Ethical Issues Exam 1 (Chapters 1-6)
Division of Labor
How work tasks are segmented to improve efficiency
Fair Credit Reports Act (FCRA)
Originally passed in 1970, regulates how credit information can be gathered, used, and disseminated, and that the information is fair and accurate
Stages of Moral Development
Pre-conventional, Conventional, Post-Conventional
Adam Smith
(1723-1790), One of the most influential systematic social philosophers in the history of Western civilization, applied the concept "liberty" to economic matters
Lawrence Kohlberg
(1927-1987), Harvard psychologist influenced by the writings of Jean Piaget who sought to answer the question of why some people only consider their own interests when making a decision but others make decisions based on living for the sake of others; he developed the six stages of moral development
Code of Conduct
A document that describes acceptable behaviors for specific situations that are likely to arise, such as conflicts of interest, provides substance to a code of ethics, and is often developed by an employee with legal expertise
Jean Piaget
A famous psychologist who outlined the stages of cognitive development.
B Corporation
A for-profit company certified for meeting rigorous standards of social and environmental performance, accountability, and transparency
Virtue Ethics
A form of ethics based on cultivating good habits
Protected Classes
A group of people who are legislatively chosen to benefit from the protection of a statute, usually due to previous harmful discrimination
Government Regulation
A law or rule developed by government that regulates conduct
Foreign Corrupt Practices Act (FCPA)
A law passed in 1977 making it illegal for American businesses to directly pay bribes in other nations or through intermediaries, such as joint venture partners or agents
Title VII of the Civil Rights Act of 1964
A legislative act passed by Congress that prohibits businesses from discriminating among job applicants based on the individual's race, color, religion, gender, or national origin
Optimal Ethics Systems Model
A model that synthesizes the various approaches of organizational ethics into a systematic best practices framework for reinforcing ethical behaviors, and reducing ethical risks, throughout the workplace
Embezzlement
A particular type of theft and fraud whereby an employee steals money from his or her employer
Industrial Revolution
A period in the late 1700s and 1800s when hand tools were replaced with new manufacturing power-driven machines, such as the steam engine, and manufacturing companies grew into large establishments
Business Gratuity
A present, gift, hospitality, or favor for which fair market value is not paid by the recipient
Ethical Intuition
A quick moral insight, or "gut" reaction, independent of any substantive reasoning process about right and wrong
Categorical Imperative
A rule that applies to all situations
Slavery
A system in which individuals are owned by other people
Assessment
A systemic collection, review, and use of information to determine workshop effectiveness
Theory of Planned Behavior
A theory developed by Icek Ajzen that states that formulating an intention to act ethically is a function of a person's attitudes and beliefs toward the behavior, subjective norms, and perceived behavioral control
Capitalism
An economic system based on freedom and competition in both product and labor markets, as an economic system ethically superior to highly regulated mercantilism
Realistic Job Preview
An honest description of daily work activities that highlights both the exciting and tedious aspects of the job
Interpenetrating Systems Model
An illustrative tool for understanding the interaction among businesses, nonprofits, individuals, and government
The Stages of Cognitive Development
Ethnocentric view of the world Socio-centric view of the world Empathy and self-regulation of emotions Mental scripts for socially appropriate behavior
Egoism
Ethical theory related to self-interest
Oath
A public promise
Inherited Sin
The Belief that Some philosophers hold that people are born with Sin.
Altruistic Behavior
The Deliberate Pursuit of Actions Intended to Benefit The Interest or Welfare of Others.
Ethical Hypocrisy
The gap between an organization's formal ethics proclamations and its actual behaviour
Human Nature
The moral, psychological, and social characteristics of human beings
Bill of Rights
Document protecting freedom of speech, press, and religion; freedom to petition the government; and freedom from unreasonable search and seizure
Attraction-Selection-Attrition Cycle
A cycle created by industrial psychologist Benjamin Schneider that emphasizes how individuals are attracted to organizations that reflect their values and goals
Social Group Relativism
A "group-based" ethical theory in which right action is defined by whether the action conforms to the social group's norms
Cultural Relativism
A "law-based" ethical theory in which right action is defined by whether the action conforms to the law, or custom
Deontology
A "rules-based" ethical theory in which right action is defined by following a set of moral rules that should be applied by everyone in all situations, such as the Golden Rule, Ten Commandments, or Bill of Rights
Equal Employment Opportunity Commission (EEOC)
A commission created in 1965 to oversee provisions of the Civil Rights Act in which the federal agency investigates discrimination complaints, seeks negotiated solutions to violations, and litigates when conciliation does not occur within an organization
Strategic Planning
A communication device that integrates an organization's mission with its vision and provides clear direction on how the organization will progress from its current situation to a highly desired future situation
Bribe
Providing someone with a monetary incentive or object of value to do something contrary to his or her job description
Labor Union
An association of employees that advances its members interests, such as wages, benefits, work rules, and other conditions of employment, through collective bargaining with an employer
Integrity Tests
Also referred to as honesty tests, these tests typically gather information about the job candidate's behaviors and attitudes toward unethical workplace activities, such as theft
Utilitarianism
An "ends-based" consequentialist ethical theory in which right action is defined by the greatest good for all those affected by an action
Stakeholder
Any person or organization that is affected by, or could affect, an organization's goal accomplishment
The 3 E's
Effective Efficient Ethical
Code of Ethics
Broad ethical aspirations that include a few general principles to guide behaviour
Ethical Dilemmas
Choices between what is "right" or "wrong" and "good" or "bad" Example: Should you inform your boss about your colleagues' questionable Behaviors?
