Ethical Issues Exam 1 (Chapters 1-6)

Division of Labor

How work tasks are segmented to improve efficiency

Fair Credit Reports Act (FCRA)

Originally passed in 1970, regulates how credit information can be gathered, used, and disseminated, and that the information is fair and accurate

Stages of Moral Development

Pre-conventional, Conventional, Post-Conventional

Adam Smith

(1723-1790), One of the most influential systematic social philosophers in the history of Western civilization, applied the concept "liberty" to economic matters

Lawrence Kohlberg

(1927-1987), Harvard psychologist influenced by the writings of Jean Piaget who sought to answer the question of why some people only consider their own interests when making a decision but others make decisions based on living for the sake of others; he developed the six stages of moral development

Code of Conduct

A document that describes acceptable behaviors for specific situations that are likely to arise, such as conflicts of interest, provides substance to a code of ethics, and is often developed by an employee with legal expertise

Jean Piaget

A famous psychologist who outlined the stages of cognitive development.

B Corporation

A for-profit company certified for meeting rigorous standards of social and environmental performance, accountability, and transparency

Virtue Ethics

A form of ethics based on cultivating good habits

Protected Classes

A group of people who are legislatively chosen to benefit from the protection of a statute, usually due to previous harmful discrimination

Government Regulation

A law or rule developed by government that regulates conduct

Foreign Corrupt Practices Act (FCPA)

A law passed in 1977 making it illegal for American businesses to directly pay bribes in other nations or through intermediaries, such as joint venture partners or agents

Title VII of the Civil Rights Act of 1964

A legislative act passed by Congress that prohibits businesses from discriminating among job applicants based on the individual's race, color, religion, gender, or national origin

Optimal Ethics Systems Model

A model that synthesizes the various approaches of organizational ethics into a systematic best practices framework for reinforcing ethical behaviors, and reducing ethical risks, throughout the workplace

Embezzlement

A particular type of theft and fraud whereby an employee steals money from his or her employer

Industrial Revolution

A period in the late 1700s and 1800s when hand tools were replaced with new manufacturing power-driven machines, such as the steam engine, and manufacturing companies grew into large establishments

Business Gratuity

A present, gift, hospitality, or favor for which fair market value is not paid by the recipient

Ethical Intuition

A quick moral insight, or "gut" reaction, independent of any substantive reasoning process about right and wrong

Categorical Imperative

A rule that applies to all situations

Slavery

A system in which individuals are owned by other people

Assessment

A systemic collection, review, and use of information to determine workshop effectiveness

Theory of Planned Behavior

A theory developed by Icek Ajzen that states that formulating an intention to act ethically is a function of a person's attitudes and beliefs toward the behavior, subjective norms, and perceived behavioral control

Capitalism

An economic system based on freedom and competition in both product and labor markets, as an economic system ethically superior to highly regulated mercantilism

Realistic Job Preview

An honest description of daily work activities that highlights both the exciting and tedious aspects of the job

Interpenetrating Systems Model

An illustrative tool for understanding the interaction among businesses, nonprofits, individuals, and government

The Stages of Cognitive Development

Ethnocentric view of the world Socio-centric view of the world Empathy and self-regulation of emotions Mental scripts for socially appropriate behavior

Egoism

Ethical theory related to self-interest

Oath

A public promise

Inherited Sin

The Belief that Some philosophers hold that people are born with Sin.

Altruistic Behavior

The Deliberate Pursuit of Actions Intended to Benefit The Interest or Welfare of Others.

Ethical Hypocrisy

The gap between an organization's formal ethics proclamations and its actual behaviour

Human Nature

The moral, psychological, and social characteristics of human beings

Bill of Rights

Document protecting freedom of speech, press, and religion; freedom to petition the government; and freedom from unreasonable search and seizure

Attraction-Selection-Attrition Cycle

A cycle created by industrial psychologist Benjamin Schneider that emphasizes how individuals are attracted to organizations that reflect their values and goals

Social Group Relativism

A "group-based" ethical theory in which right action is defined by whether the action conforms to the social group's norms

Cultural Relativism

A "law-based" ethical theory in which right action is defined by whether the action conforms to the law, or custom

Deontology

A "rules-based" ethical theory in which right action is defined by following a set of moral rules that should be applied by everyone in all situations, such as the Golden Rule, Ten Commandments, or Bill of Rights

Equal Employment Opportunity Commission (EEOC)

A commission created in 1965 to oversee provisions of the Civil Rights Act in which the federal agency investigates discrimination complaints, seeks negotiated solutions to violations, and litigates when conciliation does not occur within an organization

Strategic Planning

A communication device that integrates an organization's mission with its vision and provides clear direction on how the organization will progress from its current situation to a highly desired future situation

Bribe

Providing someone with a monetary incentive or object of value to do something contrary to his or her job description

Labor Union

An association of employees that advances its members interests, such as wages, benefits, work rules, and other conditions of employment, through collective bargaining with an employer

Integrity Tests

Also referred to as honesty tests, these tests typically gather information about the job candidate's behaviors and attitudes toward unethical workplace activities, such as theft

Utilitarianism

An "ends-based" consequentialist ethical theory in which right action is defined by the greatest good for all those affected by an action

Stakeholder

Any person or organization that is affected by, or could affect, an organization's goal accomplishment

The 3 E's

Effective Efficient Ethical

Code of Ethics

Broad ethical aspirations that include a few general principles to guide behaviour

Ethical Dilemmas

Choices between what is "right" or "wrong" and "good" or "bad" Example: Should you inform your boss about your colleagues' questionable Behaviors?

