Chapters 1,2,3,5,6 Quiz

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Business
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Any organization that is engaged in making a product or providing a service for a profit
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Society
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Human beings and the social structures they collectively create
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Business and Society are?
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High interdependent
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The external environment of business is?
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Dynamic and ever changing
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A successful business must meet both its?
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Economic and social objectives
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The purpose of the firm is not to make a profit, but to?
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Create value for all its stakeholders
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General Systems Theory?
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Business and society together form an interactive social system
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A stakeholder refers to?
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Persons or groups that affect, or are affected by, an organization’s decisions, policies, and operations
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A stake is?
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An interest in – or claim to – a business enterprise
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A stockholder is?
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A type of stakeholder, but not all stakeholders are stockholders!
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All “stakeholder” groups must be?
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Taken into account
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Stakeholder groups can be divided in to two categories?
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Marker and Nonmarket
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Market stakeholders?
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Those that engage in economic transactions with the company as it carries out its primary purpose of providing society with goods and services
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Nonmarket stakeholders are?
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People or groups who—although they do not engage in direct economic exchange with the firm—are affected by or can affect its actions
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Market stakeholders a.k.a.?
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Primary stakeholders
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Nonmarket stakeholders a.k.a.?
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Secondary stakeholders
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Stakeholder Analysis
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Process conducted by managers to identify relevant stakeholders and analyze their interest and power
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Stakeholder Analysis’ 4 Questions?
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1. Who are the relevant stakeholders? 2. What are the interests/needs of each stakeholder? (The power of WIIFM!) 3. What is the power of each stakeholder? 4. How/what coalitions and alliances are likely to form?
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Stakeholder power is?
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The ability of a group to use resources to make an event happen or to secure a desired outcome
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The focus an organization places on a particular stakeholder is?
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Largely determined by each group’s type of power, as well as legitimacy and urgency
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4 types of stakeholder power?
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1. Voting power 2. Economic power 3. Political power 4. Legal power
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Stages in stakeholder engagement?
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Inactive, Reactive, Proactive, Interactive
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Inactive
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Companies ignore stakeholder concerns
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Reactive
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Companies act only when forced to do so
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Proactive
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Companies try to anticipate stakeholder concerns
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Interactive
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Companies actively engage with stakeholders in an ongoing relationship of mutual respect, openness, and trust
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Stakeholder Engagement and Dialogue?
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Strategy used by organizations at higher stages of engagement (Meetings between corporate representatives and representatives of their stakeholder groups to discuss issues of mutual concern)
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Steps in dialogue
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1. Each group describes their core issues & concerns 2. Together groups reach common definition of problem/s 3. Together groups invent innovative solutions that involve mutual gain 4. Together establish procedures for implementing solutions
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Benefits of Stakeholder Engagement and Dialogue?
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Helps organizations learn about/understand societal expectations, Generates creative solutions to problems, Helps win support for implementing solutions, neutralizes critics, Improves reputation for taking constructive action, good faith effort
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Public Affairs?
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Active management of an organization’s external relations
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Organizations External Relations?
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Government – Regulatory Agencies – Customers – Investors – Suppliers – Community
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Stakeholder Expectations?
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Opinions, attitudes, and beliefs about what constitutes reasonable business behavior and Alignment of what stakeholders expect and what an organization is doing is critical for accuracy of business operations, trust
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Failure to understand stakeholder concerns and respond appropriately will?
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Cause the performance-expectations gap to grow and Larger the gap, the greater the risk of stakeholder backlash or loss of faith in organizational value and business practices
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Current Public Affairs Management?
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This must be a global strategy functioning at the highest levels of organizational management
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Boundary Spanning Departments?
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Those departments within an organization that reach across the organization’s boundary line to interact with groups and people in society
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Management of Public Issues?
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A structured and systematic process to aid organizations in identifying, monitoring, and selecting public issues that warrant organizational action
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Competitive Intelligence?
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The process of gathering, analyzing, and managing external information about the organization’s competitors that can affect the organization’s plans, decisions and operations
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Environmental analysis?
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Provides managers with the information about external issues and trends that enables an organization to develop a strategy that minimizes threats and takes advantage of new opportunities
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Environmental intelligence?
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The acquisition of information gained from analyzing the multiple environments affecting organizations ? strategic radar screens
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Issues Management?
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Issue Identification, Issue Analysis, Option Generation, Evaluation and Selection, Program Implementation and Assessment of Results and Continuous Improvement
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Issue Identification?
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Anticipating emerging concerns, or “horizon” issues
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Issue Analysis?
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Evaluating the issue; coming to an understanding of how it will evolve and how it will affect the organization
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Option Generation, Evaluation and Selection?
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Evaluating action options, involves complex judgments taking into account qualitative factors like organization reputation
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Program Implementation?
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Once option is chosen, must design and implement it
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Assessment of Results and Continuous Improvement?
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Must assess results of the program and made adjustments as needed
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Corporate Social Responsibility (CSR)?
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Emerged as a critical concept for organizations to understand, support, and integrate in their strategic and tactical business operations. Relates to an organization’s impact on society and goes beyond doing what is ethical
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Focus is on proactive decisions & behaviors towards?
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Workplace, Customers, Local Community, Environmental Preservation, Global Outreach
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An organization should be held accountable for ?
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Any of its actions that affect people, their communities, and their environment
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The world’s largest 200 organizations account for?
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More than 25% of the world’s economic activity
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Iron Law of Responsibility?
