Ch 2 - Ethics in Decision Making

Front

Why do companies hire ethics officers?

Back

To develop ethics policies, listen to complaints, and investigate misconduct.

Front

What is the Sarbanes-Oxley Act (2002)?

Back

Set higher standards for corporate responsibility and governance.

Front

What is the difference between Morality & Ethics?

Back

Morality = personal values guiding behavior. Ethics = formal system deciding right vs wrong.

Front

Can something be legal but not ethical?

Back

Yes, e.g., tax loopholes.

Front

Can something be ethical but not legal?

Back

Yes, e.g., helping someone illegally cross border to save them.

Front

What is Formalism?

Back

Duty-based ethics. Certain acts are always right/wrong. Test: Would I want everyone to act this way?

Front

What is Consequentialism?

Back

Outcome-based ethics. Ethical if results are good for majority. Test: Does this promote the common good?

Front

Sources of Business Ethics?

Back

Laws, Professional codes, Organizational codes, Individual values.

Front

Obstacles to Business Ethics?

Back

Profit pressure, group effect, managers misusing resources.

Front

Steps to promote ethics in business?

Back

1. Top management as role model 2. Open communication 3. Consider stakeholders.