Unit 8

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.

Ethical Issue

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

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 self0interest with responsibility to others.

Egoism

An ethical system defining acceptable behavior as those actions which maximize consequences for the individual.

Utilitarianism

An ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers.

Monolithic Organization

An organization that has a low degree of structural integration - employing few women, minorities, or other groups that differ from the majority - and thus has a highly homogeneous employee population

Pluralistic Organization

An organization that has a relatively diverse employee population and makes an effort to involve employees from different gender, racial, or cultural backgrounds.

Multicultural Organization

An organization that values cultural diversity and seeks to utilize and encourage it.

Affirmative Action

Special efforts to recruit and hire qualified members of groups that have been discriminated against in the past.

Virtue Ethics

Classification of people based on their level of moral judgment.

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.

Sexual Harrassment

Conduct of a sexual nature that has negative consequences for employment

Sustainable Growth

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

Caux Principles

Ethical principles established by international executives based in Caux, Switzerland, in collaboration with business leaders from Japan, Europe, and the United States

Mentors

Higher-level managers who help ensure that high-potential people are introduced to top management and socialized into the norms and values of the organization.

Ethical Climate

In an organization, the processes by which decision are evaluated and made on the basis of right and wrong.

Ecocentric Management

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

Managing Diversity

Managing a culturally diverse workforce by recognizing the characteristics common to specific groups of employees while dealing with such employees as individuals and supporting, nurturing, and utilizing their differences to the organization's advantage.

Ethical Responsibilities

Meeting other social expectations, not written as law

Corporate Social Responsibility

Obligations toward society assumed by business.

Ethical Leader

One who is both a moral person and a moral manager influencing others to behave ethically

Kohlberg's Model of Cognitive Moral Developement

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.

Universalism

The ethical system stating that all people should uphold certain values that society needs 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 and services that society wants at a price that perpetuates the business and satisfies its obligations to investors.