Which of the following best describes ethics?
The study of how human beings should properly live their lives
Like ethics, social sciences such a psychology and sociology also examine human decision making and actions. However, these fields differ from ethics because they are
descriptive in nature
Individuals codes of conduct based on one's value structures regarding how one should live, how one should act, what one should do, what kind of a person one should be, etc. is sometimes referred to as
morality
The aspect of ethics that examines business institutions from a social rather than an individual perspective is referred to as
corporate social responsibility
Standards of appropriate and proper behavior
Norms
Which of the following is true about values?
Values are underlying beliefs that cause us to act or decide in a certain way
Which of the following are beliefs and principles that provide the ultimate guide to a company's decision making?
Core values
Which of the following best describes the norms that guide employees, implicitly more often than not, to behave in way that the firms values and finds worthy?
Organizational culture
Dramatic examples from history, including Nazi Germany and apartheid in South Africa demonstrate that:
one's ethical responsibility may run counter to the law
The failure of personal ethics among companies like Enron led to the creation of the:
Sarbanes-Oxley Act
The three major categories of the ethical framework are:
consequences, principles, and virtue ethics
Which of the following ethical transitions direct us to decide based on overall consequences of our acts?
teleological ethics
Identify the ethical tradition that directs us to act on the basis of rules and a sense of duty
Deontological ethics
The study of character and habits that can contribute to, or obstruct, a happy and meaningful human life comprises the ethical tradition of
virtue ethics
What is the difference between a principles-based framework of ethics and utilitarianism ?
ethics of principles on rules, whereas utilitarianism is based on consequences
Which of the following traditions is commonly identified with the rule of producing the "greatest good for the greatest number"?
utilitarianism
Which of the following traditions would support child labor if it produces better overall consequences than the available alternatives?
utilitarianism
No society or group could functions if members were free at all times to decide for themselves what to do and how to act. Which of the following functions to organize and ease relations between individuals ?
Social contract
Which of the following ethical approaches emphasize the need to follow the law regardless of unfavorable consequences?
principle-based?
Which of the following approaches shifts the focus from questions about what a person should do to focus on who that person is?
Virtue ethics
The inability to recognize ethical issues is known as
normative myopia
Speaking on a cell phone while driving, and as a result, missing a highway turn-off by mistake is an example of:
inattentional blindness
The Arthur Andersen auditors did not notice how low Enron had fallen in terms of its unethical decisions over a period of time. This omission is an example of:
change blindness
Jim resides in the vicinity of a steel manufacturing firm. Any changes in the pollution control or waste treatment policy of the firm indirectly affects Jim. In this sense, Jim is a
stakeholder
In the ethical decision-making process, once we have examined he fact, identified the ethical issues involved, and identified the stakeholders, we need to next ...
consider the available alternatives
Which of the following elements is important not only to consider the obvious options with regard to a particular dilemma, but also the much more subtle ones that might not be evident at first blush?
Moral imagination
In the ethical decision-making process, identify the step that involves applying the ethical framework (teleological, deontological, and virtue ethics).
comparing and weighing the alternatives
Which of the following is the final step in the ethical decision-making process?
Monitoring and learning from outcomes
Which of the following is true of inattentional blindness?
it results from focusing failures, missing details. Ex:missing a turn-off because of being on the phone
What is the term used in business ethics in situations where individuals or a group select the option that meets the minimum decision criteria, the one that people can live with, even if it might not be the best.
Satisficing
Which of the following is true about corporate cultures?
Corporate cultures can hinder individuals in making the "right" decisions
Corporate culture:
is fashioned by a shared patter of beliefs, expectations, and meanings that influence and guide the thinking of behaviors of the members of that organization
Which of the following statements is true of ethical cultures?
Employees are expected to act in a responsible way, even if the law does not require it.
Which of the following is a traditional approach to corporate culture?
Compliance-based
Which of the following is true about compliance-based culture and/or value-based culture?
Values-based organizations include a compliance structure
Which of the following is true about ethical leaders?
An ethical leaders' traits and behaviors musts be socially visible
The _______________ serves as an articulation of the general principles at the heart of the organization and should guide all decisions
mission statement
If we judge a leader solely by the consequences of his/her actions, we are following _____________ ethics
teleological
Which of the following allows employees to report wrongdoing anonymously and effectively?
ombudsman
Which of the following is true about the Sarbanes-Oxley Act?
It requires public companies to establish a code of conduct for top executives
Which of the following best describes corporate social responsibility?
It refers to the actions for which a business can be held accountable towards society
Which of the following is true about the economic model of CSR?
It contends that the goal of business managers should be to pursue profit within the law
According to the economic model of corporate social responsibility, the pursuit of profit will continuously work toward the optimal satisfaction of consumer demand which, in the interpretation of ________________ is equivalent to maximizing the overall go
utilitarianism
Which of the following is the most basic social responsibility?
A business should not sell a product that causes harm to consumers
Which of the following statements is true about the philanthropic model of corporate social responsibility?
This model holds that business has no strict obligation to contribute to social causes, but does so anyway because it is good for PR or it is just the right thing to do
Which of the following models of corporate social responsibility considers business a citizen of the society that it operates in?
