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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
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Three domains of human action:
- 1. Domain of Codified Law
- 2. Domain of Ethics
- 3. Domain of Free Choice
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Ethical Dilemma
A situation that arises when all alternative choices or behaviors are deemed undesirable because of potentially negative consequences, making it difficult to distinguish right from wrong
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Normative strategy
One based on norms and values
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Four Normative Strategy Approches:
- 1. Utilitarian Approach
- 2. Individualism Approach
- 3. Moral-Rights Approach
- 4. Justice Approach
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Utilitarian approach
The ethical concept that moral behaviors produce the greatest good for the greatest number
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Individualism approach
The ethical concept that acts are moral when they promote an individual's best long-term interests
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Moral-Rights approach
The ethical concept that moral decisions are those that best maintain the rights of those people affected by them
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Six moral rights that should be considered during decision making:
- 1. The right of free consent
- 2. The right of privacy
- 3. The right of freedom of conscience
- 4. The right of free speech
- 5. The right of due process
- 6. The right of life and safety
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Justice Approach
- The ethical concept that moral decisions must be based on standards of equity, fairness, and impartiality
- 1. Distributive Justice
- 2. Procedural Justice
- 3. Compensatory Justice
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Distributive Justice
The concept that different treatment of people should not be based on arbitrary characteristics. In the case of substantive differences, people should be treated differently in proportion to the differences among them
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Procedural justice
The concept that rules should be clearly stated and consistently and impartially enforced
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Compensatory Justice
The concept that individuals should be compensated for the cost of their injuries by the party responsible and also that individuals should not be held responsible for matters over which they have no control
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Three Levels of Personal Moral Development:
- 1. Preconventional: Follows rules to avoid punishment
- 2. Conventional: Lives up to expectations of others
- 3. Postconventional: Follows self-chosen principles of justice and right
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Coporate social responsibility (CSR)
The obligation of organization managment to make decisions and take actions that will enhance the welfare and interests of society as well as the organization
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Stakeholder
Any group within or outside the organization that has a stake in the organization's performance
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Bottom-of-the pyramid (BOP) concept
The idea that large corporations can both alleviate social problems and make a profit by selling goods and services to the world's poorest people
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Sustainability
Economic development that generates wealth and meets the needs of the current population while preserving the environment for the needs of future generations
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Four Corporate Social Performance:
- 1. Discretionary: Contribute to the community; be a good corporate citizen
- 2. Ethical Responsibility: Be ethical, do what is right, avoid harm
- 3. Legal Responsibility: Obey the law
- 4. Economic Responsibility: Be profitable
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Economic and ethical repsonsibilities
Required activities that concern financial well-being of the organization and the legal and moral decisions
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Discretionary Responsibility
Organizational responsibility that is voluntary and guided by the organization's desire to make social contributions not mandated by economics, law, or ethics
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Ethical leadership
Providing strategy and being a role model for the organization to make legal and moral choices and to be a good citizen of the community
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Code of ethics
A formal statement of the organization's values regarding ethics and social issues
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Ethics committee
A group of executives assigned to oversee an organization's ethics by ruling on questionable issues and disciplining violators
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Chief ethics officer
A company executive who oversees ethics and legal compliance
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Ethics training
Training programs to help employees deal with ethical questions and values
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Whistle-Blowing
The disclosure by an employee of illegal, immoral, or illegitimate practices by and organization
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