MGMT_643: Ch. 3 - Business Ethics

Moral principles and values applied to social behavior

ethics

(4) Steps of Making an Ethical Business Decision: 1. ______ 2. ______ 3. _____ 4. _____

inquiry, discussion, decision, review

When making decisions, a business should evaluate each of the following: (4 part Analysis) 1. The _____ implications of each decision. 2. The _____ ______ impact. 3. The _____ risks for consumers and employees. 4. The ______ implications.

legal, public relations, safety, financial

Short Run vs. Long Run Profit Maximization: In the ____ ____, though, because of lawsuits, large settlements, and bad publicity, such unethical conduct will cause profits to suffer.

long run

Performing a ____________ will assist the firm in making decisions that not only maximize profits but also reflect good corporate citizenship.

4 part analysis

Another ethical problem in global business dealings has to do with corruption in foreign governments.

avoiding corruption

When businesspersons are not even aware that the decision has ethical implications.

awareness

The study of _______ _______ helps us think about the issues in the business world.

business ethics

What constitutes right and wrong behavior in the world of business and how moral and ethical priniciples are applied by business people in situations that arise in their daily work lives

business ethics

Relationship btw Law & Ethics: The minimum ethical standard in business is to _____________.

comply with the law

Role of Ethics in Society: Business as a _______ _______: humanizes business; views it as a human

corporate citizen

Business owners and managers sometimes take more active roles in fostering unethical and illegal conduct, with negative consequences for their businesses.

fostering of unethical conduct

Many businesses contract with companies in developing nations to produce goods, such as shoes and clothing, because the wage rates in those nations are significantly lower than those in the United States.

monitor foreign suppliers

Relationship btw Law & Ethics: The minimum ethical standard in business is to comply with the law. This is known as the _______ _______.

moral minimum

Ethical problems involving outsourcing most often arise when global companies outsource work to other countries in an attempt to save on labor costs.

outsourcing

Role of Ethics in Society: Business as a _______ _______: Only want to max profits; risk losing sight of ethics, which can lead to problems

profit maximizer

Triple Bottom Line: 1. _______ 2. _______ 3. _______

profits, people, planet

When businesspersons make decisions that benefit them or their company knowing that the decisions are ethically questionable. Afterward, they rationalize their bad behavior.

rationalization

Global businesses need to be conscious of the impact of different religious principles and cultural norms on ethics

religious and cultural norms

Short Run vs. Long Run Profit Maximization: In the _____ _____, a company may increase its profits by continuing to sell a product even though it knows that the product is defective.

short run

* An overemphasis on ____ _____ _____ _____ is perhaps the most common reason that ethical problems occur in business.

short run profit maximization

The most common reason ethical problems occur in business:

short run profit maximization

One of the most important ways to create and maintain an ethical workplace is for _____ ______ to demonstrate its commitment to ethical decision making.

top management

Importance of Ethical Leadership: (3) 1. Attitude of ______ ______ 2. ______ ______ for employees 3. Fostering _____ _____

top mgt, unrealistic expectations, unethical conduct

The idea that the firm should be concerns with the corporation's profits, its impact on people, and its impact on the planet.

triple bottom line

When businesspersons are uncertain as to what they should do, what they should have done, or (as mentioned) whether there was even an ethical issue or ethical breach involved.

uncertainty

Managers who set unrealistic production or sales goals increase the probability that employees will act unethically.

unrealistic goals for employees

Relationship btw Law & Ethics: Compliance with the law does _____ make the decision ______.

NOT, ethical