MKTG-4440
22% of misconduct is...
Abusive Behavior Lying to Stakeholders Pressure to compromise standards
What is one way that ethical leaders can empower employees?
Creating an open communication environment.
Core practices are...
Not legally mandated but are considered best practices of the industry.
Which tends to be the most observed misconduct in the workplace?
Time theft
A transactional leader...
Tries to create employee satisfaction by negotiating for levels of performance
Primary Stockholders are those who...
continued association and resources are absolutely necessary for a firm survival.
Social Responsibility...
Organization's obligation to maximize its positive impact and minimize its negative impact on society.
Groupthink...
People in a group go along with the group decision
Defense industry initiative (DII) Step 1:
Code of conduct
Demand for socially responsible investing is increasing/decreasing?
Increasing
30% of misconduct is...
Observed Misconduct
PROCESS OF LEGAL TO UNETHICAL TO ILLEGAL BUSINESS PRACTICE: STEP 2:
Social media & the media increase awareness
Which of these stakeholders is a secondary stakeholder? A. Regulators B. Employees C. Special-interest groups D. Suppliers E. Consumers
Special-interest groups
Firm Survival...
Staying out of the bottom 20% of performance review
SWOT stands for...
Strengths Weaknesses Opportunities Threats
A values orientation should possess...
Strong Communication Systems
Leaders who display good character...
Take responsibility for ethically meeting stakeholder needs.
Those with an internal locus of control believe...
They have control over events in their lives
Core practices...
A highly appropriate and common practice that helps ensure compliance with legal requirements, industry self-regulation, and societal expectations
PROCESS OF LEGAL TO UNETHICAL TO ILLEGAL BUSINESS PRACTICE: STEP 1:
A major event occurs in an organization & the public is aware of the risk.
An "ethical blind spot" refers to...
A person's underestimation of his or her own potential to commit misconduct
What are the two types of bribery?
Active (giving) Passive (receiving)
Stockholder Interaction Model...
Can be viewed as a continuum in that firms are likely to adopt the concepts to varying degrees.
What are the four kinds of Organizational Cultures?
Caring Culture Apathetic Culture Exacting Culture Integrative Culture
Corporate Intelligence...
Collection and analysis of information regarding the external environment of a business
Defense industry initiative (DII) Step 4:
Companies must perform extensive internal audits and disclosure
What is one of the biggest ethical risks that companies face?
Complacency
19% of misconduct is...
Conflict of Interest
Regarding the aftermath of the financial crisis...
Consumer trust of business hit a low point
Which word best describes a compliance orientation?
Contractual
Ethical culture =
Efficiency Productivity Profits
Compliance-based approach...
Emphasizes obedience to legal requirements
Ethical companies create...
Employee Satisfaction Low Turnover Loyal Customers High Profits
Influence of ethical decision making factors in an organization...
Employee decision making is often affected more by organizational relationships.
What is a benefit of ethical leadership?
Employees are more willing to work for ethical companies.
Values...
Enduring beliefs & ideals that are socially enforced.
Employees disagreeing about the most ethical decision, for resolving an ethical dilemma, is an example of...
Ethical diversity
What is true about how ethical leaders should perceive stakeholders?
Ethical leaders view stakeholders as important co-contributors of firm value.
Defense industry initiative (DII) Step 2:
Ethics training and continuous support for employees
Mandatory Boundary...
Externally imposed boundary of conduct (law, rules, etc.)
Expert power is of the more effective forms of power a leader can demonstrate because...
Followers are able to trust the leader's expertise and credibility.
The Fraud Triangle is a...
Framework for spotting high-risk fraud situations
First step organizations take to meet the needs of their stakeholders...
Gather data on the company's stakeholders.
Principles...
General boundaries for behavior that often become the basis for rules.
Foundational Values for Identifying Ethical Issues...
Integrity Honesty/Transparency Fairness
Ethical Issues...
Involve a problem/opportunity that requires investigation before a decision can be made
According to Howard Schultz, what is true about ethical leadership?
It is about finding a way to balance between profitability and social consciousness.
Morals..
Personal values that define the right/good & wrong/evil.
53% of misconduct is...
Retaliation for Reporting
2002 congress passed the ___________________act (Org control & accounting regulation)
Sarbanes-Oxley
How should companies approach principles?
There should be zero tolerance for employees to violate them.
Why would it be a mistake to ignore secondary stakeholders?
They can be an ally or a threat to an organization.
Why might ethics mistakes actually improve an organization in the long-run?
They give the firm an opportunity to learn from its mistakes.
Why are principles and values so important to companies?
