CRS Exam 2

What aspect of ethics do people act out of habit rather than deliberation?

virtue Ethics Tradition

What does Robert Greenleaf state about the best leaders?

A desire to serve others

What specifically does a vision statement accomplish?

The mission statement or corporate credo articulates the
fundamental principles that should guide all decisions,
without abridgment.

What is a first step in creating a personal code or mission for a firm?

To have an effective code that will impact culture there must be a belief that this culture is possible and achievable.

According to our authors, what are the steps in developing guiding principles for a firm?

* Be clear about the objectives the code is intended to accomplish.
* Get support and ideas for the code from all levels of the organization.
* Be aware of the latest developments in the laws and regulations that affect your industry.
* Write as simply and clearly as possible. Avoid legal jargon and empty generalities.
* Respond to real-life questions and situations.
* Provide resources for further information and guidance.

What is whistleblowing?

* Practice in which an individual within an organization reports organizational wrongdoing to the public or to others in positions of authority

In what ways might a toxic culture damage firm relationships?

* A clear sign is a lack of values for the organization.
* Warning signs can occur in the various component areas of the organization.
* If how a firm manages and communicates its financial environment is disastrous.

Understand the basics of corporate culture and its impact on a firm.

* Leadership (and maintenance) of the control environment.
* Control activities, information, and communication.
* Review, assessment, and ongoing monitoring

What are some of the key elements of value-based cultures?

A values-based culture reinforces a set of values rather than rules

In the context of ethical leadership, how does empowering employees help them to make ethical decisions?

* Not every effective leader is an ethical leader.• One key difference is the means used to motivate others and achieve one's goals.
* Some of the discussions on leadership suggest that ethical leadershipis determined by the methods used in leading
* Transformative or transactional leaders employ methods that empower subordinates to take the initiative and solve problems for themselves.

How do effective ethics programs shift employee perceptions?

* Perception may circularly impact the culture.
* In addition, culture is present and can be determined by exploring.

How do reporting structures, organizational values, and compensation intertwine?

* Internal reporting mechanisms must be effective.
* They must allow confidentiality if not anonymity.
* They must strive to protect the rights of the accused party.

What type of ethical approach would it be if an employer were to decide to treat employees well as a means to produce greater harmony and productivity?

The Current Environment
* Treat employees well for a return.
* The return is greater workplace harmony, productivity, and innovation.
* Focus on end results and consequences

Due process

The right to be protected against the arbitrary use of authority.

What is At-Will Employment? (EAW)

EAW holds that, in the absence of a particular contractual or other legal obligation that specifies the length or conditions of employment, all employees are employed "at will."

theory of distributive justice

Seeks to specify the proper means of property distribution & the moral legitimacy of the outcomes which result

What defines a "sweatshop"?

All workplaces with conditions that are below standards in
more developed countries.

What term is used to compare the probability of harm in relation to various activities?

Calculating Acceptable Level of Risk
* From this perspective, a workplace is safe if the risks are acceptable.

What federal agency enforces workplace employee health and welfare?

Occupational Safety and Health Administration (OSHA):

* Agency of the federal government that publishes and enforces safety and health regulations for U.S. businesses

What is the Ethical Trade Initiative (ETI) and what does it call its underlying ethical standard?

Ethical Trade Initiative (ETI), is an alliance of corporations, trade unions, and voluntary organizations dedicated to improving the conditions of workers.

What is Title VII and what does it do?

Title VII of the Civil Rights Act, as amended, protects employees and job applicants from employment discrimination based on race, color, religion, sex, and national origin.

What is affirmative action and what does it do?

To ensure equal employment opportunities for applicants and employees.

According to the authors, what is it called when we place an economic value on one's life and body?

Value of life

What is privacy and what are the two main prongs

Two general and connected understandings of privacy.
* Privacy is the right to be "left alone" within a personal zone of solitude.
* Privacy is the right to control information about oneself.

In the context of ethical analysis (Donaldson & Dunfee) as long as a decision does not conflict with a hypernorm then it rests in a place they refer to as what (where reasonable minds may differ as to what is ethical)?

There is an approach to ethical analysis that seeks to
differentiate between:
* Those values that are fundamental across culture and theory, hypernorms.
* Those values that are determined within moral free space and are not hypernorms.
* Individual privacy is at the core of many of the basic minimal rights or hypernorms.
The value of privacy to a civilized society is as great as the value of the various hypernyms to civilized existence.
• The failure to protect privacy may lead to an inability to protect personal freedom and autonomy.

