CH 3 SB

What is true of an ethical dilemma in an organization? (2)

It forces you to decide whether to pursue a course of action that may be good for you or the company but that is unethical and possibly illegal. It often involves choosing between economic performance and social performance.

Preconventional- level of personal moral development

Obey managers to avoid consequences

What are the three levels of personal moral development proposed by Kohlberg?

Preconventional Conventional Postconventional

Select all the statements that accurately represent Hurley's views on the most important crisis in business today.

What is important is that organizations deliver every day on what they promise. Customers may think certain organizations are ethical, but that does not mean they should trust them. In business today, there is a crisis of trust.

Ethical behavior is defined as behavior that is:

accepted as "right" as opposed to "wrong" according to prevailing ethical standards

Unethical acts intended to create an unfair advantage or help an employee attain benefits they would not otherwise be entitled to receive are known as workplace _____.

cheating

The purpose of a code of ethics is to

clearly state top management's expectations for all employees

Major changes in temperature, precipitation, wind patterns, and similar matters occurring over several decades is known as _______.

climate change

Running a company and protecting the interests of owners and other stakeholders is known as _____.

corporate governance

Today, it is stressed even more that companies go beyond just making a profit and take into consideration the environment and philanthropic initiatives. This is known as practicing ______.

corporate social responsibility

What are actions your book suggests that individuals can take to become more ethical consumers? (4)

don't purchase items that aren't ethically made or sourced don't buy knockoff items provide your own bags at the grocery store purchase fair trade items

Purchasing _____ items increases the chances that your money will help provide a decent wage for the people who made them.

fair trade

True or False: Milton Friedman would have been highly supportive of today's notion of corporate social responsibility.

false

True or false: Ethical standards do not vary among countries or cultures.

false

True or false: Unlike generations before them, Millennials have little concern for the environment and are more interested in profit over planet.

false

The Sarbanes-Oxley Reform Act was established to monitor ______ of public institutions.

financial records

What aspects of a company's performance are measured by the company's triple bottom line?

financial, environmental and social

The rise in the average temperature near the Earth's surface due to an increase in greenhouse gases in the atmosphere is called _____ and is one aspect of climate change.

global warming

Corporate _______ is the system of company oversight designed to ensure that the interests of owners and other stakeholders are protected.

governance

In the __________ approach to solving ethical dilemmas, there is the assumption that people will act ethically in the short run to avoid others harming them in the long run.

individual

One flaw in the _____ approach to ethical decision making is that one person's short-term self-gain may not in fact be good for everyone in the long term.

individual

As the CEO of a pharmaceutical company, Simone learned that the government was about to block the import of one of the company's biggest-selling drugs. She decides to sell her shares of stock before the information is made public. Since she used confidential information to make her decision, she is guilty of _____.

insider trading

People who buy or sell stock illegally based on confidential company information are engaging in _____.

insider trading

One consideration of the _____ approach to ethical decisions is whether an organization's policies - such as those governing promotions or sexual harassment - are administered impartially and fairly regardless of employee gender, age, ethnicity, religion, disability, or sexual orientation

justice

Which approach to deciding ethical dilemmas asserts that an ethical decision should be guided by respect for impartial standards of fairness and equity?

justice approach

According to Archie B. Carroll, the responsibilities of an organization can be arranged as a pyramid, with _____ at the base and _____ at the top.

making a profit; corporate citizenship

The _____ approach to ethical decision making is guided by respect for the fundamental rights of human beings.

moral-rights

A company's triple bottom line represents which three aspects?

people, profit, planet

Target donates millions of dollars each year in education-related grants for arts and cultural experiences, field trips, and reading programs, as well as grants to promote public safety. This is an example of _______.

philanthropy

The act of contributing money in order to benefit society is referred to as _____.

philanthropy

The moral-rights approach to solving ethical dilemmas is guided by _____.

respect for human rights

A manager's responsibility to take actions that benefit both society and the business is known as _____ responsibility.

social

Abusive _____ represents subordinates' perceptions of the extent to which their supervisors engage in the sustained display of hostile verbal and nonverbal behaviors, excluding physical contact.

supervision

According to Fordham professor Hurley, there is not a crisis of ethics in business today but a crisis of _____.

trust

Managers often use a(n) _____ approach when making organizational decisions - using financial performance such as profit as the best definition of what constitutes an ethical choice for the company.

utilitarian

The ______ approach to solving ethical dilemmas involves ethical behavior being guided by what will result in the greatest good for the greatest number of people.

utilitarian

Natural capital is defined as the:

value of natural resources, such as topsoil, air, water, and genetic diversity, which humans depend on.

Values and _____ are the underpinnings for organizational ethics and ethical behavior.

value systems

_____ are the relatively permanent and deeply held underlying beliefs that help determine a person's behavior.

values

Someone who reports organizational misconduct to the public, such as health and safety matters, waste, corruption, or overcharging of customers is known as a(n) _________.

whistle blower

_____ sometimes risk their jobs by coming forward about organizational misconduct and thus need to be protected.

whistle blowers

Millennials in the workforce:

-are concerned about a corporation's ethics, motives, and methods -expect more from the organizations they work for -expect more from the organizations they do business with -want work/life balance

Place the following obligations of a corporation (as identified by Archie B. Carroll) in order, starting with the highest-level responsibility at the top of the list and placing the most fundamental obligation at the bottom of the list. Instructions

1. being a good global corporate citizen 2. being ethical in its practices 3. obeying the law 4. making a profit

5 most common unethical workplace behaviors

Abusive behavior Misusing company time Workplace cheating Violating corporate Internet policies Employee theft

What are two requirements established by the Sarbanes-Oxley Act of 2002?

An organization must put procedures and guidelines in place for audit committees. A company's CEO and CFO must certify the accuracy of the company's financial reports.

Postconventional- level of personal moral development

Follow internal values and standards

Conventional- level of personal moral development

Generally adhere to the expectations of others

A(n) _____ dilemma is a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal.

ethical

Behavior that is accepted as proper according to a society's prevailing values is known as _______ behavior.

ethical

An organization's standards of right and wrong that influence employee behavior are referred to as _______.

ethics

Organizations can promote _____ by creating a strong ethical climate, screening prospective employees, and instituting ethics codes and training programs.

ethics