Applied Business Ethics - Exam 3

Corporate culture

A set of values, norms, and artifacts, including ways of solving problems that members (employees) of an organization share

decentralized organization

Decision-making authority is delegated as far down the chain of command as possible

Expert power

Derived from a person's knowledge and usually stems from a superior's credibility with subordinates

Justice

Fair treatment and due reward in accordance with ethical or legal standards, including the disposition to deal with perceived injustices of others

Stage Three of Kohlberg's model of cognitive moral development

Mutual interpersonal expectations, relationships and conformity

Pluralist

Often referred to as nonhedonists, take the opposite position that no one thing is intrinsically good

coercive power

Penalizes actions or behavior

Stage five of Kohlberg's model of cognitive moral development

Prior rights, social contract, and utility

values-based ethics culture

Relies on an explicit mission statement that defines the core values of the firm and how customers and employees should be treated

Sarbanes-Oxley 404

Requires firms to adopt a set of values that forms a portion of the company's culture

Opportunity

The conditions in an organization that limit or permit ethical or unethical behavior

Act utilitarian

The rightness of each individual action must be evaluated to determine whether it produces the greatest utility for the greatest number of people

Realism

The view that an external world exists independent of our perceptions

Kohlberg's model of cognitive moral development (CMD)

Theory in which people make different decisions in similar ethical situations because they are in different moral development stages

Qualitative hedonist

Those who believe it is possible to get too much of a good thing

? is right of acceptable behavior in terms of the consequences for the individual. a. Egoism b. Utilitarianism c. Act deontology d. Rule deontology e. Relativism

a. Egoism

? is the final stage of cognitive moral development, according to Lawrence Kohlberg. a. The stage of prior rights, social contract, or utility b. The stage of universal ethical principles c. The stage of individual instrumental purpose and exchange d. The stage of punishment and obedience e. The stage of social system and conscience maintenance

b. The stage of universal ethical principles

Motivation

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

job performance

A function of ability and motivation and can be represented by the equation (job performance = ability × motivation)

Enlightened egoism

A long-range perspective and allows for the well-being of others although their own self-interest remains paramount

Idealism

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

reward power

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

Obedience to authority

A reason employees resolve business ethics issues by simply following the directives of a superior

Education

A significant factor in the ethical decision-making process; generally, the more education or work experience people have, the better they are at making ethical decisions

Formal group

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

culture audit

An assessment of an organization's values

Age

An individual factor that has a complex relationship with business ethics

Rule utilitarian

Argue that general rules should be followed to decide which action is best

virtue ethics

Argues that ethical behavior involves not only adhering to conventional moral standards but also considering what a mature person with a "good" moral character would deem appropriate in a given situation

Economic value orientation

Associated with values quantified by monetary means; according to this theory, if an act produces more economic value for its effort, then it should be accepted as ethical

Distributive Justice

Based on the evaluation of the outcomes or results of a business relationship

interactional justice

Based on the relationships between organizational members, including the way employees and management treat one another

Monist

Believe only one thing is intrinsically good

Integrative culture

Combines a high concern for people and performance

rule deontologist

Conformity to general moral principles based on logic determines ethicalness

Procedural justice

Considers the processes and activities that produce a particular outcome

white-collar crime

Crimes perpetrated every year by nonviolent business criminals

centralized organization

Decision-making authority is concentrated in the hands of top-level managers, and little authority is delegated to lower levels

Egoism

Defines right or acceptable behavior in terms of its consequences for the individual

relativist perspective

Definitions of ethical behavior are derived subjectively from the experiences of individuals and groups

Obligation theory

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

caring culture

Exhibits high concern for people but minimal concern for performance issues

whistle-blowing

Exposing an employer's wrongdoing to outsiders such as the media or government regulatory agencies

Goodness theory

Focus on the end result of actions and the goodness or happiness created by them

act deontologist

Hold that actions are the proper basis to judge morality or ethicalness

Normative approach

How organizational decision makers should approach an issue

categorical imperative

If you feel comfortable allowing everyone in the world to see you commit an act and if your rationale for acting in a particular manner is suitable to become a universal principle guiding behavior, then committing that act is ethical

Gender

In ethical decision making, research shows that in many aspects there are no differences between men and women

Stage Two of Kohlberg's model of cognitive moral development

Individual instrumental purpose and exchange

Meta-ethical relativism

Proposes that people naturally see situations from their own perspectives, and there is no objective way of resolving ethical disputes between different value systems and individuals

Stage one of Kohlberg's model of cognitive moral development

Punishment and obedience

Teleology

Refers to moral philosophies in which an act is considered morally right or acceptable if it produces some desired result, such as pleasure, knowledge, career growth, the realization of self-interest, utility, wealth, or even fame

Deontology

Refers to moral philosophies that focus on the rights of individuals and the intentions associated with a particular behavior rather than its consequences

Moral philosophy

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

Ethical culture

Reflects the integrity of decisions made and is a function of many factors, including corporate policies, top management's leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior

nonconsequentialism

Regard for certain behaviors as inherently right, and the determination of this rightness focuses on the individual actor, not on society

