Ethical Decision Making in Business
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Questions and Answers

What is characterized by a lack or absence of integrity and a willingness to withhold the truth?

  • Dishonesty (correct)
  • Fairness
  • Reciprocity
  • Ethical dilemma

    • Which element is NOT one of the fundamental motivations for fairness?

  • Optimization
  • Equality
  • Reciprocity
  • Transparency (correct)

    • What distinguishes an ethical dilemma from an ethical issue?

  • An ethical dilemma only involves negative outcomes. (correct)
  • An ethical dilemma presents the possibility of a right choice.
  • An ethical issue has clear right and wrong actions.
  • An ethical issue requires balancing fairness and productivity.

    • Time theft in companies is primarily associated with which of the following?

    <p>Misuse of company time and resources</p> Signup and view all the answers

    Which of the following is an example of misusing company resources?

    <p>Using a work computer for personal business</p> Signup and view all the answers

    What is meant by ethical awareness?

    <p>The ability to perceive whether a situation or decision has an ethical dimension.</p> Signup and view all the answers

    Which of the following best describes moral intensity?

    <p>The extent to which individuals feel social pressure regarding a decision.</p> Signup and view all the answers

    What does the veil of ignorance thought experiment propose?

    <p>Decisions should be made without insight into one's future societal position.</p> Signup and view all the answers

    The difference principle advocates for which of the following?

    <p>Economic and social inequalities should be structured to benefit the least advantaged.</p> Signup and view all the answers

    What characterizes ethical issue intensity?

    <p>The personal and temporal relevance of a decision's ethical dimension.</p> Signup and view all the answers

    Which of the following is a form of abusive or intimidating behavior?

    <p>Making false complaints</p> Signup and view all the answers

    What does commission lying primarily involve?

    <p>Deceptive statements or actions intended to mislead</p> Signup and view all the answers

    A conflict of interest scenario occurs when an individual:

    <p>Must choose between their own interests and those of the organization</p> Signup and view all the answers

    Which statement best describes active bribery?

    <p>The giver of the bribe commits the offense themselves</p> Signup and view all the answers

    Facilitation payments are defined as:

    <p>Payments made to secure improper advantages</p> Signup and view all the answers

    Which of the following is NOT considered abusive behavior?

    <p>Offering verbal praise</p> Signup and view all the answers

    What type of lying involves intentionally not informing others of important information?

    <p>Omission lying</p> Signup and view all the answers

    What is a potential outcome of bullying in the workplace?

    <p>Creation of a hostile environment</p> Signup and view all the answers

    What is corporate intelligence primarily focused on collecting and analyzing?

    <p>Information on markets, technologies, customers, and competitors</p> Signup and view all the answers

    Which of the following describes sexual harassment?

    <p>Any repeated, unwanted behavior of a sexual nature</p> Signup and view all the answers

    What does the Age Discrimination in Employment Act prohibit?

    <p>Forcing employees to retire before age 70</p> Signup and view all the answers

    What is one of the criteria that must be met for a work environment to be considered hostile due to sexual harassment?

    <p>The conduct must be severe or offensive enough to alter employment conditions</p> Signup and view all the answers

    Which program specifically aims to promote qualified individuals from traditionally discriminated groups?

    <p>Affirmative action programs</p> Signup and view all the answers

    What is a primary step in preventing sexual harassment in the workplace?

    <p>Establishing a nonretaliation policy</p> Signup and view all the answers

    Which of the following does NOT fall under the definition of discrimination?

    <p>Preference for applicants with higher education</p> Signup and view all the answers

    What does corporate intelligence help management with?

    <p>Early warning of potential business threats</p> Signup and view all the answers

    What does integrity in business primarily imply?

    <p>Being whole, sound, and maintaining ethical relations within the organization</p> Signup and view all the answers

    What is a major consequence of failing to recognize ethical issues in business?

