MGT 350 Chapter 4-Review – Flashcards

The set of moral principles or values that defines right and wrong for a person or group

Nonprofits, partnerships, labor unions, unincorporated organizations and associations, incorporated organizations, pension funds, trusts, joint stock companies-anything that can be characterized as a business

Invasion of privacy, price fixing, fraud, customs violations, antitrust violations, civil rights violations, theft, money laundering, conflicts of interest, embezzlement, dealing in stolen goods, copyright infringements, extortion-offenses defined by federal laws

Not just to punish companies after the fact, but rather to encourage companies to take proactive steps that will discourage or prevent while collar crime before it happens. To also give companies an incentive to cooperate with and disclose illegal activities to federal authorities

The guidelines impose smaller fines on companies that take proactive steps to encourage ethical behavior, or voluntarily disclose illegal activities to federal authorities. If they do not, or the crime's severity is high, the threat is heavy fines that can total millions of dollars. 1. Compute the base fine by determining the level of offense 2. The judge computes a culpability score, a way of assigning blame to the company. This is then multiplied by the base fine to total of damages fined

Phase I: Preconventional Level of Moral Development -People make decisions based on selfish reasons Stage 1: Punishment & Obedience Stage 2: Instrument & Exchange Phase II: Conventional Level of Moral Development -People make decisions that conform to societal expectations Stage 3: Good boy, nice girl Stage 4: Law and Order Phase III: Post Conventional Level of Moral Development -People make decisions based on internalized principles Stage 5: Social Contract Stage 6: Universal Principle

1. Identify the problem 2. Identify the constituents (people involved) 3. Diagnose the situation 4. Analyze your options 5. Make your choice 6. Execute/Act

Reporting others' ethics violations to management or legal authorities

Own a part of a company through stock ownership

Is interested in the performance of a company in the long run, in addition to stock appreciation. They have a legitimate interest in a company's actions

1. Economic Responsibility-A company's social responsibility to make a profit by producing a valid product or service 2. Legal Responsibility-A company's social responsibility to obey society's laws and regulations 3. Ethical Responsibility-A company's social responsibility not to violate accepted principles of right & wrong when conducting its business 4. Discretionary Responsibility-The societal roles that a company fulfills beyond its economic, legal, and ethical responsibilities