MG302 Chapter 4

Individualism Approach

contends that acts are moral when they promote the individual's best long-term interests.

Ethical Dilemma

Includes the technological, economic, political/legal, and sociocultural dimensions that affect a firm's external environment

Nike, now a triple bottom line company, had previously come under fire for the low wages that factory workers in Indonesia were paid. These low wages had an impact on which part of the triple bottom line

Social Performance

Moral-rights Approach

asserts that human beings have fundamental rights and liberties that cannot be taken away by an individual's decision. Thus, an ethically correct decision is one that best maintains the rights of those affected by it.

Companies should view whistleblowers as ___________

assets to be valued

Sustainability

economic development that generates wealth and meets the needs of the current generation while preserving the environment and society so future generations can meet their needs as well

Your friend Patrick just told you that he is copying essays he finds on the Internet and turning them in to the professor as his own work. You are confronting an _________ because Patrick is committing plagiarism but school regulations do not require you to report him

ethical issue

Justice Approach

holds that moral decisions must be based on standards of equity, fairness, and impartiality

If a decision is deemed immoral because it violates someone's right to freedom of speech or freedom of movement, the _______ approach to ethics has been used

moral-rights

Whistle-blowing

Employee disclosure of illegal, unethical, or illegitimate practices on the employer's part

Which of the following stakeholders are primarily concerned with job satisfaction and pay at the new stores?

Employees

Code of Ethics

a formal statement of the company's values concerning ethics and social issues; it communicates to employees what the company stands for. Codes of ethics tend to exist in two types: principle-based statements and policy-based statements

Ethics Committee

a group of executives (and sometimes lower-level employees as well) appointed to oversee company ethics

Compensatory Justice

argues that individuals should be compensated for the cost of their injuries by the party responsible

The fact that there was a criminal investigation pending against Johnson & Johnson suggests that regulators felt that the company was not meeting its obligations at a _________level of corporate responsibility

legal

Corporate Social Responsibility (CSR)

management's obligation to make choices and take actions that will contribute to the welfare and interests of society, not just the organization

Stakeholder Mapping

provides a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders, which may change over time

Distributive justice

requires that different treatment of people not be based on arbitrary characteristics. For example, men and women should not receive different salaries if they have the same qualifications and are performing the same job

Legal Responsibility

defines what society deems as important with respect to appropriate corporate behavior

Utilitarian Approach

(espoused by the nineteenth century philosophers Jeremy Bentham and John Stuart Mill) holds that moral behavior produces the greatest good for the greatest number.

Triple Bottom Line

measuring an organization's social performance, its environmental performance, and its financial performance. This is sometimes called the three Ps: People, Planet, and Profit

Debra notes that Theo Chocolate has started holding its own operations to the same IMO standards of fair trade to which it holds its suppliers. This type of ________ sends a powerful message to employees and customers.

ethical leadership

Suppose Professor Quinn did tell students that he would be writing his own test questions, and then he used questions from a standardized test bank. His actions would indicate that there was a flaw in the ___________ for the university

ethical leadership

Henry and Shirley Rose have run their small corner grocery store for over twenty years, and many of their customers have been coming since they opened. However, as part of their ____________ , they give every customer the same high level of service, whether they know the customer well or have never met the person before

ethical responsibility

Preconventional Level

individuals are concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences

Postconventional Level (principled)

individuals are guided by an internal set of values based on universal principles of justice and will even disobey rules or laws that violate these principles

Only about ___ percent of adults reach the postconventional level and are able to act in an independent, ethical manner, regardless of the expectations of others

20

Organizational Virtuousness

A principle in which an organization pursues a positive human impact, moral goodness, and unconditional society betterment for its own sake

Which of the following statements are consistent with the findings of Slater and Dixon-Fowler? Check all that apply

CEO education is positively related to an organization's sustainability. People with MBAs are more likely to lead a sustainable organization than people without MBAs

Megan's reaction to this scenario is: "That's not a good decision. She'll probably wind up needing one, if not several, of her friends to cover for her. How do you think that's going to make them feel?" Which of Kohlberg's levels of development does this response represent?

Conventional

Joe tells you, "I'm concerned that if a Theo Chocolate manager is doing something unethical, I'm not going to hear about it." He asks, "What can I do to encourage employees to speak up if they see something wrong?" What advice would you give him? Check all that apply

Establish a hotline so that employees can confidentially report wrongdoing. View whistle-blowing as beneficial to the company because it allows ethical lapses to be addressed. Make sure that there is no retaliation against whistle-blowers

Starbucks elected to pay higher prices to coffee growers who meet a list of quality standards that impact social, environmental, and economic standards. Which part of the triple bottom line does this impact?

Financial Performance

Which of the following arguments also support the need for companies to adopt positions of social responsibility? Check all that apply

Organizations have more power than most underprivileged people, so they are responsible for helping those people get ahead in life. Organizations have the knowledge and resources to do good in the community, so they are responsible for helping others

In handling the ethics problem in his class, Professor Quinn acted as an ethical leader by supporting and enforcing the ethical statement in his syllabus. But Professor Quinn also made some mistakes in helping his students to act ethically. Which of the following actions helped to reduce the likelihood that Professor Quinn's students would act ethically in the future? Check all that apply

Punishing the entire class when an ethical violation occurred Providing ethics training only to students who admitted to cheating

A CEO wants to make the argument that his company should put policies and structures in place to ensure adherence to the highest possible standard of ethics. Which of the following statements could he correctly use to make his argument? Check all that apply

Research has shown a correlation between organizations' commitment to ethics and profitability. Most consumers would prefer to buy products made by a company that demonstrates ethical behavior. Employees prefer to work for highly ethical organizations.

Chief Ethics Officer

a manager who oversees all aspects of ethics and legal compliance

Managerial ethics

a set of standards that dictate the conduct of a manager operating within a workplace

Stakeholder

any group or person within or outside the organization that has some type of investment or interest in the organization's performance and is affected by the organization's actions (employees, customers, shareholders, and so forth)

If you sue your company because you should have been paid overtime and were not, and the court awards you back pay, this is an example of ______________________ .

compensatory justice

An organization engages in _______________ when it acts to improve society, such as by providing underprivileged children with school supplies or by taking extra measures to protect the environment, because it simply believes that doing so is right

organizational virtuousness

Conventional Level

people learn to conform to the expectations of good behavior as defined by colleagues, family, friends, and society

Discretionary Responsibility

purely voluntary and is guided by a company's desire to make social contributions not mandated by economics, law, or ethics. Discretionary activities include generous philanthropic contributions that offer no payback to the company and are not expected

Procedural justice

requires that rules be administered fairly. Rules should be clearly stated and consistently and impartially enforced

When nearly all Americans in a recent survey said that they believe executives base decisions primarily on what will advance their careers, the survey respondents were indicating _____________ ethics in business management

serious concerns about

Practical Approach

sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account

Customers, creditors, suppliers, and regulatory authorities are all examples of an organization's ____________ if they have an interest in that organization

stakeholders

Ethical leadership means

that managers are honest and trustworthy, fair in their dealings with employees and customers, and behave ethically in both their personal and professional lives

Ethics

the code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong

When a company like FedEx Kinko's measures its performance in terms of impact on people, impact on the planet, and profitability, it is using the _______________ to evaluate social, environmental, and financial performance

triple bottom line

Some people view Edward Snowden, who in 2013 revealed ethically questionable surveillance programs by the U.S. government, as a heroic ________ , while others view him as a traitor to national security

whistle-blower