MGT 330 – Chap 5 Terms – Flashcards

The moral principles and standards that guide behavior in the world of business

Ethical principles established by international executives based in Caux, Switzerland, in collaboration with business leaders from Japan, Europe, and the United States. Two basic ethical ideals underpin the Caux Principles: kyosei and human dignity.

Company mechanisms typically designed by corporate counsel to prevent, detect, and punish legal violations.

Obligation toward society assumed by business.

Its goal is the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders.

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

An ethical system defining acceptable behavior as that which maximizes benefits for the individual

In an organization it refers to the processes by which decisions are evaluated and made on the basis of right and wrong.

Situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong

One who is both a moral person and a moral manager influencing others to behave ethically.

Meeting other societal expectations, not written as law.

The system of rules that governs the ordering of values.

Company mechanisms designed to instill in people a personal responsibility for ethical behavior.

Classifies people into categories based on their level of moral judgment.

To obey local, state, federal, and relevant international laws.

A process of analyzing all inputs and outputs, through the entire "cradle-to-grave" life of a product, to determine the total environmental impact of the production and use of a product.

Principles, rules, and values people use in deciding what is right or wrong.

Additional behaviors and activities that society finds desirable and that the values of the business support.

Bases ethical behavior on the opinions and behaviors of relevant other people.

An act passed into law by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence.

Economic growth and development that meets the organization's present needs without harming the ability of future generations to meet their needs.

An education with five higher goals that balance self-interest with responsibility to others: empathy (feeling your decisionsas potential victims might feel them, in order to gain wisdom); generativity (learning how to give as well as take, to others in the present as well as to future generations); mutuality (viewing success not merely as personal gain, but a common victory); civil aspiration (thinking not just in terms of "don'ts" (lie, cheat, steal, kill), but also in terms of positive contributions); and intolerance of ineffective humanity (speaking out against unethical actions.)

The ethical system stating that all people should uphold certain values, such as honesty and other values that society needs to function.

An ethical system stating that the greatest good for the greatest number of people should be the overriding concern of decision makers.

A perspective that goes beyond the conventional rules of society by suggesting that what is moral must also come from what a mature person with good "moral character" would deem right.