Management Ch. 5

danger signs of unethical behavior

1. excessive emphasis on short-term revenue over long term consideration 2. no written code of ethics 3. desire for simple quick fixes to ethical problems 4. unwillingness to take ethical stand that have a financial cost 5. consider ethics solely a legal issue or PR tool 6. no clear procedure for handling ethical problems 7. responding to the demands of shareholders at the expense of other constituencies

life-cycle analysis (LCA)

a process of analyzing all inputs and outputs, through the entire "cradle-to-grave" life of a product to determine total environmental impact

philanthropic responsibilities

additional behaviors and activities that society finds desirable and that the values of the business support

Sarbanes-Oxley Act

an act passed into law by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence

transcendent education

an education with five higher goals that balance self-interest with responsibility to others 1. empathy 2. generativity 3. mutuality 4. civil aspiration 5. intolerance of ineffective humanity

egoism

an ethical system defining acceptable behavior as that which maximizes benefits for the individual

utilitarianism

an ethical system stating that the greatest good for the greatest number (of people) should be the overriding concern of decision makers

sustainable growth

economic growth and development that meet present needs without harming the needs of future generations

virtue ethics

classification of people based on their level of moral judgement

integrity-based ethics programs

company mechanisms designed to instill in people a personal responsibility for ethical behavior

compliance-based ethics programs

company mechanisms typically designed by corporate counsel to prevent, detect, and punish legal violations

Caux Principles

ethical principles established by international executives in Caux, Switzerland, in collaboration with business leaders from Japan, Europe, and the U.S.

ethical climate

in an organization, the processes by which decisions are evaluated and made on the basis of right and wrong

ecocentric management

its goal is creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders

ethical responsibilities

meeting other social expectations, not written as law

corporate social responsibility (CSR)

obligation toward society assumed by business

ethical leader

one who is both a moral persona and a moral manger influencing others to behave ethically

Kohlberg's model of cognitive moral development

perspective that what is moral comes from what a mature person with "good" moral character would deem right

relativism

philosophy that bases ethical behavior on the opinions and behaviors of relevant other people

moral philosophy

principles, rules, and values people use in deciding what is right or wrong

ethical issue

situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong

universalism

the ethical system stating that all people should uphold certain values that society needs in order to function

business ethics

the moral principles and standards that guide behavior in the world of business

ethics

the system of rules that governs the ordering of values

legal responsibilities

to obey local, state, federal, and relevant international laws

economic responsibilities

to produce goods/services that society wants at a price that perpetuates the business and satisfies its obligations to investors