What is Common Law?

law made by judges through their decisions, not through specific statutes

What does the 4th Amendment of the Constitution do and to whom (or what) does it protect against?

The Constitution's Fourth Amendment protection against
unreasonable search and seizure applies to the public-sector workplace.

What is the EU's directive on Personal Data Protection? What are the limitations on where data from the EU may be transferred, and under what circumstances?

* Provides that personal information cannot be collected or shared by companies without individuals' permission.
* Information about who is using the data and for what purpose it is being collected must be provided in a clear, easily understandable manner.
* Consumers have the right to review the data and correct inaccuracies.

What is biotracking?

Employee monitoring challenges body autonomy by using
biotracking technology and badges that monitor the tone,
gender, and live location of employees.

What federal act prohibits the use or disclosure of "protected health information"?

Health Insurance Portability and Accountability Act (HIPAA).

• HIPPA stipulates that employers cannot use "protected health information" without prior consent

What are some of the location limitations on employee monitoring?

* Monitoring may create a suspicious and hostile workplace.
* Lead to unhappy, disgruntled workers.

What is the Hawthorne effect?

Notifying workers when they are being monitored.

How does Jennifer Moore define zone of privacy?

The right to make personal decisions about marriage, family, and procreation without government interference.

What defines an invasion of privacy in a workplace context?

* The basis for finding an invasion of privacy is often the employee's legitimate and reasonable expectation of privacy.
* If the employee has actual notice, then there truly is no real expectation of privacy.
* The company is allowed to monitor even when it promises not to monitor.

According to the authors, is the use of employer monitoring in the workplace are laws becoming more restrictive or more expansive?

More expansive

What are some of the basic ideas behind the European Union's General Data Protection Regulation (GDPR)?

* GDPR includes heavy regulatory powers by imposing heavy fines for those companies that break these regulations.
* Does not allow the transfer of data on its citizens outside of the country unless the country is deemed to have adequate data privacy laws.

The utilitarian view of an individual right to privacy or to control of one's personal information might be outweighed under what circumstance(s)?

Derives its worth only in so far as it fosters other positive social gains

How does the American Marketing Association define Marketing?

an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

What is respondeat superior? When may an employer be liable for the acts of an employee?

Holds an employer responsible for the actions of their employees when performing ordinary duties.

When might advertising distort an economy (by creating what types of behavior)?

* Often, sales and advertising practices employ deceptive or manipulative. means of influence, or aim at susceptible audiences.
• To manipulate something is to guide its behavior.
• Manipulation may be done with or without deception

What actions may violate consumer autonomy?

Consumer autonomy is violated by advertising's ability to create non-autonomous desires.

According to economist John Kenneth Galbraith, what are examples of the 'dependence effect'?

This assertion held that consumer demand depended on what producers had to sell; this had three major and unwelcome implications. Creating wants, advertising, and marketing creates, and being manipulated

What are some of the possible ethical concerns involving advertising?

The worst form of manipulation occurs when vulnerable people are targeted for abuse

What is the legal theory that holds a business liable for defective or harmful products?

The Accountability Argument

* This rationale also suffers a serious defect.

• This argument claims that a business is best able to pay for damages.

What is the legal term negligence and how does it hold producers responsible for their products?

A concept from the area of law known as torts provides a
second avenue for consumers to hold producers responsible for their products.

When a business offers tacit assurances that the product is reasonably suitable for its intended purposes, this is called...?

Implied warranty of merchantability

In selling a product, a business implicitly assures it is suitable for its purpose.

According to the authors, what is the approach that holds the only responsibility of a business is to provide a good or service at the agreed upon price?

Caveat emptor approach

A business’s only legal and ethical responsibility is to provide a good or service at an agreed-upon price.

Studies show that greater consumption is likely to lead to unhappiness, what is "affluenza"?

Impulse buying, "affluenza," consumerism

When might a consumer not provide informed consent in the purchase of a product?

Prima facie

A simple situation in which two parties freely agree to an

exchange is prima facie ethically legitimate.

Marketing practices that target elderly individuals are often subject to criticism. Why?

Groups are vulnerable

* Marketing campaigns that target elderly individuals for products such as supplemental medical insurance, life insurance, emergency call devices, et cetera often play on fears, anxiety, and guilt that the older people experience

* This strategy is the most abhorrent case of unethical marketing.

* Certain products, tobacco, and alcohol, can make an individual vulnerable to a wide range of health risks.