Business Ethics Classes 10-13 (Ch. 3, 10, 11, 12)
Marlon ethical dilemma: Identify major principles, rules, values
-WARN Act may require advance notice of layoffs to employees -fiduciary duty to employer -securities laws re material non-public information
What ethical issues does technology create?
-job loss -privacy -discrimination and unintended bias -intellectual property -cybercrime -digital divide -biotechnology issues
job performance
A function of ability and motivation and can be represented by the equation (job performance = ability x motivation)
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 (blank) enhances Iron Man's ability to thwart his enemies' actions.
a. predictive analytics
Likewise, according to the authors of Business and Professional Ethics for Directors, Executives and Accountants, ethical corporate behavior is expected to lead to:
d. higher profitability in the long-term
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
Preet Ethical Dilemma: Specify the alternatives/consequences
-Do nothing (conditions will persist) -Try to persuade management of subcontractor to change safety practices and hire more workers (she's tried this) -Try to persuade your manager to apply pressure on subcontractor to change safety practices and hire more workers (she's tried this) -Recommendations -Check code of conduct (looming media nightmare) -go public (company will fix problem) -quit (only if company does not fix problem)
Keisha ethical dilemma - specify the alternatives/consequences
-Do nothing (greenwashing persists) -Check code of conduct, ethics helpline (confronted with legal and ethical issues that need to be resolved for reputational and legal reasons) -find allies/build a coalition (strength in numbers?) -go public (you've in essence already gone public and you need to get an answer) -quit (company doesn't fix problem)
Marlon ethical dilemma: specify the alternatives/consequences
-Do nothing (planned automation and resulting layoffs occur -Try to persuade Stan to change his mind (unlikely to work) -build a coalition of local employees (may be successful, but breach duty of confidentiality -quit (automation and layoffs occur)
Kayla ethical dilemma - specify the alternatives/consequences
-Do nothing, let the marketplace decide (helps food companies and consumer choice, but not health) -require greater disclosure, launch education campaign (e.g. PSAs), ban or strictly limit (helps consumers? but harms food companies?) -subsidize food companies? (helps food companies & consumer health, but not choice)
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"
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 or who in the company commits the act, even if the bribe itself has no connection with the United Kingdom - classifies bribes between private businesspeople as illegal -prohibits grease payments
Marlon ethical dilemma: make your decision
-Get with Fen and learn more about her assumptions -Get with Stan and learn more about what management sees as the long-term benefits of automation Depending on what you find, start with your boss and continue to report up the line until you get a reasonable. answer Consider contacting the ethics helpline
Kayla ethical dilemma - determine the facts
-Kayla is the vice president of one of the most prominent food processing companies in the world. -She has lots of experience in the food industry. -Robert Spansky is also very experienced in the field and he is an activist against the current food industry. -Kayla and Robert are invited to participate in a televised debate. The topic for the debate is worker safety. -Robert quickly changes the conversation and says the trifecta for the food industry is salt, fat, and sugar. -The food industry knows that humans get addicted to these three ingredients and they have not done anything about it. They continue to produce food filled with sugar and other processed foods. -Kayla agrees that the industry knew about the three unhealthy substances, however, she believes the public should be able to decide what they want to eat. -Robert responds that the products cause diabetes, heart attacks, and obesity. -Kayla argues that consumers want those three ingredients in affordable products. They just provide what consumers want. They make products that reduce a customer's prep time, so they can spend more time with their family. -Robert now brings up the uncertainty of genetically modified foods (GMOs). -Kayla replies that GMOs have prevented millions of people from starving because they allow farmers to grow more with less. -The food industry is continuing to adopt new technologies that will help the global food supply. -Robert questions if that will negatively impact farmers. -Kayla says that new technologies could replace humans, but they also could reduce hunger and the cost of food. -Artificial intelligence is now even helping the industry.
