Chapter 5

o _____ _______ ________, sometimes called a chief ethics and compliance officer, a company executive who oversees all aspects of ethics and legal compliance, including establishing and broadly communicating standards, ethics training, dealing with exceptions or problems, and advising senior managers in the ethical and compliance aspect of decisions

Chief ethics officer

o A ____ __ _______ is a formal statement of a company's values concerning ethics and social issues; it communicates to employees what the company stands for

Code of ethics

o Some of the primary organizational mechanisms are:

Code of ethics Ethical structures Measures to protect whistle-blowers

o ___________ _______, is when values and standards are written into the legal system and enforceable in the courts

Codified law

o Human behaviors fall into three categories:

Codified law Domain of free choice Domain of ethics

o The ____________ includes local governments, the natural environment, and the quality of life provided for residents

Community

o ______________ justice argues that individuals should be compensated for the cost of their injuries by the party responsible

Compensatory

o At level two, called the _____________ level, people learn to conform to the expectations of good behavior as defined by colleagues, family, friends, and society.

Conventional

o Most managers operate at a ____________ level, conforming to standards of behavior expected by society.

Conventional

o The formal definite of _________ ________ _______________ is management's obligation to make choices and take actions that will contribute to the welfare and interests of society, not just the organization

Corporate social responsibility (CSR)

o Most _______________ exist only under the proper charter and licenses and operate within the limits of safety laws, environmental protection requirements, antitrust regulations, antibribery legislation, and other laws and regulations in the government sector.

Corporations

o ____________ are concerned with decisions about the quality, safety, and availability of goods and services.

Customers

o An ethical _________ arises in a situation concerning right or wrong when values are in conflict

Dilemma

o ____________ Responsibility is purely voluntary and is guided by a company's desire to make social contributions not mandated by economics, law, or ethics.

Discretionary

o ______________ activities include generous philanthropic contributions that offer no payback to the company and are not expected

Discretionary

o _____________ justice requires that different treatment of people not be based on arbitrary characteristics

Distributive

o Three types of justice are of concern to managers:

Distributive justice Procedural justice Compensatory justice

o _________ Responsibility is to produce the goods and services that society wants and to maximize profits for its owners and shareholders.

Economic

o Total corporate social responsibility can be divided into four primary criteria:

Economic Legal Ethical Discretionary

o Research has shown that people will work harder and more ____________ for people who put others' interests and needs above their own

Effectively

o Specific personality characteristics, such as ____, strength, self-confidence, and a strong sense of independence, may enable managers to make more ethical choices despite outside pressures and personal risk

Ego

o Just because managers aren't breaking the law doesn't necessarily mean that they are being _________

Ethical

o ________ Responsibility includes behaviors that are not necessarily codified into law and may not serve that corporation's direct economic interests.

Ethical

o ________ managers display honesty and integrity, communicate and enforce ethical standards through their behavior, are fair in their decisions and the distribution of rewards, and show kindness and concern for others

Ethical

o An _______ _______ is present in a situation when the actions of a person or organization may harm or benefit others

Ethical issue

o _______ _____________ means that managers are honest and trustworthy, fair in their dealings with employees and customers, and behave ethically in both their personal live and professional lives

Ethical leadership

o In a general sense, _______ is the code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong

Ethics

o The domain of ________ has no specific laws, yet it does have standards of conduct based on shared principles and values about moral conduct that guide an individual or company

Ethics

o An _______ __________ is a group of executives appointed to oversee a company ethics

Ethics committee

o A toll-free confidential _______ ________ allows employees to report questionable behavior, as well as seek guidance concerning ethical dilemmas.

Ethics hotline

o The domain of _____ ________ is at the opposite end of the scale and pertains to behavior about which the law has no say and for which an individual or organization enjoys complete freedom

Free choice

o The simple categories of ______and _______ help people understand how they might contribute to or detract from an organization's ethical culture

Giver, taker

o Adam ______ found that the single biggest predictor of a team's effectiveness was the amount of help and support that members gave to one another

Grant

o The _______________ approach contends that acts are moral when they promote the individuals best long-term interests

Individualism

o The ________ approach holds that moral decisions must be based on standards of equity, fairness, and impartiality.

