Business Leadership Ethics

Accommodative strategy

A social responsibility strategy that meets the organization’s economic, legal, and ethical responsibilities by 'doing the minimum that is ethically required.'

Codes of ethics

A formal statement of an organization’s values and ethical principles that provide guidelines on how to behave in situations susceptible to ethical dilemmas.

Corporate governance

The oversight of the top management of an organization by a board of directors.

Corporate social responsibility

An obligation of an organization to act in ways that serve both its own interests and the interests of society at large.

Cultural relativism

The notion that there is no one right way to behave and that ethical behaviour is always determined by the cultural context.

Defensive strategy

A social responsibility strategy that meets the organization’s economic and legal responsibilities by 'doing the minimum that is legally required.'

Ethical behaviour

Behaviour that is accepted as 'good' and 'right' as opposed to 'bad' or 'wrong' in the context of the governing moral code.

Ethical dilemma

A situation wherein someone must choose whether or not to pursue a course of action that, although offering the potential of personal or organizational benefit or both, may be considered unethical.

Ethical imperialism

The attempt to externally impose one’s ethical standards on others.

Ethics

The code of moral principles that sets standards as to what is good or bad, or right or wrong, in one’s conduct and thereby guides the behaviour of a person or group.

Ethics training

Structured programs that help people to understand the ethical aspects of decision making and to incorporate high ethical standards into their daily behaviour.

Individualism view

Ethical behaviour is that which best serves long-term self-interests.

Justice view

Ethical behaviour is that which is impartial and fair in treating people according to legal rules and standards.

Lobbying

An approach for businesses to influence government that enables executives to have their positions and preferences communicated directly to government officials.

Moral-rights view

Ethical behaviour is that which respects and protects the fundamental rights of people.

Obstructionist strategy

A social responsibility strategy that meets the organization’s economic responsibility by 'fighting social demands.'

Organizational stakeholders

Those persons, groups, and other organizations directly affected by the behaviour of the organization and holding a stake in its performance.

Political action committees

An approach for businesses to influence government that enables executives to seek influence through financial support for favoured political candidates.

Proactive strategy

A social responsibility strategy that meets the organization’s economic, legal, ethical, and discretionary responsibilities by 'taking leadership in social initiatives.'

Social responsibility audit

A systematic assessment and reporting of an organization’s resource commitments and action accomplishments in various areas of corporate social responsibility.

Universalism

The ethical position that suggests if a behaviour is not acceptable in one’s home environment, it shouldn’t be acceptable practice anywhere else.

Utilitarian view

Ethical behaviour is that which delivers the greatest good to the greatest number of people.

Values

The underlying beliefs and attitudes that help determine individual behaviour.

Whistleblowers

Individuals who expose the misdeeds of others in organizations to preserve ethical standards and protect against wasteful, harmful, or illegal acts.

Zone of compliance

When a company satisfies its economic and legal responsibility.

Zone of conviction

When a company satisfies its ethical and discretionary responsibility.

Perception

The process through which people receive, organize and interpret information from the environment. People can perceive the same things or situations differently.

Psychological Contracts

A set of expectations held by an individual about what will be given and received in the employment relationship.

Inducements

An act or a thing that is intended to make something happen or to persuade someone to do something.

Stereotypes

Occur when someone is identified with a group or category, and then oversimplified attributes associated with the group or category are used to describe the individual.

Halo Effects

Occur when one attribute is used to develop an overall impression of a person or situation.

Selective Perception

The tendency to single out for attention those aspects of a situation or attributes of a person that reinforce or appear consistent with one’s existing beliefs, values, or needs.

Projection

The assignment of personal attributes to other individuals.

Impression Management

A process in which we try to influence somebody’s perceptions about a person, thing, or event.

Attitude

A predisposition to act in a certain way toward people and things in one’s environment.

Cognitive Dissonance

The discomfort a person feels when attitudes and behaviour are inconsistent.

Job Satisfaction

The degree to which an individual feels positively or negatively about various aspects of work.

Organisational Citizenship

Willingness to 'go beyond the call of duty' or 'go the extra mile' in one’s work.

Personality

The combination or overall profile of characteristics that makes one person unique from others.

Extroversion

The degree to which someone is outgoing, sociable, and assertive.

Agreeableness

The degree to which someone is good-natured, cooperative, and trusting.

Conscientiousness

The degree to which someone is responsible, dependable, and careful.

Emotional Stability

The degree to which someone is relaxed, secure, and unworried.

Openness

The degree to which someone is curious, receptive to new things, and open to change.

Locus of Control

The extent to which people believe they are in control of their destinies versus believing that what happens to them is beyond their control.

Authoritarianism

The degree to which a person defers to authority and accepts status differences.

Machiavellianism

The extent to which someone is emotionally detached and manipulative in using power (end justifies the means).

Self-Monitoring

The degree to which someone is able to adjust and modify behaviour in response to the situation and external factors.

Type A Personality

A person oriented toward extreme achievement, impatience, and perfectionism.