Keisha ethical dilemma - determine the facts
-Keisha gets a job right out of college in the marketing and public relations department at Smith's Sodas. -They specialize in high-quality fruit-flavored soft drinks with unique flavors. -In 10 years, they wanted to become a competitor to Pepsi and Coke. -They sold sodas with lower calories than their competitors. -Keisha and the marketing department need to promote Smith's very well. -Keisha is assigned a project that promotes a new feature to appeal to the eco-conscious customer: biodegradable packaging. -One of Smith's suppliers created a soda bottle made of a new biodegradable plastic made with plant materials. -Keisha researched the plastic and did a lot of work on creating a marketing campaign for the product. -A reporter calls her saying that scientists tested the bottle under 10 different conditions with different types of soil and only 4 of the 10 tests resulted in the plastic degrading. -She contacted the person who helped create the plastic and they said that it is true that the plastic only degrades under certain conditions, but it is still better than other plastics. -Louis, her manager, is not concerned about this issue, even though their claims make it seem that the bottles degrade fairly easily. -Keisha is concerned that this is a type of greenwashing. -Louis seems certain that they are not being deceitful and he claims that it is up to the customer to know how to dispose of the package correctly. -Keisha is nervous about the reporter publishing her findings and catching Smith's lying about their marketing claims.
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 -have been accused of failing to carry an appropriate share of the cost of social development
Marlon ethical dilemma: Determine the facts
-Marlon began at a subsidiary of Emper Corp. as a line manager 4 years ago right after college. -He has strong leadership skills, good work efficiency, and good relationships with other factory workers. Everyone respected him, admired his empathy and appreciated his ability to make it feel like everyone mattered. -He was recently promoted to the director of personnel at the subsidiary. Nobody has ever moved through the ranks that quickly. He thought he could secure a high level position at the corporate headquarters in a couple of years. -He has lunch with important executives, including the Vice President. The VP says Marlon needs to increase the efficiency at his factory. -Accounting steps in and says that it wouldn't be profitable to make changes at this factory. -At one factory, top management wants to try out robots and to see if they increase product quality and pay for themselves. They have to sell the workforce on this decision. -Marlon argues that hundreds of people will lose their jobs, so it will be hard to convince them. -Stan, the VP, replies that some people will be able to stay on if they get additional training. He also believes the townspeople will accept this decision if they are shown accounting and cost information to justify it. -However, the accountant, Fen, says that the analysis shows the plant would benefit from staying the way it is. -Stan suggests that Fen should change some of the assumptions she made in her analysis and send them to him. -Stan says their yearly bonuses will triple their annual salaries if they pull this off. -Marlon heard that Stan was under serious consideration as a candidate for a prestigious position at corporate headquarters. Stan might be trying to show off for corporate. -Marlon is concerned and does not know what to do.
Preet Ethical Dilemma: Determine the Facts
-Preet gets a job in the logistics department at Amex Corporation. -She works with a team to oversee Amex's contractors in China. -They were responsible for ensuring the shipments were as orderly as possible. They performed well and the company started giving them more responsibility. -Preet visits a factory in China because their shipments are falling behind schedule and there are more accidents occurring. -She gets to the factory and notices that they did not wear protective face masks even though the chemicals could be harmful if inhaled. -She continues to notice more bad things happening. Employees work at least 12 hours a day, sometimes without breaks. Company policy is an eight-hour work day. -The employees were denied sick leave. If they showed sickness, they would receive reduced pay. -There have been several employee suicides. -The company does not have money to hire more workers, apparently. -After her visit, she wrote a list of recommendations for improvement and met with the top managers of the department, but they offered no advice on how to fix the factory conditions. -Jim, one of Preet's coworkers, says the company is not going to do anything because those factory conditions are "normal". Preet thinks it is not right, even though it is normal. -If Amex pays the employees more and provides them with better equipment, the labor costs will become more expensive and Amex wants low labor costs. This way, they can price their products lower.
