Management (Griffin) - Chapter 4
political action committee (PAC)
An organization created to solicit and distribute money to political candidates
philanthropic giving
Awarding funds or gifts to charities or other worthy causes
ethical behavior
Behavior that conforms to generally accepted social norms
unethical behavior
Behavior that does NOT conform to generally accepted social norms
regulation
Government's attempts to influence business by establishing laws and rules that dictate what businesses can and can't do
distributive justice
People's perceptions of the fairness with which rewards and other valued outcomes are distributed within the organization
informational justice
Perceived fairness of information used to make decisions. (Is it complete, accurate, and relevant, and was it appropriately processed?)
interpersonal justice
Perception of the degree of fairness with which people are treated by others in the organization
procedural justice
Perceptions of the fairness used to determine various outcomes (e.g. performance evaluations)
organizational stakeholder
Person or organization who is directly affected by the practices of an organization, and has a stake in its performance
managerial ethics
Standards of behavior that guide individual managers in their work
whistle-blowing
The disclosure, by an employee, of illegal or unethical conduct on the part of others within the organization
ethical compliance
The extent to which an organization and its members follow basic ethical standards of behavior
legal compliance
The extent to which an organization complies with local, state, federal, and international laws
ethics
An individual's personal beliefs about whether a behavior, action, or decision is right or wrong
arguments FOR social responsibility
(1) business creates problems, and should therefore help solve them; (2) corporations are citizens in our society; (3) business often has the resources necessary to solve problems; (4) business is a partner in our society, along with the government and the general population.
arguments AGAINST social responsibility
(1) the purpose of business is to generate profit for its owners; (2) involvement in social programs gives businesses too much power; (3) there is potential for conflicts of interest; (4) business lacks the expertise to manage social programs
corporate social audit
A formal and thorough analysis of the effectiveness of a firm's social performance
code of ethics
A formal, written statement of the values and ethical standards that guide a firm's actions
Sarbanes-Oxley Act (2002)
A law passed in 2002 that requires CEO's & CFO's to personally vouch for the truthfulness and fairness of their firms' financial disclosures
defensive stance
A social responsibility stance in which an organization does everything that's required of it legally, but NOTHING MORE
accommodative stance
A social responsibility stance in which an organization meets its legal & ethical obligations, but will ALSO SOMETIMES GO BEYOND these obligations IN SELECTED CASES
proactive stance
A social responsibility stance in which an organization views itself as a citizen in a society and proactively seeks opportunities to contribute
obstructionist stance
An approach to social responsibility in which firms do as little as possible to solve social or environmental problems
organizational justice
The perception of people in an organization regarding fairness (distributive justice, procedural justice, interpersonal justice, and informational justice)
social responsibility
The set of obligations an organization has to protect and enhance the societal context in which it functions
lobbying
The use of persons or groups to formally represent an organization (or group of organizations) before political bodies to influence the government
FOUR ethical norms
UTILITY (optimized the best for all constituencies?); RIGHTS (does it respect rights/duties of people involved?); JUSTICE (is it consistent with what's fair?); CARING (consistent with my responsibility to care?)
