Ethics Midterm

1980s

- Centers for business ethics provided publications, courses, conferences, and seminars - Stakeholder theory developed - Reagan-Bush Era: Self-regulation rather than regulation by government was in the public's interest -Defense Industry Initiative on Business Ethics and Conduct (DII) was developed to guide corporate support for ethical conduct - Codes of conduct must be understandable and cover substantive areas in detail. - Member companies expected to provide ethics training and continuous support for employees. -Defense contractors must create an open atmosphere in which employees feel comfortable reporting violations without fear of retribution - Companies must perform extensive internal audits and develop effective internal reporting and voluntary disclosure plans - Member companies must preserve the integrity of the defense industry - Member companies must adopt a philosophy of public accountability

Ethical Dilemma w/ Amy at Crudeoil

- Crudeoil brings in new manager, Lee -Amy is a salesperson there, caught in Lee's crosshairs - Is Lee's behavior bullying, what should Amy do? - violate value of respect

John C. Maxwell

"theres no such thing as business ethics, just ethics"

Rule deontologists

- Believe conformity to general moral principles based on logic determines ethicalness • Example: the golden rule -- do unto others as you would have them do unto you

1970s

- Business ethics becomes a common expression - Academic researchers seek to identify ethical issues and describe how business people might choose to act in particular situations - Ethical/Illegal issues defined: bribery, deceptive advertising, price collusion, product safety, and ecology - Limited success was made to describe how the ethical decision-making process in business worked and to identify the many variables that influenced the process

2010s

- Dodd-Frank Wall Street Reform and Consumer Protection Act • Legislation that addressed some of the issues related to the financial crisis and recession and designed to make the financial services industry more ethical and responsible - Enforcement of the FCPA, created in the 70s, became a top priority for the SEC; outside of the U.S., the United Kingdom instituted the Bribery Act. - Distrust of corporate America coincided with influx of Millennials into workforce - Tension between increasing transparency and protecting privacy emerged - President Donald Trump: Decreased environmental and financial regulations; questioned sustainability

2020s and beyond

- Environmental social governance (ESG) - A framework for evaluation of firm performance in the areas of environmental, social, and governance - Sustainability issues are causing firms and government to find solutions - There is increasing demand for responsible ethical conduct to be a part of organizational culture

Ethical Dilemma Jayla

- Jayla interns at Acme in payroll department -Deon is head of department -has a pile of folders with clients to be randomly assigned to salespeople, Greg can handpick because he is Deon's brother in law, while Mary with ashmatic daughter gets bad clients - Is this favoritism? -conflict of interest? -contact ethics helpline

Ethical Dilemma Megan & Employer Tracking

- Megan lands job with app developing company - Debbie, her boss, asks her to review a personnel folder for ethics violations - She finds someone is using a company car to visit sick daughter in hospital (tracked by GPS) - another employee shared confidential info with a competitor -Is it ethical to track employee activities? - can rightfully terminate employee who disclosed the confidential info, but have empathy for using car to visit hospital

According to our authors

- Morals: Personal philosophies that define right and wrong - Principles: Specific boundaries for behavior that often become the basis for rules (human rights, freedom of speech) - Values: Enduring beliefs and ideals that are socially enforced (trust and integrity) - Business ethics: • Organizational principles, values, and norms • That may originate from individuals, organizational statements, or from the legal system • That primarily guide individual and group behavior in business

Sarbanes-Oxley Act (SOX)

- Passed in 2002 in response to widespread accounting scandals, e.g., Enron, Arthur Andersen, WorldCom - Creates greater federal oversight of corporate accounting practices - Requires corporations to establish codes of ethics for financial reporting -SOX whistle-blower protection prohibits the employer from taking certain actions against employees who lawfully disclose private employer information to parties in a judicial proceeding involving a fraud claim, among others

1990s

- President Bill Clinton: Continued to support self-regulation and free trade - Government action with health-related social issues such as teenage smoking - Federal Sentencing Guidelines for Organizations (FSGO): Set the tone for organizational ethical compliance programs

2000s

- President George W. Bush: Misconduct at Enron, WorldCom, Halliburton, and Arthur Andersen caused the government and the public to look for new ways to encourage ethical behavior. - Sarbanes-Oxley Act - The most far-reaching change in organizational control and accounting regulations since the Securities and Exchange Act of 1934, which made securities fraud a criminal offense and stiffened penalties for corporate fraud - President Barack Obama • Inherited the great global financial recession • Leading to Dodd-Frank Wall Street Reform and Consumer Protection Act

Key differences between dodd frank and sarbanes-oxley whistleblower provisions

- SOX: must file with DOL first. If the DOL process not concluded in 280 days, can restart case in federal court

Ethical Dilemma with Sophie and Emma & expense vouchers

- Sophie is new - Emma is her mentor - Emma encourages Sophie to pad her expense account to reflect how there is no place to seek tip reimbursement -Emma said it is accepted in sales department, supervisor won't change it - someone was fired for accurately reporting the expenses - laws: fraud - don't pad accounts and violate company policy - contact ethics helpline

Adam Smith

- Well known for developing the concept of the invisible hand and exploring the role of self-interest in economic systems - emphasized that each individual has to produce for the common good, with values such as propriety, prudence, reason, sentiment and promoting the happiness of mankind - Thus taking into account the interests of stakeholders

What are some of the steps WorldCom took after its accounting scandal in order to implement an effective ethics and compliance program?

- appointed new leadership, including new board members and a new CEO - established an ethics office -published a code of conduct -implemented an ethics helpline -investigated allegations of wrongdoing -punished wrongdoers -launched communication and training initiatives

Ethical Dilemma Kayla & Robert food czar

- debate processed foods vs. natural - GMOS - obesity/unhealthy - freedom of choice? - intensive farming/ 3-D printing?

Lone survivor ethical dilemma

- high stakes decisions -under pressure -moral relativism

Ethical Dilemma Keisha & Smith's Sodas

- lead in marketing initiative -they claim to have biodegradable packaging -scientist says only degrades in certain soils -worried they are greenwashing/false advertising -you have to do something bc ur company will get exposed -call helpline -conduct investigation

Employee empowerment is an essential component of a values-based organizational culture

-A values-based culture encourages employees to express concerns, bring up ethical issues, and take a proactive approach toward resolving conflicts -open communication culture - periodic feedback btwn leaders & followers can bring ethical issues to light

Unfair Competition

-A vertical system is created when a channel member (manufacturer, wholesaler, distributor, or retailer) has control of the entire business system, via ownership or contract, or through its purchasing ability • Vertical systems create inertia, causing channel members to stay with their various retailers and distributors even though competitors may have better products and prices

Responsibility of the Corporation to Stakeholders

-According to our authors, having an effective ethics & compliance program is part of a corporation's obligation to it stakeholders •Increasingly, corporations are viewed not merely as profit-making entities but also as moral agents accountable for their conduct to their stakeholders, including employees, investors, suppliers, governments, and customers

Act deontologists

-Actions are the proper basis to judge morality or ethicalness and requires a person use equity, fairness, and impartiality when making and enforcing decisions • Past experiences are more important than rules in the ethical decision making process

According to our authors, criticism of pharmaceutical companies includes:

-Although pharmaceutical firms believe they should have exclusive rights to their products so they can charge higher prices to recoup their investment, others believe this is unethical because people in developing countries cannot afford them. -The quest for profit has led some pharmaceutical companies to develop drugs for markets that can afford luxuries, e.g., cures for baldness, and not cures for widespread, deadly diseases like malaria, HIV and AIDS.

Mandated boundary

-An externally imposed boundary of conduct (laws, rules, regulations, and other requirements) • For example, antitrust and consumer protection laws create boundaries of propriety that must be respected by companies

According to our authors, organizational cultures can be classified as:

-Apathetic -Caring -Exacting -Integrative -ALL OF THESE

Criminal Law

-Beyond Reasonable Doubt (higher standard, burden) -Jail or Prison; fines -Public (Prosecutor represents community)

2 broad structures for organizations

-Centralized: decision - making authority is concentrated in the hands of top - level managers (tend to be more ethical) -Decentralized: decision making authority is delegated as far down the chain of command as possible (few and informal rules)

2 basic dimensions in an organization's culture:

-Concern for people the organization's efforts to care for its employees' well - being - Concern for performance —the organization's efforts to focus on output and employee productivity

Which of the following statements about corporate culture is/are true?

