Business Ethics Exam Review 3

Know what the individual factors that affect business ethics are.

- Nationality - Age - Locus of control - Gender - Work experience - Education

What is a decentralized organization and what are some advantages?

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

Define Justice.

-Fair treatment and due reward in accordance with ethical or legal standards.

Which organizational structure tends to be more ethical?

Centralized Organizational Structure

Know what having an external locus of control is.

Going with the flow because that's all they can do.

What is Obedience to Authority?

Helps to explain why many employees unquestioningly follow superior's orders.

What is reward power?

Offering something desirable to influence behavior.

Define Motivation.

a force within the individual that focuses on behavior toward achieving a goal.

What is leadership style and what can it influence in an organization?

-Influences organizational behavior

What is the Apathetic organizational culture and what does it exhibit?

-Minimal concern for people or performance.

What is the Exacting Organizational culture and what is it interested in?

-Minimal concern for people; high concern for performance. -For an example, UPS.

Know examples of informal expressions of an organization's culture.

-Not having a formal dress code -Working late -Flexible work schedule

________ are satisfied by social and interpersonal relationships, and __________ are satisfied by creative or productive activities.

-Related needs, growth needs

Know examples of white collar crime.

-Tax invasion -Credit card fraud -Identity theft

Define Differential Association.

-The idea that people learn ethical/unethical behavior while interacting with others. -Supports ethical decision making.

What is the 10-40-40-10 rule and what does it explain?

-Variation in employee conduct 10 %: follow their own values and beliefs 40 %: Always try to follow company policies 40 % Go along with the work group 10 % Take advantage of situations if the penalty is less than the benefit and the risk of being caught is low

Define Corporate Culture.

-a set of values, norms, and artifacts, including ways of solving problems by organizational members. -The shard beliefs top managers have about how they should manage themselves and other employees and how they should conduct their business.

Know the 7 habits of strong ethical leaders.

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

(SHORT ANSWER) The ethical decision-making framework includes the concepts of ethical issue intensity, individual factors, organizational factors, and opportunity. Discuss how these concepts influence the ethical decision-making process.

All of these concepts influence the evaluations of and intentions behind the decisions that produce ethical or unethical behavior. Ethical issue intensity reflects the ethical sensitivity of the individual or work group that faces the ethical decision-making process. Individual factors influences the ethical decision-making process by stating the fact that the more likely individuals are to perceive an ethical issue as important, the less likely they are to engage in unethical behavior. As for organizational factors, the more ethical employees perceive an organization's culture to be, the less likely they are to make unethical decisions.

When developing an ethical culture, there has to be a(n)___________ element because every organization has employees that will try to take advantage if there is an opportunity for misconduct.

Compliance

What is decentralized organization and what are some advantages?

Decision making authority is delegated as far down the chain of command as possible. -Flexible and quicker

(SHORT ANSWER) Compare and contrast the two teleological philosophies: egoism and utilitarianism. Include a discussion of the bases that each type uses to evaluate the morality of activities.

Egoism defines right or acceptable behavior in terms of its consequences for the individual. Egoists believe that they should make decisions that maximize their own self-interest. In an ethical decision making situation, an egoist will most likely choose the alternative that contributes most to his or her self-interest. Much like Egoism, Utilitarianism is concerned with consequences, but seeks the greatest good for the greatest number of people. When a utilitarian makes a decision they would conduct a cost-benefit analysis to assess which alternative would create the greatest utility.

Describe the Integrative culture.

High concern for people and performance. -For an example, Starbucks.

Describe the Caring culture.

High concern for people; minimal concern for performance. -For an example, Ben & Jerry's.

(SHORT ANSWER) Job performance is considered to be a function of ability and motivation. It can be represented by what equation?

Job performance= ability x motivation -If you have all the ability in the world but lack motivation, you will have a poor job performance.

(SHORT ANSWER) Discuss the role of leadership in understand and executing ethical decision making in organizations.

Leaders are key to influencing an organization's corporate culture and ethical posture. Leadership plays a big role on ethical decision making because leaders have the power to motivate others and enforce the organization's norms and policies as well as their own viewpoints.

What is legitimate power?

The consensus that a person has a right to exert influence over others. -For an example, your managers have legitimate power.

Who is Adam Smith?

The father of free market capitalism. -Developed the idea of the "invisible hand"

Know what Ethical Issue Intensity is.

The perceived relevance or importance of an ethical issue to the individual, work group, and/or organization. -Reflects the ethical sensitivity of individual and/or work group -Triggers the ethical decision making process

What does moral philosophy refer to?

To specific principles or rules that people use to decide what is right or wrong.

(SHORT ANSWER) What is white collar crime and why has it become such a widespread problem?

White collar crime is different than street crime because it involves things like credit card fraud, tax invasion, identity theft, and so on. Its became such a widespread problem due to the presence of advanced technology. Anyone with the ability to hack into a system now can access the highly sensitive information necessary to commit WCC.