Bus 451 Exam 2

Chapter 5: Key Terms in Business Ethics

Business Ethics

  • Definition: Business ethics refers to the principles and standards that determine acceptable conduct in business organizations.

Conflict of Interest

  • Definition: A situation in which an individual's personal interests potentially conflict with their professional obligations.

  • Example: An employee in a procurement role may favor a company owned by a relative, thus compromising the integrity of the bidding process.

Ethical Egoist

  • Definition: An individual who acts according to their own self-interest, believing this contributes to the greater good.

Ethical Principles

  • Overview: The foundational concepts that guide actions and decisions in ethical dilemmas.

  • Key ethical principles include:

    • Utilitarianism: The best action is the one that maximizes utility or happiness.

    • Deontological Ethics: Focus on the morality of actions themselves rather than the consequences.

    • Virtue Ethics: Emphasizes moral character and virtues rather than rules or consequences.

    • Rights-based Ethics: Asserts that individuals have entitlements that shouldn’t be violated.

Ethical Relativism

  • Definition: The view that ethical standards are culturally based and therefore subject to a person's social environment.

Ethical Reasoning

  • Different Types of Ethical Reasonings:

    • Utilitarian Reasoning: Focused on outcomes and the greatest good for the most number of people.

    • Limitation: Can justify unethical acts if they benefit the majority.

    • Deontological Reasoning: Based on adherence to moral norms and rules regardless of outcomes.

    • Limitation: May lead to rigid decision-making without consideration of context.

    • Virtue Ethics: Centers on character and virtues rather than rules or outcomes.

    • Limitation: Lack of clear guidelines for action in complex situations.

    • Rights-based Reasoning: Focus on individual's rights.

    • Limitation: Conflicts can arise between competing rights.

Ethics

  • General principles of moral conduct governing choices and behaviors in business.

Human Rights

  • Definition: Basic rights and freedoms to which all humans are entitled.

  • Connection: Essential consideration in ethical business practices.

Justice

  • Overview: The moral principle of fairness, often in relation to the distribution of resources and opportunities.

Laws

  • Definition: Formal rules governing behavior in society; provide a foundation for ethical conduct.

Moral Intensity

  • Definition: Refers to the degree of importance that an ethical issue has on an individual or organization.

  • Factors influencing moral intensity:

    • The magnitude of consequences.

    • Social consensus regarding the act.

    • Probability of effect.

    • Temporal immediacy.

    • Proximity to victims.

Sarbanes-Oxley Act

  • Overview: A U.S. law enacted to enhance corporate governance and accountability, primarily in response to accounting scandals.

  • Key provisions:

    • Increased financial disclosures.

    • Criminal penalties for altering documents.

Spirituality

  • Definition: A broad concept often involving a search for meaning in life, which can be a driving force in ethical decision-making.

Stages of Moral Development

  • Overview: The theory proposed by Lawrence Kohlberg, describing how individuals progress through stages of moral reasoning from basic concepts of right and wrong to more complex ethical principles.

  • Stages include:

    • Pre-conventional: Focus on punishment and reward.

    • Conventional: Upholding laws and social norms.

    • Post-conventional: Abstract reasoning and principles.

U.S. Corporate Sentencing Guidelines

  • Overview: Guidelines established to determine penalties for organizations convicted of crimes, promoting ethical behavior and compliance.

  • Emphasis on having compliance programs in place.

Utilitarian Reasoning

  • Definition: An ethical framework that assesses actions based on their outcomes to maximize overall happiness or utility.

Virtue Ethics

  • Overview: A philosophical approach focusing on the inherent character of a person rather than specific actions.

Chapter 6: Key Terms Regarding Ethics in Organizations

Bribery

  • Definition: Offering or receiving something of value to influence the actions of an official or other person in charge.

Corporate Culture

  • Definition: The beliefs and behaviors that determine how a company's employees and management interact.

  • Importance: Strong ethical culture promotes trust and integrity within an organization.

Ethical Programs/Policies

  • Definition: Structured initiatives aimed at fostering ethical behavior within organizations.

  • Components:

    • Ethical Training: Programs to educate employees about ethical standards and decision-making.

    • Ethics and Compliance Officer: A dedicated role within a company focused on ethical compliance.