Social Web model
Which of the following theories recognizes the fact that every business decision affects a wide variety of people - benefiting some and imposing costs on others?
Stakeholder theory
Stakeholder theory is an example of the:
Social web model of corporate social responsibility
A firm that balances its social goals against economic goals and does justice to both is said to follow the:
integrative model of corporate social responsibility
Sustainability holds that:
a firm's financial goals must be balanced against environmental considerations
Why do laws not always apply to business situations?
too many possible business challenges, would have to be extremely specific and would become unmanageable, not effective in promoting goods, law cannot anticipate every dilemma, compliance isnt enough
value-based culture
aka integrity based. Reinforces a particular set of values
compliance-based culture
(traditional approach). Reinforces a particular set of rules/policies
steps of ethical decision-making process
1. determine facts
2. identify ethical issues
3. identify all stakeholders
4. identify alternatives
5. compare and weigh alternatives (APPLY ETHICAL FRAMEWORK)
6. make and challenge the decision
7. monitor and learn
Cons of utilitarianism
ends justified means
teleological approach to ethics
focuses on consequences of decision
what type of science is ethics
normative science
egoism
view which holds that people act only out of self-interest
altruism
the belief in or practice of disinterested and selfless concern for the well-being of others.
whistleblowing
disclosure of unethical or illegal activities to someone who is in a position to take action to prevent or punish the wrongdoing.
What constitutes an effective compliance and ethics program?
...
social marketing
firm may use the image of social responsibility to garner customer support or employee loyalty while the facts do not evidence a true commitment. Focus on reputation. Faking CSR for PR purposes
reputation management
practice of attending to the "image" of a firm.
enlightened self-interest
good ethics = good business
An ethical leader must...
be visible and model ethical behavior
Virtue ethics
based on personal character and virtues
Decision making can be based off...
intuition, rational, or ethics
teological
consequences
deontological
principles/rules
virtue
character/values
CARE
C-consistency
A-accountability
R-rational
E-equity
7 characteristics of organizational culture
1. innovation & risk taking
2. attention to detail
3. outcome orientation
4. people orientation
5. team orientation
6. aggressiveness
7. stability
how to create ethical corporate culture
1. create mission statement (credo)
2. create vision statement (org's direction)
3. create a code of conduct (way to conduct ourselves)
4. have upper management on board
5. integrate ethics into the org. structure
6. assessing & monitoring
3 levels of CSR
-not to case harm
-to prevent harm
-to do good
managing social responsability
obstructionist
defensive
LAW
acccomodative
proactive
ethics is based on _________ and ________________
norms and values
Kant
deontology, duties/principles/rules
bentham
utilitarianism, teolological, concequences
aristotle
virtue
Corp Reputation Management
CSR
Products and Services
Emotional appeal
Workplace environment
Vision & leadership
Financial Performance
Some employers might decide to treat employees well as a means to produce greater productivity. This approach remind of _______________ ethics
utilitarian
Which of the following statements is true about the right of due process?
In legal contexts, due process refers to the procedures that police and courts must follow in exercising their authority over citizens in safeguarding their human rights
Identify the correct statement about bullying
bullying can lead to fear, intimidation, and a complete loss of personal dignity
identify the doctrine which holds that employers are free to fire an employee at any time and for any reason, unless an agreement specifies otherwise
the doctrine of employment at will
in some regions, employees lack even the most basic health and safety protections in their workplaces. Such work environments are termed as
sweatshops
According to economic theory the exploitation of cheap labor in sweatshops
can improve working conditions overtime
The life of one who dies in a workplace accident has _____________ value that can be measured, in part, by the lost wages that would have been earned had that person lived
instrumental
Which of the following is discrimination against those traditionally considered to be in power or the majority?
reverse discrimination
Title VII of the _____________, passed in 1964, created the prohibited classes of discrimination.
Civil Rights Act
Identify the correct statement about government standard in the government-regulated ethics approach to health and safety
standards can overcome market failures
Two general and connected understandings of privacy have been identified: privacy as a right to be "left alone" within a personal zone of solitude, and privacy as the
right to control information about oneself
The constitution's Fourth Amendment protection against unreasonable search and seizure governs only the public sector workplace because:
the Constitution applies only to state action
From a utilitarian perspective the right to control information about oneself may be outweighed in cases where:
public safety is at risk
While approaching an ethical issue in marketing, the Kantian tradition would:
ask to what degree the participants are respected as free and autonomous agents rather than treated simply as a means to the end of making a sale
A consumer's consent to purchase a product is not informed if that consumer is
being misled or deceived about the product
Excessive consumption can lead to unhappiness, a condition termed
Affluenza
The legal doctrine of strict liability is ethically controversial because:
it holds a business accountable for paying damages whether or not it was at fault
In selling a product, a business offers tacit assurances that the product is reasonably suitable for its purpose. The law refers to this as the:
implied warranty of merchantability
Consumer vulnerability occurs when:
a person has an impaired ability to make an informed consent to the market exchange
What is negligence
Unintentional failure to exercise reasonable care not to harm other people.
