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Business Ethics Exam

Final Exam

Costs associated with unethical behaviors legal costs, theft, recruitments and turnover costs, monitoring costs, reputation costs, and abusive treatment costs.
Competitive Advantages of Ethical Organizations attract and retain high-quality employees, customers, suppliers, investors...earn good will with community members and govt. officials.
Stages of Moral Development obedience & punishment, instrumental, good boy-nice girl, law-and-order, social contract, and universal ethical principles.
Moral Development: Preconventional Level moral reasoning is based on what benefits the individual.
Moral Development: Conventional Level moral reasoning is based on applying a social role or group membership analysis.
Moral Development: Postconventional Level moral reasoning is based on applying abstract universal principles.
Why do people behave unethically? unintentional; a good person may choose one set of values over another; a good person may justify the unethical behavior based on a reason considered more compelling; fear of retaliation (may choose not to report/prevent behavior)
Federal Sentencing Guidelines encourages managers to implement policies and procedures that reinforce ethical behaviors.
Importance of an Ethics Screen reviewing resumes/applications for knowledge, skills, and abilities necessary to perform the job task.
Title VII of the Civil Rights Act prohibits businesses from discriminating among job applicants based on the person's race, color, religion, gender, or national origin.
Integrity Tests "honesty tests" - typically gather information about the job candidate's behaviors and attitudes toward unethical workplace activities (theft).
Personality Traits conscientiousness; organizational citizenship behavior; bullying; social dominance orientation.
Social Dominance Orientation the belief that an individual's particular group membership is superior to membership in other groups.
Interview Questions an opportunity to obtain relevant information about a job's candidate's ethics.
Difference between a Code of Ethics and a Code of Conduct Code of Ethics briefly describes broad ethical aspirations, and a Code of Conduct more extensively describes acceptable behaviors for specific situations that are likely to arise.
Code of Ethics "values statement" - ex) respecting all owners, customers, employees, suppliers, etc. These represent the kind of people we want to be. When faced with an ethical dilemma, principles articulated here can help guide the decision maker.
Code of Conduct often developed by an employee with legal expertise, provides substance to the Code of Ethics. Whereas one principle in the COE might state that all employees will obey the law, a COC might list specific laws that must be obeyed.
Code of Ethics Content expresses the principles that define an organization's ideal moral essence. Make it an affirmative statement of how employees should act, not how they should not act. Trustworthiness; respect; responsibility; fairness; caring; citizenship.
Creating a Code of Ethics A COE serves as a constant reminder, particularly when the owner is not present, and sends a positive message to customers and suppliers, as well as employees.
Mission Statement describes what an organization does and for whom.
Vision Statement describes what an organization aspires to become in the future.
Code of Conduct Content expands on the moral principles embodied in a COE. Addresses the wide range of legal expectations and ethical risks unique to an organization or job title.
"we will treat everyone fairly" Code of Ethics
"All information about an employee is considered confidential and is to be released only to authorized personnel" Code of Conduct
Performance Annual Assessment make the COE a living document by assessing it annually.
Ethical Dilemmas tend to be complicated and involve trade-offs based on competing values and interests.
Individual Characteristics age, educational level, gender, locus of control, machiavellianism; moral development; nationality; philosophy/value; religion; work experience.
Moral Intensity refers to issue-related factors, rather than individual or organizational factors, that are likely to determine the magnitude of a person's moral approval or disapproval.
Organizational Characteristics code of ethics, ethical climate/culture; organization size; rewards and sanctions.
Six Ethical Theories egoism; social group relativism; cultural relativism; utilitarianism; deontology; virtue ethics.
Ethical Hazard Approaching Signs pause and reflect on the thought. "it may seem unethical, but..."
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 or dependency in a risky situation.
Who to train? all levels of employment.
The Workshop Facilitator a good facilitator inspires self-learning among the participants by keeping everyone focused on the main issues while being flexible to new issues as they arise.
Framing the Training Workshop there is no "one size fits all" training program. Offer at least 1 mandatory ethics training annually.
Ethical Culture Assessment annually assessing the organization's ethical performance based on its COE offers an opportunity for employees to discuss relevant ethical issues related to work activities...ethical behaviors within the organization.
Code of Conduct Analysis workshops can be designed to raise awareness about code content, how to apply the code in specific situations, and the personal ramifications of code violations.
Outcome of Code of Conduct Violations the facilitator can design a workshop educating employees about past types of unethical activities, and how the guilty person was punished.
Assessing the ethics training workshops assessment is a systematic collection, review, and use of information to determine workshop effectiveness.