Preet Ethical Dilemma: Make your decision
-Preet should keep pushing this uphill and find an ally/champion -Start by taking another run at the most sympathetic Logistics manager -If not successful, contact the ethics helpline -If not successful, contact the board -Quit after finding new job -Contact the media
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
Apple's future
-appears optimistic about its future -cult following of loyal consumers -CEO Tim Cook takes a more traditional approach in his management
New Belgium Brewing Company Introduction
-based in Fort Collins, Colorado -the social responsibility initiatives of small businesses that often have the greatest impact on local communities -they create jobs and provide goods and services for customers in smaller markets that larger corporations are often not interested in serving -they contribute money, resources, and volunteer time to local causes -often serve as community leaders
Apple's Ethics
-bases its successes on demonstrating integrity in every business interaction -4 main principles contribute to integrity: 1. honesty 2. respect 3. confidentiality 4. compliance - code of business conduct -many of their products are manufactured in countries with low labor costs -Apple makes each of its suppliers sign a "Supplier Code of Conduct" -may refuse to do additional business with suppliers who refuse to comply with its standards
Apple's History
-famously started in the garage of Steve Jobs' boyhood home -first handmade computer kit was constructed by Apple cofounder Steve Wozniak -Jobs and Wozniak continued to create innovative products -soon surpassed $1 million in sales -the mid-80s brought difficult times for Apple -In 1985, Steve Jobs was ousted after internal conflicts with the Apple CEO -the Mac 1 and the Newton were not successful -Steve Jobs returned to Apple in 1997 to try and save the struggling company -He changed the company's corporate culture and instituted a "closed door" policy -was a proponent of using litigation against rival companies suspected of patent infringement -Jobs created a flattened organizational structure -Apple expanded into new product lines -introduced the iPhone in 2007
employee privacy
-few legal protections -monitoring is used to manage productivity and protect resources -generally agreed that employers have a right to monitor company email
sustainable development
-has become a top concern for many businesses -involves meeting the needs of the present without compromising the ability of future generations to meet their own needs -with an emphasis on the natural environment
geothermal power
-has significant advantages and disadvantages -provides a constant source of heat -plants also emit fewer carbon emissions than coal power plants -expensive, drilling sites are not available everywhere
Apple Introduction
-headquartered in Cupertino, CA -experienced many successes throughout its history -can be seen from its stock price, going from $3.30 in 1997 to over $500 per share in 2020 -2nd most valuable brand behind Amazon -embodies quality, prestige, and innovation -faced a number of challenging ethical issues
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 -U.S. : individualist -Mexico: collectivist
History of New Belgium Brewing
-idea began with a bicycling trip through Belgium -Belgium is the home of some of the world's finest ales -As Jeff Lebesch, an American electrical engineer, cruised around that country on his mountain bike, he wondered whether he could produce such high-quality beers back home in Colorado -After acquiring the special strain of yeast used to brew Belgian-style ales, Lebesch returned home and began to experiment in his Colorado basement -NBB opened for business in 1991 as a tiny basement operation in Lebesch's home in Fort Collins -Kim Jordan, his wife, became the firm's marketing director -Named their first brew Fat Tire Amber Ale in honor of his bike ride
nonverbal communication
-is expressed through actions, body language, expressions, or other forms of communication not written or oral -A person's nonverbal 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
5g network
-lets carriers transmit data at incredibly fast speeds such as downloading an entire movie in a few seconds
New Belgium Concern for employees
-many generous benefits for its employees -After 1 year, given fat-tire cruiser bike -After 5 years, earn an all-expenses paid trip to Belgium to "study beer culture" -paid health and dental insurance and retirement plans -when they opened their 2nd brewery, considered employees as integral part of the decision-making process, including site visits
NBB Sustainability Concerns
-marketing strategy involves linking the quality of its products, as well as its brand, with the company's philosophy of environmental friendliness -strives for cost-efficient energy-saving alternatives for conducting its business and reducing its impact on the environment (invested in a wind turbine) -Water, waste, recycling -LEED, B Corp Certification
water pollution
-one of the biggest contributors to illnesses in developing countries -chemicals found in commonly used fertilizers and pesticides can drain into water supplies with each rainfall -pollutants come from a wide variety of sources in todays industrialized world, e.g. fracking, and many of them have unknown side effects on people and wildlife
listening