Justice

o ______ responsibility defines what society deems as important with respect to appropriate corporate behavior

Legal

o Investors, shareholders, and suppliers interests are served by ___________ ____________- that is, use of resources to achieve profits.

Managerial efficiency

o Policy-based statements include:

Marketing practices Conflicts of interest Observance of laws Proprietary information Political gifts Equal opportunities

o The individual who must make an ethical choice in an organization is the ______ _______

Moral agent

o The _______-________ approach asserts that human beings have fundamental rights and liberties that cannot be taken away by an individual's decisions

Moral-rights

o Managers can also implement _______________ ____________ to help employees and the company stay on an ethical footing

Organizational mechanisms

o Discretionary responsibility is related to __________________ _______________, which means that an organization pursues a positive human impact, moral goodness, and unconditional society betterment for its own sake

Organizational virtuousness

o The ________ part of the triple bottom line looks at how socially responsible the organization is in terms of fair labor practices, diversity, supplier relationships, treatment of employees, contributions to the community, etc.

People

o The triple bottom line is sometimes called the three P's:

People Planet Profit

o Managers and organizations engage in unethical behavior for any number of reasons such as:

Personal ego Greed Pressures to increase profits or appear successful

o The ________ aspect measures the organization's commitment to environmental sustainability

Planet

o ______-based statements generally outline the procedures to be used in specific ethical situations

Policy

o At the _______________, or principled level, individuals are guided by an internal set of values based on universal principles of justice and will even disobey rules or laws that violate these principles

Postconventional

o The ___________ __________ sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interest of all stakeholders into account

Practical approach

o Using the ____________ ___________, managers may combine elements of the utilitarian, moral-rights, and justice approaches in their thinking and decision making

Practical approach

o At the __________________ level, individuals are concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences

Preconventional

o There are three stages of moral development:

Preconventional level Conventional level Postconventional level

o Investors and shareholders, employees, customers, and suppliers are considered ________ stakeholders, without whom the organization cannot survive

Primary

o ________-based statements are designed to affect corporate culture; they define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees

Principle

o Codes of ethics tend to exist in two types:

Principles-based statements Policy-based statements

o ____________ justice requires that rules be administered fairly

Procedural

o The _______ aspect looks at the financial bottom line

Profit

o Economic responsibility, carries to the extreme, is called ______-___________ view, advocated by Nobel economist Milton Freidman

Profit maximizing

o When managers operate from a higher level of development, they may use a form of _______ ___________, focusing on the needs of followers and encouraging others to think for themselves

Servant leadership

o In today's environment, an overemphasis on pleasing _____________ may cause some managers to behave unethically toward customers, employees, and the broader society

Shareholders

o A _______________ is any group or person within or outside the organization that has some type of investment or interest in the organization's performance and is affected by the organization's actions

Stakeholder

o There is a growing interest in a technique called ______________ ________, which provide a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders, which may change over time.

Stakeholder mapping

o _________________ refers to economic development that generates wealth and meets the needs of the current generation while preserving the environment and society so that future generations can meet their needs as well.

Sustainability

o Managers in organizations that embrace sustainability measure their success in terms of a ________ _______ ______

Triple bottom line

o The term ______ _______ ____ refers to measuring an organization's social performance, its environmental performance, and its financial performance.

Triple bottom line

o __________ behavior occurs when decisions enable an individual or company to gain at the expense of other people or society as a whole

Unethical

o ______________ managers seek to serve their own needs and interests at the expense of stakeholders

Unethical

o The ______________ approach holds that moral behavior produces the greatest good for the greatest number

Utilitarian

o Normative ethics has five approaches to describe values for guiding ethical decision making:

Utilitarian approach Individualism approach Moral-rights approach Justice approach Practical approach

o Personal needs, family influence, and religious background all shape a manager's ______ _________.

Value system

o Employee disclosure of illegal, unethical, or illegitimate practices on the employer's part is called _______-_________

Whistle-blowing

o Employees expect:

Work satisfaction Pay Good supervision