Chapter 5 - Ethical Leadership Exam 1

Emerging Business Ethics Issues - MGT 4334

integrity

One of the most important elements of virtue; refers to being whole, sound, and in an unimpaired condition; implies a balanced organization that not only makes ethical financial decisions but also is ethical in the more subjective aspects of its corporate culture

honesty

Refers to truthfulness or trustworthiness

dishonesty

A lack or absence of integrity, incomplete disclosure, and an unwillingness to tell the truth

fairness

The quality of being just, equitable, and impartial

equality

Refers to the fair and even distribution of benefits and resources

reciprocity

An interchange of giving and receiving in social relationships

optimization

The trade-off between equity (equality) and efficiency (maximum productivity)

ethical issue

A problem, situation, or opportunity that requires an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical

ethical dilemma

A problem, situation, or opportunity that requires an individual, group, or organization to choose among several actions that have negative outcomes

abusive or intimidating behavior

A common ethical problem for employees that may refer to physical threats, false accusations, being annoying, profanity, insults, yelling, harshness, ignoring someone, and unreasonableness

lying

Untruthfulness that can be joking without malice, commission lying, and omission lying

conflict of interest

When an individual must choose whether to advance his or her own interests, those of the organization, or those of some other group

bribery

The practice of offering something (often money) in order to gain an illicit advantage from someone in authority

active bribery

When the person who promises or gives the bribe commits the offense

passive bribery

Offense committed by the official who receives the bribe

facilitation payments

Payments made to obtain or retain business or other improper advantages that do not constitute bribery payments for U.S. companies in some situations

corporate intelligence

The collection and analysis of information on markets, technologies, customers, and competitors, as well as on socioeconomic and external political trends

discrimination

Prejudices based on race, color, religion, sex, marital status, sexual orientation, public assistance status, disability, age, national origin, or veteran status; illegal in the United States

equal employment opportunity commission (EEOC)

Federal agency that protects against workplace discrimination

Age discrimination in employment act

Outlaws hiring practices that discriminate against people of 40 years or older, as well as those that require employees to retire before the age of 70

affirmative action programs

Involve efforts to recruit, hire, train, and promote qualified individuals from groups that have traditionally been discriminated against on the basis of race, gender, or other characteristics

sexual harassment

Any repeated, unwanted behavior of a sexual nature perpetrated upon one individual by another

hostile work environment

Three criteria must be met: the conduct was unwelcome; the conduct was severe, pervasive, and regarded by the claimant as so hostile or offensive as to alter his or her conditions of employment; and the conduct was such that a reasonable person would find it hostile or offensive

dual relationship

A personal, loving, and/or sexual relationship with someone with whom you share professional responsibilities

fraud

Any purposeful communication that deceives, manipulates, or conceals facts in order to harm others

accounting fraud

Inaccurate information in a corporation’s financial reports, in which companies provide important information on which investors and others base decisions involving millions of dollars

marketing fraud

The process of dishonestly creating, distributing, promoting, and pricing products

puffery

Exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely on

implied falsity

The message has a tendency to mislead, confuse, or deceive the public

literally false

When an advertising says that tests prove (establishment claims), when the advertisement cites a study or test that establishes the claim; and bald assertions (nonestablishment claims), when the advertisement makes a claim that cannot be substantiated

consumer fraud

When consumers attempt to deceive businesses for their own gain

insider trading

The buying or selling of stocks by insiders who possess information that is not yet public

crisis management

The process of handling a high-impact event characterized by ambiguity and the need for swift action to access and respond to potential damage

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