Business Ethics Concept Quiz 2-chapters 4,6,7

Define Culture

A shared pattern of beliefs, expectations, and meanings that influences and guides the thinking and behaviors of members in a particular group

What is Geert Hofstede's 6 dimensions of culture?

1. Power Distance Index

2. Individualism versus collectivism

3. uncertainty avoidance

4. time and order orientation

5. masculinity vs femininity

6. indulgent versus restrained

What does a high power index mean

distance between different levels of hierarchy is greater

What does a low power index mean?

distance between different hierarchy is lower

Individualism

people act more individually.

Collectivism

ppl act more collectively

uncertainty avoidance

the extent to which ppl are comfortable with uncertainty, ambiguity, change, and risks

time and order orientation

1. a high LTO is comfortable with commitments, traditions, and rewards. EX)pharmaceuticals or banks

2. a low lto indicates that change may occur more rapidly. EX) artisan industries

Chapter 4

Starts here

Corporate Culture

while culture shaped the people who are members of the organization, it is also shaped by the people who make up that organization

Masculinity versus femininity

low masculinity indicates greater equality, stronger relationships, service, and society.

high masculinity: more competitive and assertiveness

indulgent versus restrained

the extent to which ppl try to control their desires and impulses

critics of Hofstede's 6 dimensions of culture

1. his divisions are based on generalizations and stereotypes

2. national cultures don't all align

3. his work focused on a single period of time

4. his perspective is biased by his western views

5. only a limited number of countries were included

Culture and Ethics

the cultivation of habits, including ethical virtue, is greatly shaped by the culture in which one lives

Habits are

shaped by education and training by culture

Compliance-based culture (the traditional approach)

obedience to laws and regulations is the prevailing model for ethical behaviors

values-based culture (the progressive approach)

conformity to a statement of values and principles rather than simple obedience to laws and regulations is the prevailing model of ethical behavior

Compliance Based Goals examples

legal and regulatory requirements

Values based Goals examples

maintaining brand reputation

what is one key difference when depicting an effective leader and an ethical leader?

means used to motivate others

transformative of transactional leaders

employ methods that empowers subordinates to take initiative

Building a values based corporate culture

culture is built and maintained through

1. leadership

2. integration

3. assessment

4. monitoring

True or False: in the business context, productivity, efficiency, and profitability are minimal goals for sustainability in ethical leadership

true

Ethical Leaders communicate values through

A code of conduct/statement of values

what must a firm do before impacting the culture through a code of conduct?

determine its mission

what does the mission statement/corporate credo do?

articulates the fundamental principles that should guide all decisions

what does the code of conduct do?

provides behavioral guidelines and expectations that govern all members of the company

what was interesting about johnson and johnson's credo?

they had a responsibility to stockholders

Whistleblowing

a practice in which an individual within an organization reports organizational wrongdoing to the public or go to other in position of authority

internal whistleblowing

management, company ethics line, HR, etc.

external whistleblowing

government agencies, press

internal mechanisms for reporting wrongdoings

are preferable

how to detect a "toxic culture"

a clear sign is a lack of values

The USSC

stands for united states sentencing commission

FSGO

Federal Sentencing Guidline for Organizations (1987)

apply to individual and organizationla defendants in the federal system

FSGO

1. listed offence levels based on the severity of the offence

2. strived to use the guidelines to create both a legal and an ethical corporate environment

3. each offender is categorized based on the extent and recency of past misconduct

4. the court inputs this info into a sentencing grid that determines the offender's sentencing guideline range

How the USSC strived to use the guidelines to create both a legal and an ethical corporate environment

1. ussc notes that orgs shall "exercise due dilligence to prevent and detect criminal fraud"

2. orgs must promote a culture that encourages ehtical conduct and a commitment to compliance with the law

3. the guidline specify acts of an organization that can serve as due dilligence in preventing crime and the minimal requirements for an effetive compliance and ethics program

if fims can show that they have established effective ethics programs, fines can be reduced by up to 95%

USSC Minimal Requirements

1. standards and procedures

2. responsibility of board and other executives

3. preclusion from authority: prior misconduct

4. communication and training

5. comintoring and evaluating and reporting processes

incentive and disciplinary structures

6. responce and modification mechanisms

in 2010: the USSC lowered penalties for compliance violations if the organization met the following four criterias

1. those responsible for the programs must have direct reporting obligations to the government authority

2. the program detected the offese before outside discovery

3. the offense was promptly reported to government authorities

4. no person responsible for the program condoned the offence

Chapter 6

Starts Here

Companies who place employees at the core of their strategires produce higher long-term returns to shareholders than their industry peers

more than double

Treat employees well for a return

return=harmony, productivity, and innovation

Treat amployees well out of a sense of duty

sense of duty=law, proffesional codes of conduct, or moral principles

what is Due Process?

