Business Ethics Chapter 5

significant others

Those who have influence in a work group, including peers, managers, coworkers, and subordinates

A corporate culture

is a set of values, beliefs, goals, norms, and ways of solving problems that members (employees) of an organization share.

The descriptive approach

provides an understanding of the role of individuals in an organizational context for making ethical business decisions.

Applying a personal moral philosophy is the first step in the ethical decision-making process.

False

Opportunity

The conditions in an organization that limit or permit ethical or unethical behavior

external control

Those who see themselves as going with the flow because that is all they can do

A corporate culture can be defined as ______.

a set of values, beliefs, goals, norms, and ways to solve problems that employees of an organization share

Ethical opportunity

are conditions that provide rewards, whether internal or external, or limit barriers to ethical or unethical behavior.

Core values

are enduring beliefs about appropriate conduct and provide guidance for the ethical direction of the firm.

instrumental concern

focuses on positive outcomes, including firm profitability and benefits to society

Rawls's develop two main principles of justice:

liberty and the difference principle

Equality Principle

. AKA Liberty princpile . states that each person has basic rights that are compatible to the basic liberties of others

The different individual factors that affect ethical decision making

. Age . Gender . Education . Nationality . Locus of Control

Organizational Factors in Ethics

. Corporate culture . ethical culture . significant others . Obedience to authority

Obedience to authority

A reason employees resolve business ethics issues by simply following the directives of a superior

Which of the following is NOT a factor in the ethical decision-making model?

a. ethical issue intensity b. employee benefits packages* c. opportunity d. individual factors e. organizational factors

Age

An individual factor that has a complex relationship with business ethics

What is the first sign an unethical decision may have occurred

Guilt or uneasiness

normative approaches

How organizational decision makers should approach an issue

gender

In ethical decision making, research shows that in many aspects there are no differences between men and women

Individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements is known as ______.

Locus of control

_____ involves the conditions for encouraging or limiting ethical behavior in an organization through rewards for ethical behavior or failing to prohibit unethical behavior.

Opportunity

The opportunities that employees have for unethical behavior in an organization can be nearly eliminated through formal codes, policies, and rules that are adequately enforced by management.

True

___________ are enduring beliefs and ideals that are socially enforced

Values

immediate job context

Where they work, whom they work with, and the nature of the work

Elena, an employee at ABC Marketing, has observed misconduct at work and wonders if she should report it. In the end, she decides not to do so because of the possible repercussions at work. Which of the following has determined the Elena's action?

a. opportunity b. control issues c. corporate culture d. organization factors* e. individual factors

According to researchers, normative values largely originate from all of the following EXCEPT ______.

a. religion b. government c. the media* d. friends e. family

Ethical ______ is the ability to perceive whether a situation or decision has an ethical dimension.

awareness

The ability to perceive whether a situation or decision has an ethical dimension is defined as ______.

ethical awareness

The relevance or importance of an ethical issue in the eyes of the individual, work group, and/or organization is known as ______.

ethical issue intensity

Opportunity relates to

individuals' immediate job context

What is the first step in ethical decision making?

is to recognize that an ethical issue requires an individual or work group to choose among several actions that will ultimately be evaluated as ethical or unethical by various stakeholders

Which of the following is supported by research concerning significant others?

may have more impact on a worker's decisions on a daily basis than any other factor

Difference principle

states that economic and social equalities or inequalities should be arranged to provide the most benefit to the least-advantaged members of society

Ethical awareness

the ability to perceive whether a situation or decision has an ethical dimension

Which of the following statements best describes an opportunity?

the conditions in an organization that limit or permit ethical or unethical behavior

Rawls used what he called the veil of ignorance which led him to develop ______.

the difference principle in that economic and social equalities (or inequalities) should be arranged to provide the most benefit to the least-advantaged members of society

Ethical issue intensity

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

institutional theory

theory that organizations operate according to taken-for-granted institutional norms and rules

Veil of Ignorance

. a thought experiment that examined how individuals would formulate principles if they did not know what their future position in society would be . Created by Rawls

The amount of competition in an industry can be determined and described according to the following:

. barriers to entry into the industry, . available substitutes for the products produced by the industry rivals, . the power of the industry rivals over their customers, and . the power of the industry rivals' suppliers over other rivals.

A normative approach to business ethics

. examines what ought to occur in business ethical decision making . ideal standard

Moral intensity

. the degree to which an issue demands the application of ethical principles . To individuals' perceptions of social pressure and the harm they believe their decisions will have on others

Corporate culture

A set of values, norms, and artifacts, including ways of solving problems that members (employees) of an organization share

Education

A significant factor in the ethical decision-making process; generally, the more education or work experience people have, the better they are at making ethical decisions

__________ & ___________ are important normative considerations in ethical decision making

Principles and values

ethical culture

Reflects the integrity of decisions made and is a function of many factors, including corporate policies, top management's leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior

Nationality

The legal relationship between a person and the country in which he or she is born

Which statement best describes ethical issue intensity?

The perceived relevance or importance of an ethical issue to the individual, work group, and/or organization

internal control

Those believe they control the events in their lives by their own effort and skill, viewing themselves as masters of their destinies and trusting in their capacity to influence their environment

Locus of control

To individual differences in relation to a generalized belief about how you are affected by internal versus external events or reinforcements