Business Ethics Chapter 5, 6, 7

corporate culture

a set of values, norms, and artifacts, including ways of solving problems that members (employees) of an organization share

education

the number of years spent in pursuit of academic knowledge

ethical culture

a function of many factors, including corporate policies on ethics, top management's leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior

ethical-issue intensity

the relevance or importance of an ethical issue in the eyes of the individual, work group, and/or organization

external control

view held by those who believe that the events in their lives are due to uncontrollable forces, considering what they want to achieve depends on luck, chance, and powerful people in their company

immediate job context

where individuals work, whom they work with, and the nature of the work, including the motivational "carrots and sticks"that superiors use to influence employee behavior

internal control

view held by those who believe that they control the events in their lives by their own effort and skill, viewing themselves as masters of their destinies and trusting in their capacity to influence their environment

leadership

the ability or authority to guide and direct others toward achievement of a goal

locus of control

individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements; how people view themselves in relation to power

moral intensity

a person's perception of social pressure and the harm the decision will have on others

nationality

is the legal relationship between a person and the country in which he or she is born

obedience to authority

one means used by many employees to resolve business ethics issues

opportunity

the conditions in an organization that limit or permit ethical or unethical behavior

significant other

an individual who has influence in a work group, including peers, managers, coworkers, and subordinates

transactional leader

attempts to create employee satisfaction through negotiating, or "bartering," for desired behaviors or levels of performance

transformational leader

strives to raise employees' level of commitment and to foster trust and motivation

act deontologist

holds that actions are the proper basis on which to judge morality or ethicalness; requires that a person use equity, fairness, and impartiality when making and enforcing decisions

act utilitarian

individual who examines a specific action itself, rather than the general rules governing it, to assess whether it will result in the greatest utility

consequentialism

teleological theories that assess the moral worth of a behavior by looking at its consequences

deontology

moral philosophies that focus on the rights of individuals and on the intentions associated with a particular behavior rather than on its consequences

descriptive relativism

assumes that through observation of the different norms, customs, and values exhibited by different cultures one can arrive at a factual description of a culture

distributive justice

justice based on the evaluation of the outcomes or results of the business relationship

economic value orientation

a theory associated with values that can be quantified by monetary means

egoism

theory that defines right or acceptable behavior in terms of its consequences for the individual

enlightened egoism

theory that allows for the well being of others although the self-interest of the individual remains paramount

goodness theory

focuses on the end result of actions and the goodness or happiness created by them

hedonism

concept that defines right or acceptable behavior as that which maximizes personal pleasure

idealism

a moral philosophy that places special value on ideas and ideals as products of the mind, in comparison with the world's view

instrumentalist

rejects the idea that (1) ends can be separated from the means that produce them and (2) ends, purposes, or outcomes are intrinsically good in and of themselves

interactional justice

justice based on evaluating the communication processes used in the business relationship

justice

as applied in business ethics, involves evaluations of fairness or the disposition to deal with perceived injustices of others

Kohlberg's model of cognitive moral development

theory stating that people make different decisions in similar ethical situations because they are in different stages of six cognitive moral development stages

metaethical relativist

holds that one culture's moral philosophy cannot logically be preferred to another because there exists no meaningful basis for comparison

monist

individual who believes that only one thing is intrinsically good

moral philosophy

the specific principles or rules that people use to decide what is right or wrong

nonconsequentialist

ethics based on respect for persons

normative relativism

assumes that one person's opinion is as good as another's

obligation theory

emphasizes the means and motives by which actions are justified.

pluralist

takes the position that no one thing is intrinsically good

procedural justice

justice based on the processes and activities that produce the outcome or results

qualitative hedonist

those who believe that it is possible to get too much of a good thing (such as pleasure)

quantitative hedonist

those who believe that more pleasure is better

realism

the view that an external world exists independent of our perception of it

relativist perspective

holds that definitions of ethical behavior are derived subjectively from the experiences of individuals and groups

rule deontologist

believes that conformity to general moral principles determines ethicalness; use reason and logic to formulate rules for behavior

rule utilitarian

individual who determines behavior on the basis of principles, or rules, designed to promote the greatest utility rather than on an examination of each particular situation

teleology

moral philosophies in which an act is considered morally right or acceptable if it produces some desired result such as pleasure, knowledge, career growth, the realization of self-interest, utility, wealth, or even fame

utilitarianism

theory that seeks the greatest good for the greatest number of people by making decisions that result in the greatest total utility and that achieve the greatest benefit for all those affected

virtue ethics

posits that what is moral in a given situation is not only what conventional morality or moral rules (current societal definitions) require but also what the mature person with a "good" moral character would deem appropriate

white-collar crime

an individual or group committing an illegal act in relation to his/her employment, who is highly educated (college), in a position of power, trust, respectability and responsibility, within a profit/nonprofit business or government organization and who a

