Business Ethics Chapters 5-8

Teleology

(consequentialism) (from the Greek word for end or purpose) refers to moral philosophies in which an act is considered morally right or acceptable if it produces some desired result, such as pleasure, knowledge, career growth, the realization of self interest, utility, wealth, or even fame. Two philosophies 1. Egoism 2. Utilitarianism stipulates that acts are morally right or acceptable if they produce some desired result, such as the realization of self interest or utility Deductively

Deontology (Intentions)

(nonconsequentialism) moral philosophies that focus on the rights of individuals and the INTENTIONS associated with a particular behavior rather than its consequences. Equal respect must be given to all persons. There are some things that we should not do, even to maximize utility. Applied deductively

Instrumentalists

(pragmatists) reject the ideas that 1. ends can be separated from the means that produce them. 2. ends, purposes, or outcomes are intrinsically good in and of themselves.

Kohlberg's 3 levels of ethical concern

1. Concern with immediate interests and with rewards and punishments 2. Concern with "right" as expected by the larger society or some significant reference group 3. Seeing beyond norms, laws, and the authority of groups or individuals The importance of this is that individuals in a company can change or improve their moral development, and so managers can develop employees through applicable strategies by providing training for cognitive moral development.

Virtue Ethics to business

1. Good Corporate ethics programs encourage individual virtue and integrity 2. By the employee's role in the community (organization), these virtues form a good person 3. An individual's ultimate purpose is to serve society's demands and the public good and be rewarded in his or her career. 4. The well-being of the community goes hand in hand with individual excellence. applied inductively

Common mistakes in implementing an ethics program

?

Legitimate power

A belief that a certain person has the right to exert influence and certain others have obligation to accept it

Sarbanes-Oxley 404

A compliance section that requires firms to adopt a set of values that forms a portion of the company's culture

Exacting culture

A culture that exhibits a high concern for performance but low concern for people

Caring culture

A culture that shows a high concern for people but minimal concern for performance issues

Apathetic culture

A culture that shows a minimal concern for people and performance

Integrate culture

A culture with a high concern for people and performance

Motivation

A force within an individual that focuses his or her behavior toward achieving a goal

Job performance

A function of ability and motivation

Values-based ethics culture

A missions statement that defines the values of the firm and how employees and customers are to be treated

Referent power

A person perceives that his or her goals or objectives are similar to another's

Reward power

A person's ability to influence the behavior of offers by offering them something desirable

Compliance programs

A program that requires employees identify with and commit to specific conduct + Uses legal terms, statutes, and contracts to teach the rules and penalties for noncompliance. Consistent enforcement and disciplinary action are essential

Value programs

A program that strives to develop shared values. Employees learn to make decisions based on values such as fairness, compassion, respect, and transparency. Creates ethical reasoning.

Whistle-blowing (qui tam relator)

A term used for exposing an organizationals unethical practices to outsiders such as the media or government agencies

Codes of conduct

A tool that helps employees and managers deal with ethical dilemmas by prescribing or limiting specific activities. Should be specific enough to be reasonably capable of preventing misconduct.

Formal group

An assembly of individuals with an organization structure that is explicitly accepted by the group

Informal group

An assembly of two or more individuals with a common interested but without an explicit organizational structure

Cultural audit

An assessment of an organization's values

Differential association

An idea when people learn ethical or unethical behavior while interacting with people in the same role-set or personal groups

Decentralized organizations

An organization decision-making is delegated as far down as the chain of command as possible

Centralized organizations

An organizations decision-making decision utilize a top-down approach

Rule Deontologists

Believe conformity to general moral principles based on logic determines ethicalness.

______________ are central to an organization and provide directions for action.

Core values

_____ is an organizational factor that gives a company specific characteristics. Over time, stakeholders begin to see the company as like a living organism with a mind and will of its own.

Corporate culture

Egoism

Defines right or acceptable behavior in terms of its consequences for the individual. Believe they should make decisions that maximize their own self interest , which is defined differently for each individual. Depending, self interest may be construed as as physical well being, power, pleasure, fame, a satisfying career, a good family life, wealth, or something else. Short Term oriented Believed to be very unethical way of thinking defines right or acceptable actions as those that maximize a particular person's self interest as defined by the individual.

Ethics training

Educating employees about the firm's ethical standards, is a foundation, a code of ethics, a procedure for airing ethical concerns, line and staff involvements, and executive priorities on ethics that are communicated to employees, known as?

Organizational ethics program

Establishing, communicating, and monitoring the ethical values and legal requirements that characterize the organizations history, culture, industry, and operating environment, to promote legal and ethical conduct, is?

