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| set of moral principles or values that defines right and wrong for a person or group |
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| behavior that conforms to a society's accepted principle of right and wrong |
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| Unethical behavior that violates organizational norms about right and wrong |
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Unethical behavior that hurts the quality and quantity of work produced
- Leaving early
- taking excessive breaks
- Intentionally working slowly
- Wasting resources
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Unethical Behavior aimed at the organization's property or products
- Sabotaging Equipment
- Accepting Kickbacks
- Lying about hours worked
- Stealing from the company
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| employee theft of company merchandise |
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using one's influence to harm others in the company
- Showing Favoritism
- Gossiping about coworkers
- Blaming coworkers
- Competing non-beneficially
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hostile or aggressive behavior towards others
- Sexual Harassment
- Verbal Abuse
- Stealing from coworkers
- Endangering coworkers
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| the degree of concern people have about an ethical issue |
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| Magnitude of Consequences |
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| the total harm or benefit derived from an ethical decision |
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| agreement on whether behavior is bad or good |
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| the chance that something will happen and then harm others |
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| the time between an act and the consequences the act produces |
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| the social psychological cultural or physical distance between a decision maker and those affected by his decisions |
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| the total harm or benefit that an act produces on the average person |
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| Pre-conventional level of Moral Development |
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the first level of moral development in which people make decisions based on selfish reasons
- Stage 1- Punishment and Obedience- primary concern is to avoid punishment
- Stage 2- Instrumental Exchange- you worry less about punishment and more about things that directly advance your wants and needs
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| Conventional Level of Moral Development |
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The second level of moral development in which people make decisions that conform to societal expectations
- Stage 3- Good Boy, Nice Girl- do whatever good people are doing
- Stage 4- Law and Order- do whatever the law permits
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| Post-conventional Level of Moral Development |
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the third level of moral development in which people make decisions based on internalized principles
- Stage 5- Social Contract- look to see what affect it will have on society as a whole
- Stage 6- Universal Principle- stick to your principles even if your decision conflicts with the laws
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| Principle of Long-term self interest |
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| an ethical principle that holds that you should never take any action that is not in your organization's long term self-interest |
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| Principle of Personal Virtue |
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| an ethical principle that holds that you should never do anything that is not honest, open, and truthful and that you would not be glad to see reported in the newspapers or on TV |
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| Principle of Religious Injunctions |
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| an ethical principle that holds that you should never take any action that is not kind and that does not build a sense of community |
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| Principle of Government Requirements |
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| an ethical principle that holds that you should never take any action that violates the law, for the la represents the minimal moral standard |
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| Principle of Utilitarian Benefits |
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| an ethical principle that holds that you should never take any action that does not result in the greater good for he society |
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| Principle of Individual Rights |
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| an ethical principle that holds that you should never take any action that infringes on others' agreed-upon rights |
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| Principle of Distributive Justice |
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| an ethical principle that holds that you should never take any action that harms the least fortunate among us: the poor, the uneducated, and the unemployed |
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| a written test that estimates job applicants' honesty by directly asking them what they think or feel about theft or about punishment of unethical behaviors |
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| Personality-based Integrity Tests |
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| a written test that indirectly estimates job applicants' honesty by measuring psychological traits such as dependability and conscientiousness |
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| reporting others' ethics violations to management or legal authorities |
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| businesses obligation to pursue policies, make decisions, and take actions that benefit society |
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| a view of social responsibility that holds that an organization's overriding goal should be to maximize profit for the benefit of shareholders |
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| a theory of corporate responsibility that holds that management's most important responsibility, long-term survival is achieved by satisfying the interests of multiple corporate stake-holders |
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| person or groups with a stake or legitimate interest in a company's actions |
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any group on which an organization relies for its long-term survival
- shareholders
- employees
- customers
- suppliers
- governments
- local communities
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any group that can influence or be influenced by a company and can affect public perceptions about its socially responsible behavior
- media
- special interest groups
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| the expectation that a company will make a profit by producing a valued product or service |
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| a company's social responsibility to obey society's laws and regulations |
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| a company's social responsibility not to violate accepted principles of right and wrong when conducting business |
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| Discretionary Responsibility |
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| the expectation that a company will voluntarily serve a social role, beyond its economic, legal, and ethical responsibilities |
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| refers to a company's strategy for responding to stakeholders' expectations concerning economic, legal, ethical, or discretionary responsibility |
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| a social responsiveness strategy in which a company does less than society expects |
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| a social responsiveness strategy in which a company admits responsibility for a problem but does the least required to meet societal expectations |
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a social responsiveness strategy in which a company accepts responsibility for a problem and does all that society expects to solve the problem
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a social responsiveness strategy in which a company anticipates responsibility for a problem before it occurs and does more than society expects to address the problem
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The potential each of us has to do more and be more than we are now.
