by what is being done by prominent groups within society (ex: if other companies are hiring child workers and it's accepted, we can do it too)
Term
UN Global Compact
Definition

provides a set of 10 principles that govern how to conduct business:

Human Rights

1. support & respect the protection of internationally proclaimed human rights

2. make sure businesses aren't complicit in human rights abuses

Labor Standards

3. uphold the freedomof association & the effective recognition of the right to collective bargaining

4. the elimination of all forms of forced & compulsory labor

5. the effective abolition of child labor

6. the elimination of discrimination in respect of employment & occupation

Environment

7. support a precautionary approach to environmental challenges

8. undertake initiatives to promote greater environmental responsibility

9. encourage the development & diffusion of environmentally friendly technologies

Anti-Corruption

10. businesses should work against all forms of corruption, including extortion & bribery

 

 

Term
Four Major Trends in Business
Definition

economic deregulation

political liberalization

environmental stewardship

advances in IT

Term
managerial view of business
Definition

shareholders are the center of business; change only happens when shareholders are unhappy

 

Term
stakeholder approach to business
Definition

business is a set of relationships among groups that have a stake (vested interest) in the activities of the business

 

shareholders are only one of many stakeholders

Term
Integration Thesis I
Definition

most business decisions, or statements about business, have some implicit ethical view

most ethical decisions, or statements about ethics, have some implicit view about business

Term
Integration Thesis II
Definition

It makes no sense to talk about business without talking about ethics

It makes no sense to talk about ethics without talking about business

It makes no sense to talk about ethics or business without talking about human beings

Term
stakeholder framework
Definition

ethics is not a choice

 business ethics involves taking business seriously

ethics requires commitment

firms have to manage across all three levels of the framework

there is no "one size fits all"

Term
the responsibility principle
Definition
most people, most of the time, want to and do accept responsibility for the effects of their actions on others
Term
definitional stakeholders
Definition
customers, suppliers, employees, investors
Term
instrumental stakeholders
Definition
public, local community, government, media
Term
stakeholder management is about
Definition
  • making products and services that do what you say they are going to do
  • doing business with suppliers who want to make you better
  • having employees who are engaged in their work
  • being good citizens in the community
  • maximizing profits in the long run
Term
3 levels of stakeholder framework
Definition

respect, societal standards

stakeholder cooperation

values/goals of firm

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