BUS250 Chapter 4 - Ethics and Social Responsibility

ethics

the set of moral principles or values that defines right and wrong for a person or group

ethical behavior

behavior that conforms to a society’s accepted principles of right and wrong

workplace deviance

unethical behavior that violates organizational norms about right and wrong

production deviance

unethical behavior that hurts the quality and quantity of work produced

property deviance

unethical behavior aimed at the organization’s property or products

employee shrinkage

employee theft of company merchandise

political deviance

using one’s influence to harm others in the company

personal aggression

hostile or aggressive behavior toward others

U.S. Sentencing Commission Guidelines Manual for Organizations

a manual that covers court offenses defined by federal laws, encourages companies to take proactive steps that will discourage or prevent white-collar crime, gives companies an incentive to cooperate and disclose illegal activities to federal authorities, and provides disincentives for committing offenses through fines

ethical intensity

the degree of concern people have about an ethical issue

magnitude of consequences

the total harm or benefit derived from an ethical decision

social consensus

an agreement on society on whether behavior is bad or good

probability of effect

the chance that something will happen that results in harm to others

temporal immediacy

the time between an act and the consequences the act produces

proximity of effect

the social, psychological, cultural, or physical distance between a decision maker and those affected by his or her decisions

concentration of effect

the total harm or benefit that an act produces on the average person

principle of long-term self-interest

an ethical principle that holds that you should never take any action that is not in your or your organization’s long-term self-interest

principle of religious injunctions

an ethical principle that holds that you should never take any action that is not kind and that does not build a sense of community

principle of government requirements

an ethical principle that holds that you should never take any action that violates the law, for the law represents the minimal moral standard

principle of individual rights

an ethical principle that holds that you should never take any action that infringes on others’ agreed-upon rights

principle of personal virtue

an ethical principle that holds that you should never do anything that is not honest, open, and truthful and that you would not be glad to see reported in the newspapers or on TV

principle of distributive justice

an ethical principle that holds that you should never take any action that harms the least fortunate among us

principle of utilitarian benefits

an ethical principle that holds that you should never take any action that does not result in greater good for society

overt integrity test

a written test that estimates job applicants’ honesty by directly asking them what they think or feel about theft or about punishment of unethical behaviors

personality-based integrity test

a written test that indirectly estimates job applicants’ honesty by measuring psychological traits, such as dependability and conscientiousness

code of ethics

a code for business conduct among the organization’s members

ethics training

training employees to make ethical decisions; includes developing employees’ awareness of ethics, achieving credibility with employees, and teaching a practical model of ethical decision making

whistleblowing

reporting others’ ethics violations to management or legal authorities

social responsibility

a business’s obligation to pursue policies, make decisions, and take actions that benefit society

shareholder model

a view of social responsibility that holds that an organization’s overriding goal should be profit maximization for the benefit of shareholders

Milton Friedman

an economist who believed that organizations are not effective moral agents, and attention to social causes undermines market efficiency

stakeholder model

a theory of corporate responsibility that holds that management’s most important responsibility, long-term survival, is achieved by satisfying the interest of multiple corporate stakeholders

stakeholders

persons or groups with a stake, or legitimate interest, in a company’s actions

primary stakeholder

any group on which an organization relies for its long-term survival

secondary stakeholder

any group that can influence or be influenced by a company and can affect public perceptions about the company’s socially responsible behavior

social responsiveness

a company’s strategy to respond to stakeholders’ economic, legal, ethical, or discretionary expectations concerning social responsibility

reactive strategy

a social responsiveness strategy in which a company does less than society expects

defensive strategy

a social responsiveness strategy in which a company admits responsibility for a problem but does the least required to meet societal expectations

accommodative strategy

a social responsiveness strategy in which a company accepts responsibility for a problem and does all that society expects to solve that problem

proactive strategy

a social responsiveness strategy in which a company anticipates a problem before it occurs and does more than society expects to take responsibility for and address the problem

economic responsibility

a company’s social responsibility to make a profit by producing a valued product or service

legal responsibility

a company’s social responsibility to obey society’s laws and regulations

ethical responsibility

a company’s social responsibility not to violate accepted principles or right and wrong when conducting its business

discretionary responsibility

the social roles that a company fulfills beyond its economic, legal, and ethical responsibilities