ETHICS MIDTERM
overconfidence
- be more confident in our ethical abilities
Framing
- ethical choice depends on how issue is framed
Behavioral ethics messages
- people usually make their choices based on instincts - believe we're ethical while doing things ethic people would not do - unethical choices are often unconsciously influenced
Ethical fading
- so focused on other aspects of a decision that ethical parts are failed to be seen
conscious capitalism
-organization has a higher purpose - creating value for stakeholders - leadership cares and leads by example - caring culture / great place to work
Why might a company not want to investigate reports of misconduct?
An investigation is often time-consuming and expensive.
business structure
Board of directors, >ceo, > research, production, marketing, finance, admin
What are the benefits of ethical leadership?
Employees are more willing to work for ethical companies.
Which statement is true about the ethical decision-making of leaders?
Ethical leaders must often make trade-offs regarding stakeholder demands.
What is true about ethical leaders?
Ethical leaders place company interests above their own.
Which statement best describes codes of ethics?
Formal statements describing what an organization expects of its employees
What is the definition of ethical issue intensity?
How important an ethical issue is perceived to be by a company or individual
Which of the following differentiates ethical leaders from less ethical leaders?
How they respond to mistakes
Which definition best describes organizational ethical leadership?
Influencing others to ethically achieve company goals
Which definition best describes organizational ethical leadership
Influencing others to ethically achieve company goals.
Integrity Principles
Integrity, trust, accountability, transparency, fairness, respect, rule of law, viability
Why is shared leadership important?
It establishes checks and balances on every member of the organization.
According to Howard Schultz, which of the following is true about ethical leadership?
It is about finding a way to balance between profitability and social consciousness.
Many individuals caught in misconduct claim that they were "just following orders" from their superiors. What type of power might this reflect on the part of the leader?
Legitimate power
What is organizational ethics?
Right or wrong, acceptable or unacceptable conduct in an organizational environment
What is a characteristic of an ethical leader?
They have a passion to do the right thing
Which tends to be the most observed misconduct in the workplace?
Time theft
An "ethical blind spot" refers to ___________________.
a person's underestimation of his or her own potential to commit misconduct
Unlike an ethical issue, in an ethical dilemma _____________.
all the decisions have negative consequences
primary stakeholders
direct relationship with company - customers, employees, shareholders - essential to firm's survival
secondary stakeholders
don't engage directly - media, trade assoc.
In this section, ___________ was identified as the best way to identify misconduct in an organization.
employee reporting
self serving bias
gather info in self serving way, fail to see they're acting unethically
Ethical leaders must ____________ ethical issues and risks.
identify
Loss aversion
more likely to act unethically to avoid a loss rather than secure a gain
Utilitarian
most ethical choice that produces greatest good for largest number of people - deals with consequences
Tangible and abstract
people remember tangible factors at the expense of more abstract ones - death of pet bothers you more than starving children in Africa
Dan Ariely
professor- behavior economics - everyone has capacity to be dishonest - small scale mass cheating
Incrementalism
slippery slope - once you make a minor act, it leads to bigger ones
Those with an internal locus of control believe __________.
they have control over events in their lives
Deontology
uses rules to distinguish right from wrong
principle based
using ethical values and principles to guide behavior
Sarbanes - Oxley
act created in response to corporate scandals - re instill confidence in marketplace - CEOs and CFOs must certify and approve company integrity with quarterly financial reports -company is required to establish code of ethics - prohibits providing both audit and non audit services - whistleblower protection
stakeholder orientation
approach for maximizing positive outcomes to meet stakeholder needs
ethical egoism
belief that humans should always act in what they view to be their best interest
Principles, values, _______, and ________ form an organizational culture.
norms; artifacts
Core practices are
not legally mandated but are considered best practices of the industry.
An ethics officer can do little good without _____________________.
support from top management and board members
Virtue
assumes we acquire virtue through practice
Dodd-Frank Act
- whistleblower bounty program - 10 to 30% financial comp if convictions result in more than $1 million