apathetic culture

shows minimal concern for either people or performance; individuals focus on their own self-interests

caring culture

exhibits high concern for people but minimal concern for performance issues

centralized organization

organizational structure in which decision-making authority is concentrated in the hands of top-level managers and little authority is delegated to lower levels

coercive power

the ability to influence behavior by penalizing actions or behavior

compliance culture

transaction-based culture that focuses on compliance with policies and procedures

corporate

a set of values, norms, and artifacts including ways of solving problems that members (employees) of an

culture

organization share

cultural audit

tool to help companies assess their culture and benchmark against previous years' results to measure for organizational improvements

decentralized organization

organizational structure in which decision-making authority is delegated as far down the chain of command as possible

differential association

idea that people learn ethical or unethical behavior while interacting with others who are part of their role-sets or belong to other intimate personal groups

exacting culture

shows little concern for people but a high concern for performance; focuses on the interests of the organization

expert power

derived from a person's knowledge (or the perception that the person possesses knowledge)

formal group

an assembly of individuals that has an organized structure accepted explicitly by the group

group norm

standards of behavior that groups expect of their members

growth needs

needs that are satisfied by creative or productive activities

informal group

two or more individuals with a common interest but without an explicit organizational structure

integrative culture

combines high concern for people and for performance

job performance

considered to be a function of ability and motivation; in that employees can be motivated, but resources and know-how are also needed to get the job done

legitimate power

stems from the belief that a certain person has the right to exert influence and that certain others have an obligation to accept it

motivation

a force within the individual that focuses his or her behavior toward achieving a goal

qui tam relator

an employee providing information to the government about their company's wrongdoing

referent power

exists when a person perceives that his or her goals or objectives are similar to another person's and influences the other to take actions that will lead both to achieve their objectives.

relatedness needs

needs that are satisfied by social and interpersonal relationships

reward power

a person's ability to influence the behavior of others by offering them something desirable

Sarbanes-Oxley 404 compliance

section of the Sarbanes-Oxley Act that codifies actions required to effect cultural change, not merely accounting changes, within an organization; the intent is to expose mismanagement, fraud, theft, abuse, and to sustain a corporate culture that does not

values based ethics culture

relies upon an explicit mission statement that defines the firm as well as how customers and employees should be treated; focus is on values, not rules that help employees to decide to "do the right thing

whistle blowing

exposing an employer's wrongdoing to outsiders (external to the company) such as the media or government regulatory agencies

corporate culture

a set of values, norms, and artifacts, including ways of solving problems that members (employees) of an organization share

education

the number of years spent in pursuit of academic knowledge

ethical culture

a function of many factors, including corporate policies on ethics, top management's leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior

ethical-issue intensity

the relevance or importance of an ethical issue in the eyes of the individual, work group, and/or organization

external control

view held by those who believe that the events in their lives are due to uncontrollable forces, considering what they want to achieve depends on luck, chance, and powerful people in their company

immediate job context

where individuals work, whom they work with, and the nature of the work, including the motivational "carrots and sticks"that superiors use to influence employee behavior

internal control

view held by those who believe that they control the events in their lives by their own effort and skill, viewing themselves as masters of their destinies and trusting in their capacity to influence their environment

leadership

the ability or authority to guide and direct others toward achievement of a goal

locus of control

individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements; how people view themselves in relation to power

moral intensity

a person's perception of social pressure and the harm the decision will have on others

nationality

is the legal relationship between a person and the country in which he or she is born

obedience to authority

one means used by many employees to resolve business ethics issues

opportunity

the conditions in an organization that limit or permit ethical or unethical behavior

significant other

an individual who has influence in a work group, including peers, managers, coworkers, and subordinates

transactional leader

attempts to create employee satisfaction through negotiating, or "bartering," for desired behaviors or levels of performance

transformational leader

strives to raise employees' level of commitment and to foster trust and motivation

act deontologist

holds that actions are the proper basis on which to judge morality or ethicalness; requires that a person use equity, fairness, and impartiality when making and enforcing decisions

act utilitarian

individual who examines a specific action itself, rather than the general rules governing it, to assess whether it will result in the greatest utility

consequentialism

teleological theories that assess the moral worth of a behavior by looking at its consequences

deontology

moral philosophies that focus on the rights of individuals and on the intentions associated with a particular behavior rather than on its consequences

descriptive relativism

assumes that through observation of the different norms, customs, and values exhibited by different cultures one can arrive at a factual description of a culture

distributive justice

justice based on the evaluation of the outcomes or results of the business relationship

economic value orientation

a theory associated with values that can be quantified by monetary means

egoism

theory that defines right or acceptable behavior in terms of its consequences for the individual

enlightened egoism

theory that allows for the well being of others although the self-interest of the individual remains paramount

goodness theory

focuses on the end result of actions and the goodness or happiness created by them

hedonism

concept that defines right or acceptable behavior as that which maximizes personal pleasure

idealism

a moral philosophy that places special value on ideas and ideals as products of the mind, in comparison with the world's view

instrumentalist

rejects the idea that (1) ends can be separated from the means that produce them and (2) ends, purposes, or outcomes are intrinsically good in and of themselves

interactional justice

justice based on evaluating the communication processes used in the business relationship

justice

as applied in business ethics, involves evaluations of fairness or the disposition to deal with perceived injustices of others