the right to be protected against the arbitary use of authority

Basic Fairness

implemented through due process-demands that this power be used justly

EAW

Employment at will

EAW definition

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

can also fireat any time for any reason

Exceptions to EAW

1. termination in biolation of public policy

2. termination in breach of the implied covenant of good faith and good dealing

3. termination in violation of the doctrine of PROMISSORY ESTOPPEL=where employee reasonably relie on an employer's promise, to the employee's detriment

other exceptions are determined by

statutes (such as worker adjustent and restraining notification act WARN)

Just Cause

a standard for terminations or discipline that requires the employer to have sufficient and fair cause before reaching a decision against and employee

Downsizing

the reduction of human resources at an org through terminations, retirements, and corporate divestment means

Health and Safety

employees have a fundamental right to a safe and healthy workplace

instrumental value

when a person dies in a workplace accident, their lost wages would be the instrumental value

Intrinsic value

the intrinsic value of their life is irreplicable by financial means

Calculating acceptable level of risk

so if the probability of harm in a specific work activity is < or = to other probability of harm for similar or more common activity

activity is safe

if probability of harm for any specific work is > probability of harm for similar, more common activities

activity is not safe

OSHA

occupational safety and health administration

seatshots

all workplaces with conditoins that are below standards in more developed countries

Child Labor

exploitatice work that involves some harm to a child who is not of an age to justify his or her presence in the workplace

what does the international labour office say

there are 152 million children classified as child laborers

US child labor guidelines

Federal Labor Standard Act (1938)

1. 14 years old as minimum age for employment and limits hours worked by munors under age of 16

14-15 years old: <= 8 hours/day; < 3 hours on a school day (<18 hours/week). Cannot work before 7:00 am and after 7:00 p

Title VII of the Civil Rights Act of 1964

makes it unlawful to discriminate in hiring, discharge, promotion, referral, and other facets of employment, on the basis of color, race, religion, sex, or national origin.

EEOC-equal employment opportunity commission

enforces title vv11 of the civial rights act

what is the largest discrimination based of EEOC

disability with 34%

Chapter 7

Starts Here

Two general and connected understandings of privacy

1. privacy is the right to be "left alone" within a personal zone of solitude

2. privacy is the right to control information about oneself

why is privacy important

it establishes the boundary between individuals and defines one's individuality

Privacy Rights

the legal and ethical sources of protection for privacy in personal data

What is reciprocal obligation?

when an individual expects respect for his or her personal autonomy, he or she has a reciprocal obligation to respect the autonomy of others

what does reciprocal obligation mean in the workplace?

1. an employee has an obligation to respect the goals and property of employer

2. the employer has a reciprocal obligation to respect the rights of the employee including right to privacy

Hypernorms

values that are fundamental across culture and theory

ex) right of speech

moral free range

values determined within culture are not hypernorms

how can privacy be protected?

1. by the constitution

2. by statutes

3. by common law

4th Amendment protection

against unreasonable search and seizure applies to the public-sector workplace

ECPA

Electronic Communications Privacy Act

What does the ECPA do?

prohibits unauthorized access of stored communication

limitations of ECPA

only applies to third parties and not by employers

Intrusion into seclusion

this violation occurs when someone intentionally intrudes on the private affairs of another when the intrusion would be highly offensive to a reasonable person

the basis for finding an invasion of privacy

is often based on the employee's reasonable expectation of privacy

Why is privacy protection mre difficult?

due to the European Union's General Data Protection Regulation (GDPR)

EU's GDPR

1. provides that personal information cannot be collected or shared by companies without individual's permission

2. info about who is using the data and what for must be provided in a clear, easily understandable matter

3. consumers have the right to review the data and correct inaccuracies

4. GDPR includes heavy regulatory powers by imposing heavy fines for those companies that break it

Under GDPR

European union does not allow the transfer of data on its citizens outside of the country unless the country is deemed to have adequate privacy laws

When using Europeans' data

USA intelligence services has to adhere to the limits and oversight mechanisms

what is the privacy shield ombudsperson

a watchdog to handle the complaints about intelligence-related matters transmitted from the EU to US.

who is the privacy shield ombudsperson?

the Under Secretary for Econ growth, energy and environment

how long does the eu privacy shild give for compaints to be resolved

withing 45 days of being filed

Moral requirements that need to be imposed on info if tech is dependent on info

1. truthfulness and accuracy

2. respect for privacy

3. respect for property and safety rights

4. accountability

technology affords an

effective and low cost of monitoring ability

80%

of large companies gather info through email monitoring and internet use monitoring

why do firms monitor technology usage?

1. place worker is appropriate positions

2. ensure compliance with affirmative action requirements

3. administer workplace benefits

meet regulatory requirements

why else do fims monitor tech usage?

1. allows managers to ensure the effective performance by preventing lost productivity due to inappropriate tech use if employee is aware that he will be monitored

2. monitoring offers employers a method to protect its other resources

Drug test monitoring

employers can still use and enforce this in a workplace even if drugs are legalized in the country

GINA

genetic information nondiscrimination act

what does the GINA do?

prohibits discrimination based on genetic information

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