Ch. 5

Amount of explicit control

High: Domain of codified law (legal standard) Middle: Domain of ethics (social standard) Low: Domain of free choice (personal standard)

code of ethics

When managing corporate ethics, this is used as a formal statement of the company's position on what is right and wrong

policy-based statement

When the Clearkiln Glass company went bankrupt, management used this type of statement to tell employees that they should refer all questions about the company's financial information to an outside financial services agency.

For the last two school years, Alyssa has shared a house near campus with several of her friends. The arrangement has been great, especially because her parents cover her rent payments. Her boyfriend recently suggested they get an apartment together. After weighing the pros and cons, she agrees but says that they can't ever let her parents find out or they'll cut her off financially. Is Alyssa making the right choice? Stasia's reaction to this scenario is: "No. In general, you shouldn't lie to your folks. Sometimes you can lie about little things such as parties in order to spare them the gory details. This, however, is huge." Which of Kohlberg's levels of development does this response represent?

postconventional

sustainability

These are actions that utilize resources effectively now, and conserve those resources for future use.

Individualism approach

This ethical code says that people should do whatever is right for them personally in the long run

Utilitarian approach

This ethical code says that people should do whatever produces the highest and best outcome for the largest number of people

Preconventional

-level 1 -follows rules to avoid punishment. acts in own interests. obedience for its own sake. -leadership style: autocratic/coercive employee behavior: task accomplishment

Conventional

-level 2 -lives up to expectations of others. fulfills duties and obligations of social system. upholds laws. -leadership style: guiding/encouraging -employee behavior: work group collaboration

companies should view whistleblowers as _________

assets to be valued

Ethical responsibility

be ethical. do what is right. avoid harm

to be effective, codes of ethics must be supported and _________ by senior management

enforced

under which condition will codes of ethics be less effective?

if people who violate the codes are not punished

if there is a criminal investigation pending on a company, it suggests that they are not meeting obligations at a _________ level of corporate responsibility

-organizations are responsible for acting as good citizens in the society in which they operate -organizations have the knowledge and resources to do good in the community, so they are responsible for helping others

Which of the following statements are consistent with the findings of Slater and Dixon-Fowler?

-people with MBA's are more likely to lead a sustainable organization than people without MBAs -sustainability is positively related to CEO education

principle-based statement

Google has this type of statement in its code of conduct that starts "Don't be evil." The code goes on to say that Google employees must "Respect each other."

individualism approach

Look, this is a dog-eat-dog business, and everyone has to look out for themselves. I'm going to do what's best for me and my company, and I'm not terribly worried about how people will respond to my actions.

utilitarian approach

You say that there are people who are angry about Facebook's privacy policies. But have you ever considered that far more people benefit from those practices than are harmed by them? There are millions of people in the world who want to see ads for things they care about, not irrelevant ads. We have to do what is right for the majority of people, not just for a small group

Crystal wants to go to a concert with a few of her friends. She asks her mom for permission, who says, "If you save up enough money for the ticket, you can go." A few days before the concert, Crystal's mom listens to the band's CD and is shocked by the lyrics. She tells Crystal, "This is nothing but vile profanity, and you are not going to that concert!" Crystal decides to go to the concert anyway and tells her mom that she will be studying at a friend's house that night. Did Crystal do the right thing? Which of the following responses best represents reasoning from the preconventional level?

No, she didn't. Crystal should have listened to her mom because she'll probably get grounded

organizations with a high corporate environmental performance rating are likely to have high __________

sustainability

Distributive justice

This idea of justice deals with how resources are passed out. It requires that two people who act in the exact same way should receive the exact same rewards or punishments for their behavior

procedural justice

This idea of justice is concerned with rules and how they are applied. Among other things, it says that rules should be based on prevailing ethical standards and they should be consistently and accurately applied

economic responsibility

be profitable

Discretionary Responsibility

contribute to the community; be a good corporate citizen

Legal responsibility

obey the law

ethic leadership is provided by ______

the ethics committee

whistle-blowing

This technique involves bringing breaches of ethical standards to the attention of the appropriate authorities.

Corporate social responsibility

This term refers to the idea that an organization needs to do more than just make money for its shareholders—it needs to operate in the best interests of its community and society at large, as well.

moral rights approach

We live in a democratic and capitalistic society. Our fundamental freedoms include the freedom to make money. No one should be able to take that right away from me.

Most professors and publishers will tell you that there is nothing unethical about using prepublished test banks. But suppose that the University of Central Florida decided to tell their professors explicitly that using prepublished test banks is unethical at UCF and that any professor who uses such test banks will be fired for doing so. This information would be found in the university's code of ethics, more specifically in a __________

policy-based statement

Postconventional

-level 3 -follows self-chosen principles of justice and right. aware that people hold different values and seeks creative solutions to ethical dilemmas. balances concerns for individual with concern for common good -leadership style: transforming leadership -employee behavior: empowered employees, full participation