-Corporate culture includes the behavioral patterns, concepts, values, ceremonies, and rituals that take place in an organization. -The culture of an organization may be explicitly stated or unspoken -Failure to monitor or manage an organization's culture may foster unethical behavior. -ALL OF THESE

1960s

-Development of anti-business trend - Decay of inner cities; growth of ecological problems. - President John F. Kennedy: The Consumers' Bill of Rights • Right to safety • Right to be informed • Right to choose -President Lyndon B. Johnson: The Great Society - Extended national capitalism with the U.S. government's responsibility to provide all citizens with some degree of economic stability, equality, and social justice

Categorical Imperative

"Act as if the maxim of thy action were to become by thy will a universal law of nature"

U.S. Foreign Corrupt Practices Act

-FCPA prohibits American companies from making payments to foreign officials for the purpose of obtaining or retaining business • Small payments are allowed to facilitate or expedite routine governmental transactions, i.e., allows 'grease payments

Several legislative or regulatory regimes provide or call for mechanisms for employees to raise unethical conduct, including violations of law

-Federal Sentencing Guidelines for Organizations -Sarbanes-Oxley -Dodd-Frank -ALL OF THESE

U.K. Anti-Bribery Act

-Foreign companies with operations in the United Kingdom, can be held liable for bribery - No matter where the offense is committed • Classifies bribes between private businesspeople as illegal • Prohibits grease payments

According to our authors, which of the following have been specifically codified into Articles of the U.N. Universal Declaration of Human Rights?

-Freedom of religion -The right to work in favorable conditions -The right to a standard of living adequate for home adequate for health and well-being -Mothers and children being entitled to a special level of care

Which of the following is/are true statements about group norms?

-Group norms are standards of behavior groups expect of their members. -Group norms have the power to force a strong degree of conformity among group members. -Management must carefully monitor the norms of all the various groups within the organization, as well as the organization's corporate culture. -Sanctions may be necessary to bring in line a group whose norms deviate sharply from the overall culture.

According to our authors, which of the following is/are true with respect to centralized and decentralized organizational structures?

-In a centralized organization, decision-making authority is concentrated in the hands of top-level managers, and little authority is delegated to lower levels. -In contrast, in a decentralized organization, decision-making authority is delegated as far down the chain of command as possible. -Because of the strict formalization and implementation of ethics policies and procedures in centralized organizations, they tend to be more ethical in their practices than decentralized organizations, very generally speaking. -ALL OF THESE

Companies should:

-Incorporate global and domestic ethical issues in their risk management strategies - Formulate their own global ethical codes - Appoint ethics officers or committees to oversee and handle global compliance issues - Provide extensive training to its employees

Consumer Financial Protection Bureau (CFPB)

-Independent agency within the Federal Reserve System that "regulate(s) the offering and provision of consumer financial products or services under the Federal consumer financial laws" • Power over credit markets as well as authority to monitor lenders and ensure they are in compliance with the law

MNC Issues

-MNCs use labor-saving devices that increase unemployment in countries where they manufacture -Size and financial clout enable them to control money, supplies, employment, and even the economic well-being of less-developed countries -Size and power of MNCs create ethical issues involving the exploitation of both natural and human resources -MNCs have been accused of failing to carry an appropriate share of the cost of social development

Classic agency problem: Ownership (investors) and control (managers) are separate

-Managers act as agents for investors, whose primary goal is increasing the value of the stock - Investors and managers are distinct parties with unique insights, goals, and values

Ethical Dilemma Marlon & Emper Corp

-Marlon quickly shot up through ranks -promoted to director of personnel -VP Stanley martin wants to automate the factory and hundreds will lose their jobs -fen Li from accounting department said the cost analysis says it wouldn't be profitable for them to do this -Stanley offers to increase their bonuses if they can pull it off -does marlon have to keep this confidential? -he should report up the line and expose stanley

Ethical Dilemma Mohammed & Emma

-Mohammed works in hr department of KR Electronics -monitors ethics helpline reports -Emma manages hr department -Emma ignores Mohammed's report of abusive manager bc they are high performing -sarah wants to make a confidential report, ends up getting fired for "poor performance" -breach of confidentiality? -Is it ethical to berate employees who don't perform well? -values: integrity, confidentiality, fraud -should contact senior management/legal

Civil Law

-Preponderance of the Evidence (more likely than not) -Damages -Private (parties hire their own attorneys)

As a leader, head coach Ted Lasso cannot make every single decision for the team himself and so tries to empower his assistant coaches and players. Likewise, in a corporate setting, a leader needs to empower employees to make decisions, especially when it comes to matters of ethics. Such a values-based culture of empowerment,

-Provides easy access to ethical codes and policies that assist employees when making ethical decisions -Fosters open communication and encourages employees to express concerns, bring up ethical issues, and take a proactive approach toward resolving conflicts -Provides periodic feedback by leaders about ethics issues

Power

-Refers to the influence leaders and managers have over the behavior and decisions of subordinates -Individuals have power over others when their presence causes others to behave differently -The status and power of leaders is directly correlated to the amount of pressure they exert on employees to get them to conform to expectations -There are five power bases from which one person may influence another 1) reward power 2) coercive power 3) legitimate power 4) expert power 5) referent power

Values based Ethical culture

-Relies on an explicit mission statement - Defines the core values of the firm - Describes how customers and employees should be treated

Compliance orientation

-Requires employees to commit to specific required conduct -Uses legal terms, statutes, and the like to teach employees the rules and penalties for noncompliance

According to our authors, which of the following is/are true?

-Since 1978, adjusted for inflation, CEO compensation has grown 940% while typical worker compensation has only increased by 12% -Although the "shareholder activism" movement is spreading in the U.S., in other countries it's further along, e.g., the Swiss government, after bailing out several organizations, passed a referendum called "say-on-pay" that requires a yearly shareholder vote determining executive pay. -Not to be outdone, the Chinese government ruled the disparity between the country's executives and its workers was too great; it therefore cut the salaries of top executives at state-owned banks and insurers.

In season 2 of Ted Lasso, we see AFC Richmond owner Rebecca Welton strive to become an ethical leader. As such, she'll see to master the four categories of organizational communication, which include the following?

-Small group communication -Nonverbal communication -Interpersonal communication -Listening

Group Norms

-Standards of behavior that groups expect of their members -Sometimes group norms conflict with the values and rules prescribed by the organization's culture

Ethical Dilemma Steven & fast food chain

-Steven works at local fast food chain -coworkers dirty and disrespectful -serve burgers that fell on ground -don't wash hands or utensils -get bonus for being fast -finds rotting meat -bad culture and unsafe environment -can't let safety issues persist

According to our authors, research indicates that:

-The bottom 10% of employees take advantage of situations to further their own personal interests -Another 40% of employees go along with the group on most matters -Yet another 40% always try to follow company policies and rules -The top 10% maintain formal ethical standards that focus on rights, duties, and rules, and embrace values that assert certain inalienable rights -ALL OF THESE

Ted Lasso exhibits all of the habits of a strong ethical leader. According to our authors, these include having a passion for _____?

-To do right -Being proactive -Considering all stakeholders' interests -Being role models for the organization and its employees

Justice as Fairness (Rawls)

-What principles of justice would free and rationale people choose under a "veil of ignorance"? -A just society is a society that if you knew everything about it you would be willing to enter it at a random place

Whistle-Blower Bounty Program

-Whistle-blower provisions implemented in Sarbanes-Oxley were not enough to prevent the massive misconduct occurring at business institutions before the financial crisis • To encourage more employees to come forward when they witness misconduct, the Dodd-Frank law instituted a whistle-blower bounty program • Whistle-blowers who report financial fraud to the Securities and Exchange Commission and Commodities Exchange Commission are eligible to receive 10 to 30 percent of fines and settlements if their reports result in convictions of more than $1 million in penalties

Ethical Dilemma Yang at department store

-Yang working as section manager at jennings department store -Zara is one of the best unit managers -Finds out that Zara keeps the change from cash transactions to give to employees as bonuses (shrinkage) -theft? stealing? -at risk for tax liability action by IRS because the funds are not listed as income -Jennings Code guidelines are vague -Yang should do something- ie talk to boss, contact legal/hr, internal audit? fire zara?

