Business Ethics Midterm Exam - Dr. Jiang

Political institutions

influence the development of values as organizations most comply with these types of institutional norms and belief systems to succeed

What is reputation?

one of an organizations greatest intangible assets with tangible value. The value of a pos. reputation is difficult to quanify, but is very important

What is age discrimination in Employment act requiring?

outlaws hiring practices that discriminate against people 40 years of age or older as well as those that require employees to retire befotre the age of 70. PAGE 68

What are three categories of institutions? How are they affecting the ethical decision making? They affect the individual factors

political, economic, social .....

What is ethical issue intensity?

relevance or importance of an event or decision in the eyes of the individual, work group, and or organization

What is Ethical Culture?

Acceptable behavior as defined by the company & industry that captures the values & norms of the company - encourages the use of principles for ethical reasoning (think about smoking)

What is corporate citizenship?

Degree to which businesses strategically meet the economic, legal, ethical & philanthropic responsibilities placed on them by their stakeholders

Chapter 5: What is the first step for the ethical decision making?

Determine the facts

What is the relationship between business ethics and organizational performance?

Development of an ethical culture leads to employee retention & loyalty which increases employee performance

What is core practice?

Documented best practices, often encouraged by legal and regulatory forces and trade associations.

What are the four levels of social responsibility?

Economic, legal, ethical, philanthropic

Chapter 3: What are three foundational values for identifying ethical issues? What is the definition for each value?

Integrity - refers to being whole, sound, & in an unimpaired condition. In an organization it means uncompromising adherence to ethical values. Honesty - refers to truthfulness or trust worthiness. Issues related to honesty also arise because business is sometimes regarded as a game geverned by its own rules rather than by those of society. - dishonesty, lying Fairness- the quality of being just, equitable, & impaired - equality, reciprocity, optimization

Chapter 1: What is the definition for Business Ethics?

Is the study of business situations, activities, and decisions where issues of right and wrong are addressed

What is secondary stakeholders and who are considered as secondary stakeholders? Why are they important?

Secondary stakeholders: more removed and indirect influence. do not engage directly in transactions with a company. not essential to firms survival - include the media and trade associations

What are the elements of an ethical culture?

Values, norms, artifacts, behavior

What is corporate social responsibility?

an organizations obligation to maximize its positive impact on stakeholders and minimize its negative impact.

Economic institutions

competition affects how a company operates as well as the risks employees take for the good of the firm

Social institutions

include religion, education, and individuals such as the family unit

What are the organizational factors? Organizational factors will affect the individual factors

- corporate culture - significant others - ethical culture - obedience to authority

What are the reasons to study Business Ethics?

- improves individuals ethics - helps in addressing business strategy decisions that are complex and detailed - Ensures collective agreement of organization ethics - Helps people with limited experience in making organizational decisions. - Helps one identify & resolve ethical issues in quick manner

What are the individual factors and how do they on average affect the ethical decision making?

- locus of culture - gender - age - education - nationality on average, the factors affect ethical decision making .....

What is abusive or intimidating behavior?

- physical threats and false accusations, profanity and insults - wage theft: subway and mcdonalds - Bullying: hostile workplace. sing: sleep disturbance, physical symptoms. healthy workplace bill

What is the anti-trust law trying to regulate?

- regulation of competition - protection of consumers - promotion of equity & safety - protection of natural environment - incentives to encourage organizational compliance programs to deter miscoonduct

What is misuse of company time and resource?

- time theft - using company software and internet services for personal business

What is fraud, accounting fraud, marketing fraud, puffery, and implied falsity and labeling issues?

- types : accounting fraud & marketing fraud - categories of false or misleading advertisement - puffery, implied falsity & literally false - labeling issues & ambiguous statements .....

What is sexual harassment?

- unwanted sexual approaches - repeated remarks with the implied suggestion that the target's employment status or favorable treatment depend on a positive response and or cooperation

How do stakeholders interact with each other?

.....

What are the laws to promote equity and safety?

.....

What are the six steps to be effective in utilizing stakeholder framework? How to apply them?

1. accessing the corporate culture 2. identifying stakeholder groups 3. identifying stakeholder issues 4. assessing organizational commitment to social responsibility 5. identifying resources and determining urgency 6. gaining stakeholder feedback

What is stakeholder orientation?

A degree to which a firm understands and addresses stakeholder demands. involves : activities and processes within a system of social institutions that facilitate and maintain value through exchange relationships with multiple stakeholders."

Chapter 4: What is voluntary practice?