    • Codes of Conduct: Formal documents outlining expected behaviors for employees.

Ethical Climate

  • Definition: The collective perception of what is right and wrong within an organization.

  • Impact: Shapes employee behavior and contributes to the overall ethical framework of the organization.

Ethical Leadership

  • Definition: Leadership that promotes ethical behavior through influence and example.

  • Role: Ethical leaders serve as role models for employees, fostering an environment of trust and accountability.

Ethics Reporting Mechanisms

  • Definition: Systems in place that allow individuals to report unethical behavior without fear of retaliation.

  • Examples: Hotlines, anonymous reporting systems.

Chapter 9: Key Terms Related to Environmental Ethics

Anthropocene

  • Definition: A proposed geological epoch characterized by significant human impact on the Earth's geology and ecosystems.

Biodiversity

  • Definition: The variety of life in the world or in a particular habitat or ecosystem; crucial for ecosystem resilience.

Carbon Neutrality

  • Definition: Achieving a balance between emitting carbon and absorbing carbon from the atmosphere.

Carbon Offsets

  • Definition: Reductions in emissions of carbon dioxide or other greenhouse gases made in order to compensate for emissions produced elsewhere.

Circular Economy

  • Overview: An economic system aimed at eliminating waste through the continual use of resources.

  • Key principles include:

    • Design for longevity.

    • Use renewable resources.

    • Create closed-loop systems for materials.

Climate Change

  • Definition: Significant changes in global temperatures and weather patterns over time, predominantly due to human activities, such as burning fossil fuels.

Ecological Footprint

  • Definition: A measure of human demand on the Earth's ecosystems, indicating the amount of natural capital used by individuals, communities, and nations.

Extended Producer Product Responsibility

  • Definition: A policy approach where producers are given significant responsibility for the treatment or disposal of post-consumer products.

Global Warming

  • Definition: The long-term heating of Earth’s climate system due to human activities, primarily fossil fuel burning, which increases heat-trapping greenhouse gas levels.

Great Acceleration

  • Definition: A period of rapid increase in human activity and impact on the Earth starting post-World War II, leading to unprecedented strains on the planet’s resources and ecosystems.

Industrial Ecology

  • Overview: The study of material and energy flows through industrial systems to promote sustainability.

Life-cycle Analysis

  • Definition: A technique to assess environmental impacts associated with all stages of a product's life from raw material extraction through to disposal or recycling.

Marine Ecosystems

  • Overview: Aquatic systems in oceans and seas, essential for biodiversity and global climate balance.

Natural Capital

  • Definition: The world's stocks of natural assets including geology, soil, air, water, and all living things.

  • Importance: Acts as a foundation for human life and economic activity.

Ozone

  • Definition: A colorless gas composed of three oxygen atoms; essential in the upper atmosphere for blocking UV radiation but harmful as a pollutant at ground level.

Planetary Agreement

  • Definition: A legal agreement between nations on how best to tackle global environmental challenges; for example, the Paris Agreement on climate change.

Sustainable Development

  • Definition: Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Sustainable Development Goals

  • Overview: A set of 17 interlinked global goals set up by the United Nations General Assembly in 2015, aiming to be achieved by 2030.

Chapter 10: Key Terms Related to Environmental Regulations

Cap-and-Trade

  • Definition: An environmental policy tool that allows countries or firms with low emissions to sell their extra allowances to larger emitters.

Clean Air Act

  • Overview: A comprehensive federal law that regulates air emissions from stationary and mobile sources in the U.S.

Clean Water Act

  • Overview: A U.S. law established to restore and maintain the integrity of the nation’s waters by preventing point and nonpoint source pollution.

Command and Control Regulation

  • Definition: A traditional regulatory approach whereby governmental authority mandates specific standards and practices.

Environmental Protection Agency (EPA)

  • Overview: The U.S. agency responsible for enforcing regulations aimed at protecting the environment and public health.

Market-Based Mechanisms

  • Definition: Economic strategies used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants.

Information-Disclosure Mechanisms

  • Definition: Policies that require companies to publicly disclose information about their environmental performance and impacts.

Superfund (CERCLA)

  • Overview: A U.S. federal government program designed to fund the cleanup of sites contaminated with hazardous substances and pollutants.