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43 Cards in this Set

  • Front
  • Back
Define Ethics
How people live their lives according to a standard of "right' or "wrong" behavior
Define Society
A structured community of people bound together by similar traditions and customs
Define Value System
A set of personal principles formalized into a code of behavior
Define Intrinsic Value
Where a value is a good thing in itself and is pursued for its own sake, whether anything comes from the pursit of not
Define Instrumental Value
Where the pursuit of that value is a good way to reach another value
Define Virture Ethics
A concept of living your life according to a commitment to the achievement of a clear ideal
Define Utilitarianism
Ethical choices that offer the greatest good for the greatest number of people
Define Universal Ethics
Actions are taken out of duty and obligation to a purely moral ideal rather than based on the needs of the situation, since the universal principles are seen to apply to everyone, everywhere, all of the time
Define Ethical Relativism
Where the traditions of your society, your personal opinions, and the circumstances of the present moment define your ethical principles
Define Applied Ethics
The study of how ethical theories are put into practice
Define Ethical Dilemmas
A situation in which there is no obvious right of wrong decision, but rather a right of right answer
Define Ethical Reasoning
Looking at the information available to us in resolving an ethical dilemma, and drawing conclusions based on the information in relation to our own eithcal standards
Define Culture
A particular set of attitudes, beliefs, and practices that characterize a group of individuals
Define Morals
Are standard principles based on religious, cultural, or philosophical beliefs by which judgements are made about good or bad behavior
Define Morality
Personal set of morals that represent a collection of influences as they are built up over your lifetime
Define Moral Compass
A sense of personal direction to guide you in the choices you make in your life
Define Business Ethics
The application of ethical standards to busniess behavior
Define Stakeholder
Someone with a share or interest in a business enterprise
Define Corporate Governance
The system by which business corporations are directed and controlled
Define Oxymoron
The combination of two contradictory terms such as " deafening silence" or "jumbo shrimp"
Define Code of Ethics
A company's written standards of ethical behavior that are designed to guide managers and employees in the decisions and choices they face everyday
Define Organization Culture
The values, beliefs, and norms that all the employees of that organization share
Define Value Chair
The key functional inputs that an organization provide in the transformation of raw materials into a delivered product or service
Define Accounting Function
Keeps tract of all the company's financial transactions by documenting the money going out and balancing the accounts at the end of the period (daily,weekly)
Define Auditing Function
The certification of an organizations financial statement or "books" as being accurate by an impartial third party professional.
Define GAAP
The generally accepted accounting principles that govern the accounting profession-not a set of laws but rather a set of standard operating procedures within a profession
Define Conflict of Interest
A situation where ones relationship or obligation places you in direct conflict with an exisiting relationship or obligation
Key Functions (5)
1. Research and Development
2. Manufacturing
3. Marketing
4. Sales
5. Customer Service
Line Functions (4)
1. Human Resource Mgmt
2. Finance
3. Information Systems
4. Management
What are the two distinct perspectives of business?
Descriptive=Documenting what is happening

Normative (Prescriptive)= Recommending what should be happening
What are the three steps for solving an ethical problem?
1. Analyze the consequences= who will be helped, who will be harmed?

2. Analyze the actions= consider all options for a different point of view without thinking about the consequences.

3. Make a decision= take both parts of you analysis and make a decision
What are Kohlbergs Stages for Ethical Reasoning?
1. Preconventional
2. Conventional
3. Post-Conventional
What is Preconventional
A persons response is related to the expectation of punishment or reward
-Stage 1= Obedience & Punishment
-Stage 2= Individualism, Instrumentalism, and exchange
What is Conventional
A person continues to become aware of broader influences outside the family
-Stage 3=Good Boy/Nice Girl
-Stage 4=Law and Order
What is Post-Conventional
Make a clear effort to define principles and moral values that reflect individual value system
-Stage 5= Social Contract
-Stage 6= Universal Ethical Principles
Stakeholders Interest
Customers=Fair exchange, safe and reliable products
Supplies/Vendor partners=prompt payment and regular orders will an acceptable profit margin
Retailers/Wholesalers=accurate deliveries,safe products
Federal Government=tax revenue compliance with all relevant legislation
Creditors=Principal and interest payment, repayment of debt
Community=employment, economic growth, protection of the local governement
Stakeholders Impact from Unethical Behavior
Stockholders/Shareholders=fales info. for investment options, loss of stock value, cancellation of dividends
Employees=loss of employment, no severance
Customers=poor service
Suppliers/Vendor Partners=Delayed payment, unpaid invoices
Federal Government=Loss of taxes, failure to comply with all relevant legislation
Creditor=Loss of principle/interest payment, failure to repay debt
Community=Unemployment, economic decline
Research and Development Ethics
-Do we use the best material or second best to save money?
-Do we run all the test?
Manufacturing Ethics
-You want to finish the project but there is a supply problem, do we use and alternative and less reliable supplier?
-Can we be sure of the quality from that supplier?
Marketing Ethics
-Do we false advertise?
-Can we make the fine print any smaller so the consumer won't see it?
Human Resouce Ethics
-Creation of the job description.
-The orientation of a new employee.
-Documentation of disciplinary behavior.
Finance Ethics
-Have the books been balanced?
-Can we take a little off the top?
-Do we show false information to get more people to invest?
Stockholder Interest
Stockholders/Shareholders=Growth of stock, dividend income
Employees-Stable, safe, and comfortable employment