-paying attention to both verbal and nonverbal behavior -Just as important as speaking -Ethical leaders developing good listening skills tend to establish credibility and trustworthiness with employees
multinational corporations (MNCs)
-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
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 5 power bases: reward power, coercive power, legitimate power, expert power, referent power
power distance
-refers to the relative inequality between superiors and subordinates -Arab countries tend to be more hierarchical
Accounting Codes
-rules-based standards are comprehensive and precise, providing specific directions to follow every word of the rule (US GAAP) -principles-based standards are simple and more flexible standards (IFRS) International Financial Reporting Standards
NBB Social Concerns
-strives to improve communities and enhance people's lives through corporate giving, event sponsorship, and philanthropic involvement -donated more than $11.3 million to philanthropic causes Community Engagement: -NBB maintains a community bulletin board Event Sponsorship: -can be found anywhere from 150 to 200 festivals and events across the nation
Apple Ethical Issues
-suppliers claim Apple's manufacturing standards are hard to achieve because of the slim profit margins afforded to suppliers -in this environment, mistakes and safety issues become more common -multiple accusations pertaining to improper working conditions, underage labor disputes, and worker abuse have come into question -more than 2,000 Foxconn plant workers broke out into a fight because of alleged beatings from factory guards. and extreme stress (Apple has worked with Foxconn to improve conditions) -improving by doing more audits Taxes: -Apple funnels non-U.S. income through Irish subsidiaries to avoid paying the higher U.S. corporate tax -generated criticism that Apple and other firms are using loopholes in tax law to avoid paying the taxes they would normally owe -lots of companies stash cash overseas
surveillance
-surveillance tools include cameras, beacons, biometric surveillance technology (e.g. facial recognition) -many are concerned that recognition technology is not accurate enough, could lead to misidentification and major trust issues -facial recognition technology suffers from racial bias, disproportionally misidentifying marginalized people and furthering inequity -critics call the technology invasive
drones
-unmanned aerial devices -can be programmed with AI -reduce risks to employee health and safety by performing dangerous tasks -extend geographic reach of a business (e.g. delivery of goods) -protection of consumer privacy when surveillance is in use needs to be considered
unethical leader
-usually egocentric -searches for legal loopholes -perceive ethics codes, compliance regulations, and industry standards as optional
Apple's Corporate Culture
-very good reputation -strong character, trust, trajectory -credit Steve Jobs' leadership abilities, their highly skilled and loyal employees, and its strong corporate culture for all of Apple's success -concept of evangelism is important in Apple's culture -unique corporate culture that attracts certain kinds of employees, has a demanding but rewarding workplace with original thinking, innovation, and inventing Steve Jobs quote- "Sure, it was great to make a profit, because that was what allowed you to make great products. But the products, not the profits, were the motivation." -Jobs would violate any norm of social or business interaction that stood between him and what he wanted, would throw fits over the most random details, like type of flowers in his hotel room, he would part in handicapped spaces, abandoned his oldest daughter -environmentally sensitive
corporate risk compartmentalization
-when profit centers within corporations are unaware of the overall consequences of their actions on the firm as a whole -no one person can be blamed, as problems are systemic
Leadership exercise
1. Identify and describe a leader you admire. - Ted Lasso - current head coach of AFC Richmond, a British soccer team - previously led Wichita State Shockers to a Division II NCAA football championship 2. What qualities do they possess that you admire? - relentlessly positive, grateful, empathetic 3. Would you describe them as an ethical leader? Why? Why not? -Yes -He cares more about people than wins 4. What are the qualities that they possess that you hope to emulate when you assume a position of leadership? -relentlessly positive, empathetic 5. What makes someone an ethical leader? -communicate certain values and hold themselves and others accountable 6. Can someone be an effective leader without being an ethical leader? - short run: perhaps -long run: no
solar power
100% renewable energy that can be converted into electricity through the use of photovoltaic cells on homes and other structures -The technology remains expensive and inefficient -infrastructure for mass production of panels is not in place in many locations
Business for Social Responsibility (BSR)
A globally based resource system that endorses following responsible business practices abroad
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
Kyoto Protocol
An international treaty meant to curb global greenhouse gas emissions by having countries voluntarily reduce national outputs
Keisha ethical dilemma - define the ethical issue
Are Keisha's marketing materials false, leading to potential allegations of: -greenwashing? -false advertising? -fraud? What should Keisha do?
