MGT 4230 Ch. 5

The idea that BUSINESS people should consider the SOCIAL CONSEQUENCES of business decision is called _____________ ___________ _________________.

corporate social responsibility

Rawls defined the __________ principle as inequalities are justified if they benefit the position of the least-advantaged person.

difference

An amendment to the Foreign Corrupt Practices Act allowed for the use of _____________ _______________ in which a business ensured that it will receive the standard treatment it ought to receive from a foreign government.

facilitating payments "grease payments"

Moral _______________ allows a business tow wonder how a decision might impact the stakeholder.

imagination

A fair and equitable distribution is called a _________ distribution.

just

Generally accepted principles of right and wrong that govern individual conduct are called ______________ ethics.

personal

Starbucks has a _________ strategy.

sustainable (benefits many)

6 Segments of Ethical Behavior

1. Personal Ethics 2. Societal Culture 3. Decision-Making Processes 4. Leadership 5. Unrealistic Performance Goals 6. Organizational Culture

Accepted principles of right or wrong that govern the conduct of a person, the members of a profession, or the actions of an organization.

Ethics

Stakeholders who have some direct or indirect claim on the firm.

External Stakeholders

This ACT prohibits US companies from paying bribes to foreign government officials to gain business.

Foreign Corrupt Practices Act

The __________________ Doctrine states that increasing profits is the only social responsibility a company has.

Friedman

INAPPROPRIATE: Straw Men The only social responsibility of business is to INCREASE PROFITS, so long as the company stays within the rules of law.

Friedman Doctrine

4 Straw Men Approaches

Friedman Doctrine Cultural Relativism Righteous Moralist Naive Immoralist

As a response to the idea that fundamental rights transcend national borders, the UN Universal Declaration of ____________ ___________ laid down basic principles that should always be adhered to irrespective of culture.

Human Rights

Are employees, directors, and stockholders examples of internal or external stakeholders?

Internal

Stakeholders who work for or own their own business.

Internal Stakeholders

What theories concentrate on the attainment of fair and equitable DISTRIBUTION of economic goods and services?

Justice

APPROPRIATE: Utilitarian and Kantian Ethics Focus on the attainment of a just distribution (one that is considered fair and equitable) of economic goods and services.

Justice Theories: Impartiality is guaranteed by the VEIL OF IGNORANCE - everyone is imagined to be ignorant of all his or her particular characteristics

APPROPRIATE: Utilitarian and Kantian Ethics Based on the philosophy of Immanuel Kant who argued that people should be treated as ends and never purely as means to the ends of others.

Kantian Ethics

That people should be treated as ends and never purely as means to the end of others is a key tenet of _____________ ethics.

Kantian Ethics

Abstract ideas about what a group believes to be good, right, and desirable are known as ____________.

Values

MNE: will they encourage ethical behavior? countries where individualism and uncertainty avoidance are strong are more likely to emphasize ethical behavior

YES

The _____________ system mandated SEGREGATION between whites and non-whites.

apartheid

The belief that ethics are culturally determined and a firm should adopt the ethics of the country it is doing business in is____________ ___________.

cultural relativism

To ensure that a business acts in an ethical manner, some firms have created a position for an ____________ officer.

ethics

A _____________ _____________ claims that a multinational's HOME-COUNTRY standards of ethics are the appropriate ones for companies to follow in foreign countries.

righteous moralist

A ________________ ______________ not only helps a multinational firm make a good profit, but does without harming the environment....

sustainable

When a resource held in common by all, but owned by no one, is overused by individuals resulting in its degradation, the phenomenon is called....

tragedy of commons

Situations in which none of the available alternatives seems ethically acceptable.

Ethical Delimmas

_________ _____________ argued that it was ethically justified for General Motors to operate in South Africa as long as they ditched APARTHEID.

Leon Sullivan

A company's formal statement of ethical priorities is called its A. Mission statement B. Code of ethics C. Code of values D. Organizational culture

B. Code of Ethics

Which philosophy claims that a company's home-country standards of ethics are the appropriate ones to follow in foreign countries? A. Cultural relativism B. Righteous moralist C. Friedman doctrine D. Naïve immoralist

B. Righteous Moralist

Multinational companies are concerned with ethics in all of the following areas except A. Employment practices B. Human rights C. Environmental regulations D. Trade regulations

C. Trade Regulations

INAPPROPRIATE: Straw Men Ethics are culturally determined and firms should adopt the ethics of the cultures in which they operate.

Cultural Relativism

The belief that ethics are nothing more than the reflection of a culture is called_____________ _______________.

Cultural Relativism. "when in Rome..."

Which of the following does not contribute to unethical behavior by managers? A. Unrealistic performance goals B. Leadership C. Organizational culture D. Restrictions on bribes

D. Restrictions on Bribes

INAPPROPRIATE: Straw Men Actions are ethically justified if everyone else is doing the same thing.

Naive Immoralist

Honorable and benevolent behavior considered the responsibility of successful people.

Noblesse Oblige

INAPPROPRIATE: Straw Men An MNE's home country standards of ethics are the appropriate ones for companies to follow in foreign countries.

Righteous Moralist

APPROPRIATE: Utilitarian and Kantian Ethics Human beings have fundamental rights and privileges that transcend national boundaries and culture.

Rights Theories

The theories that recognize that human beings have fundamental rights and privileges that transcend national boundaries and cultures are called ______________ theories.

Rights Theories

2 Theories that provide a MORAL COMPASS that is important to thinking through ethical implications of decisions in a SYSTEMATIC way??

Rights Theories Rawl's Theory of Justice

Which approach to business ethics fails to take into account the properties of justice? For example: decision is good for most and bad for another group

Utilitarianism

Which ethical theory recognizes that actions have multiple consequences, some of which are good and some are harmful?

Utilitarianism

____________ strategies are NOT a zero-sum game.

Sustainable

______________ approaches to ethics hold that the moral worth of actions or practices is determined by their consequences.

Utilitarian

APPROPRIATE: Utilitarian and Kantian Ethics The moral worth of actions or practices is determined by their consequences.

Utilitarian Approach