Business Ethics Ch. 1-3

universal ethics

actions that are taken out of duty and obligation to a purely moral ideal rather than based on the needs of the situation, since the universal principles are seen to apply to everyone, everywhere, all the time

finance

includes internal accounting personnel, external accounting personnel, and external auditors wo are called upon to certify the accuracy of a company's financial statements

3 levels of ethical reasoning

preconventional, conventional, postconventional

ethics

the manner by which we try to live our lives according to a standard of "right" or "wrong" behavior- in both how we think and behave toward others and how we would like them to think and behave toward us

intrinsic value

the quality by which a value is a good thing in itself and is pursued for its own sake, whether anything comes from that pursuit or not

instrumental value

the quality by which the pursuit of one value is a good way to reach another value ex.) money

4 ethical conflicts

truth vs. loyalty short term vs. long term justice vs. mercy individual vs. community

code of ethics

a company's written standard of ethical behavior that are designed to guide managers and employees in making decisions and choices they face everyday

virtue ethics

a concept of living your life according to a commitment to the achievement of a clear ideal problem: society can place different emphasis on different values

culture

a particular set of attitudes, beliefs, and practices that characterize a group of individuals

value system

a set of personal principles formalized into a code of behavior

conflict of interest

a situation in which one relationship or obligation places you in direct conflict with an existing relationship or obligation

ethical dilemmas

a situation in which there is no obvious right or wrong decision, but rather a right or right answer

society

a structured community of people bound together by similar traditions and customs

value chain

the key functional inputs that an organization provides in the transformation of raw materials into a delivered product or service

applied ethics

the study of how theories are put into practice

corporate governance

the system by which business corporations are directed and controlled

organizational culture

the values, beliefs, and norms that all the employees of that organization share

how do people justify ethical behavior?

1. belief that the activity is within reasonable ethical and legal limits (not "really" legal or immoral) 2. belief that the activity is in the individuals or corporation's best interests 3. belief that the activity is safe because it will never be found out or publicized 4. belief that because the activity helps the company, the company will condone it and even protect the person who engages in it

8 questions to be considered when solving an ethical dilemma

1. what are the facts? 2. what can you guess about the facts you don't know? 3. what do the facts mean? 4. what does the problem look like through the eyes of the people involved? 5. what will happen if you choose one thing rather than the other? 6. what do your feelings tell you? 7. what will you think of yourself if you decide one thing or the other? 8. can you explain and justify your decision to others?

3 resolution principles

ends-based: which decision would d the greatest good for the greatest people? rules-based: what would happen if everyone made the same decision as you? the golden rule: do unto others as you would have them do unto you.

utilitarianism

ethical choices that offer the greatest good for the greatest number of people

GAAP

the generally accepted accounting principles that govern the accounting profession - not a set of laws

normative approach to business ethics

interested in what should be happening

information systems (IS or IT)

maintain the technology backbone of the organization

stakeholder

someone with a share or interest in a business enterprise

business ethics

the application of ethical standards to business behavior

ethical relativism

concept that the traditions of your society, your personal opinions, and the circumstances of the present moment define your ethical principles.

cliches employees hear

consult the company code of ethics. do what's right or the organization's stakeholders. do what's legal. do what you think is best. do the right thing.

human resources management

coordinates the recruitment, training, and development of personnel for all aspects of the organization

golden rule

do unto others what you would have them do to you

descriptive approach to business ethics

documenting/observing what is happening