How sustainability relates to ethical decision making and social responsibility
Benefits: -create long-term favorable stakeholder responses -increase employees' company identification and commitment Activities include: -sponsoring cleanup events -recycling -using more alternative energy sources -modifying manufacturing processes to reduce waste and pollution -evaluating the effects of their products on the natural environment Sustainability, social responsibility, and ethics should not be used interchangeably
global ethical risks
Corruption, variations in international regulations, and supply chain issues
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
Kayla ethical dilemma - define the ethical issue
Kayla: -Adults should be free to decide for themselves what they do and do not eat -Concerns over genetically modified foods are really about protecting European farmers -3-D printing will provide faster and cheaper food, tailored to individual taste -AI will improve animal farming Robert: -food industry exploits human well-being (salt, fat, sugar) in the name of profit -genetically modified foods have unknown long term impacts -3-D printing will negatively impact farmers
Kayla ethical dilemma - identify major principles, rules, values
Kayla: -freedom of choice -free markets (vs. protectionism) -progress (faster, cheaper, better) Robert: -preying on human weakness (salt, fat, sugar) in the name of profit -genetically modified foods present safety risks -3-D printing will adversely economically affect farmers -animal cruelty
Keisha ethical dilemma - identify major principles, rules, values
Laws: false advertising, fraud -ethical policies telling employees how to act -obey the laws -tell the truth -engage in sustainable practices Keisha's core values -integrity -honesty -respect for customers -environmental sensitivity -golden rule -duty to employer
Preet Ethical Dilemma: Identify major principles, rules, values
Laws: local laws re workplace conditions -ethical policies telling employees how to act -Preet's values: integrity, safety, golden rule, duty to employer, self-preservation
integrity-based approach
Leaders take responsibility for the firm's ethical culture and hold employees accountable. -empowers employees -involved with ethics and compliance
New Belgium ethical culture
Mission statement: "To operate a profitable brewery which makes our love and talent manifest" Core values and beliefs: -kindling social, environmental and cultural change as a business role model -environmental stewardship: minimizing resource consumption, maximizing energy efficiency, and recycling -having fun -continuous, innovative quality and efficiency improvements
Requirements for ethical leadership
Other requirements: -Competence -skills to guide others, developed through years of training, experience, and learning -place what is best for the organization over their own interests -train and develop employees throughout their careers -establish reporting mechanisms -more stuff
Kayla ethical dilemma - make your decision
Require food companies to limit their salt, fat, and sugar use, makes everyone healthier
sustainability
The potential for the long-term well-being of the natural environment, including all biological entities, as well as the mutually beneficial interactions among nature and individuals, organizations, and business strategies -seeks to maximize positive and minimize negative impacts on stakeholders -relates closely to both CSR and business ethics, which are also concerned with impacts on stakeholders
recycling
The reprocessing of materials, especially steel, aluminum, paper, glass, rubber, and some plastics, for reuse
"The Lasso Way" is so successful in transforming the culture of AFC Richmond that Rebecca Welton decides to take the team public. According to our authors, there is a positive association between the ethical commitment of employees and a firm's valuation on the stock market.
True Benefits of ethical leadership: -direct positive impact on corporate culture -can lead to higher employee satisfaction and employee commitment -can create strong relationships with external stakeholders -strong impact on long-term market firm valuation -can create significant competitive advantages/value for company
Marlon ethical dilemma: define the ethical issue
What should Marlon do about Stan's plan for automation and resulting layoffs when the numbers suggest it's unwarranted?
Preet Ethical Dilemma: Define the ethical issue
What should Preet do about the safety issues and other working conditions at the subcontractor?
patent infringement
When an organization makes, uses, or sells a patented item without permission
Technology disruption
When innovation replaces existing systems and habits -Disruptive technologies include smart buildings, personal apparel, data wallets, and other Internet of Things (IoT) devices
Can companies that sell alcoholic beverages be socially responsible?
Yes: -provides a product people enjoy -employee friendly -environmentally friendly -creates jobs, pays taxes No: -They make alcoholic beverages, which can: -impair judgment -lead to drunk driving -be addictive -create incalculable costs for individuals and society
Keisha ethical dilemma - make your decision
You have to do something - a reporter is on to Smith's claims -may have engaged in greenwashing -may have engaged in fraud Call the ethics helpline - will conduct an internal investigation -muster legal and other resources -respond accordingly
Leadership in Energy and 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 -seems like the profitable thing to do, but the profits are short-lived since rainforest soil is of poor quality
Blockchain
a decentralized record-keeping technology that stores an immutable record of data "blocks" (or ledgers) over time -increased transparency and security -lower risk of cyberattacks -improves supply chains and food safety -protects individual privacy
motivation
a force within the individual that focuses their behavior toward achieving a goal
global business
a practice that brings together people from countries with different cultures, values, laws, and ethical standards
United Nations Global Compact
a set of 10 principles that promote human rights, sustainability, and the eradication of corruption -voluntary for organizations
green marketing
a strategy involving stakeholder assessment to create meaningful long-term relationships with customers, while maintaining, supporting, and enhancing the natural environment
According to our authors, which of the following have been specifically codified into Articles of the U.N. Universal Declaration of Human Rights?