Instrumentalist

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

descriptive relativism

Relates to observations of other cultures

Growth needs

Satisfied by creative or productive activities

relatedness needs

Satisfied by social and interpersonal relationships

Utilitarianism

Seeks the greatest good for the greatest number of people

exacting culture

Shows little concern for people but a high concern for performance

apathetic culture

Shows minimal concern for either people or performance

Stage four of Kohlberg's model of cognitive moral development

Social system and conscience maintenance

Group norms

Standards of behavior groups expect of their members

consequentialism

Teleological philosophies that assess the moral worth of a behavior by looking at its consequences

ethical awareness

The ability to perceive whether a situation or decision has an ethical dimension

normative relativism

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

legitimate power

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

differential association

The idea that people learn ethical or unethical behavior while interacting with others who are part of their role-sets or belong to other intimate personal groups

Hedonism

The idea that pleasure is the ultimate good, or the best moral end involves the greatest balance of pleasure over pain

Nationality

The legal relationship between a person and the country in which he or she is born

ethical issue intensity

The relevance or importance of an event or decision in the eyes of the individual, work group, and/or organization

Internal control

Those believe they control the events in their lives by their own effort and skill, viewing themselves as masters of their destinies and trusting in their capacity to influence their environment

Quantitative hedonist

Those who believe more pleasure is better

Significant other

Those who have influence in a work group, including peers, managers, coworkers, and subordinates

External control

Those who see themselves as going with the flow because that is all they can do

Locus of control

To individual differences in relation to a generalized belief about how you are affected by internal versus external events or reinforcements

moral intensity

To individuals' perceptions of social pressure and the harm they believe their decisions will have on others

Informal group

Two or more individuals with a common interest but without an explicit organizational structure

Stage six of Kohlberg's model of cognitive moral development

Universal ethical principles

compliance culture

Use a legalistic approach to ethics

qui tam relator

When an employee provides information to the government about a company's wrongdoing under the Federal False Claims Act

Referent power

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

Immediate job context

Where they work, whom they work with, and the nature of the work

Which of the following is NOT a component of immediate job context that may relate to opportunity of misconduct in the workplace? a. Bribes b. Pay raises c. Demotions d. Reprimands e. Bonuses

a. Bribes

? assumes that humankind is not naturally benevolent and kind, but is inherently self-centered and competitive. a. Realism b. Idealism c. Utilitarianism d. Egoism e. relativism

a. Realism

The concept of a moral philosophy is inexact. For that reason, moral philosophies must be assessed on a continuum rather than as static entities a. True b. False

a. True

Which of the following is a correct statement? a. a moral virtue represents an acquired disposition that is valued as a part of an individual's character b. distributive justice is based on the processes and activities that produce the best outcome or results c. Procedural justice is based on an evaluation of the communication process used in the business relationship d. interactional justice is based on the evaluation of outcomes or results of the business relationship e. According to the relativist perspective, definitions of ethical behavior are derived objectively.

a. a moral virtue represents an acquired disposition that is valued as a part of an individual's character

Which of the following groups believe that only one thing is intrinsically good? a. Pluralists b. Monists c. Egoists d. Atheists e. Instrumentalists

b. Monists

Individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements is known as: a. internal control b. external control c. locus of control d. moral intensity e. morality beliefs

c. locus of control

According to Kohlberg's model of cognitive moral development, different individuals make different decisions in similar ethical situations because a. they have different personalities b. they are influenced by different family values c. they are in different stages of cognitive moral development d. they are of different ages e. no one wants to be the same as others

c. they are in different stages of cognitive moral development

What type of justice exists if employees are being open, honest, and truthful in their communications at work? a. Procedural b. Distributive c. Hedonistic d. Interactional e. Civil

d. Interactional

Which of the following is an incorrect statement? a. Egoism defines right or acceptable behavior in terms of the consequences for the individual b. Justice evaluates ethicalness on the basis of fairness: be it distributive, procedural, or interactive c. Deontology focuses on the preservation of individual rights and on the intentions associated with a particular behavior rather than on its consequences d. Utilitarianism defines right or acceptable actions as those that maximize total utility, or the greater good for the most powerful few people. e. Relativism evaluates ethicalness subjectively on the basis of individual and group experiences.

d. Utilitarianism defines right or acceptable actions as those that maximize total utility, or the greater good for the most powerful few people

Which of the following "crime of the suite" does more damage in monetary and emotional loss in one year than the crimes of the street over several years combined? a. Sexual harassment b. Racketeering c. Mail fraud d. White-collar crime e. Filing false claim

d. White-collar crime

John, vice president of operations at We Care, Inc. approves the illegal disposal of toxic waste at firm's international factory. John has committed. a. Fraud b. Employee abuse c. stakeholder disenfranchisement d. a white-collar crime e. hedonsim

d. a white-collar crime

The types of moral philosophy discussed in the text include a. teleology, utility, relativist perspective, virtue ethics, and justice b. teleology, utility, relativist perceptive, virtue ethics and deontology c. teleology, self-interest, relativist perspective, virtue ethics, justice. d. teleology, deontology, relativist perspective, virtue ethics, and justice e. teleology, self-interest, relativist perceptive, virtue ethics and career growth.

d. teleology, deontology, relativist perspective, virtue ethics, and justice

Teleology is a philosophy that states that a. moral rightness or acceptability is defined in terms of consequences for the individual b. an act is morally right or acceptable if it produces a desired result c. It is not possible to get too much of good thing d. people decides what is legal or illegal e. a relativist perspective will lead to career growth

b. an act is morally right or acceptable if it produces a desired result

If you believe that intentions are more important than outcomes, you ascribe to the moral philosophy of ... a. teleology b. deontology c. relativism d. hedonism e. egoism

b. deontology

A moral philosophy is a general set of values by which different people live. a. true b. false

b. false