Business ethics

What is the first step organizations must take in order to meet the needs of their stakeholders?

Gather data on stakeholders.

What is one of the biggest ethical risks that companies face?

Complacency

What is one way that ethical leaders can empower employees?

Creating an open communication environment.

What are the benefits of ethical leadership?

Employees are more willing to work for ethical companies.

What statement is true about ethical decision making in leaders?

Ethical leaders must often make trade offs regarding stakeholder demands.

What is true about how ethical leaders should perceive stakeholders?

Ethical leaders view stakeholders as co-contributors to the firm.

Fraud triangle

Financial Pressure, Rationalization, Opportunity

Why would an organization not want to rely solely on an individual's personal ethics?

Individual personal values differ significantly and can result in unethical conduct.

Organizational Ethical Leadership

Influencing others to ethically achieve company goals

According to Howard Schultz, which of the following is true about ethical leadership?

Its about finding a way to balance between profitability and social consciousness

Which of these is the least likely to influence an individual's personal ethics?

Regulatory guidance

What is organizational ethics?

Right or wrong, acceptable or unacceptable conduct in an organizational environment

Which of these is a secondary stakeholder?

Special interest groups

ethical leader

Strong ethical character, passion to do the right thing, proactive, include stakeholders in major decisions, concerned with the concept of fairness, incorporate core ethical principles into their decision making, combine ethics knowledge with management knowledge

Leaders who display good character....

Take responsibility for ethically meeting stakeholder needs.

Why would it be a mistake to ignore secondary stakeholders?

They can be an ally or a threat to an organization.

Why might ethics mistakes actually improve an organization in the long run?

They give a firm an opportunity to learn from their mistakes.

What similarity do they share that contributes to their firm's ethical cultures?

They have ability to align employees behind a common vision.

T/F Unethical Conduct is not always black and white

True

Leaders must clearly display...

competence, knowledge, credibility

Apathetic culture

did not appear to care fore the employees' well being or the long term success of the company

Compliance based approach

emphasize obedience to legal requirements

Integrative culture

employees provided with decision making authority

Sarbanes Oxley

establish a system of federal oversight of corporate accounting practices and to restore stakeholder confidence

Dodd-Frank

instituted a whistle-blower bounty reward program

Apathetic leader

not necessarily unethical, but care little for ethics within the company

Exacting culture

quick efficient delivery times, high service, customer value

Caring culture

seeks to promote employee happiness

Integrity based approach

take responsibility for the ethical conduct of the firm and hold employees accountable for practicing ethical behaviors

Which statement is true regarding the aftermath of the financial crisis?

Consumer trust of business hit a low point.

Which of the following differentiates ethical leaders from non ethical leaders?

How they respond to mistakes.

Principle Approach

which option adheres to the Daniels Principles

Rights Approach

which option best respects the moral rights of all individuals who have a stake

Virtue Approach

which option leads me to act as the sort of person I want to be

Fairness or Justice Approach

which option treats everyone the same way and does not show any favoritism

Utilitarian Approach

which option will produce the most good and do the least harm