Exam #1 Preparation | MGT 4334 - Ethical Leadership, Quizzes of Introduction to Business Management

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Business Ethics

Compromises the principles, values, and standards that guide behavior in the world of business TERM 2

Principles

DEFINITION 2 specific and pervasive boundaries for behavior that are universal and absoluteOften become the basis for rulesExamples = Freedom of Speech, Fundamentals of Justice, Civil Rights TERM 3

Values

DEFINITION 3 Used to develop norms that are socially enforcedExamples = Integrity, accountability, and trust TERM 4

Consumer's Bill of

Rights

DEFINITION 4 Right to SafetyRight to be informedRight to chooseRight to be heard TERM 5

Social Responsibility

DEFINITION 5 An organization's obligation to maximize its positive impact on stakeholders and minimize its negative impact

Sarbanes-Oxley Act

law made securities fraud a criminal offense and stiffened penalties for corporate fraudcreated an accounting oversight board that requires corporations to establish codes of ethics for financial reporting and to develop greater transparency in financial reports to investors and other interested parties TERM 7

Ethical culture

DEFINITION 7 viewed as the character of the decision-making process that employees use to determine whether their responses to ethical issues are right or wrong TERM 8

Stakeholders

DEFINITION 8 Those who have a "stake" or claim in some aspect of a company's products, operations, markets, industry, and outcomesExamples = Customers, investors/shareholders, employees, suppliers, government agencies, communities and many others TERM 9

Primary Stakeholders

DEFINITION 9 Those whose continued association is absolutely necessary for a firm's survivalIncludes: Employees, customers, investors, shareholders, as well as governments and communities that provide necessary infrastructure TERM 10

Secondary Stakeholders

DEFINITION 10 Do not typically engage in transactions with a company and therefore are not essential to its survivalIncludes: Media, trade associations, and special interest groups

Stakeholder Orientation

The degree to which a firm understands and addresses stakeholder demands TERM 12

Corporate Citizenship

DEFINITION 12 Often used to express the extent to which businesses strategically meet the economic, legal, ethical, and philanthropic responsibilities placed on them by their various stakeholders TERM 13

4 Dimensions of Corporate Citizenship

DEFINITION 13 Strong sustained economic performanceRigorous complianceEthical actions beyond what the law requiresVoluntary contributions that advance the reputation and stakeholder commitment of the organization TERM 14

Reputation

DEFINITION 14 One of an organization's greatest intangible assets with tangible value TERM 15

Corporate Governance

DEFINITION 15 Formal systems of accountability, oversight, and controlStrategic decisions and actions by boards of directors, business owners, top executives and other managers with high levels of authority and accountability

Honesty

Refers to truthfulness or trustworthiness TERM 17

Fairness

DEFINITION 17 quality of being just, equitable, and impartial TERM 18

Equality

DEFINITION 18 About how wealth or income is distributed between employees within a company, a country, or across the globe TERM 19

Reciprocity

DEFINITION 19 An interchange of giving and receiving in social relationships TERM 20

Optimization

DEFINITION 20 The trade-off between equity and efficiency

Integrity

One of the most important and oft-cited elements of virtue and refers to being whole, sound, and in an unimpaired condition TERM 22

Ethical Issue

DEFINITION 22 A problem, situation, or opportunity that requires an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical TERM 23

Ethical Dilemma

DEFINITION 23 A problem, situation, or opportunity that requires an individual, group, or organization to choose among several wrong or unethical actions TERM 24

Intimidating Behavior

DEFINITION 24 Most common ethical problem for employeesExamples = physical threats, false accusations, being annoying, profanity, insults, yelling, harshness, ignoring someone, unreasonableness TERM 25

Lying

DEFINITION 25 3 types:Joking without maliceLying by commission = creating a perception or belief by words that intentionally deceive the receiver of the message ("noise")Lying by omission = intentionally not informing others of any differences, problems, safety warnings, or negative issues relating to the product, service, or company that significantly affect awareness, intention, or behavior

Conflict of Interest

exists when an individual must choose whether to advance his or her own interests, those of the organization, or those of some other group TERM 27

Bribery

DEFINITION 27 the practice of offering something in order to gain an illicit advantage TERM 28

Active Bribery

DEFINITION 28 the person who promises or gives the bribe commits the offense TERM 29

Passive Bribery

DEFINITION 29 an offense committed by the official who receives the bribe TERM 30

Facilitation Payments

DEFINITION 30 made to obtain or retain business or other improper advantages do not constitute bribery payments for U.S. companies in some situations

Corporate Intelligence

the collection and analysis of information on markets, technologies, customers, and competitors, as well as socioeconomic and external political trends TERM 32

Hacking

DEFINITION 32 considered one of the top three methods of obtaining trade secrets3 categories = system, remote, and physical TERM 33

System Hacking

DEFINITION 33 assumes that the attacker already has access to a low-level, privileged-user account TERM 34

Remote Hacking

DEFINITION 34 involves attempting to remotely penetrate a system across the InternetTries to obtain higher level or administrative access TERM 35

