ETHICS MIDTERM

overconfidence

- be more confident in our ethical abilities

Framing

- ethical choice depends on how issue is framed

Behavioral ethics messages

- people usually make their choices based on instincts - believe we're ethical while doing things ethic people would not do - unethical choices are often unconsciously influenced

Ethical fading

- so focused on other aspects of a decision that ethical parts are failed to be seen

conscious capitalism

-organization has a higher purpose - creating value for stakeholders - leadership cares and leads by example - caring culture / great place to work

Why might a company not want to investigate reports of misconduct?

An investigation is often time-consuming and expensive.

business structure

Board of directors, >ceo, > research, production, marketing, finance, admin

What are the benefits of ethical leadership?

Employees are more willing to work for ethical companies.

Which statement is true about the ethical decision-making of leaders?

Ethical leaders must often make trade-offs regarding stakeholder demands.

What is true about ethical leaders?

Ethical leaders place company interests above their own.

Which statement best describes codes of ethics?

Formal statements describing what an organization expects of its employees

What is the definition of ethical issue intensity?

How important an ethical issue is perceived to be by a company or individual

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

How they respond to mistakes

Which definition best describes organizational ethical leadership?

Influencing others to ethically achieve company goals

Which definition best describes organizational ethical leadership

Influencing others to ethically achieve company goals.

Integrity Principles

Integrity, trust, accountability, transparency, fairness, respect, rule of law, viability

Why is shared leadership important?

It establishes checks and balances on every member of the organization.

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

It is about finding a way to balance between profitability and social consciousness.

Many individuals caught in misconduct claim that they were "just following orders" from their superiors. What type of power might this reflect on the part of the leader?

Legitimate power

What is organizational ethics?

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

What is a characteristic of an ethical leader?

They have a passion to do the right thing

Which tends to be the most observed misconduct in the workplace?

Time theft

An "ethical blind spot" refers to ___________________.

a person's underestimation of his or her own potential to commit misconduct

Unlike an ethical issue, in an ethical dilemma _____________.

all the decisions have negative consequences

primary stakeholders

direct relationship with company - customers, employees, shareholders - essential to firm's survival

secondary stakeholders

don't engage directly - media, trade assoc.

In this section, ___________ was identified as the best way to identify misconduct in an organization.

employee reporting

self serving bias

gather info in self serving way, fail to see they're acting unethically

Ethical leaders must ____________ ethical issues and risks.

identify

Loss aversion

more likely to act unethically to avoid a loss rather than secure a gain

Utilitarian

most ethical choice that produces greatest good for largest number of people - deals with consequences

Tangible and abstract

people remember tangible factors at the expense of more abstract ones - death of pet bothers you more than starving children in Africa

Dan Ariely

professor- behavior economics - everyone has capacity to be dishonest - small scale mass cheating

Incrementalism

slippery slope - once you make a minor act, it leads to bigger ones

Those with an internal locus of control believe __________.

they have control over events in their lives

Deontology

uses rules to distinguish right from wrong

principle based

using ethical values and principles to guide behavior

Sarbanes - Oxley

act created in response to corporate scandals - re instill confidence in marketplace - CEOs and CFOs must certify and approve company integrity with quarterly financial reports -company is required to establish code of ethics - prohibits providing both audit and non audit services - whistleblower protection

stakeholder orientation

approach for maximizing positive outcomes to meet stakeholder needs

ethical egoism

belief that humans should always act in what they view to be their best interest

Principles, values, _______, and ________ form an organizational culture.

norms; artifacts

Core practices are

not legally mandated but are considered best practices of the industry.

An ethics officer can do little good without _____________________.

support from top management and board members

Virtue

assumes we acquire virtue through practice

Dodd-Frank Act

- whistleblower bounty program - 10 to 30% financial comp if convictions result in more than $1 million