MGT CHAPTER 4

• UTILITARIANISM

  theory of morality that advocates actions that foster happiness or pleasure and oppose actions that cause unhappiness or harm.
• RELATIVISM

  ethical theory that asserts that moral principles, values, and judgments are not absolute but rather dependent on individual beliefs, cultural norms, societal customs, or situational contexts.
• VIRTUE ETHICS

  ethical theory that emphasizes the cultivation of certain positive character traits as the aim of moral activity.
• Kohlberg's model of cognitive moral development:

  Pre-conventional level, Conventional level, Post-conventional level
• UNIVERSALISM

  The belief in the existence of universal truths, principles, or values that apply to all individuals and form the foundation for understanding the world, shaping moral beliefs, and guiding human behavior.

   
• Caux Roundtable Two basic ethical ideas underpin the Caux Principles

   

  Kyosei, Human dignity
• Kyosei living and working together for the common good, allowing cooperation and mutual prosperity to coexist with healthy and fair competition.
• Human Dignity value of each person as an end, and not a means to the fulfillment of others' purposes
• EGOISM

  An ethical system defining acceptable behavior as that which maximizes consequences for the individual (Adam Smith's invisible hand).
• Adam Smith's invisible hand is a metaphor for the unseen forces that move the free market economy.
• Psychological egoism suggests that all people are inherently selfish and motivated only by self-interest.
• Rational egoism is the idea that rational behavior is always in one's self-interest, meaning that acting rationally will maximize personal gain for oneself instead of for others.

   
• BUSINESS ETHICS is the moral principles, policies, and values that govern the way companies and individuals engage in business activity
• Ethical egoism states that an individual should act in their own self- interest, regardless of the consequences to others.
• 12 ETHICAL PRINCIPLES:

  • honesty

  • fairness

  • leadership

  • integrity

  • compassion

  • respect

  • responsibility

  • loyalty

  • law-abiding

  • transparency

  • environmental concerns

  • Accountability

   
• ETHICS ENVIRONMENT

  Ethics are not shaped only by laws and by individual virtue.
• ethical climate of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong.
• CORPORATE ETHICS STANDARDS

  To create a culture that encourages ethical behavior, managers must be more than ethical people.
• ETHIC CODES

  Sets out an organization's ethical guidelines and best practices to follow for honesty, integrity, and professionalism.

   
• ethical decision making

  state the problem, check the facts, identify relevant factors, develop a list of options, test the options, make a choice, review steps 1-6
• Moral awareness refers to the ability of an individual to recognize and understand the moral dimensions of a situation, including the potential impact of their actions on others.
• Moral Judgement is the evaluation of a certain behavior as good or bad, or as right or wrong.
• Moral Character an individual's disposition to think, feel, and behave in an ethical versus unethical manner.
• Honesty takes courage when its risky, and the risks of complete honesty are real.
• Courage is also needed when the ethical climate is complicated to which leads to the only ethical course of action being whistleblowing.

   
• Corporate social responsibility is a business model by which companies make a concerted effort to operate in ways that enhance rather than degrade society and the environment.
• ECONOMIC RESPONSIBILITY

  produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors.

   
• LEGAL RESPONSIBILITY

  obey local, state, federal and relevant international laws

   
• ETHICAL RESPONSIBILITY

  Meeting other societal expectations, not written as law.
• PHILANTHROPIC RESPONSIBILITY

  Additional behaviors and activities that society finds desirable and that the values of the business support.
• Compliance-based ethics program

  Designed by corporate counsel to prevent, detect, and punish legal violations.
• Integrity-based ethics program

  Which go beyond the mere avoidance of illegality.
• ETHICAL DECISION MAKING

   

  process for an individual to follow in order to make a decision guided by ethical principles and values. About the process of evaluating and choosing among alternatives in a manner consist of ethics.

   
• RISK SOCIETY

   describes the contemporary societal condition characterized by pervasive risks stemming from modernization, industrialization, and globalization.
• ECOCENTRIC MANAGEMENT

  Prioritizes nature's intrinsic value and aims to maintain ecosystem health. Emphasizes balancing human needs with biodiversity preservation and environmental well-being.
• Agenda 21 is a comprehensive plan of action to be taken globally, nationally and locally by organizations of the United Nations System, Governments, and Major Groups in every area in which human impacts on the environment.
• ecocentric management

  Define Goals, Prioritize Sustainability, Acknowledge Business Role, Implement Sustainable Practices, Engage Stakeholders, Collaborate for Solutions, Monitor and Adapt