4 Dimensions of Diversity permanent(race/gender/ethnicity); evolving(age/height/weight/education); personality(emotional stability); organizational(seniority/work content).
Self-Categorization Theory define themselves in relation to others based on a "self-identity" or "social identity" factor to form binding relationships with people who categorize themselves similarly.
Workplace Discrimination workplace discrimination can reinforce prejudices toward members of other groups, whom contribute to communication breakdowns, high-conflict, low morale, reduced productivity, and potential lawsuits.
Retaliation ILLEGAL! Typical forms include termination, demotion, promotion denial, harassment, etc.
Competitive Advantages of Diversity Management to attract/retain diverse customers/employees, to achieve cost reductions, to enhance decision making/problem solving/creativity, to increase stakeholder goodwill.
Best operational practices for managing diversity integrating these best practices in diversity management throughout organizational operations can ensure long-term continuous success.
Diversity Discussion Guidelines many employees dislike discussing diversity issues...topics may feel threatening and an invasion of privacy...it is important to maintain discussion confidentiality.
Implicit Attitude Test helps employees understand unconscious prejudices they might hold towards people belonging to other groups...10 minute reaction test that uses computer images.
Communication Style often an overlooked aspect of employee diversity. People tend to express themselves in a way that feels normal to them and assume that others like to communicate in the same manner.
Employee Silence refers to an employee who observes ethical misconduct at work but does not discuss the matter with the person engaged in the ethical misconduct or someone else in the organization with authority.
Ethically Approachable Managers a manager who welcomes ethical discussions with employees and input on ethical misconduct.
False Claims Act U.S. Dept of Justice encourages whistleblowing on fraud issues by offering financial rewards for information that leads to successful recovery of funds.
Sarbanes-Oxley Act (SOX) no publicly traded company or subcontractor of that company can discharge, demote, suspend, threaten, harass, or discriminate against a whistleblower.
Personal Integrity an essential component of successful leadership. "it is character through which leadership is exercises, it is character that sets the example and is imitated in turn"
Managerial Powers legitimate power(formally assigned); reward power(distributing rewards); coercive power(enforcing punishments); referent power(people want to be like you); expert power(source of desired knowledge).
Ethical Leadership the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through 2-way communication, reinforcement, and decision-making.
Employee Feedback the trust and employee commitment that accompany ethical managers will not be generated if employees do not perceive that their manager is indeed ethical.
Employee Performance Appraisals evaluate factors that are directly or indirectly related to achieving organizational and employee goals.
Collection and Evaluation Issues poorly managed performance appraisals are detrimental to employee development, morale, and productivity. Conduct employee performance evaluations in a timely manner, at least once a year.
Disciplining Work Rule Violations a poor performer should be given an opportunity to improve within a certain timeline prior to dismissal, or that care and concern be extended when downsizing occurs by providing outplacement services.
Employee Engagement an emotional bond or attachment an employee has to the work task, organization, and its members.
Organizational Justice employees disengage from job tasks and the organization when injustice occurs at work and managers do not respond appropriately.
Unethical Bullies repeated verbal abuse/abusive conduct that is threatening, humiliating, and intimidating and interferes with work.
Meaningful Work typically defined as spending time at work to achieve something that is personally desirable...employee passionately engages all his/her entire intellectual energies.
Employee Empowerment giving employees decision-making authority, which can be further solidified with an ownership stake in the organization.
Who to empower? not all employees want to be empowered, nor should all employees be empowered.
Competitive Advantages of being Eco-Friendly reduction in escalating energy costs; lower insurance premiums; avoidance of regulatory delays, etc.
Managing the Environmental Change Process becoming an eco-friendly organization requires leadership from the CEO and a values-based organizational culture that not only honors compliance with environmental regulations, but also emphasizes the benefits associated with exceeding them.
Environmental Management System (EMS) plan for achieving superior environmental performance.
Corporate Citizenship the extent to which a business meets its economic, legal, ethical, and philanthropic responsibilities in the community/communities, in which it operates by creating a higher standard of living and quality of life.
Stakeholder Dialogues companies can pursue 3 different strategies for managing stakeholders: reactive, proactive, interactive.
Philanthropy the donation of money/property to assist a nonprofit organization or people in need.
Volunteerism the donation of time for similar purposes.
Strategic Philanthropy the partnering of a company and nonprofit organization to achieve a communal good that also benefits the company.
Social Performance Reporting a company can also demonstrate respect for the community by being transparent about its operations and impacts.
Created by: kserrano005