Physical Hacking

DEFINITION 35 requires that the CI agent enter a facility personally

Social engineering

the tricking of individuals into revealing their passwords or other valuable corporate information TERM 37

Shoulder surfing

DEFINITION 37 someone simply looks over an employee's shoulder while he or she types in a password TERM 38

Password guessing

DEFINITION 38 if a person can find out personal things about someone, he or she might be able to use that information to guess a password TERM 39

Dumpster diving

DEFINITION 39 once trash is discarded onto public street or alley, it is considered fair game TERM 40

Whacking

DEFINITION 40 wireless hacking

Discrimination

basis of race, color, religion, sex, marital status, sexual orientation, public assistance status, disability, age, national origin, or veteran status is illegal in the U.S. TERM 42

Equal Employment Opportunity Commission

DEFINITION 42 an independent federal agency created under the Civil Rights Act of 1964, as amended, to police a program to eliminate discrimination in employment TERM 43

Age Discrimination in Employment

Act

DEFINITION 43 specifically outlaws hiring practices that discriminate against people between the ages of 49 and 69, as well as those that require employees to retire before the age of 70 TERM 44

Affirmative Action

Programs

DEFINITION 44 involve efforts to recruit, hire, train, and promote qualified individuals from groups that have traditionally been discriminated against on the basis of race, gender, or other characteristics TERM 45

Sexual Harassment

DEFINITION 45 any repeated, unwanted behavior of a sexual nature perpetrated upon one individual by another

Hostile work environment

the conduct was unwelcome, the conduct was severe/pervasive/regarded as hostile or offensive, and conduct was such that a reasonable person would find it hostile or offensive TERM 47

Dual Relationship

DEFINITION 47 defined as a personal, loving, and/or sexual relationship with someone with whom you share professional responsibilities TERM 48

Unethical Dual Relationships

DEFINITION 48 those where the relationship could potentially cause a direct or indirect conflict of interest or a risk of impairment to professional judgement TERM 49

Environmental Issues

DEFINITION 49 significant concerns within the business communityEnvironment involves our physical surroundings, including the natural world and its resources TERM 50

Air Pollution

DEFINITION 50 refers to gases and particulates in the air that can linger or be carried long distances by surface winds

Kyoto Protocol

An international treaty on climate change committed ro reducing emissions of carbon dioxide and five other greenhouse gases and to engaging in emissions trading if member signatories maintain or increase emissions of these gases TERM 52

Water pollution

DEFINITION 52 results from the dumping of raw sewage and toxic chemicals into rivers and oceans, from oil and gasoline spills, and from the burial of industrial wastes in the ground where they may filter into underground water supplies TERM 53

Alternative Energy

DEFINITION 53 considered "green" because they are perceived to lower carbon emissions and create less pollution TERM 54

Fraud

DEFINITION 54 any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression TERM 55

Accounting Fraud

DEFINITION 55 usually involves a corporation's financial reports, in which companies provide important information on which investors and others base decisions that may involve millions of dollarsIf the documents contain inaccurate information, whether intentionally or not, then lawsuits and criminal penalties may result

Marketing Fraud

the process of dishonesty creating, distributing, promoting, and pricing products TERM 57

Puffery

DEFINITION 57 can be defined as exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely and is not actionable under the Lanham Act TERM 58

Implied Falsity

DEFINITION 58 means that the message has a tendency to mislead, confuse, or deceive the public TERM 59

Literally False

DEFINITION 59 2 subcategories:Tests prove - the advertisement cites a study or test that establishes the claimBald assertions - the advertisement makes a claim that cannot be substantiated, as when a commercial states that a certain product is superior to any other on the market TERM 60

Consumer Fraud

DEFINITION 60 occurs when consumers attempt to deceive businesses for their own gainExample = shoplifting, switching price tags

Insider Trading

2 types = illegal and legalIllegal = the buying or selling of stocks by insiders who possess information that is not yet publicLegal = involves legally buying and selling stock in an insider's own company, but not all the time TERM 62

Intellectual Property

Rights

DEFINITION 62 involve the legal protection of intellectual property such as music, books, and movies TERM 63

Voluntary

Practices

DEFINITION 63 the beliefs, values, and voluntary contractual obligations of a business TERM 64

Philanthropy

DEFINITION 64 giving back to communities and causes TERM 65

Core

Practices

DEFINITION 65 documented best practices, often encouraged by legal and regulatory forces as well as industry trade associations

Better Business

Bureau

A leading self-regulatory body that provides directions for managing customer disputes and reviews advertising cases TERM 67

Mandated Boundaries

DEFINITION 67 externally imposed boundaries of conduct, such as laws, rules, regulations, and other requirements TERM 68

Civil Law

DEFINITION 68 defines the rights and duties of individuals and organizations TERM 69

Criminal Law

DEFINITION 69 not only prohibits specific actions, but also imposes fines or imprisonment as punishment for breaking the law TERM 70

Pro-competitive Legislation

DEFINITION 70 laws that have been passed to prevent the establishment of monopolies, inequitable pricing practices, and other practices that reduce or restrict competition among businesses