Act Utilitarians

Examine specific actions, rather than the general rules governing them, to assess whether they will result in the greatest utility. Rules are more general guidelines.

Deontologists absolute rights

Freedom of Conscience Freedom of Consent Freedom of Privacy Freedom of Speech Due Process

_____ have been found to decrease unethical practices and increase positive work behavior.

Good personal values

_____ is the first sign that an unethical decision has occurred.

Guilt

Which of the following would not be considered a negative reinforcement of employee behavior?

Ignoring the behavior

Categorical Imperative

Immanual Kant - "Act as if the maxim of thy action were to become by thy will a universal law of nature". If you feel comfortable allowing everyone in the world to see you commit an act and if your rationale for acting in a particular manner is suitable to become a universal principle guiding behavior, then committing that act is ethical.

_____________ is/are important in establishing a foundation for normative values.

Institutions

Growth needs

Needs that are satisfied by creative or productive activities

Relatedness needs

Needs that are satisfied by social and interpersonal relationships

_____ involves subordinates simply following the directives of a superior without question. It demonstrates the influence that significant others can exert in the workplace.

Obedience to authority

Ethics Officers

Organizational ethics programs must have oversight by high-ranking persons, known to respect legal and ethical standards? They develop an distribute the code, asses needs and risks, monitor and auditgethical conduct, act upon code violations, review and update the code, and ensure government compliance

Which of the following is the first step in the ethical decision making process?

Recognizing that an ethical issue exists

Descriptive Relativism

Relates to observing cultures. Different cultures exhibit different norms, customs, and values

Uniform standards and policies of conduct

Showing employees what behaviors are acceptable, so they don't make decisions based on coworkers and superiors behavior

Which of the following is not an individual factor that affects business ethics?

Significant others

_____ institutions include religion, education, and individuals such as the family unit.

Social

The ethical decision making process in business includes all of the following

Society's view of the decision

Which of the following is not considered a significant other group in the workplace?

Spouses

Coercive power

The ability to penalize a person's actions in order to change behavior

Bad barrels

The pressure to succeed creates opportunities that reward unethical decisions and creates?

For people who begin the value shift that leads to unethical decisions, which of the following is not a usual justification to reduce and eliminate guilt?

This is in keeping with my personal morals and the code of conduct, so it is okay.

Qualitative Hedonists

Those who believe it is possible to get too much of a good thing (such as pleasure)

Virtues

Trust Self Control Empathy Fairness Truthfulness Learning Gratitude Civility Moral Leadership

6 core values of Codes of ethics

Trustworthiness, Respect, Responsibility, Fairness, Caring, and Citizenship.

Organizations that have ethics programs based on a _____ orientation are found to make a greater contribution than those based simply on compliance, or obeying laws and regulations.

Values

Moral agents

When corporations are held accountable for their conduct to stakeholders, they are?

Values have all the following characteristics except

Widely accepted

Teleogical VS Deontological

___________ philosophies consider the ends associated with an action, whereas __________ philosophies consider the means

Normative Relativism

assume one person's opinion is as good as another's. Believe that we live in a world in which people have many different views and bases from which to justify decisions as right or wrong.

Distributive Justice

based on the evaluation of outcomes or results of the business relationship. If some employees feel they are paid less than their coworkers for the same work, they have concerns with this. Evaluates ethicalness based on fairness. It focuses on outcomes or results of an act

Interactional Justice

based on the relationships between organizational members, including the way employees and management treat one another. Evaluates Ethicalness based on fairness. It focuses on the communication process used in a relationship.

Monists

believe only one thing is intrinsically good. Not all of these are hedonists but often exemplified by hedonism Good will towards men applied to accomplishment

What does a Strong ethics program include?

clear, written codes of conduct, ethics officers, careful delegation of authority, formal ethics training, and monitoring, enforcement, and revision of the program standards.

Utilitarianism

concerned with consequences and seeks the greatest good for the greatest number of people. defines right or acceptable actions as those that maximize total utility, or the greatest good for the greatest number of people

Procedural Justice

considers the processes and activities that produce a particular outcome. Positively influences employees' attitudes and behaviors toward work group cohesion. Evaluates ethicalness based on fairness. It focuses on the process rather than the outcomes of an act.

The _____ can be defined as a set of values, norms, and artifacts, including ways of solving problems shared by members of an organization.

corporate culture

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Nature

deontologists regard the ______ of moral principles as permanent and stable and they believe that compliance with these principles defines ethicalness.