a, b, d, and e only a. freedom of religion b. the right to work in favorable conditions d. the right to a standard of living adequate for home adequate for health and well-being e. mothers and children being entitled to a special level of care
How is a living wage defined?
a. The minimum wage a worker requires in order to meet their basic needs
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.
a. True
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.
a. True
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?
a. connected devices interacting without human intervention ex: radio-frequency identification (RFID)
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 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 as
a. leadership -ethical decisions are one dimension of leadership -ethical leadership creates an ethical culture -power to motivate others and enforce the organization's norms. policies, and viewpoints -influence corporate culture and ethical posture -not simply allowing employees to follow their own moral codes -assume responsibility to model ethical conduct for employees
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?
a. rational economics
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
socialism
allows private ownership of property and also features a large government equipped to offer such services as education and healthcare to its citizens
alternative energy sources
already have a major impact on many stakeholders - in some cases, they significantly decreased the carbon footprint of communities, cities, and even countries
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
behavioral economics
assumes humans act irrationally because of genetics, emotions, learned behavior, and heuristics (mental shortcuts), or rules of thumb
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.
b. 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.
b. False
In Season 1 of Ted Lasso, 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 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 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 or no empathy, and enjoys flouting rules?
b. psychopathic
In the movie Captain America: Civil War, the United Nations (UN) is preparing to pass the Sokovia Accords, which will establish a UN panel too 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)
b. technology assessment
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
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:
c. All of the above a. 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 b. 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
Which of the following statements about multinational corporations (MNCs) is true?
c. MNCs are characterized by a global strategy of focusing on opportunities throughout the world
Why might vertical systems be a business ethics issue?
c. They can result in a channel member having too much control.
According to our authors, criticism of pharmaceutical companies includes:
c. all of the above -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
You are Vice President of environmental affairs at New Belgium Brewing (NBB). You persuade NBB to engage in green marketing:
c. all of the above 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
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 task that typically require human intelligence using algorithms and data is referred to as
c. artificial intelligence (AI)
During combat, Jarvis is 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
c. big data
global common values
certain values broadly accepted worldwide
Global ethics issues - internet security and privacy
companies use questionable internet practices -cookies, which may not be illegal but could be construed as unethical -personal information collected by companies such as Facebook
roboethics (machine ethics)
concerns the design and implementation of a code of conduct that must be programmed into the artificial intelligence of a robot
Adam Smith
considered the father of modern free market capitalism and economics, a professor of logic and moral philosophy during the late 18th century
Data protection
cookies- data from a website that is stored on a computer, which is then sent back to the website
psychopathic leader
corporate psychopath -research suggests 1% could qualify -superficial charm -no conscience -grandiose self-worth -little/no empathy -enjoy flouting rules ex: Rupert Mannion
nuclear power
countries throughout Europe managed to greatly reduce their emissions through the implementation of this type of power plant, yet this form of power remains controversial because of the potential for accidents and waste disposal
genetically modified organism (GMO)
created through manipulating plant and animal DNA to produce a desired effect like resistance to pests and viruses, drought resistance, or high crop yield
vertical system
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 create inertia, causing channel members to stay with their various retailers and distributors even though competitors may have better products and prices
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, businesses are responsible for the ethical use of technology. An increasing number of firms are hiring a chief privacy officer (CPO), who is responsible for:
d. Developing and implementing policies and procedures related to privacy and data protection
Which of the following statements about the U.K. Bribery Act is true?
d. It classifies bribes among businesspeople to be illegal.
Which of the following is true of those who ascribe to consumerism?
d. They believe consumers, not producers, should dictate the economic structure of a society.
Which of the following describes when risk compartmentalization - one of the causes of the 2007-2009 financial crises - occurs?
d. Various profit centers within an organization are unaware of the consequences of their actions on the firm as a whole.
According to our authors, which of the following is/are true?
d. all of the above a. Since 1978, adjusted for inflation, CEO compensation has grown 940% while typical worker compensation has only increased by 12%. b. 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 c. 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 ooo top executives at state-owned banks and insurers
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 exists. Which of the following is/are true with respect to the digital divide?
d. all of the above 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.