The triple bottom line approach involves measuring sustainable business success in terms of:
social, environmental, and economic sustainability
Which of the following is true about the market-based approach to environmental responsibility?
market failure occurs when no markets exist to create a price for important social goods
In which of the following ways can market failure result in serious environmental harm?
making no distinction between individual decision and group concequences
According to the _______________ tradition, it is suggested that some animals have the cognitive capacity to possess a conscious life of their own and people have a duty not to treat animals as mere objects and means to their own ends.
Kantian
Which of the following is true about the regulatory approach to environmental challenges?
it shifts the burden from those threatened with harm to those who would cause them
Which of the following models takes into consideration the origin of resources?
the biosphere model of economy
which of the following is true of the circular flow model?
it treats economic growth as both the solution to all social ills and also as boundless
which of the following is true of sustainability in terms of environmental responsibilities?
the huge unmet market potential among the world's developing economies can only be met in sustainable ways
Estimates suggest that with present technologies, business can readily achieve at least a fourfold increase in efficiency, and perhaps as much as a tenfold increase. This can be achieved through one of the principles of sustainability known as:
eco-efficiency
Which of the following suggests that a business takes resources, makes products out of them, and discards whatever is leftover?
the take-make-waste approach
Identify the gatekeepers who function as intermediaries between a company's stockholders and its executives?
board of directors
A ________ exists where a person holds a position of trust that requires that she exercise judgement on behalf of others, but where her personal interests conflict with those of others
conflict of interest
Which of the following statements is true of the Sarbanes-Oxley Act?
it was passed by Congress because corporate boards failed to police themselves
A professional is said to have ______________ if he has a professional and ethical obligation to clients rooted in trust that overrides his personal interests.
fiduciary duties
Which of the following legal duties of board members suggests that conflicts of interest are always to be resolved in favor of the corporation?
duty of loyalty
According to many experts, which of the following are additional ethical responsibilities board members should have beyond legal obligations?
they should not only be accountable to stockholders, but also to other stakeholders of the corporation
Which of the following is true of high compensation packages for executives?
when huge amounts of compensation depend on quarterly earning reports, there is a strong incentive to manipulate those reports in order to achieve the money
Which of the following scenarios gives rise to conflicts of interests in corporate governance?
senior executives determining the compensation received by board members
Sara, an employee of Pentacomp, passed on confidential information of her company to her friend. Her friend benefited from selling Pentacomp's stock based on the information shared by Sara, in this scenario, Sara can be convicted of:
insider trading
Internal control is a process, effectuated by an entity's board of directors, management, and personnel, designed to provide reasonable assurance regarding the achievement of the following:
all of the above (effectiveness and efficiency of operations, reliability of financial reporting, and compliance with application laws and regulations)
stakeholder
all groups/individuals affected by a decision, policy or operation of a firm or individual
code of conduct
provides standards of behavior and guidance for internal decision making
models of CSR
economic, philanthropic, social web, and integrative
What is an acceptable workplace risk
probability of harm involved in a specific work activity is equal to or less than the probability of harm of some more common activity (acceptable level of risk)
affirmative action
policy or program that tries to respond to instances of past discrimination by implementing proactive measures to ensure equal opportunity today
Two general and connected understandings of privacy
-right to be left alone
-right to control information about oneself
Issues with privacy in organizations
failure to protect privacy may lead to an inability to protect personal freedom and autonomy. The concept of property rights leaves the question of who controls tangibles/intangibles.
intrusion into seclusion
happens when someone intentionally intrudes on the private affairs of another when the intrusion would be "highly offensive to a reasonable person
pros and cons of drug testing
-pros: safeguarding company from certain behaviors and work related injuries, etc.
-cons: may be unethical to rely on signs for suspicious behavior
pros and cons of monitornig
cons: invading privacy, not understanding the autonomy of others
pros: intentional mis-conduct scenarios, etc
Hawthorne effect
workers are found to be more productive based on the psychological stimulus of being singled out, which makes them feel more important. Merely knowing you're being studied may make you a better worker. :Ex agent calls being monitored in a call center
otherwise qualified" under the ADA means...
if she or he can perform the essential functions of the position with or without reasonable accomodations
teleological and deontological traditions that apply to marketing
teological - mark true costs of production in a way that will avoid causing harm to customer
deontological - duty to inform, get consent from consumer on purchase/transaction
why is manipulation ethically wrong?
working behind the scenes guiding their behavior without their explicit consent or conscious understanding. Seeks to bypass autonomy, deception
vulnerable populations
target advertising an audience by trying to manipulate people by appeal to nonrational factors
consumer vulnerability
consumer that has an impaired ability to make an informed consent to the market change
what is the first-generation problem?
preventing future harm by sacrificing the first generation as a means to gaining information
sustainability approach
organization must use resources only at a rate that can be sustained over he long-term and recycle or reuse both by-products and products
three pillars of sistainability
social, economic, and environmental
biomimicry
models entire production process on biological processes - mimics nature, eliminates waste all together
role of gatekeepers
watchdogs", ensure that those who enter into the marketplace are playing by the rules and conforming to the very conditions that ensure the market functions as it is supposed to function