Consumer Protection Law

requires businesses to provide accurate information about their products and services and to follow safety standards TERM 72

Occupational Safety and Health

Administration

DEFINITION 72 enforces the act, makes regular surprise inspections to ensure that businesses maintain safe working environments TERM 73

Sustainability

DEFINITION 73 meeting the present needs without compromising the ability of future generations to meet their own needs TERM 74

Environmental Protection Agency

DEFINITION 74 created in 1970 to coordinate environmental agencies involved in enforcing the nations' environmental laws TERM 75

Cause-related Marketing

DEFINITION 75 ties an organization's products directly to a social concern through a marketing program

Strategic Philanthropy

the synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits TERM 77

Ethical Issue Intensity

DEFINITION 77 defined as the relevance or importance of an ethical issue in the eyes of the individual, work group, and/or organization TERM 78

Moral Intensity

DEFINITION 78 relates to individuals' perceptions of social pressure and the harm they believe their decisions will have on others TERM 79

Locus of Control

DEFINITION 79 relates to individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements TERM 80

External Control

DEFINITION 80 see themselves as going with the flow because that is all they can do

Internal control

believe that they control the events in their lives by their own effort and skill, viewing themselves as masters of their destinies and trusting in their capacity to influence their environment TERM 82

Corporate Culture

DEFINITION 82 a set of values, norms, and artifacts, including ways of solving problems that members of an organization share TERM 83

Ethical Culture

DEFINITION 83 reflects whether the firm also has an ethical conscience TERM 84

Significant Others

DEFINITION 84 those who have influence in a work group, including peers, managers, coworkers, and subordinates TERM 85

Obedience to Authority

DEFINITION 85 another aspect of the influence that significant others can exercise

Opportunity

describes the conditions in an organization that limit or permit ethical or unethical behavior TERM 87

Immediate Job Context

DEFINITION 87 where they work, whom they work with, and the nature of the work TERM 88

Transactional

Leaders

DEFINITION 88 attempt to create employee satisfaction through negotiating, or "bartering", for desired behaviors or levels of performance TERM 89

Transformational

Leaders

DEFINITION 89 strive to raise employees' level of commitment and to foster trust and motivation TERM 90

Moral Philosophy

DEFINITION 90 refers to the specific principles or rules that people use to decide what is right and wrong

Economic Value Orientation

Associated with values that can be quantified by monetary means TERM 92

Idealism

DEFINITION 92 a moral philosophy that places special value on ideas and ideals as products of the mind TERM 93

Realism

DEFINITION 93 the view that an external world exists independent of our perception of it TERM 94

Monists

DEFINITION 94 believe that only one thing is intrinsically goodcharacterized by hedonism TERM 95

Hedonism

DEFINITION 95 the idea that pleasure is the ultimate good, or that the best moral end involves the greatest balance of pleasure over pain

Quantitative

hedonists

those who believe that it is possible to get too much of a good thing TERM 97

Pluralists

DEFINITION 97 take the opposite position that no one thing is intrinsically good TERM 98

Instrumentalist

DEFINITION 98 reject the ideas that:1) ends can be separated from the means that produce them and that2) ends, purposes, or outcomes are intrinsically good in and of themselves TERM 99

Goodness Theories

DEFINITION 99 typically focus on the end result of actions and the goodness or happiness created by them TERM 100

Obligation Theories

DEFINITION 100 emphasize the means and motives by which actions are justified, and are divided into the categories of teleology and deontology

Teleology

refers to moral philosophies in which an act is considered morally right or acceptable if it produces some desired result, such as pleasure, knowledge, career growth, the realization of self-interest, utility, wealth, or even fame TERM 102

Egoism

DEFINITION 102 defines right or acceptable behavior in terms of its consequences for the individual TERM 103

Enlightened Egoism

DEFINITION 103 take a long-range perspective and allow for the well-being of others although their own self-interest remains paramount TERM 104

Utilitarianism

DEFINITION 104 concerned with consequences, but unlike egoists, the utilitarian seeks the greatest good for the greatest number of people TERM 105

Deontology

DEFINITION 105 refers to moral philosophies that focus on the rights or individuals and on the intentions associated with a particular behavior rather than its consequences

Nonconsequentialism

a system of ethics based on respect for persons TERM 107

Categorical Imperative

DEFINITION 107 "act as if the maxim of thy action were to become by thy will a universal law of nature" TERM 108

Relativist Perspective

DEFINITION 108 definitions of ethical behavior are derived subjectively from the experiences of individuals and groups TERM 109

Virtue Ethics

DEFINITION 109 argues that ethical behavior involves not only adhering to conventional moral standards but also considering what a mature person with a "good" moral character would deem appropriate in a given situation TERM 110

Justice

DEFINITION 110 Fair treatment and due reward in accordance with ethical or legal standards, including the disposition to deal with perceived injustices of others

White-collar Crime

does more damage in monetary and emotional loss in one year than violent crimes do over several years combined