Business Ethics Chatper 6 – Flashcards
Unlock all answers in this set
Unlock answersquestion
In 2003, Charles Prince took over as the CEO in Citigroup He stated his primary goal was to improve the firms corporate reputation and to focus on implementing stronger internal controls and a more comprehensive ethics program at the company Prince described Citigroup form a broader stakeholder perspective y styling the company as a "quasi public institution"
answer
Change in Ethics Strategy
question
the process in which future courses of action are developed to achieve the firm's short long-term goals
answer
Strategic Planning
question
1. why is this bothering me? 2.Is it my responsibility? 3. What is the ethical concern? 4.What do others think? 5. Am i being true to myself (the Mirror test)
answer
five questions to ask before making a final decision
question
The decision maker's ability to look in the mirror after decisions have been made and confirm that he/she the right choice
answer
Mirror test
question
It pulls together all the other questions and ensures consistency with organizational and personals values as stated by P.Drucker
answer
Mirror test(2)
question
1)Moral problem statement 2)Problem analysis 3) options for action 4) ethical judgment 5) reflection 6) morally acceptable action NB not always linear in nature: feedback loops and iterations are often required in practice
answer
Stages of the Ethical Cycle
question
The ethical cycle helps employees understand who they are from an theca perspective
answer
Using strategic ethical decisions to build Character(1)
question
A defining moment is when a decision maker has a choice between two plausible and acceptable strategic options who am I? Who are We? Who is the company?
answer
Using strategic ethical decisions to build Character(2)
question
A decision tree process can be used -is the action legal and consistent with the firms value? Yes Go on: No:stop Will the action maximize shareholder value? Yes: carry on; no: stop or review Is it ethical Yes: Implement no: review
answer
A link between Strategic Planning and Ethical Culture
question
An ethical crisis occur when a event that was not part of the normal course of action takes place and has an impact on the firm
answer
How to Address Ethical Crisis and Disaster Recovery
question
Whether issue is internal or eternal Frequency of the issue classified as normal or abnormal
answer
Crisis Typology Dimensions
question
The shared values and beliefs of employees within any given organization
answer
Corporate Culture
question
Based on norms and behavior patterns
answer
Corporate Culture(2)
question
Must have strong ethical focus to ensure that unethical activities do not take place in the work place
answer
Corporate Culture(3)
question
Artifacts, Shared Values, Basic Assumptions
answer
Three levels of Corporate Culture
question
Factors such as what is seen and heard within a firm I.E Dress code or language
answer
Artifacts
question
Based on what groups within the firm learn about what is acceptable or not acceptable
answer
Shared Values
question
The agreed starting points for decision making within the firm
answer
Basic Assumptions
question
Primary Embedding Mechanisms Secondary Ariculation and Reinforcment Mechanism
answer
Two types of mechanisms in which mangers can change the culture
question
Stage 1 Unfreezing, Stage 2 Moving, Stage 3 Refreezing
answer
Three Stage model of change(Ethical Value)
question
unfreezing of the individuals existing beliefs
answer
Stage 1 Unfreezing
question
Top management needs to ensure that what is considered acceptable and unacceptable is clear
answer
Stage 2 Moving
question
Top managers must reinforce their commitment to support strong ethical behavior
answer
Stage 3 Refreezing
question
1) Define your philiosophy and corporate values in a mission statement 2) Develop guidelines for employees 3) Establish a formal channel for employees to report a violation
answer
Culture should include three basic components
question
Do the employees understand the tone set by senior managment? Can you confirm that your organizations culture encourages ethical behavior at all levels
answer
Evaluation of corporate culture(1)
question
Can employees throughout your organization describe the company's code of ethics do employees at all levels of your organization ask questions and express concerns? Do your employees believe that the mechanisms are in place to allow them to voice opinions without fear of retributions
answer
Evaluation of corporate culture(2)
question
1. Set an example through strong leadership 2.set realistic goals 3.Provide training 4.Distinguish between compliance and ethics 5. To be implemented at all levels of organization with senior managment taking the lead
answer
Creating a Climate of Integrity
question
These key elements are interlinked but active manipulations
answer
Ethics and Corporate Compliance
question
Step 1 Conduct risk/cultural assessment step 2 review current compliance program step 3 review ethical policies and procedures step 4 review and revise the communication training and implementation phases of program step 5 develop an ongoing assessment of the program
answer
Five step process to embed positive ethics and value
question
Guideliens state that organizations can be charged with and convicted of federal crimes originally passed in 1991 and revised in 2004 Organizations can be fined, sentenced to probation for up to five years, and ordered to pay retiutions to their victims Covers fraud, waste discharge, anti-trust, food and drugs and tax violations among others
answer
The U.S Federal Sentencing Guidelines for Organizations
question
lack of internal control system lack of enterprise risk management program inadequate non-routine etc. transaction control poor post-merger integration poor IT control enviroment ineffective financial reporting, closure and discolsure poor accounting systems regime Lack of control over outsourcing Poor board level risk and control understanding
answer
The Challenge of Compliance Threats to section 404 include
question
these conscious abuse of public roles and resources for the private benefit for the firm pr individuals within. Pretty corruption, E.G illegal incentives/Bribess to public officials to gain licesnes Grand corruption I.E illegal incentives/Bribes to gain major infrastructure, military equipment contract influence peddling I.E illegal political campaigns contributions
answer
Corruption
question
one of many Global Civil Society organizations aiming to reduce global corruption
answer
Transparency International
question
Produces annual Corruption Perception Index: the higher the score the lower the level or corruption
answer
Transparency International(2)
question
Passed into law 1977 and amended in 1988 Prohibits any U.S firm and its foreign subsidiaries from giving foreign governments officials any financial incentives in exchange for either obtaining or retaining any government business in that country
answer
The U.S Foreign Corrupt Practices Act