Beliefs, values, and voluntary contractual obligations of a business

John Rawls

Believed justice principles were beliefs that everyone could accept

What is bribery, active bribery, and passive bribery? Is bribery always illegal? why?

Bribery- The practice of offering something in order to gain an illicit advantage Active Bribery - The person who promises or gives the bribe commits the offense Passive bribery - an offense committed by the official who receives the bribe Not always illegal because bribery is an accepted way of doing business in other countries, which creates challenging situations for global businesses. it is legal in the U.S. under the FCPA to bribe a foreign official. PAGE 66

If you experience bully, what will you experience physically and psychologically?

Bullying: hostile workplace. sign: sleep disturbance, physical symptoms. (healthy workplace bill)

What are the differences between Business Ethics and Morals?

Business Ethics: is a complicated & controversial topic. Highly visible business ethics issues influence the public's attitudes towards business and can destroy trust. (Food industry) Morals: Organizational principles, values, & norms that originate from individuals, organization statements, or from the legal system.

What is opportunity? What is "carrots and sticks" meaning?

Conditions in an organization that limit or permit ethical or unethical behavior. Carrots - Government incentive to get you to do something Sticks - Government incentive to get you NOT to do something

What are the laws to protect consumers?

Consumer Protection Laws- require businesses provide accurate information about products and services and follow safety standards. Dodd-Frank Act - • The most sweeping consumer protection legislation since the Great Depression • Seeks to improve financial regulation, increase oversight, prevent excessive risk taking and deceptive practices. • Created new offices: • The Office of Financial Research, the Financial Stability Oversight Council, The Consumer Financial Protection Bureau (CFPB) • Increased Whistle-blower protections (Whistle Blower bounty program) Enacted in 2010

What is consumer fraud? Identify different types of consumer fraud

Consumer fraud - term for identity theft. example of fraudulent activities. types - shoplifting, collusion or duplicity & guile .....

What is civil law?

Defines the rights and duties of individuals and organizations

What is the difference between ethical issue and ethical dilemma?

Ethical issue: is a problem, situation, or opportunity that requires an indiv., group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical. Ethical Dilemma is a problem, situation, or opportunity that requires an individual, group, or organization to choose among several actions with negative outcomes.

Veil of Ignorance Laws

Examined how individuals would formulate principles if they were uncertain about their future position in society

What is normative approach?

Examines what the ideal standard should be in ethical decision making

What is conflict interest?

Exists when an individual must choose between his or her own interests and those of the organization or some other group

What is the difference between "noise", commission lying and omission lying? Can you find any examples?

Lying - Lying without malice Types- lying by commission and lying by omission - a lie may be unethical based on the context of the statement and its intent to distort the truth commission -Creating a false perception with words that deceive the receiver omission - intentionally not informing channel members of problems relating to a product that affects awareness, intention, or behaviorc

Chapter 2: What is primary stakeholders and who are considered as primary stakeholders?

Primary stakeholders are direct influence and stake in the company's success. People whose support and resources are needed for a firm's survival. - includes employees, customers, & shareholders

What are principles, values?

Principles: Specific Boundaries that should NOT be violated Values: Existing beliefs & ideals that are socially enforced (teamwork, trust, integrity)

What is criminal law?

Prohibits specific actions and imposes punishments for breaking the law

What are corporate culture, ethical culture, significant others, and obedience to authority?

corporate culture - A shared pattern of beliefs, expectations and meanings that influence and guide the thinking and behaviors of the members of that organisation. Significant others - Those who have influence in a work group, including peers, managers, co workers, and subordinates. Ethical culture - Function of many factors, including corporate policies on ethics, top managements leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior. Obedience to Authority - helps to explain why many employees resolve business ethics issues by simply following the directives of a superior.

What are the responsibilities for corporate governance?

the formal system of accountability and control of ethical and socially responsible behavior. Includes three areas: Accountability Oversight Control accountability refers to how closely workplace decisions align with a firm's stated strategic direction and its compliance with ethical and legal considerations. Oversight provides a system of checks and balances that limit employees' and managers' opportunities to deviate from policies and strategies aimed at preventing unethical and illegal activities. Control the process of auditing and improving organizational decisions and actions. - preventing and detecting misconduct - investigating and disciplining - recovery and continuous improvement

What are the differences among voluntary responsibilities, cause-related marketing, strategic philanthropy, and social entrepreneurship (4 Core practices)? If you give a scenario, can you tell me which core practice the company is applying?

voluntary responsibilities - Cause-related marketing - strategic philanthropy - social entrepreneurship-