Well-Managed Organization

Community of people on a common mission to be effective, efficient, and ethical

Tabula Rasa

Defined by John Locke as a blank slate, on which people store moral rules and knowledge based on life experiences

Vision Statement

Describes what an organization aspires to become in the future

Mission Statement

Describes what an organization does and for whom

ISO 26000

Established guidelines for integrating social responsibility best practices into management processes

Federal Sentencing Guidelines for Organizations

Federal guidelines that encourage, but do not require, companies to implement policies and procedures that reinforce ethical behaviors; if an employee commits a federal crime, the number and authenticity of business ethics best practices implemented by the company affect the fine assessed against the organization

Charters

Granted by the British government to allow several people to create an organization by pooling their financial resources; owners of chartered organizations were exempt from debtor's prison if the business venture failed

Facilitating Payments

Legal payments that expedite performance of "routine governmental action," such as obtaining permits, processing governmental papers, loading and unloading cargo, and scheduling inspections to transit goods across borders

Sherman Antitrust Act of 1890

Legislation that outlawed monopolies to increase competition

Polygraphs

Lie detectors that can be used as a job screen by federal, state, and local government agencies, as well as businesses, engaged in national security issues

Ethical Intention

Mentally committing to take an action that is morally appropriate

Four-Fifths Rule

Method for determining whether an organization is unfairly discriminating against job candidates based on a protected class factor such as race or gender, with the organization's protected class profile being within 80 percent of those in the region who are qualified to perform the job task

Pre-Conventional Level

Moral Reasoning Based on What Benefits The Individual Only My Interest Exist and Matter Moral Determination is based on My Own Wants and Needs. This Includes Stages 1 and 2 Stage 1: Obedience and Punishment Orientation Stage 2: Instrumental Orientation

Action Sequence

Motivation Behind The Act (Ethical/Unethical)>>>The Act (Morally Neutral)>>>Consequence of The Act (Ethical/Unethical)

Moral Imperatives

Principles that compel people to action and are found in all cultures and major religions.

Disparate Impact

Occurs when members of a protected class rarely make it through all the job-screening filters, suggesting that one of the decision rules could be unintentionally discriminatory

Conscientiousness

One of the dimensions of the "Big Five Model" that describes human personality, a personality type described as being responsible, dependable, and hardworking

Affirmative Action

Plans that attempt to remedy past discriminatory behaviors by actively seeking, hiring, and promoting minority group members and women to equalize opportunities previously limited to Caucasian males

Moral Imperatives

Principles compelling people to action, found in all cultures and major world religions

Caux Principles for Responsible Business

Principles developed by the Caux Round Table, an international network of business leaders from a variety of nations and cultures, to conceptualize how a responsible business should act in every nation

Organizational Trust

Refers to having a positive attitude that another member of the organization will be fair and not take advantage of one's vulnerability in a risky situation

Moral Intensity

Refers to issue-related factors such as magnitude of consequence or proximity that determines the depth of a person's moral approval or disapproval

Organizational Citizenship Behavior (OCB)

Refers to work-related helping behaviors that go beyond normal job requirements, such as aiding others with job-related problems

Ban the Box Legislation

Removes the criminal records question from job application forms

Stage 1: Obedience and Punishment Orientation

Right is Determined by Obeying Rules from a Superior Authority and Avoiding Punishment. Stage 1 is included in the Pre-Conventional Level.

Identify Common types of Unethical Behaviors in The Work Place

Shortcuts or Performing Low-Quality Work: 72% Lying to Hide Mistakes: 72% Bad-Mouthing Colleagues: 68% Falsely Blaming Others When You Don't Get Your Work Done: 67% Lying To Hide Your Colleagues Mistakes: 63% Taking Credit For Other Colleagues Works: 57% Lying About Being Sick: 56%

Cognitive Dissonance

The Feeling of Moral Discomfort That Occurs When an Individual Holds Inconsistent or Contradictory Attitudes and Beliefs

Theft

The act of taking someone's property without that person's permission

Living Wage

The amount of money a full-time employee needs to exceed the poverty threshold or afford the basic necessities of life

Social Dominance Orientation (SDO)

The belief that an individual's particular group membership (defined in terms of race, gender, religion, or ethnicity) is superior to membership in other groups

Fraud

The use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization's resources or assets

Conscience

The voice of pure goodness within us

Ethics

The set of principles we use to determine whether an action is good or bad.

Post-Conventional Level

This Includes Stage 5 and 6 Stage 5: Social Contract Orientation Stage 6: Universal Ethical Principles Orientation

Conventional Level

This Includes Stages 3 and 4 Stage 3: "Good Boy","Nice Girl" Orientation Stage 4: Law and Order Orientation