United Nations Global Compact

-a set of 10 principles that promote human rights, sustainability, and the eradication of corruption -The Global Compact is voluntary for organizations

From the Apple case we see that

-advances in communication, technology, and transportation have minimized the world's borders -Creating a new global economy in which more and more countries are industrializing and competing internationally - Transactions across national boundaries define global business, a practice that brings together people from countries with different cultures, values, laws, and ethical standards - Therefore, international businesspersons must understand the values, culture, and ethical standards of their own countries and industries and also be sensitive to those of other cultures

Dodd-Frank

-improve financial regulation -increase oversight of the industry -prevent the types of risk-taking, deceptive practices, and lack of oversight that led to the 2008-2009 financial crisis -created Financial Stability Oversight Council and Consumer Financial Protection Bureau -whistle blower bounty program (10 to 30% of fines/settlements to those that come forward)

According to our authors, someone in the position of Rebecca Welton, the owner of AFC Richmond, has power. In particular, someone in Welton, the owner of AFC Richmond, has power. In particular, someone in Rebecca's position

-is able to influence the behavior and decisions of subordinates. -has power over others because their presence causes others to behave differently. -has power that is directly correlated to the amount of pressure they exert on employees to get them to conform to expectations.exert on employees to get them to conform to expectations.

FSGO Steps

-leadership -tone at the top -core values -walk the talk

Ethical Dilemma Preet & electronics corporation

-she works with a team to oversee Amex's contractors in China -she needs to ensure shipments are orderly -she visited the factory, accidents happened there, inhaled chemicals, 12 hr work days with no breaks, no sick leave, suicides -she made recommendations, no one was concerned -coworker Jim told her nothing is going to be done about it -said it's how it's done "over there" (cultural relativism) -contact sympathetic manager, then ethics helpline or board/media

Compliance based culture

-use a legalistic approach to ethics -Codes of conduct are established with compliance as their focus, with rules and policies enforce d by management - Instead of revolving around an ethical culture, the company revolves around risk management - The approach is good in the short term be cause it helps management , stake holders, and legal agencies ensure laws, rules, and the intent of compliance are fulfilled

Key elements of an effective corporate ethics helpline

-user friendly -confidential -anonymous -non-retaliatory -independent ** an organization CANNOT guarantee confidentiality or a promise of no retaliation

You are vice president of environmental affairs at New Belgium Brewing (NBB). Among the reasons you might want to persuade NBB to be environmentally friendly and adopt sustainable practices is/are:

1) Better environmental performance can increase revenue in three ways: through better access to certain markets, differentiation of products, and the sale of pollution-control technology 2) Better environmental performance can reduce costs by improving risk management and stakeholder relationships, reducing the amount of materials and energy used, and reducing capital and labor costs

Dean Martijn Cremers' 3 C's of business

1) CONTRIBUTE 2) COOPERATE 3) COMPETE

Syllabus learning objectives

1) Ethical Awareness - increase your ability to recognize ethical issues, especially those that arise in business 2) Ethical Knowledge -increase your ability to identify key concepts and understand different ethical approaches and theories. 3) Ethical Judgment - improve your moral reasoning and ethical decision making skills with objectivity, especially with regard to issues encountered in business 4) Ethical Action - enhance your ability to act with integrity

Individual Factors

1) Gender - women more ethical 2) Education 3) Nationality 4) Age - older employees have more knowledge/experience 5) Locus of control- how ppl view themselves in relation to power - external (going with flow) - internal ( control events in their lives by own effort and skill)

4 categories of social responsibility issues

1) social issues 2) consumer protection 3) sustainability 4) corporate governance

4 culture types

1. Apathetic : -Minimal concern for either people or performance - Individuals focus on their own self - interest 2. Caring: -High concern for people but minimal concern for performance issues 3. Exacting: Little concern for people but a high concern for performance, Focuses on the interests of the organization 4. Integrative: Combines a high concern for people and performance, An organization becomes integrative when superiors recognize employees are more than interchangeable parts, Employees have an ineffable quality that helps the firm meet its performance criteria

2 basic dimensions in an organization's culture

1. Concern for people: the organization's efforts to care for its employees' well - being 2. Concern for performance: the organization's efforts to focus on output and employee productivity

Organizational factors

1. Corporate Culture 2. Ethical Culture 3. Significant Others 4. Obedience to Authority

7 habits of strong ethical leaders

1. have strong personal character 2. have a passion to do right 3. are proactive 4. consider all stakeholders' interests 5. are role models for the organization's values 6. are transparent and actively involved in decision making 7. take a holistic view of the firm's ethical culture

ethical decision making model

1. who, what, where, when, how 2. define ethical issue 3. identify major principles 4. specify the alternatives 5. assess consequences 6. make your decision

Leadership in Energy & Environmental Design (LEED)

A certification program that recognizes sustainable building practices and strategies

Deforestation

A competitive global economy drives the need for money in economically challenged tropical countries. In the short term, logging and converting lands to other uses seems the profitable thing to do. However, the profits from this for farmers are usually short-lived since rainforest soil is of poor quality

idealism

A moral philosophy that places special value on ideas and ideals as products of the mind

National culture

A much broader concept than organizational culture and includes everything in our surroundings made by people—both tangible items, such as artifacts, and intangible entities, such as concepts and values

Dual relationship

A personal, loving, and/or sexual relationship with someone with whom you share professional responsibilities

Green marketing

A strategy involving stakeholder assessment to create meaningful long-term relationships with customers, while maintaining, supporting, and enhancing the natural environment

Ethics audit

A systematic evaluation of an organization's ethics program and performance to determine effectiveness

Optimization

According to our authors: trade-off between equity (equality) and efficiency (maximum productivity)

Teleology

Acts are morally right or acceptable if they produce some desired result, such as realization of self-interest or utility

Under the Business Judgment Rule,

All of the above -Directors are essentially asked to operate in a reasonable manner, and avoid conflicts of interest -Directors are presumed to exercise care when making decisions -Are largely shielded from liability for a business decision just because it turned out to be a poor business choice

Social democracy

Allows private ownership of property and also features a large government equipped to offer such services as education and healthcare to its citizens

Socialism

Allows private ownership of property and also features a large government equipped to offer such services as education and healthcare to its citizens

Atmospherics

Among the most far-reaching and controversial environmental issues are those that relate to the air we breathe. Is segmented into pollution, climate change, and ozone depletion

John Maynard Keynes

An economist who argued that the state could stimulate economic growth and improve stability in the private sector through, for example, controlling interest rates, taxation, and public projects during the 1930s

Milton Friedman

An economist who rejected the Keynesian conclusion that markets sometimes need intervention to function efficiently and believed deregulation could reach equilibrium without government intervention

virtue ethics

An ethical philosophy claiming that morality's primary function is to develop virtuous character Aristotle

Kyoto protocol

An international treaty meant to curb global greenhouse gas emissions by having countries voluntarily reduce national outputs

Social responsibility

An organization's obligation to maximize its positive impact on stakeholders and minimize its negative impact 4 levels: economic, legal, ethical, philanthropic

Fraud

Any purposeful communication that deceives, manipulates, or conceals facts in order to harm others ex: embezzlement, forgery, accounting fraud, marketing fraud

Deontology

Approach to ethics that judges the morality of an action based on the action's adherence to rules. Described as duty or obligation, because rules 'binds you to your duty' Kant (pure reason)

In the 1990s this accounting firm was implicated in scandals involving several clients including Sunbeam and Waste Management, leading to its subsequent demise in the wake of Enron's collapse

Arthur Andersen

Behavioral economics

Assumes humans act irrationally because of genetics, emotions, learned behavior, and heuristics (mental shortcuts), or rules of thumb

Virtue ethics

Assumes what is moral in a given situation is not only what conventional morality requires but also what the mature person with a "good" moral character deems appropriate

Robinson-Patman Act, 193

Bans price discrimination between retailers and wholesalers

Rational economics

Based on the assumption that people are predictable and will maximize the utility of their choices relative to their needs and wants

Urban sprawl

Began in the United States with the post-World War II building boom. Consumes wildlife habitat, wetlands, and farmland, and also contributes to land, water, and especially air pollution.

Consumerism

Belief that the interests of consumers, rather than those of producers, should dictate the economic structure of a society

Ben & Jerry's—A Caring Culture

Ben & Jerry's embraces community causes, treats its employees fairly, and expends numerous resources to enhance the well-being of its customers.

Eager to win Jaguar's business, account executives from Sterling Cooper attempt to cater to the every wish of Herb Rennet, head of the Jaguar's U.S. Dealers Association and a member of Jaguar's advertising frim selection committee. _____ is the offering of something of value in order to gain an illicit advantage

Bribery

Although we often associate sexual harassment as a by-product of a male-dominated, 'boys-will-be-boys' office culture like that of Sterling Cooper in the 1960s, _____ is also associated with a hostile workplace where someone considered a target is threatened, harassed, belittled, or verbally abused

Bullying

Executive Compensation

CEO pay has skyrocketed 1,322% since 1978

FSGO: A "carrot-and-stick" philosophy

Carrot = Avoid penalties should a violation occur• Stick = Possibility of being fined or put on probation if convicted of a crime

According to our authors, this body of teaching or thought, expressed in a series of papal encyclicals, included concern for workers' rights and living wages

Catholic Social Ethics?(more commonly known as Catholic Social Teaching or Thought)

Global common values

Certain values broadly accepted worldwide

Corporate Intelligence

Collection and analysis of information on markets, technologies, customers, and competitors, as well as on socioeconomic and external political trends ex: hacking, dumpster diving, whacking, phone eavesdropping, password guessing

Shuri, Stark Industries' first Chief Privacy Officer, performs a technology assessment as part of her new role. Among the risks she identifies, given the nature of Stark Industries' many weapon systems, is machine-to-machine (M2M) communication. M2M more commonly refers to which of the following?

Connected devices interacting without human intervention

Adam Smith

Considered the father of modern free market capitalism and economics, a professor of logic and moral philosophy during the late 18th century

According to our authors, what type of fraud involves intentional deception on the part of an individual or group in order to derive an unfair economic advantage over an organization?

Consumer

In 1962, President Kennedy delivered a "Special Message on Protecting the Consumer Interest" that outlined four basic consumer rights: right to safety, to be informed, to choose, to be heard

Consumers' Bill of Rights

An organization's obligation to maximize its positive impact on stakeholders and minimize its negative impact

Corporate Social Responsibility

The extent to which a firm meets the economic, legal, ethical, and philanthropic responsibilities placed on it by various stakeholders is referred to as its _______.

Corporate citizenship

Federal Trade Commission Act, 1914

Created the FTC to help enforce antitrust laws

Genetically modified (GM) organisms

Created through manipulating plant and animal DNA to produce a desired effect like resistance to pests and viruses, drought resistance, or high crop yield

Pharmaceutical Companies

Criticism includes: - Although pharmaceutical firms believe they should have exclusive rights to their products so they can charge higher prices to recoup their investment, others believe this is unethical because people in developing countries cannot afford them - The quest for profit has led some pharmaceutical companies to develop drugs for markets that can afford luxuries, e.g., cures for baldness, and not cures for widespread, deadly diseases like malaria, HIV and AIDS

In the 1980s, Operation Ill Wind an investigation into corruption by U.S. government officials and contractors led to the creation of this ethics organization

Defense Industry Initiative (DII)

Genetically modified organisms

Depending on whom you ask, genetically modified foods are going to save impoverished areas from starvation and revolutionize agriculture, or destroy biodiversity and make us all sick.

cognitive dissonance

Describes the feeling of discomfort that results from holding two conflicting beliefs (somethin aint right)

In the movie Black Panther, T'Challa decides to open the advanced nation of Wakanda to the rest of the world and share its technology, and, although well intentioned, undoubtedly creating a variety of unintended ethical and social responsibility issues. In real life, business are responsible for the ethical use of technology. An increasing number of firms are hiring a chief privacy officer (CPO), who is responsible for:

Developing and implementing policies and procedures related to privacy and data protection

core practice

Documented best practices, often encouraged by legal and regulatory forces as well as industry trade associations

In 2010, Congress passed this statute in the wake of the financial crisis and resulting recession to, among other things, end "too big to fail" and to protect the American taxpayer by ending bailouts

Dodd-Frank

Federal False Claims Act

Employee provides information to the government - U.S. Department of Justice (DOJ) - about a company's wrongdoing -employee whistleblower is known as a qui tam relator

United Parcel Systems—An Exacting Culture

Employees are held to high standards to ensure maximum performance, consistency of delivery, and efficiency.

In season 2 of Ted LassoTed Lasso, episode 1, , episode 1, Goodbye EarlGoodbye Earl, a penalty kick by star striker Dani , a penalty kick by star striker Dani Rojas accidentally kills Richmond's greyhound mascot Earl, leaving fans traumatized. Rojas accidentally kills Richmond's greyhound mascot Earl, leaving fans traumatized. Although Earl's death was not intentional, some view using real animals as team Although Earl's death was not intentional, some view using real animals as team mascots as unethical. In a plot line that did not make it into the final cut of the mascots as unethical. In a plot line that did not make it into the final cut of the episode, animal rights activists call for a boycott of AFC Richmond. Which of the episode, animal rights activists call for a boycott of AFC Richmond. Which of the following refers to large-scale unethical activity that follows recognizable phases of following refers to large-scale unethical activity that follows recognizable phases of escalation?

Ethical disasters

Relativist

Evaluates ethicalness subjectively on the basis of individual and group experiences

Environmental Audit

Evaluation of a firm's environmental, social, and governance (ESG) programs is important

Puffery

Exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely upon and is not generally actionable

T/F In the movie Black Panther, T'Challa decides to open the advanced nation of Wakanda to the rest of the world and share its technology, and, although well intentioned, undoubtedly creating a variety of unintended ethical and social responsibility issues. In real life, governments are adept and agile at keeping up with advancing technology and how to regulate businesses.

False

U.S. Generally Accepted Accounting Principles (US GAAP) and the American Institute of Certified Public Accountants (AICPA) are often considered a champion for principles-based standards.

False

Approved by Congress in the early 1990s, these became the benchmark for organizational ethics and compliance programs to this day, by rewarding organizations for taking action to prevent and detect misconduct

Federal Sentencing Guidelines for Organizations (FSGO)

This statute, passed during the Carter Administration, makes it illegal for U.S. businesses to bribe government officials of other countries

Foreign Corrupt Practices Act

Group Dimensions of Corporate Structure and Culture

Formal group, committee, Work groups, Informal groups(develop the grapevine)

Wakandan folklore has it that millions of years ago, a meteorite containing the metal vibranium came to Earth. When the time of man came, a warrior ingested a heart-shaped herb affected by the metal and gained superhuman abilities, becoming the first Black Panther. Today, this would raise a variety of bioethics issues. Some more common issues that bioethics is concerned with include which of the following?

Genetic data privacy, eugenics, and issues related to increased life expectancy

Dodge v. Ford Motor Co.

Henry Ford, sought to end special dividends for shareholders in favor of investments in new plants- Would enable him "to employ still more men, to spread the benefits of this industrial system to the greatest possible number, to help them build up their lives and their homes." - Minority shareholders objected to this strategy, sued and prevailed

Likewise, according to the authors of Business and Professional Ethics for Directors, Executives and Accountants, e, ethical corporate behavior is thical corporate behavior is expected to lead to:

Higher profitability in the long-term

Age Discrimination in Employment Act

Illegal to discriminate against people 40 years of age or older, as well as those that require employees to retire before the age of 70

Don Draper pitches an ad to Gillette claiming their razor's moisture strip was "six times smoother" than their competitor's strip. When the competitor sued, the court rejected the Gillette's position that the claim was for the strip only, which may have been true. Instead, the court found the claim implied the consumer would receive a six times smoother shave than with the competitor's razor, a claim which was false. Such __________ means the message has a tendency to mislead, confuse, or deceive the public.

Implied falsity

Self-reference criterion

In business, the idea that "we" differ from "them" and an unconscious reference to one's own cultural values, experiences, and knowledge

Land sustainability issues

Includes everything from pollution and waste to loss of biodiversity and genetically modified food

In the movie Iron Man, Tony Stark demonstrates the Jericho, a missile system so advanced that it will change the nature of warfare as we know it, and make other weapons obsolete. Which of the following describes such technology disruption?

Innovation replacing existing systems and habits

As senior partner of advertising firm Sterling Cooper, Bert Cooper likes to preach the value of __________, an important element of virtue that means, among other things, being whole, sound, and in an unimpaired condition. (Whether Bert always practices what he preaches is another matter.)

Integrity

As a copyrighter at Sterling Cooper, Peggy Olson is often worried that the firm's ads mimic popular movies, televisions shows, music, and books a bit too closely. Concerns involving copyright infringement with respect to such material relate to which type of ethical issue?

Intellectual property rights

Just A Rather Very Intelligent System (Jarvis) was originally Tony Stark's user interface that enabled Stark to access everything from the advanced computer systems at Stark Mansion and Stark Industries to the entirety of the Internet. Over time, Stark provided devices to the rest of the Avengers to give them similar functionality. The system of connected devices that provides the ability to send and receive information over the internet is known as _______.

Internet of Things (IoT)

Which of the following has only recently become a significant part of business ethics?

Internet security

Affirmative Action Programs

Involve efforts to recruit, hire, train, and promote qualified individuals from groups that have traditionally been discriminated against on the basis of race, gender, or other characteristics

Corporate Governance

Involves the development of formal systems of accountability, oversight, and control

Expert power

Is derived from a person's knowledge (or the perception that the person possesses knowledge) and usually stems from a superior's credibility with subordinates.

Nonverbal Communication

Is expressed through actions, body language, expressions, or other forms of communication not written or oral. A person's ________ cues are deemed more reliable than what he or she states verbally.

Small Group Communication

Is growing in organizations and is becoming increasingly important to ethical decision making. Can increase collaboration and generate a variety of different perspectives and opinions on a particular issue. Risks: group think, group polarization

Interpersonal Communication

Is the most well-known form of communication and occurs when two or more people interact with one another. It provides an intimate opportunity for the ethical leader to coach employees when potential ethical issues arise.

Sustainability

Is the potential for the long-term well-being of the natural environment, including all biological entities, as well as mutually beneficial interactions among nature and individuals, organizations, and business strategies

Which of the following statements about the U.K. Bribery Act is true?

It classifies bribes among businesspeople to be illegal

Integrity-Based Approach

Leaders take responsibility for the firm's ethical culture and hold employees accountable

Business Judgment Rule

Legal doctrine that helps to guard a corporation's directors against allegations about the way they conduct business -Under this standard, a court will uphold the decisions of a director as long as they are made: 1. in good faith [honest belief or purpose] 2. with the care that a reasonably prudent person would use [due care] 3. with the reasonable belief that the director is acting in the best interests of the corporation [loyalty]

Which of the following statements about multinational corporations (MNCs) is true?

MNCs are characterized by a global strategy of focusing on opportunities throughout the world.

Lying

Making false statements or distorting the truth •3 types of lies 1. Joking without malice 2. Lying by commission 3. Lying by omission

Malware

Malicious software that can be used to steal intellectual property or sensitive customer data

Referent power

May exist when one person perceives that their goals or objectives are similar to another's. The second person may attempt to influence the first to take actions that will lead both to achieve their objectives. For this power relationship to be effective

Sustainable development

Meeting the needs of the present without compromising the ability of the future, with an emphasis on the natural environment

Greenwashing

Misleading a consumer into thinking a good or service is more environmentally friendly than it really is

What criteria do the creators of the video use to rank the "Top 10 Biggest Corporate Scandals"?

Money involved, How high profile the individuals and companies are, Impact the scandal had on others, Overall size

In the 1930s, this was the government's response to the Great Depression, which asked business to work more closely with the government to raise family income

New Deal

FCPA & small facilitation payments

Often made to induce public officials in foreign countries to perform their functions, such as issuing licenses or permits •Although illegal in the U.K., not generally illegal for U.S. companies under the FCPA

Waste management

One of the biggest factors in this is the dumping of waste into landfills. American consumers are by far the world's biggest wasters

Listening

Paying attention to both verbal and nonverbal behavior. Just as important as speaking. Ethical leaders developing good __________ skills tend to establish credibility and trustworthiness with employees.

Coercive power

Penalizes actions or behavior instead of rewarding a person for doing something. Coercive power is essentially the opposite of reward power. Coercive power breaks down relationships in the long-term.

differnetial association

People learn ethical or unethical behavior while interacting with others -Superiors in particular have a strong influence on the ethics of their subordinates - Employees, especially young managers, tend to go along with their superiors' moral judgments to demonstrate loyalty

With all of the computing power and data at his disposal via Jarvis, Iron Man is able to use algorithms to provide data-backed decision options. Such __________ enhances Iron Man's ability to thwart his enemies' actions.

Predictive analytics

In the 1920s, this movement attempted to provide citizens with a 'living wage'

Progressive Movement

Clayton Act, 1914

Prohibits price discrimination, exclusive dealing, and other efforts to restrict competition

1920s

Provide a living wage—income sufficient for education, recreation, health, and retirement

In season 1 of Ted LassoTed Lasso, we meet Rupert Mannion, the former owner of AFC Richmond, who , we meet Rupert Mannion, the former owner of AFC Richmond, who frequently cheated on now-ex-wife and new owner Rebecca Welton. Among other things, he frequently cheated on now-ex-wife and new owner Rebecca Welton. Among other things, he crashes a charity dinner run by Rebecca, after sabotaging the entertainment, so that he can be crashes a charity dinner run by Rebecca, after sabotaging the entertainment, so that he can be the center of attention. Later, he bankrolls his soon-to-be-new wife's purchase of a minority the center of attention. Later, he bankrolls his soon-to-be-new wife's purchase of a minority interest in AFC Richmond (in contravention of the spirit of divorce decree). Which type of interest in AFC Richmond (in contravention of the spirit of divorce decree). Which type of leader is characterized as having superficial charm, no conscience, grandiose self-worth, little leader is characterized as having superficial charm, no conscience, grandiose self-worth, little or no empathy, and enjoys flouting rules?

Psychopathic

Multinational corporations (MNC)

Public companies that operate on a global scale without significant ties to any one nation or region - Represent the highest level of international business commitment - Are characterized by a global strategy focusing on opportunities throughout the world

The modern consumer movement is generally considered to have begun with this consumer advocate's 1965 critique of the auto industry for putting profit and style ahead of lives and safety, entitled Unsafe at Any Speed

Ralph Nader

Which of the following is based upon the assumption that people are predictable and will maximize the utility of their choices relative to their needs and wants?

Rational economics

Reward power

Refers to a person's ability to influence the behavior of others by offering them something desirable

In season 2 of Ted Lasso, we see AFC Richmond owner Rebecca Welton invest in her relationships with her employees and, as a result, flourish. Which type of needs are satisfied by social and interpersonal relationships?

Relatedness

The Sarbanes-Oxley Act is known for?

Requiring greater transparency in financial reporting

Land pollution

Results from the dumping of residential and industrial wastes, strip mining, and poor forest conservation. Such pollution causes health problems in humans, jeopardizes wildlife habitats, causes erosion, alters watercourses (leading to flooding), and can eventually poison groundwater supplies.

Whistle-blower protection

SOX whistle-blower protection prohibits the employer from taking certain actions against employees who lawfully disclose private employer information to parties in a judicial proceeding involving a fraud claim, among others

Which of the following includes a requirement that management assess the effectiveness of an organization's internal controls and commission audits of these controls by an external auditor in conjunction with the audit of its financial statements?

Sarbanes-Oxley Section 404

Relatedness needs

Satisfied by social and interpersonal relationships

Corporate Culture

Shared values, norms, and artifacts that influence employees and determine behavior, including ways of solving problems that members (employees) of an organization share

Executive compensation

Since 1978, adjusted for inflation, CEO compensation has grown 940% while typical worker compensation has only increased by 12%

Starbucks—An Integrative Culture

Starbucks always looks for ways to expand and improve performance.It also exhibits a high concern for people through community causes, sustainability, and employee health care.

Legitimate power

Stems from the belief that a certain person has the right to exert influence and certain others have an obligation to accept it. The titles and positions of authority that organizations bestow on individuals appeal to this traditional view of power.

Strategic Philanthropy

Synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits

According to the Federal Sentencing Guidelines for Organizations, in order to have an effective compliance and ethics program an organization shall: (1) exercise due diligence to prevent and detect criminal conduct; and (2) otherwise promote an organizational culture that encourages ethical conduct and a commitment to compliance with the law.

TRUE

1950s

The Fair Deal (President Harry S. Truman)—defined such matters as environmental responsibility as ethical issues that businesses had to address

Launched by the United Nations, this set of 10 principles concerning human rights, the workplace, the environment and anticorruption seek to create alignment among business, government, society and labor

The Global Compact

1930s

The New Deal (President Franklin D. Roosevelt)—blamed business as the cause for U.S. problems

normative relativism

The assumption that one person's opinion is as good as another's

Cultural relativism

The concept that morality varies from one culture to another and that "right" and "wrong" are defined differently

Sterling Cooper office manager Joan Harris is uncomfortable with the frat-house, locker-room, boys-will-be-boys culture of Sterling Cooper. Which of the following is one of the criteria that must be met to constitute a hostile work environment?

The conduct was unwelcome

Laissez-faire

The idea of the "invisible hand," which is critical to capitalism because it assumes the market, through its own inherent mechanisms, keeps commerce in equilibrium

How is a living wage defined?