    <p>Harm to the organization and its decision-making processes</p> Signup and view all the answers

    Which of the following best describes 'collusion' in a business context?

    <p>An agreement between parties for fraudulent, illegal, or misleading purposes</p> Signup and view all the answers

    In the context of business ethics, which value is directly related to truthfulness?

    <p>Honesty</p> Signup and view all the answers

    What challenge does the determination of an ethical issue in business present?

    <p>Recognizing areas where laws and ethics may conflict</p> Signup and view all the answers

    Which of these actions is considered a misuse of company resources?

    <p>Utilizing office supplies for personal projects</p> Signup and view all the answers

    What foundational value is primarily concerned with fairness in business dealings?

    <p>Integrity</p> Signup and view all the answers

    Which behavior is likely to be perceived as abusive within an organization?

    <p>Threatening subordinates to achieve objectives</p> Signup and view all the answers

    What is return fraud?

    <p>Defrauding a retailer by using fraudulent returns</p> Signup and view all the answers

    How does showrooming typically work?

    <p>Reviewing products in a store before purchasing online</p> Signup and view all the answers

    What does 'wardrobing' involve?

    <p>Wearing an item briefly and returning it</p> Signup and view all the answers

    What major factor contributed to the global financial crisis?

    <p>A lack of understanding and management of ethical risks</p> Signup and view all the answers

    Which of the following statements is true about insider trading?

    <p>It can be legal if the transactions are reported within two business days</p> Signup and view all the answers

    What often highlights ethical issues in business?

    <p>Concerns raised by stakeholders</p> Signup and view all the answers

    What is the primary consequence of financial misconduct?

    <p>A loss of credibility in financial institutions</p> Signup and view all the answers

    Which of the following describes a core reason for problems becoming ethical issues in business?

    <p>Changing societal values</p> Signup and view all the answers

    Study Notes

    Ethical Decision Making in Business

    • Ethical issues arise when individuals, groups, or organizations must choose between different courses of action with varying ethical implications.
    • Recognizing and acknowledging ethical issues is crucial for organizational success. Ignoring them can damage the organization.
    • Ethical dilemmas involve conflicting choices where each option has negative consequences.
    • "Collusion" is a secret agreement among parties for fraudulent, illegal, or deceitful purposes.
    • Deceiving others involves misrepresentation or strategies that withhold the truth.

    Foundational Values for Identifying Ethical Issues

    • Integrity: Integrity signifies wholeness, soundness, and unimpaired condition. It encompasses fairness and honesty in financial decisions and company culture. Organizations are expected to adhere to laws and regulations.
    • Honesty: Honesty revolves around truthfulness and trustworthiness. Business is sometimes viewed as a separate entity with its own rules distinct from societal norms. The economic dependence of individuals on business relationships necessitates honest practices. Stakeholders must know the rules that apply in business.
    • Fairness: Fairness aligns with concepts of justice, equity, and equality. Fairness necessitates the equitable distribution of benefits and resources. It also involves reciprocity within relationships. Managing the trade-off between equity and efficiency (i.e., productivity) is essential for fairness.

    Emerging Business Ethical Issues

    • Misuse of Company Time and Resources: Stealing company time and resources, such as using company computers or internet services for personal use, creates a financial burden.
    • Abusive or Intimidating Behavior: This can take various forms like physical threats, false complaints, profanity, insults, yelling, and unreasonable behavior. Intent is a necessary consideration.
    • Lying: Deception can be intentional (commission lying), or unintentional (omission lying), which includes withholding relevant information.
    • Conflicts of Interest: Conflicts arise when individuals must choose between their interests, organizational interests, and interests of other stakeholders. Employees must separate their personal interests from their business dealings.
    • Bribery: Bribery involves offering something of value (often money) to gain an improper or illegal advantage. Active bribery involves the offering party; passive bribery relates to the recipient. Facilitation payments are payments made to expedite legitimate business processes, though they can blur the lines of bribery.
    • