BUS 100 - Chapter 5/6

Scholars found that spirituality affects employee and organizational performance in what way? Answers: Negatively Positively. Has no affect. Only affects not-for-profit organizations

Positively.

What is ethics?

a conception of what is right and wrong

What is ethical climate?

a representation of an unspoken understanding among employees of what is and isn't acceptable behavior based on the expected standards or norms used for ethical decision making

What are ethical principles?

guides to moral behavior ex. stealing, lying is bad and honesty and helping others is good

What does the U.S. Corporate Sentencing Guidelines do?

provides a strong incentive for businesses to promote ethics at work

What is the claw-back mandate?

requires firms to pay back bonuses based on earnings that are later proved fraudulent

When does the U.S. Corporate Sentencing Guidelines "activate"?

when a firm has been found guilty of criminal wrongdoing and is facing sentencing for the criminal act

What are the contributing factors to the moral intensity of an issue?

- magnitude of consequences - proximity - social consensus - probability - temporal immediacy

Why should businesses be ethical?

- to enhance business performance - to comply with legal requirements - to prevent or minimize harm to general public/stakeholders - to meet demands of business stakeholders - to promote personal morality

What are the five components of ethics safeguards?

- top management commitment - ethical policies/codes - compliance officers - reporting mechanisms - training programs

What are the stages of moral development?

A summary of the way people grow and develop morally

Which ethical criterion is described by the idea that a company should strive for efficiency? Answers: Egoism. Benevolence. Principle. Business-centered.

Egoism.

The unspoken understanding among employees of what is and is not acceptable behavior is called: Answers: Ethical climate. Corporate image. Ethical relativism Rites and rituals.

Ethical climate.

What led to the Sarbanes-Oxley Act to pass?

Ethical scandals from companies such as Enron, WorldCom, etc.

What are the four methods of ethical reasoning?

- virtues - utilitarian - rights - justice

How does the U.S. Corporate Sentencing Guidelines score the company? List at least 3

1. Established standards and procedures to reduce criminal conduct 2. Assigned high-level officer(s) responsibility for compliance 3. Not assigned discretionary authority to "risky" individuals 4. Effectively communicated standards and procedures through training 5. Taken reasonable steps to ensure compliance--monitor and audit systems, maintain and publicize reporting system 6. Enforced standards and procedures through disciplinary mechanisms 7. Following detection of offense, responded appropriately and prevented reoccurrence

Businesses are expected to be ethical in their relationships with: Answers: Stockholders. Customers. Competitors. All of these answers are correct.

All of these answers are correct.

Why should business be ethical? Answers: Most people want to act in ways that are consistent with their own sense of right and wrong. Ethical behavior protects business firms from abuse by unethical employees and competitors. Society's stakeholders expect it from businesses. All of these answers are correct.

All of these answers are correct.

he core components upon which a company's ethical performance depends include: Answers: The values and virtues of the managers. The personal character of the managers and employees. The traditions, attitudes, and business practices built into a company's culture. All of these answers are correct.

All of these answers are correct.

When attempting to build ethical safeguards into the company, businesses can take the following specific approaches: Answers: Institutional and Legal. Legal and Practical. Compliance and Integrity. Value-based and Consequentialism.

Compliance and Integrity.

People everywhere depend on ethical systems to tell them whether their actions are: Answers: Legal or illegal. Right or wrong. Financially attainable or not. Logical and reasonable judgment.

Right or wrong

A recent study found that, compared to the 1980s, managers today place what importance on moral values, such as honesty and forgiveness? Answers: Less important. About the same importance. Slightly more important. Triple the importance.

Slightly more important.

People's ethical beliefs come from: Answers: Legislative action and judicial decisions. Reading the company's profit and loss statements. Their religious background, family, and education. The organization's code of ethics.

Their religious background, family, and education.

What is corporate culture?

a blend of ideas, customs, traditional practices, company values, and shared meanings that help define normal behavior for everyone who works in a company

What is an ethical ghost?

a manager or employee who puts his or her own self-interest above all other considerations

What does a person's spirituality mean?

a personal belief in a supreme being, religious organization, or the power of nature or some other external, life-guiding force

What are ethics reporting mechanisms used for?

allows employees to express their concerns and troubles about ethical issues; can be anonymous - provides interpretation of proper ethical behavior - to create an awareness of unethical conduct - to give employees and other stakeholders a way to discover information a large range of work-related topics

What is ethical relativism?

believes that ethical principles should be defined by various periods of time in history, a society's traditions, the special circumstances of the moment, or personal opinion

What does the U.S. Foreign Corrupt Practices Act (FCPA) prohibit?

forbids executives of U.S.-based companies or businesses operating int eh U.S. from paying bribes to gov't officials, political parties, or political candidates

What are ethical policies or codes?

policies and codes that provide guidance to managers and employees when they encounter an ethical dilemma

What is moral intensity?

refers to a person's perception of hoe morally severe an ethical issue is

What does the Sarbanes-Oxley Act do?

requires executives to vouch for the accuracy of a firm's financial reports; established strict rules for auditing firms

What are business ethics?

the application of general ethical ideas to business behavior; businesses must draw ideas about what is proper behavior from the same sources as everyone else in society