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:
d. all of the above 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:
d. all of the above a. data protection b. surveillance c. employee privacy
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?
d. all of the above 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 should file for a patent
In the movie Iron Man, Tony Stark attempts to buy a painting off the Internet that he 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?
d. all of the above 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.
According to our authors, someone in the position of Rebecca Welton, the owner of AFC Richmond, has power. In particular, someone in Rebecca's position
d. all of the above a. is able to influence the behavior and decisions of subordinates b. has power over others because their presence causes others to behave differently c. has power that is directly correlated to the amount of pressure they exert on employees to get them to conform to expectations
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,
d. all of the above a. provides easy access to ethical codes and policies that assist employees when making ethical decisions b. fosters open communication and encourages employees to express concerns, bring up ethical issues, and take a proactive approach toward resolving conflicts c. provides periodic feedback by leaders about ethics issues
As Vice President of environmental affairs at New Belgium Brewing (NBB), you are insulted when NBB is accused of greenwashing:
d. all of the above 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
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?
d. relatedness
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
d. technology
human rights
defined by the United Nations as an inherent dignity with equal and inalienable rights and the foundation of freedom, justice, and peace in the world
expert power
derived from a person's knowledge (or the perception that the person possesses knowledge) and usually stems from a superior's credibility with subordinates Advantages: -can reduce resistance to leaders' authority -able to influence due to knowledge and skills -easier too get promoted to senior management -increased trust and respect -can build up self confidence in the workplace Disadvantages: -can decrease respect of superiors as knowledge and skills are shared -need to update skill sets frequently to keep power base -does not necessarily carry common sense with it
Which of the following has only recently become a significant part of business ethics?
e. Internet security
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:
e. all of the above 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:
e. all of the above 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.
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?
e. all of the above a. small group communication b. nonverbal communication c. interpersonal communication d. listening
In season 2 of Ted Lasso, episode 1, Goodbye Earl, a penalty kick by star striker Dani 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 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 following refers to large-scale unethical activity that follows recognizable phases of escalation?
e. ethical disasters -risk assessments and ethics audits should help prevent ethical disasters
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?
e. genetic data privacy, eugenics, and issues related to increased life expectancy
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?
e. innovation replacing existing systems and habits
Rebecca Welton is the new owner of AFC Richmond following her divorce 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 loved. When managers overlook or stifle the importance of core values in their business decisions, this is known as
e. normative myopia occurs when leaders overlook/stifle important core values in decisions - believe normative values do not apply to managerial decisions -facts/values can be separated in decision making -normative values are outside the realm of business Result: Ethical blindness/propensity to rationalize an unethical action/turn a blind eye
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, capable of performing a certain human task. 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 ?
e. roboethics
What is the purpose of the United Nations Global Compact?
e. to promote human rights, sustainability, and eradicate corruption
values-based culture
encourages employees to express concerns, bring up ethical issues, and take a proactive approach toward resolving conflicts, open communication, periodic feedback
Ted Lass exhibits all of the habits of a strong ethical leader. According to our authors, these include having a passion for ?