Kohlberg's model of cognitive moral development

theory stating that people make different decisions in similar ethical situations because they are in different stages of six cognitive moral development stages

metaethical relativist

holds that one culture's moral philosophy cannot logically be preferred to another because there exists no meaningful basis for comparison

monist

individual who believes that only one thing is intrinsically good

moral philosophy

the specific principles or rules that people use to decide what is right or wrong

nonconsequentialist

ethics based on respect for persons

normative relativism

assumes that one person's opinion is as good as another's

obligation theory

emphasizes the means and motives by which actions are justified.

pluralist

takes the position that no one thing is intrinsically good

procedural justice

justice based on the processes and activities that produce the outcome or results

qualitative hedonist

those who believe that it is possible to get too much of a good thing (such as pleasure)

quantitative hedonist

those who believe that more pleasure is better

realism

the view that an external world exists independent of our perception of it

relativist perspective

holds that definitions of ethical behavior are derived subjectively from the experiences of individuals and groups

rule deontologist

believes that conformity to general moral principles determines ethicalness; use reason and logic to formulate rules for behavior

rule utilitarian

individual who determines behavior on the basis of principles, or rules, designed to promote the greatest utility rather than on an examination of each particular situation

teleology

moral philosophies in which an act is considered morally right or acceptable if it produces some desired result such as pleasure, knowledge, career growth, the realization of self-interest, utility, wealth, or even fame

utilitarianism

theory that seeks the greatest good for the greatest number of people by making decisions that result in the greatest total utility and that achieve the greatest benefit for all those affected

virtue ethics

posits that what is moral in a given situation is not only what conventional morality or moral rules (current societal definitions) require but also what the mature person with a "good" moral character would deem appropriate

white-collar crime

an individual or group committing an illegal act in relation to his/her employment, who is highly educated (college), in a position of power, trust, respectability and responsibility, within a profit/nonprofit business or government organization and who a

apathetic culture

shows minimal concern for either people or performance; individuals focus on their own self-interests

caring culture

exhibits high concern for people but minimal concern for performance issues

centralized organization

organizational structure in which decision-making authority is concentrated in the hands of top-level managers and little authority is delegated to lower levels

coercive power

the ability to influence behavior by penalizing actions or behavior

compliance culture

transaction-based culture that focuses on compliance with policies and procedures

corporate

a set of values, norms, and artifacts including ways of solving problems that members (employees) of an

culture

organization share

cultural audit

tool to help companies assess their culture and benchmark against previous years' results to measure for organizational improvements

decentralized organization

organizational structure in which decision-making authority is delegated as far down the chain of command as possible

differential association

idea that people learn ethical or unethical behavior while interacting with others who are part of their role-sets or belong to other intimate personal groups

exacting culture

shows little concern for people but a high concern for performance; focuses on the interests of the organization

expert power

derived from a person's knowledge (or the perception that the person possesses knowledge)

formal group

an assembly of individuals that has an organized structure accepted explicitly by the group

group norm

standards of behavior that groups expect of their members

growth needs

needs that are satisfied by creative or productive activities

informal group

two or more individuals with a common interest but without an explicit organizational structure

integrative culture

combines high concern for people and for performance

job performance

considered to be a function of ability and motivation; in that employees can be motivated, but resources and know-how are also needed to get the job done

legitimate power

stems from the belief that a certain person has the right to exert influence and that certain others have an obligation to accept it

motivation

a force within the individual that focuses his or her behavior toward achieving a goal

qui tam relator

an employee providing information to the government about their company's wrongdoing

referent power

exists when a person perceives that his or her goals or objectives are similar to another person's and influences the other to take actions that will lead both to achieve their objectives.

relatedness needs

needs that are satisfied by social and interpersonal relationships

reward power

a person's ability to influence the behavior of others by offering them something desirable

Sarbanes-Oxley 404 compliance

section of the Sarbanes-Oxley Act that codifies actions required to effect cultural change, not merely accounting changes, within an organization; the intent is to expose mismanagement, fraud, theft, abuse, and to sustain a corporate culture that does not

values based ethics culture

relies upon an explicit mission statement that defines the firm as well as how customers and employees should be treated; focus is on values, not rules that help employees to decide to "do the right thing

whistle blowing

exposing an employer's wrongdoing to outsiders (external to the company) such as the media or government regulatory agencies