They provide guidance for employees and leaders in making ethical decisions.
WHY STUDY BUSINESS ETHICS?
To identify ethical issues Understand ways to resolve Understand how to cope with conflicts between your own personal values/morals & those of the org in which you work
Moral Dilemma...
Two or more in conflict with one another.
While principles are more _________ in nature, values are more __________ and tend to be enforced by society.
Universal; Subjective
The Dodd-Frank Wall Street Reform & Consumer Protection Act...
addressed some of the issues related to the financial crisis & recession.
Secondary Stockholders are those who...
are not typically engaged directly in transactions with a company and are therefore not essential to its survival
The Sarbanes-Oxley Act and the FSGO...
institutionalized the need to discover & address & legal risks.
Employee Reporting...
Best way to identify misconduct in an organization
PROCESS OF LEGAL TO UNETHICAL TO ILLEGAL BUSINESS PRACTICE: STEP 4:
Bills, laws & local, state of federal agencies can be introduced to make specific items illegal or regulated.
Ethical leaders must ____________ ethical issues and risks. A. Promote B. Completely eliminate C. Ignore D. Minimize E. Identify
Identify
Criminal Law...
Prohibits specific actions & imposes fines or imprisonment as punishment for breaking the law
Seven Main Characteristics of Ethical Leadership...
Strong ethical character Passion to do the right thing Proactive Include stakeholders in major decisions Concerned w/concept of fairness Incorporate core ethical principles into their decision making Combine ethics knowledge w/ management knowledge
Corporate Social Responsibility (CSR)...
Actions associated by firms with various stakeholder interests as a priority-employees, communities and customers.
Transformational leader...
Actively promoting a shared vision among employees
Unlike an ethical issue, in an ethical dilemma...
All the decisions have negative consequences
While these leaders do not necessarily commit misconduct, they care little for ethics in the company
Apathetic Leaders
What are the three types of leader classifications?
Apathetic leader Ethical Leader Unethical Leader
Primary Stockholders are...
Customers Shareholders Employees Suppliers
Defense industry initiative (DII) Step 3:
Defense contractors must create an open atmosphere in which employees feel comfortable reporting violations without fear of retribution
Civil Law...
Defines the rights & duties of individuals and organizations
We described five examples of ethically-challenged CEOs. What is not one of the mistakes they made? A. Manipulating accounting statements to make the firm look more profitable B. Placing their own interests over those of the company C. Focusing on short-terms profits rather than long-term sustainability D. Engaging in excessive risk-taking E. Giving employees more decision-making authority
Giving employees more decision-making authority
Secondary Stockholders are...
Government agencies Media Communities
Strong ethical value & positive business practices increase...
Group creativity Job satisfaction Decrease turnover
Defense industry initiative (DII) on business ethics and conduct was developed to...
Guide corporate support for ethical conduct.
Competence...
Having the knowledge and ability to perform tasks and handle situations
Charismatic leadership...
Highly persuasive and skilled at getting employees to adhere to a common goal or mission
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
PROCESS OF LEGAL TO UNETHICAL TO ILLEGAL BUSINESS PRACTICE: STEP 3:
Legislators become sensitized to the negative organizational practices.
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
Voluntary Boundary...
Management-initiated boundary of conduct (beliefs, values, voluntary policies, and voluntary contractual obligations)
Defense industry initiative (DII) Step 6:
Member companies must adopt a philosophy of public accountability
Defense industry initiative (DII) Step 5:
Member companies must preserve the integrity of the defense industry
What are the kinds of Ethical issues in business?
Misuse of Company Time Absusive/Intimidating Behavior Lying Conflicts of Interest Bribery Corporate Intelligence Discrimination Sexual Harassment Consumer Fraud Financial Misconduct Insider Trading Intellectual Property Rights Privacy Rights
Organizations that reward high performance without considering how the results were achieved are...
More likely to have employees engage in unethical behavior
Coercive Power...
Opposite of reward power; a leader who can punish an employee or team member
Ethical Business Culture...
Organizational principles, values and norms that are adhered to by the company & its personnel.
Business Ethics...
Organizational principles, values, and norms that may originate from individuals, organizational statements, or from the legal system.
What are the three points in a Fraud Triangle?
Pressure Opportunity Rationalization
What are the four forms of an organizational culture?
Principles Values Norms Artifacts
Ethical Issues in Marketing...
Product Issues Pricing Issues Supply Chain Issues Promotion Issues HR & business Issues
76% of misconduct is...
Reported Observed Misconduct
Ethical leaders must often make trade-offs regarding stakeholder demands (T/F)
True