The minimum wage a worker requires in order to meet their basic needs

Environmental Protection Agency

The most influential regulatory agency that deals with environmental issues and enforces environmental legislation in the United States

Bribery

The practice of offering something (often money) in order to gain an illicit advantage from someone in authority •Key issue: is it used to gain an advantage in a relationship? •Gifts, entertainment, and travel can also be used as bribes

Recycling

The reprocessing of materials, especially steel, aluminum, paper, glass, rubber, and some plastics, for reuse

behavioral ethics

The study of why people make the ethical and unethical decisions that they do

moral relativism

The view that there is no absolute or universal moral law or truth, resulting in a morality determined by cultural factors or personal preference.

Biodiversity

There's increasing pressure on wildlife, plants, and their habitats. And so many plants and animals became extinct, and thousands more are threatened.

Psychopathic leader

These leaders are characterized as having superficial charm, no conscience, grandiose self-worth, little or no empathy, and enjoy flouting the rules (1% could qualify)

Which of the following is true of those who ascribe to consumerism?

They believe consumers, not producers, should dictate the economic structure of a society.

Why might vertical systems be a business ethics issue?

They can result in a channel member having too much control

Why is it important for businesses to recognize secondary stakeholder groups?

They have legitimacy and the power to influence outcomes.

Secondary stakeholders

Those who are not typically engaged directly in transactions with a company and are therefore not essential to its survival - Media - Trade Associations -Special Interest Groups

Primary stakeholders

Those whose continued association and resources are absolutely necessary for a firm's survival - Customers - Shareholders - Employees - Suppliers - Government Agencies - Communities

Cause-related marketing

Ties an organizations product(s) directly to a social concern through a marketing program ex: shamrock shake

What is the purpose of the United Nations Global Compact?

To promote human rights, sustainability, and eradicate corruption

According to our authors, within the U.S. and the European Union, trade unions are accepted, but in many other countries, including North Korea, Cuba, and Iran, trade unionists risk imprisonment.

True

Value dilemma

Two or more beliefs/ideals in conflict with one another

Moral dilemma

Two or more choices in conflict with one another, all undesirable

Air pollution

Typically arises from three different sources: stationary sources such as factories and power plants; mobile sources such as cars, trucks, planes, and trains; and natural sources such as windblown dust and volcanic eruption.

Unethical leader

Usually egocentric, Searches for legal loopholes, Perceive ethics codes, compliance regulations, and industry standards as optional

Which of the following describes when risk compartmentalization - one of the causes of the 2007-2009 financial crises - occurs?

Various profit centers within an organization are unaware of the consequences of their actions on the firm as a whole.

This scandal proved to be the Nixon administration's undoing and, more broadly, focused public interest on the importance of ethics in government, and, by extension, other institutions including business

Watergate

Social Entrepreneurship

When an entrepreneur founds an organization with the purpose of creating social value ex: Toms

Conflict of interest

When an individual must choose whether to advance his or her own interests, those of the organization, or those of some other individual or group [Deon favoring his brother-in-law Greg!]

Climate change

When carbon dioxide and other gases collect in Earth's atmosphere, they trap the sun's heat like a greenhouse and prevent Earth's surface from cooling. During the 20th century, the burning of fossil fuels—gasoline, natural gas, oil, and coal—accelerated dramatically, increasing the concentration of "greenhouse" gases (carbon dioxide, methane, nitrogen oxides, and fluorinated gases) in Earth's atmosphere.

Consumer fraud

When consumers attempt to deceive businesses for their own gain ex: shoplifting, collusion, duplicity, guile

Acid rain

When nitrous oxides and sulfur dioxides are emitted from manufacturing facilities, the compounds are exposed to air and precipitation and form new compounds

Corporate risk compartmentalization

When profit centers within corporations are unaware of the overall consequences of their actions on the firm as a whole

An accounting scandal at this telecommunications company, which had loaned over $300 million to its CEO Bernie Ebbers, led to the passage of the SarbanesOxley Act, in particular the provision prohibiting companies from making loans to its executives

WorldCom

Core practice

a highly appropriate and common practice that helps ensure compliance with legal requirements, industry self-regulation, and societal expectations

Voluntary boundary

a management-initiated boundary of conduct (beliefs, values, voluntary policies, and voluntary contractual obligations)

stakeholder

a party that has an interest (a "stake") in a company and can either affect or be affected by the company in some way

ethics audit

a systematic evaluation of an organization's ethics program and performance to determine whether it is effective - informal ethics audit: interviews of employees/management

According to our authors, most of the laws that govern business activities fall into 1 of 5 groups including:

a) Laws Regulating Competition b) Laws Protecting Consumers c) Laws Promoting Equity and Safety d) Protection of the Natural Environment e) Incentives to Encourage Compliance Programs ANSWER f) All of the above

As vice president of environmental affairs at New Belgium Brewing (NBB), you would like to persuade NBB to have high commitment to environmental issues and so you'll push NBB to engage in

a) Recycling, the reprocessing of materials, especially steel, aluminum, paper, glass, rubber, and some plastics, for reuse b) Stakeholder assessment, the process of acknowledging and actively monitoring the environmental concerns of all legitimate stakeholders c) Risk analysis, the identification of environmental issues that relate to manufacturing, marketing, and consumption and use patterns associated with its products d) An environmental audit, under which NBB would audit all of its environmental efforts and report the results to all interested stakeholders

Billionaire Tony Stark was an early investor in Bitcoin, which uses Blockchain, a decentralized record-keeping technology that stores an immutable record of data "blocks" (or ledgers) over time. Although closely associated with Bitcoin, Blockchain's benefits are many and extend beyond cryptocurrencies, including

a) Since data is locked into the system without a central control, businesses are looking to this technology to increase transparency and security b) Because it is not centralized, there is a lower risk of cyberattacks c) It's also effective for improving supply chains and food safety d) Another benefit of blockchain is that it creates an audit trail that protects both consumers and businesses from fraud, serving as a solution to digital fraud and privacy breaches in various industries

Largely unknown to outsiders, the fictional Kingdom of Wakanda is the most technologically advanced country on earth. In the movie Black Panther, T'Challa decides to open the advanced nation to the rest of the world and share its technology. In real life, a digital divide still exists. Which of the following is/are true with respect to the digital divide?

a) The digital divide refers to the varying levels of access to technology across social, geographical, and geopolitical groups b) Americans rely on the internet more than ever for education, work, medical needs, purchasing goods, and more c) Even so, more than 20 million people in the United States do not have internet at home, mostly because they cannot afford it

According to our authors, laws that govern equity and safety in the workplace include:

a) Title VII of the Civil Rights Act of 1964 b) Occupational Safety and Health Act c) Pregnancy Discrimination Act d) Americans with Disabilities Act e) Sherman Antitrust Act f) All of the above ANSWER g) a-d only

According to our authors, there are multiple dimensions of institutionalization of business ethics:

a) Voluntary practices that include the beliefs, values, and voluntary contractual obligations of a business b) Core practices that are documented best practices, often encouraged by legal and regulatory forces as well as industry trade associations c) Mandated boundaries that are externally imposed levels of appropriate conduct, such as laws, rules, and regulations ANSWER d) all of the above

As vice president of environmental affairs at New Belgium Brewing (NBB), you are insulted when NBB is accused of greenwashing

a) Which involves misleading a consumer into thinking a good or service is more environmentally friendly than it really is b) Which many consumers do not find out about until after the purchase, thereby increasing sales in the short term c) Because greenwashing is negatively related to financial performance; therefore, companies that engage in greenwashing can expect to receive criticism and decreased sales in the long run

You are vice president of environmental affairs at New Belgium Brewing (NBB). You persuade NBB to engage in green marketing:

a) Which is a strategy involving stakeholder assessment to create meaningful long-term relationships with customers, while maintaining, supporting, and enhancing the natural environment b) By highlighting to consumers that NBB gets its energy from alternative sources, its facilities use natural lighting, and it provides its employees with bikes so they can travel to work and reduce fossil fuel usage

In Iron Man 2, villains Justin Hammer and Ivan Vanko build an army of armored drones that they unleash against Tony Stark and U.S. Air Force Lieutenant Colonel James Rhodes. More typically, drones:

a) are unmanned aerial devices that can be programmed with AI b) can be used to gather aerial imagery, deliver products, and collect environmental data such as temperature and humidity c) create privacy risks by capturing images of people without their consent