Relativist Perspective

derived subjectively from the experiences of individuals and groups. They use themselves or the people around them as their basis for defining ethical standards, and the various forms of relativism include descriptive, meta ethical, and normative. evaluates ethicalness subjectively on the basis of individual and group experience problem is that it emphasizes peoples' differences while ignoring their basic similiarities

Rule Utilitarians

determine behavior on the basis of principles or rules designed to promote the greatest utility, rather than on individual examinations of each situation they encounter. Do not automatically accept conventional moral rules, however, if they determined an alternative rule would promote greater utility, they would advocate its use instead. conformity to general moral principles

White Collar Crime

does more damage in monetary and emotional loss in one year than violent crimes do over several years combined. Tends to be highly educated people in positions of power, trust, respectability and responsibility within a business or organization.

Obligation Theories

emphasize the means and motives by which actions are justified, and are divided into the categories of teleology and deontology

Familiarizing employees with company values and training them to recognize common ethical scenarios helps them generate

ethical awareness

Virtue Ethics

ethical behavior involves not only adhering to conventional moral standards but also considering what a mature person with a "good" moral character would deem appropriate in a given situation. assumes societal moral rules form the foundation of virtue. Our political, social, and economic systems depend upon the presence of certain virtues among citizens in order to function successfully

People who believe in _____ go with the flow because they feel the events in their lives are uncontrollable.

external locus of control

Justice

fair treatment and due reward in accordance with ethical or legal standards, including the disposition to deal with perceived injustices of others. Based more on deontological moral philosophies than on teleological or utilitarian philosophies

Economic Value Orientation

general moral philosophy associated with values quantified by monetary means; If an act produces more value for its effort, then it should be accepted as ethical

Idealism

general moral philosophy that places special value on ideas and ideals as products of the mind. Refers to the the efforts required to account for all objects in nature and experience and to assign to them a higher order of existence Positive relationship between this and ethical decision making.

Realism (survival of the fittest)

general moral philosophy with the view that an external world exists independent of our perceptions. Assumes humankind is not naturally benevolent and kind, but instead inherently self centered and competitive. Each person is guided by his or her own self interest. Negative correlation between __________ and ethical decision making.

Act Deontologists

hold that actions are the proper basis to judge morality or ethicalness. Past experiences are more important than rules; rules serve only as guidelines in the decision-making process. People simply know that certain acts are right or wrong regardless of their consequences.

Employees who believe they control the events in their lives by their own effort and skill have a(n)

internal locus of control.

The relationship between business ethics and age

is complex, although experience helps older employees make ethical decisions.

Corporate Psychopaths

managers who are nonviolent, selfish, and remorseless, exist in many large corporations

Effective programs to monitor and enforce ethical standards

methods such as: observing employees, internal audits and investigations, surveys, reporting systems, and external audits are used for?

Following the ethical directives of a superior relates to

obedience to authority.

According to the ethical decision-making framework, the absence of punishment provides a(n) _____ for unethical behavior.

opportunity

Multiple elements work on individuals to affect their behavior. While an individual may intend to do the right thing, _____ can alter this intent.

organizational or social forces

Kohlberg's model of cognitive moral development (CMD)

people make different decisions in similar ethical situations because they are in different moral developmental stages.

Most common observed forms of conduct

personal business on company time, abusive behavior, sing to employees, discrimination, health/safety violations, company resource abuse, internet abuse, are all types of?

Metaethical relativism

proposes that people naturally see situations from their own perspectives, and there is no objective way of resolving ethical disputes between different value systems and individuals. One culture's moral philosophy cannot logically be preferred to another's because no meaningful basis for comparison exists.

pluralists

referred to as non hedonists, believe that no one thing is intrinsically good. All of these are non hedonists

Moral Philosophy

refers in particular to the specific principles or rules that people use to decide what is right or wrong. Many theories associated with moral philosophies refer to a value orientation and such things as economics, idealism, and relativism. _____________ are person specific while business ethics is based on decisions made by groups or when carrying out tasks to meet business objectives. a person's principles and values Should be assessed on a continuum

Studies have shown that _____ within the organization have more impact on a worker's decisions on a daily basis than any other factor.

significant others

Enlightened Egoism

take a LONG RANGE perspective and allow for the well being of others although their own self interest remains paramount. Means you may not do something if it comes back to bite you in the butt later or you may do something that is beneficial for others if it could produce something advantageous for you further down the road. As above only if it does not infringe on another's territory

Hedonism

the idea that pleasure is the ultimate good, or the best moral end involves the greatest balance of pleasure over pain. Defines right or acceptable behavior as that which maximizes personal pleasure

Profit Motive

the variable that differentiates business from other situations

Quantitative Hedonists

those who believe more pleasure is better

Goodness Theories

typically focus on the end result of actions and the goodness or happiness created by them. Consists of Monism and pluralism

What is the last step in the ethical decision-making process? ​

​Individuals' intentions and what action they are going to take