Business Ethics Chapter 5
significant others
Those who have influence in a work group, including peers, managers, coworkers, and subordinates
A corporate culture
is a set of values, beliefs, goals, norms, and ways of solving problems that members (employees) of an organization share.
The descriptive approach
provides an understanding of the role of individuals in an organizational context for making ethical business decisions.
Applying a personal moral philosophy is the first step in the ethical decision-making process.
False
Opportunity
The conditions in an organization that limit or permit ethical or unethical behavior
external control
Those who see themselves as going with the flow because that is all they can do
A corporate culture can be defined as ______.
a set of values, beliefs, goals, norms, and ways to solve problems that employees of an organization share
Ethical opportunity
are conditions that provide rewards, whether internal or external, or limit barriers to ethical or unethical behavior.
Core values
are enduring beliefs about appropriate conduct and provide guidance for the ethical direction of the firm.
instrumental concern
focuses on positive outcomes, including firm profitability and benefits to society
Rawls's develop two main principles of justice:
liberty and the difference principle
Equality Principle
. AKA Liberty princpile . states that each person has basic rights that are compatible to the basic liberties of others
The different individual factors that affect ethical decision making
. Age . Gender . Education . Nationality . Locus of Control
Organizational Factors in Ethics
. Corporate culture . ethical culture . significant others . Obedience to authority
Obedience to authority
A reason employees resolve business ethics issues by simply following the directives of a superior
Which of the following is NOT a factor in the ethical decision-making model?
a. ethical issue intensity b. employee benefits packages* c. opportunity d. individual factors e. organizational factors
Age
An individual factor that has a complex relationship with business ethics
What is the first sign an unethical decision may have occurred
Guilt or uneasiness
normative approaches
How organizational decision makers should approach an issue
gender
In ethical decision making, research shows that in many aspects there are no differences between men and women
Individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements is known as ______.
Locus of control
_____ involves the conditions for encouraging or limiting ethical behavior in an organization through rewards for ethical behavior or failing to prohibit unethical behavior.
Opportunity
The opportunities that employees have for unethical behavior in an organization can be nearly eliminated through formal codes, policies, and rules that are adequately enforced by management.
True
___________ are enduring beliefs and ideals that are socially enforced
Values
immediate job context
Where they work, whom they work with, and the nature of the work
Elena, an employee at ABC Marketing, has observed misconduct at work and wonders if she should report it. In the end, she decides not to do so because of the possible repercussions at work. Which of the following has determined the Elena's action?
a. opportunity b. control issues c. corporate culture d. organization factors* e. individual factors
According to researchers, normative values largely originate from all of the following EXCEPT ______.
a. religion b. government c. the media* d. friends e. family
Ethical ______ is the ability to perceive whether a situation or decision has an ethical dimension.
awareness
The ability to perceive whether a situation or decision has an ethical dimension is defined as ______.
ethical awareness
The relevance or importance of an ethical issue in the eyes of the individual, work group, and/or organization is known as ______.
ethical issue intensity
Opportunity relates to
individuals' immediate job context
What is the first step in ethical decision making?
is to recognize that an ethical issue requires an individual or work group to choose among several actions that will ultimately be evaluated as ethical or unethical by various stakeholders
Which of the following is supported by research concerning significant others?
may have more impact on a worker's decisions on a daily basis than any other factor
Difference principle
states that economic and social equalities or inequalities should be arranged to provide the most benefit to the least-advantaged members of society
Ethical awareness
the ability to perceive whether a situation or decision has an ethical dimension
Which of the following statements best describes an opportunity?
the conditions in an organization that limit or permit ethical or unethical behavior
Rawls used what he called the veil of ignorance which led him to develop ______.
the difference principle in that economic and social equalities (or inequalities) should be arranged to provide the most benefit to the least-advantaged members of society
Ethical issue intensity
the relevance or importance of an event or decision in the eyes of the individual, work group, and/or organization
institutional theory
theory that organizations operate according to taken-for-granted institutional norms and rules
Veil of Ignorance
. a thought experiment that examined how individuals would formulate principles if they did not know what their future position in society would be . Created by Rawls
The amount of competition in an industry can be determined and described according to the following:
. barriers to entry into the industry, . available substitutes for the products produced by the industry rivals, . the power of the industry rivals over their customers, and . the power of the industry rivals' suppliers over other rivals.
A normative approach to business ethics
. examines what ought to occur in business ethical decision making . ideal standard
Moral intensity
. the degree to which an issue demands the application of ethical principles . To individuals' perceptions of social pressure and the harm they believe their decisions will have on others
Corporate culture
A set of values, norms, and artifacts, including ways of solving problems that members (employees) of an organization share
Education
A significant factor in the ethical decision-making process; generally, the more education or work experience people have, the better they are at making ethical decisions
__________ & ___________ are important normative considerations in ethical decision making
Principles and values
ethical culture
Reflects the integrity of decisions made and is a function of many factors, including corporate policies, top management's leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior
Nationality
The legal relationship between a person and the country in which he or she is born
Which statement best describes ethical issue intensity?
The perceived relevance or importance of an ethical issue to the individual, work group, and/or organization
internal control
Those believe 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
Locus of control
To individual differences in relation to a generalized belief about how you are affected by internal versus external events or reinforcements