Because of the widespread availability of big data, privacy has become a concern. According to the authors of our textbook, key privacy issues include

a) data protection b) surveillance

In the movie Iron Man, billionaire playboy, industrialist and master engineer Tony Stark builds an armored exoskeleton to escape from terrorists, ultimately becoming the superhero Iron Man. Which of the following is/are true with respect to Tony's intellectual property rights?

a) if Tony Stark publishes his memoir entitled "My Life in Captivity," the work is most likely protected by copyright b) if Stark Industries sells a line of "Iron Man Security Drones," the product name is most likely protected by trademark c) if Tony Stark seeks to protect the technology he developed in connection with the armored exoskeleton, he file for a patent

In the movie Iron Man, Tony Stark attempts to buy a painting off the Internet that the intends to give his long-time assistant and would-be romantic partner Pepper Potts. He clicks on the ad on his Twitter feed, providing personal information including name, address and credit card. Which of the following is/are true with respect to cybercrime?

a) if by clicking on the link he unleashed malicious software that can be used to steal intellectual property or sensitive data, that's malware b) if the vendor is not a legitimate business and simply wants to obtain stark's money without delivering that painting, that's fraud c) if the website is disguised as a legitimate business in order to obtain sensitive information, that's phishing

The Dodd-Frank Wall Street Reform and Consumer Protection Act is a federal statute that

a. was signed into law by President Obama on July 21, 2010 in order to further regulate our financial system b. among other things, was designed to increase accountability and transparency in the financial industry and protect consumers from deceptive financial practices c. established the Consumer Financial Protection Bureau (CFPB) to protect consumers from unsafe financial products d. gave federal regulators more power over large companies and financial institutions to prevent them from engaging in risky practices or becoming "too big to fail" ANSWER e. all of the above

Roger Sterling warns account executive Ken Cosgrove to put his creative writing ambitions on hold because they are interfering with the performance of his duties at Sterling Cooper. Conflicts of interest exist when employees must choose whether to

advance their own personal interests, those of the organization, or those of some other group

For purposes of ethical decision making in this course, the following ethical paradigms will be most helpful to you:

all egoism, utilitarianism, deontology, virtue ethics, justices as fairness, all of the above

According to the Ethics Unwrapped reading and related video on "Social Contract Theory,"

all of the above -Social Contract Theory says that people live together in society in accordance with an agreement that establishes moral and political rules of behavior. -Social contracts can be explicit, such as laws, or implicit, such as raising one's hand in class to speak. -Regardless of whether social contracts are explicit or implicit, they provide a valuable framework for harmony in society

The Dodd-Frank Wall Street Reform and Consumer Protection Act is a federal statute that

all of the above -was signed into law by President Obama on July 21, 2010 in order to further regulate our financial system -among other things, was designed to increase accountability and transparency in the financial industry and protect consumers from deceptive financial practices -established the Consumer Financial Protection Bureau (CFPB) to protect consumers from unsafe financial products -gave federal regulators more power over large companies and financial institutions to prevent them from engaging in risky practices or becoming "too big to fail"

Just-in-time inventory systems

allow companies to hold minimal stock and increase return on assets (ROA), but can be easily disrupted by tsunamis, earthquakes, massive fires, pandemics and the like

Cultural Audit

an assessment of an organization's values

mandated boundary

an externally imposed boundary of conduct (laws, rules, regulations, and other requirements) ex: antitrust and consumer laws

Jarvis starts out as a natural-language user interface computer system, named after Edwin Jarvis, in honor of the butler who worked for Howard Stark and the Stark household. Over time, Tony Stark upgrades Jarvis into a system capable of handling business for Stark Industries, operating Stark Mansion, running security for Stark Tower, and aiding Iron Man and the rest of the Avengers during combat. Such technology that allows machines to learn and perform tasks that typically require human intelligence using algorithms and data is referred to as _______.

artificial intelligence (AI)

According to the authors of our textbook, which of the following is true concerning the relationship between business ethics and age?

b and c Younger managers are far more influenced by organizational culture, Older employees with more experience have greater knowledge to deal with complex industry-specific ethical issues

You get a summer job managing a yogurt shop, a franchise of a national chain. Compared to your personal activities, you business activities at the shop may be more complex

b) but they should still involve the same ethical standards

When confronted with an ethical issue, workplace, family, religion, legal system, community, and profession are known as an individual's six

b) spheres of influence

During combat, Jarvis is a able to assist Iron Man with updates as to his armored suit's status and the enemy's weak points. In connection with this, Jarvis processes large volumes of structured and unstructured data that need to be transmitted at very fast speeds, which are known as _______.

big data

justice as fairness

citizens are free an equal, John Rawls

Codes of Conduct Types

code of ethics, code of conduct, statement of values

Advertising firms Sterling Cooper and McCann Erickson reach a secret agreement to fix the prices on rates they will propose to cigarette company Lucky Strike when bidding its work. Such a fraudulent, illegal, or deceitful scheme is known as

collusion.

Because every organization has employees that will try to take advantage if there is an opportunity for misconduct, when developing a values- based ethical culture it must include a(n) _______ element.

compliance

Hostile work environment

conduct was unwelcome, severe and pervasive, and a reasonable person would find offensive

In the 1960s, consumer activists helped secure passage of statutes such as the Wholesome Meat Act of 1967, collectively referred to as . . . .

consumer protection laws

According to the authors of Blind Spots: Why We Fail to Do What's Right and What to Do about It, Chapter 4, "Why You Aren't as Ethical as You Think You Are,"

d) all of the above -The human tendency to make inaccurate predictions about our own behavior is well documented by behavioral ethics and other research, We firmly believe we will behave a certain way in a given situation; when actually faced with that situation, however, we behave differently, Examples of such "behavioral forecasting errors" abound, and include underestimating the extent to which we'll be influenced by pressure from a boss or a peer

Challenges/criticisms of virtue ethics include:

d) all of the above -interpretation of a virtue may be culturally sensitive, virtues sometimes conflict, acting in accordance with virtues may lead to a 'bad' outcome

According to the authors of our textbook, which of the following relates to individuals' perceptions of social pressure and the harm they believe their decisions will have on others?

d) moral intensity

The common criticism of utilitarianism is that it

d) results in human costs many people find unacceptable

What would an ethical egoist say about a situation in which self-interest and morality conflict?

d) such a situation is impossible, according to ethical egoism

According to our authors, the primary objective of U.S. antitrust laws is to

distinguish competitive strategies that enhance consumer welfare from those that reduce it.

Ethics Contributes to...

employee commitment, investor loyalty, customer satisfaction, profits

In the movie Captain America: Civil War, the United Nations is (UN) is preparing to pass the Sokovia Accords, which will establish a UN panel to oversee and control the Avengers. Tony Stark supports oversight because of his role in Ultron's creation and Sokovia's devastation. In a little known subplot that did not make the final cut of the movie, Tony is equally concerned about Stark Industries' use of technology, and so he hires T'Challa's sister Shuri, a technology prodigy of innovative spirit and mind, as Stark Industries' first Chief Privacy Officer. In order to evaluate the possible effects that new processes, systems, and products will have on business operations and stakeholders, Shuri will probably perform a(n) _______.

ethics audit

Egoism

excessive interest in one's self; belief that one should be interested in one's self rather than in others; selfishness; ADJ. egoistic, egoistical Ayn Rand

Corporate Citizenship

extent to which businesses strategically meet the economic, legal, ethical, and philanthropic responsibilities placed on them by various stakeholders

Economist Milton Friedman is often criticized for his approach to corporate social responsibility as expressed in "The Social Responsibility of Business is to Increase its Profits," The New York Times Magazine, September 13, 1970, which he viewed as making as much money as possible while conforming to the basic rules of the society as embodied in the law, and nothing more.

false

In the competitive world of 1960s advertising on Madison Avenue, issues relating to fairness and honesty may arise because business is sometimes regarded as a

game governed by its own rules rather than those of society

Financial Stability Oversight Council (FSOC)

has the authority to: -limit r closely supervise financial risks • Create stricter standards for banking and nonbanking financial institutions, and • Disband financial institutions that present a serious risk to market stability

Voluntary Practices

include the beliefs, values, and voluntary contractual obligations of a business

Moral intensity

individuals perceptions of social pressure - organizational factors - and the harm they believe their decisions will have on others (lone survivor example, kill herders or be killed?)