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In the long run, those who do not use power in ways society considers responsible will lose it
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Early 20th century businesses came under attack for ?
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Being too powerful
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Industrialists (Andrew Carnegie, Henry Ford) started?
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Philanthropic efforts for educational and cultural institutions and programs to support employee social and health needs
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View permeated that business leaders had a responsibility beyond ?
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Just making a profit ? Charity Principle
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Around 1920s the charitable needs of communities began to shift from?
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A small group of wealthy philanthropists to businesses themselves
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The Stewardship Principle?
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Broader concept of organizations as trustees who work in the public interest
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Three Key Responsibilities of Corporate Social Responsibility?
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Economic responsibilities, Social responsibilities, Legal responsibilities
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A successful organization is one which finds ways to?
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Meet each of its critical responsibilities and develops strategies that cross over and benefit more than one area
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Economic and social goals come together in organizations that practice ?
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Enlightened self-interest
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Enlightened self-interest Means?
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Organizational leadership can see it is in the company’s self-interest in the long term to provide true value to its customers, behave responsibly, and set a good example
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Organizations clearly demonstrating CSR have shown?
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Stronger customer loyalty, stronger performance and profits
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Ethics is?
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A set of principles an individual uses to determine whether an action is good or bad
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Ethical Relativism?
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Ethics varies across individuals
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Ethics and legal compliance are?
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Not the same
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Ethical decision making follows the?
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A-B-C sequence
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A-B-C sequence?
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Antecedent – Behavior – Consequence
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Ethical behavior in organizations affects every facet of operations such as?
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Investor/Shareholder interaction, Client/customer services, Workforce/employee treatment, Supplier and contractor dealings, Public relations/image
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Laws are ?
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Society’s attempt to formalize ethical standards, Written to capture public’s wishes about what constitutes right and wrong behavior
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Ethical concepts are more?
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Complex than laws because they often apply to areas not covered by laws
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Ethical organizations are more?
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Successful than unethical organizations
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Financial performance?
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Sales, revenue, competitive strength
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Retention of workforce talent?
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Emerging generations of employees value social responsibility
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Positive public image and reputation?
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Minimize or prevent harm, Compliant with legal guidelines, audits, response, disciplinary action
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Ethical organizations have?
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Financial performance, Retention of workforce talent, Positive public image and reputation, Consumer loyalty and Investor interest and confidence
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The goal for the organization is to ?
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Strive towards a balance of meeting business goals while eliminating any negative impact of business decisions and actions
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Common Organizational Problems?
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Abuse, harassment or intimidation-Dishonesty, theft-Safety violations-Misrepresentation of the organization or individuals-Lack of attention to errors, defects, damage control
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Common causes of Ethical Challenges in Organizations?
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Personal gain & selfish interest – Conflict of interest – Following orders/directive from superiors -Pressure to comply with demands, need to conform with majority perspective -Lack of information needed to make more ethical decision – Insufficient time to weigh all alternatives before acting
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Ethical Theories?
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Egoism, Social Group Relativism, Cultural Relativism and Utilitarianism Deontology
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Egoism?
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How does action relate to me Potentially problematic if predominant theory in use
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Social Group Relativism?
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How does action relate to the norms of my social group?
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Cultural Relativism?
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How does action relate to culture and laws? Legality and ethics should be aligned?
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Utilitarianism?
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How does action relate to everyone affected by it? Costs vs. benefits- Democratic decisions
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Deontology?
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How does action relate to my duty as a person of integrity? Justice and fairness
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Ethical decision-making incorporates ?
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ethical theories, moral reasoning and a systematic approach for answering questions
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Ethical Decision making questions regard?
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Honesty, Fairness, Goodwill, Legality
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Other organizational decision-making processes?
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Identification of problem – Generate ideas, solutions, alternatives – Weigh all options – Implement and evaluate
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Code of Ethics?
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Broad ethical vision & objectives
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Code of Conduct?
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Explanation of acceptable behaviors for specific situations
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Acceptable behaviors for specific situations?
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Minimize ethical ambiguities, clarify organizational position on various areas – Serve as a set of guidelines for communication and decision making within the organization – Establish legal obligations for the ethical behavior within certain professions (e.g., finance)
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Six Universal Moral Values?
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Trustworthiness, Respect, Responsibility, Fairness, Caring. Citizenship
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Code of Conduct Content?
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Designed to expand upon the moral principles identified in the Code of Ethics
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Behavioral expectations pertaining to legal and ethical situations?
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Conflicts of Interest – Corporate Opportunities -Confidentiality Fair Dealing – Protection and Proper Use of Assets – Compliance with Laws, Rules, and Regulations – Encouraging the Reporting of Illegal or Unethical Behavior
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Integration of various program/policy components is critical to ?
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Effective ethics design
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Six-element comprehensive ethics program integrates?
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Written codes, policies, and disciplinary protocol-Training programs and information resources-Ethics Officers/Advisors and contact information-Anonymous hotline/reporting procedure-Evaluation systems – audits, program improvements
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Those working in organizations with a comprehensive program are?
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More likely to report ethical misconduct and More likely to be satisfied with any investigation and response to ethical misconduct
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Bribery ?
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A questionable or unjust payment often to a government official to ensure or facilitate a business transaction
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Ethical climate?
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Understanding among employees of what is/is not acceptable ethical behavior
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Senior management support for ?
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Implementation, communication, and ongoing evaluation
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Targeted training for all relevant constituents?
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Employees, Clients, Suppliers, Investors

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