g. a-d only a. to do right b. being proactive c. considering all stakeholders' interests d. being role models for the organization and its employees 7 habits of strong ethical leaders -also have strong personal character -are transparent and actively involved in decision making -take a holistic view of the firm's ethical culture ex: Ted reflects the AFC Richmond team motto: "Gradarius Firm's Victoria", which means "taking little steps toward victory" also be curious
wind power
holds great promise for the U.S. and has already taken off in many countries -Because the U.S. is home to the Great Plains, experts believe this energy could meet as much as 20% of the nation's energy needs
land sustainability issues
includes everything from pollution and waste to loss of biodiversity and genetically modified food
intellectual property
intangible ideas and creative materials
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 know as
internet of things (IoT)
big data
large volumes oof structured and unstructured data that need to be transmitted at very fast speeds -examples include consumer shopping habits, social media activity, web browsing history, and more -insights gleaned from big data can inform business strategies -concern for consumer privacy -ethical issue about how data should be shared
greenwashing
misleading a consumer into thinking a good or service is more environmentally friendly than it really is
Social Responsibility
much broader area than sustainability -includes consumer protection, corporate governance, and employee well-being
water
nothing is more important to human survival, yet fresh water is being polluted and consumed at an unprecedented rate -in order to remain viable, all businesses must think about water conservation, purification, and allocation
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
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 waters
biofuels
one of the most controversial forms of alternative energy is ethanol -Critics argue manufacturing ethanol takes a lot of energy and is not much more sustainable than oil
coercive power
penalizes actions or behavior instead of rewarding a person for doing something, essentially the opposite of reward power, breaks down relationships in the long-term Advantages: -quickness of results Disadvantages: -lowers job satisfaction -potentially higher turnover -threat of backlash from employees -close supervision needed -reduces innovation -doesn't work if you are not able to carry out the threat
technology assessment
procedure that helps organizations evaluate the possible effects that new processes, systems, and products will have on business operations and stakeholders
copyright
protects original works, both published and unpublished, including musical, literary, dramatic, and artistic works
trademark
protects words, phrases, symbols, and designs
hydropower
provides 19% of total electricity production worldwide thereby making it the largest form of renewable energy -But downsides include destruction of wildlife and human habitats
reward power
refers to a person's ability to influence the behavior of others by offering them something desirable Advantages: -encourages employees to work hard to achieve the reward -promotes loyalty -creates healthy competition -helps improve retention Disadvantages: -if used continually, can cause some rewards to lose their appeal -costly -can cause employees who didn't receive the reward to feel less motivated -creates expectations of similar rewards in the future ex: coaches
social democracy
refers to economic theories advocating the creation of a society when wealth and power are shared and distributed evenly based on the amount of work expended in production
land pollution
results from the dumping of residential and industrial waste, strip mining, forest fires, and poor forest conservation -such pollution causes health problems in humans, jeopardizes wildlife habitats, causes erosion, alters watercourses, and can eventually poison groundwater supplies
growth needs
satisfied by creative or productive activities
relatedness needs
satisfied by social and interpersonal relationships
artificial intelligence
technology that allows machines to learn and perform tasks that typically require human intelligence using algorithms and data -risk areas with AI decisions must be monitored for compliance -needs to be programmed with ethical parameters -eliminates repetitive tasks -can enhance customer service -contributes to job loss while also creating new types of jobs -can create unintended biases
technology
the application of scientific knowledge to efficiently solve real-world problems -usually involves tools and machines that use human and physical effort to make individuals and organizations more productive -created through research and development in businesses, government agencies, and nonprofit organizations
legitimate power
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 Advantages: -helps ensure employee compliance with a manager's orders -establishes a hierarchy enabling employees to understand who has authority over whom -accepted as cultural norm in most societies Disadvantages: -can create dissatisfaction, resistance, and frustration among employees -does not harness loyalty or respect -can be easily abused toward personalized needs ex: coaches
consumerism
the belief that the interests of consumers, rather than those of producers, should dictate the economic structure of a society -places significant strains on the environment
cultural relativism
the concept that morality varies from one culture to another and that "right" and "wrong" are defined differently
bioethics
the ethical application and implication of ethics in medicine, healthcare, biotechnology, and the environment -medical and genetic data privacy -cyberattacks -biohacking -eugenics -bioterrorism -patent issues -increased life expectancy concerns
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 capitalism
groupthink
the mode of thinking that occurs when the desire for harmony in a decision-making group overrides a realistic appraisal of alternatives
Environmental Protection Agency (EPA)
the most influential regulatory agency that deals with environmental issues and enforces environmental legislation in the United States
Internet of Things (IoT)
the system of connected devices that provides the ability to send and receive information over the internet, where "things" refers to internet-connected devices such as smartphones, virtual assistants, and wearable technology
biodiversity
there's increasing pressure on wildlife, plants, and their habitats -and so many plants and animals became extinct, and thousands more are threatened
air pollution
typically arises from 3 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
predictive analytics
using values or algorithms to provide data-backed decision options -any technology used to predict human behavior can raise ethical questions
water quantity
water use has increased dramatically in the last 2 decades, creating serious consequences for the global water supply and for business
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 in Earth's atmosphere
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
referent power
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, some sort of empathy must exist between the individuals Advantages: -The greater the attraction, the greater the identification, and consequently the greater the referent power -can lead to enthusiastic and unquestioning trust, compliance, loyalty, and commitment from subordinates Disadvantages: -This power is easily lost ex: Ted Lasso gets everyone to believe!
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.
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. ex: Ted Lasso