Well-Managed Organization
Community of people on a common mission to be effective, efficient, and ethical
Tabula Rasa
Defined by John Locke as a blank slate, on which people store moral rules and knowledge based on life experiences
Vision Statement
Describes what an organization aspires to become in the future
Mission Statement
Describes what an organization does and for whom
ISO 26000
Established guidelines for integrating social responsibility best practices into management processes
Federal Sentencing Guidelines for Organizations
Federal guidelines that encourage, but do not require, companies to implement policies and procedures that reinforce ethical behaviors; if an employee commits a federal crime, the number and authenticity of business ethics best practices implemented by the company affect the fine assessed against the organization
Charters
Granted by the British government to allow several people to create an organization by pooling their financial resources; owners of chartered organizations were exempt from debtor's prison if the business venture failed
Facilitating Payments
Legal payments that expedite performance of "routine governmental action," such as obtaining permits, processing governmental papers, loading and unloading cargo, and scheduling inspections to transit goods across borders
Sherman Antitrust Act of 1890
Legislation that outlawed monopolies to increase competition
Polygraphs
Lie detectors that can be used as a job screen by federal, state, and local government agencies, as well as businesses, engaged in national security issues
Ethical Intention
Mentally committing to take an action that is morally appropriate
Four-Fifths Rule
Method for determining whether an organization is unfairly discriminating against job candidates based on a protected class factor such as race or gender, with the organization's protected class profile being within 80 percent of those in the region who are qualified to perform the job task
Pre-Conventional Level
Moral Reasoning Based on What Benefits The Individual Only My Interest Exist and Matter Moral Determination is based on My Own Wants and Needs. This Includes Stages 1 and 2 Stage 1: Obedience and Punishment Orientation Stage 2: Instrumental Orientation
Action Sequence
Motivation Behind The Act (Ethical/Unethical)>>>The Act (Morally Neutral)>>>Consequence of The Act (Ethical/Unethical)
Moral Imperatives
Principles that compel people to action and are found in all cultures and major religions.
Disparate Impact
Occurs when members of a protected class rarely make it through all the job-screening filters, suggesting that one of the decision rules could be unintentionally discriminatory
Conscientiousness
One of the dimensions of the "Big Five Model" that describes human personality, a personality type described as being responsible, dependable, and hardworking
Affirmative Action
Plans that attempt to remedy past discriminatory behaviors by actively seeking, hiring, and promoting minority group members and women to equalize opportunities previously limited to Caucasian males
Moral Imperatives
Principles compelling people to action, found in all cultures and major world religions
Caux Principles for Responsible Business
Principles developed by the Caux Round Table, an international network of business leaders from a variety of nations and cultures, to conceptualize how a responsible business should act in every nation
Organizational Trust
Refers to having a positive attitude that another member of the organization will be fair and not take advantage of one's vulnerability in a risky situation
Moral Intensity
Refers to issue-related factors such as magnitude of consequence or proximity that determines the depth of a person's moral approval or disapproval
Organizational Citizenship Behavior (OCB)
Refers to work-related helping behaviors that go beyond normal job requirements, such as aiding others with job-related problems
Ban the Box Legislation
Removes the criminal records question from job application forms
Stage 1: Obedience and Punishment Orientation
Right is Determined by Obeying Rules from a Superior Authority and Avoiding Punishment. Stage 1 is included in the Pre-Conventional Level.
Identify Common types of Unethical Behaviors in The Work Place
Shortcuts or Performing Low-Quality Work: 72% Lying to Hide Mistakes: 72% Bad-Mouthing Colleagues: 68% Falsely Blaming Others When You Don't Get Your Work Done: 67% Lying To Hide Your Colleagues Mistakes: 63% Taking Credit For Other Colleagues Works: 57% Lying About Being Sick: 56%
Cognitive Dissonance
The Feeling of Moral Discomfort That Occurs When an Individual Holds Inconsistent or Contradictory Attitudes and Beliefs
Theft
The act of taking someone's property without that person's permission
Living Wage
The amount of money a full-time employee needs to exceed the poverty threshold or afford the basic necessities of life
Social Dominance Orientation (SDO)
The belief that an individual's particular group membership (defined in terms of race, gender, religion, or ethnicity) is superior to membership in other groups
Fraud
The use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization's resources or assets
Conscience
The voice of pure goodness within us
Ethics
The set of principles we use to determine whether an action is good or bad.
Post-Conventional Level
This Includes Stage 5 and 6 Stage 5: Social Contract Orientation Stage 6: Universal Ethical Principles Orientation
Conventional Level
This Includes Stages 3 and 4 Stage 3: "Good Boy","Nice Girl" Orientation Stage 4: Law and Order Orientation