MGMT Chap. 4

ethics

The code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong.

ethical dilemma

A situation in which all alternative choices or behaviors have potentially negative consequences.

utilitarian approach

A method of ethical decision making saying that the ethical choice is the one that produces the greatest good for the greatest number.

moral-rights approach

Holds that ethical decisions are those that best maintain the fundamental rights of the people affected by them.

individualism approach

A decision-making approach suggesting that actions are ethical when they promote the individual’s best long-term interests, because with everyone pursuing self-interest, the greater good is ultimately served.

justice approach

Says that ethical decisions must be based on standards of equity, fairness, and impartiality

distributive justice

Requires that different treatment of individuals not be based on arbitrary characteristics.

procedural justice

Holds that rules should be clearly stated and consistently and impartially enforced.

practical approach

A decision-making approach that sidesteps debates about what is right, good, or just, and bases decisions on the prevailing standards of the profession and the larger society.

compensatory justice

Argues that individuals should be compensated for the cost of their injuries by the party responsible, and individuals should not be held responsible for matters over which they have no control.

corporate social responsibility (CSR)

The obligation of organizational managers to make choices and take actions that will enhance the welfare and interests of society as well as the organization.

stakeholder

Any group or person within or outside the organization that has some type of investment or interest in the organization’s performance

stakeholder mapping

A systematic way to identify the expectations, needs, importance, and relative power of various stakeholders.

sustainability

Economic development that generates wealth without compromising environmental responsibility and social stewardship, thus meeting the current and future needs of stakeholders while preserving society and the environment for the needs of future generations.

greenwashing

Efforts to portray a company as being more environmentally minded that it actually is.

triple bottom line

Refers to measuring the organization’s financial performance, social performance, and environmental performance.

volunteerism

Actively giving time and skills to a volunteer or charitable organization.

code of ethics

A formal statement of the organization’s values regarding ethics and social responsibility.

ethical leadership

Leadership in which managers are models of honesty and trustworthiness, are fair in their dealings with employees and customers, and behave ethically in both their personal and professional lives.

benefit corporation

A for-profit organization that has a stated purpose of creating a positive impact on society; is required to consider the impact of decisions on all stakeholders; and voluntarily holds itself to high standards of accountability and transparency.

ethics committee

A group of executives (and sometimes lower-level employees as well) charged with overseeing company ethics by ruling on questionable issues and disciplining violators

whistle-blowing

The disclosure by employees of unethical, illegitimate, or illegal practices by an organization.

chief ethics officer

A manager who oversees all aspects of ethics and legal compliance.

codified law

values and standards written into the legal system and enforceable in the courts

free choice

behavior not covered by law and for which an ind. has complete freedom

moral agent

the ind. who must make an ethical choice in an organization

values-oriented approach

directly targets inds. internal desire to be ethical