Leaders know what emotions to use to motivate different individuals. |
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theories people hold about specific systems in the world and their expected behavior. How someone thinks things should be done.
Ex: what types of players to draft, what type of offense and defense to run and other strategies. |
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| questioning assumptions and interpreting data and events according to one's own beliefs, ideas, and thinking rather than pre-established rules or categories defined by others |
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| the process of continuously reevaluating previously learned ways of doing things in the context of evolving information and shifting circumstances |
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| the ability to see the synergy of the whole rather than just the separate elements of a system and to learn to reinforce or change the whole system patterns |
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| the discipline of personal growth and learning of mastering yourself, it embodies personal visions, facing reality, and holding creative tension |
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| Environmental intelligence |
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| a person's abilities to perceive, identify, understand, and successfully manage emotions in self and others |
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| the ability to recognize and understand your own emotions and how they affect your life and work |
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| the ability to control disruptive or harmful emotions |
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| one's ability to understand and empathize with others |
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| being able to put yourself in someone else's shoes |
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| the ability to connect with owners and build positive relationships |
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| motivation based on fear of losing a job |
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| motivation based on feeling valued in the job |
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| knowledge of a specific skill set |
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- nearly all businesses covered including non-profits
- purpose is to prevent companies from allowing crimes to take place by using preventative measures and also to impose punishments for unethical or illegal behavior
- Infractions are not limited to violations of law
- 1,494 companies have been charged in the last decade with an average fine of over 2 million dollars
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| US Sentencing Commission Guidelines for Organizations |
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- First the offense is given an offense level (generally between 6 and 38). Each offense level has a base fine associated with it ranging from $5,000 to $72.5 million
- Next a judge gives the company a culpability score. This is a score determining the company's guilt level (ranges from .5 to 4.0)
- A company that actively participated in unethical behavior would have a high culpability score and a company that didn't know about the behavior and had measures to prevent such behavior would have a low score
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| Seven Necessary components of an effective compliance program |
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Definition
- Establish standards and procedures
- Assign upper-level managers to be in charge
- Delegate decision making authority only to ethical employees
- Encourage employees to report violations
- Train employees on standards and procedures
- Enforce standards consistently and fairly
- Improve program after violations
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| 3 Influences on Ethical Decision Making |
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- The ethical intensity of the decision
- The moral development of the manager
- The ethical principles used to solve the problem
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- sets a standard of behavior
- Companies must communicate their code of ethics inside and outside the company
- They must also have a more specific and detailed code detailing ethics as they relate to that company
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| Two Types of Ethics Approaches |
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- Rule Based- employees must follow prescribed rules
- Values based- employees must do what they think is right
Must use both
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| Ethics Training- 3 objectives |
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- Develop employee awareness of ethics
- Achieve credibility with employees- (have managers teach ethics classes instead of outsiders)
- Teach employees a practical model of ethical decision making which will help them think about their choices and conseqquences
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| Model of Ethical Decision Making |
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- Identify the problem
- Identify the constituents
- Diagnose the situation
- Analyze your options
- Make your choice
- Act
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| the ability to influence and motivate others to reach their full potential. To be a leader you need followers, not just subordinates. Followers believe and follow you because you inspire, but subordinates follow because they have to. |
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| any set of elements that work together to produce a specified outcome. (business organization, team, group, or claims process at an insurance company) |
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| employees discounting or not ringing up merchandise their family and friends bring to the cash register |
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| employees unload trucks, stash merchandise in dumpster, and then retrieve it after work |
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| total fine is computed by multiplying the base fine by the culpability score |
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| argued that it is socially irresponsible for companies to divert time, money, and attention from maximizing profits to social causes and charitable orgnizations |
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| the ability to sense the social, political, technological, and economic context of the times and adopt a mental model that helped their organizations best respond |
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| blindly accepting rules and labels created by others. |
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| when people assume they have complete knowledge of a situation because of past experiences |
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| openness, putting aside preconceptions and suspending beliefs and opinions |
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| the ability to view the organization through a wide angle lens so that they can perceive how their decisions and actions affect the whole |
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| reality is made up of circles rather than straight lines |
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| refers to the ability to navigate the currents of organizational life, build networks, and effectively use political behavior to accomplish positive results |
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| the ability to recognize and serve the needs of employees, customers, or clients |
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| Emotionally intelligent team norms |
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- create a strong group identity
- build trust among members
- instill a belief among members that can be effective and succeed as a team
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