Ted Lasso, an American college football coach, is hired as the head coach of AFC Richmond, a British soccer team. The key to his success as a coach is that he Richmond, a British soccer team. The key to his success as a coach is that he cares more about people than wins, which somewhat paradoxically leads to cares more about people than wins, which somewhat paradoxically leads to wins. The ability or authority to guide and direct others toward a goal is known wins. The ability or authority to guide and direct others toward a goal is known as _______.

leadership

IBM salesman Lloyd Hawley tells his client, Roger Sterling, who is not an IT expert, that the new IBM System/3 computer is much better than anything else available in the marketplace. To convince Sterling, Hawley uses a great deal of technical jargon that his client does not really understand. Hawley does this intentionally to confuse Sterling. This is an example of

noise

Rebecca Welton is the new owner of AFC Richmond following her divorce settlement. Although she ultimately comes around to Ted's way of thinking, settlement. Although she ultimately comes around to Ted's way of thinking, initially she wants to ruin the team as it was the only thing her ex-husband initially she wants to ruin the team as it was the only thing her ex-husband loved. When managers overlook or stifle the importance of core values in their loved. When managers overlook or stifle the importance of core values in their business decisions, this is known as _______.

normative myopia

Normative myopia:

occurs when leaders overlook/stifle important core values in decisions • Believe normative values do not apply to managerial decisions

Bimodal wealth distribution

occurs when the middle class shrinks, resulting in highly concentrated wealth among the rich and increased numbers of poor people with few resources

social contract theory

people live together in society in accordance with an agreement that establishes moral and political rules of behavior

Consumer advocate Ralph Nader demonstrated the lack of credibility of corporations, initially by exposing their:

poor car safety

Sherman Antitrust Act (1890)

prohibits monopolies

Electronic Communications Privacy Act of 1986

prohibits the interception of information communicated by electronic means -exception: employers may monitor their employees' electronic communications • if the employee consents to interception by the employer, or • lacking consent, if the communication was sent or received via a device furnished by the employer or that the employee is using in the ordinary course of the employer's business

According to our authors, an ethical issue is a problem, situation, or opportunity

requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical.

Among the best practices for ethical compliance that emerged during the 1980s, was creating an open atmosphere in which employees feel comfortable reporting potential violations without fear of . . .

retribution (or retaliation)

In Iron Man 2, villains Justin Hammer and Ivan Vanko build an army of armored drones that they unleash against Tony Stark and U.S. Air Force Lieutenant Colonel James Rhodes. The drones are also robots, cable of performing a certain human tasks. Clearly, Hammer and Vanko were not concerned with design and implementation of a code of conduct that must be programmed into the AI of a robot, known as _____?

roboethics

Countrywide Financial—An Apathetic Culture Countrywide

seemed to show little concern for employees and customers. The company's culture appeared to encourage unethical conduct in exchange for profits

The 1980s ushered in the Reagan-Bush era, with the accompanying belief that _______________, rather than regulation by government, was in the public's interest

self regulation

Global Compact

set of 10 principles concerning human rights, labor, the environment, and anti-corruption, created by the United Nations

moral philosophy

specific principles or values people use to decide what is right and wrong

In the 1980s, commentators began to focus more on ________ as a basis for making ethical decisions, i.e., any group or individual who can affect or is affected by the achievement of the organization's objectives

stakeholders

he first book on business ethics, published in 1937, demonstrates the necessity of the ethical treatment of competitors, customers, stockholders, employees, business partners such as suppliers, and government agencies, collectively known as __________?

stakeholders

Values orientation

strives to develop shared values, the foundation of an organizational ethical culture (employee diveristy)

In the movie Iron Man, billionaire playboy, industrialist and master engineer Tony Stark is kidnapped by terrorists. In order to escape, he builds an armored exoskeleton (and ultimately becomes the superhero, Iron Man). Such application of scientific knowledge to efficiently solve real-world problems is known as _______.

technology

At the heart of Congress' approach to compliance & ethics programs are the ______________, incentivizing compliance and penalizing wrongdoing

the 'carrot and stick'

After Kennedy came President Johnson and a series of programs that sought to provide all citizens with some degree of economic stability, equality, and social justice, which included requirements placed on business

the Great Society

WorldCom Scandal

the company had manipulated earnings by using fraudulent accounting methods, thereby presenting a false image of economic growth and prosperity. As a result, the company's stock price continued to climb, when it should have been falling. (books off by $3.8 billion) *Bernie Ebbers CEO sentenced 25 yr term *CFO Scott Sullivan sentenced 5 yrs

Peggy Olson starts her career at Sterling Cooper as Don Draper's secretary, where she often encounters ethical issues. Such issues typically arise in business because of conflicts between individuals' morals and

the core values and culture of the organizations where they work.

The more misconduct...

the less trust employees feel toward the organization—and the greater the turnover

Implied falsity

the message has a tendency to mislead, confuse, or deceive the public

Fairness

the quality of being just, equitable, and impartial elements that motivate ppl to be fair 1) equality 2) Reciprocity 3) optimization

self serving bias

the tendency for people to take personal credit for success but blame failure on external factors

realism

the view that an external world exists independent of our own perceptions

"The Lasso Way" is so successful in transforming the culture of AFC Richmond that Rebecca Welton decides to take the team public. Richmond that Rebecca Welton decides to take the team public. According to our authors, there is a positive association between the According to our authors, there is a positive association between the ethical commitment of employees and a firm's valuation on the stock ethical commitment of employees and a firm's valuation on the stock market.

true

A problem with Deontology is that the categorical imperative does not provide clear guidelines for deciding what is right and wrong when two or more moral laws conflict and only one can be chosen.

true

According to our authors, just-in-time inventory systems were at the root of many of the supply chain issues experienced during the COVID-19 pandemic

true

According to the Framework for Ethical Decision Making in Business, the absence of punishment provides an opportunity for unethical behavior

true

Corporate governance is the development of formal systems of accountability, oversight, and control

true

Fans of the show Mad Men sometimes wonder just how low account executive Peter Campbell will stoop to win business. Suppose Peter sorts through a competing business' trash to see if there are any documents that could reveal secret information. Although legal scholars may disagree about the lawfulness of such activity based in part on the facts of each case (e.g., whether it includes trespassing, theft, theft of trade secrets and the like), according to the authors of our textbook, this is an unethical form of corporate intelligence.

true

In the scene "The Carousel," we see a room full of white males in positions of responsibility. Those who made the hiring decisions at Sterling Cooper and Kodak appear to have failed to exhibit optimization in their hiring practices.

true

Lee Garner, CEO of Lucky Strike, tells Roger Sterling in confidence that the U.S. Department of Justice has served Lucky Strike with a subpoena seeking information relating to what the company knows about cancer-causing ingredients in its cigarettes. Roger tells his broker to sell his share of Lucky Strike stock. Generally speaking, insider trading occurs when persons buy or sell securities on the basis of information that is not available to the pubic.

true

Social responsibility is an organization's obligation to maximize its positive impact on stakeholders and minimize its negative impact.

true

Don Draper and Roger Sterling try to force their partner Bert Cooper to retire because of his age. A company can successfully be sued for discrimination if it

uses age as a hiring or firing criterion

utilitarianism

what action produces the greatest good for the greatest number of people (cost benefit analysis must be performed) trolley problem

sniff test

what would your realtives/hero think...

ethical fading

when the ethical aspects of a decision disappear from view

Power distance

• Refers to the relative inequality between superiors and subordinates • Arab countries tend to be more hierarchical

Apathetic leader

•Cares little for ethics. •Views ethics as relative/optional in a business context. •Often display no passion for firm/mission of the organization. •Employees don't see sacrifices in them that other managers or leaders display.

Dodd-Frank Wall Street Reform and Consumer Protection Act was passed in 2010

•Goal: to increase accountability and transparency in the financial industry and protect consumers from deceptive financial practices •Established a Consumer Financial Protection Bureau (CFPB) to protect consumers from unsafe financial products •Gives federal regulators more power over large companies and financial institutions to prevent them from engaging in risky practices or becoming "too big to fail" •Large financial firms must retain at least half of top executives' bonuses for at least 3 years

Uncertainty avoidance

•How members of a society respond to uncertainty or ambiguity • Great Britain: workers tend to avoid risk taking • Canada: workers tend to embrace a certain amount of risk taking

Individualism/collectivism

•How self-oriented or collective members of a culture are in their behavior • US: individualist • Mexico: collectivist

Ethical leader

•Includes ethics at every operational level. •Addresses issues as soon as they appear. •Tries to create participative organizational cultures •Views employee collaboration as an important resource.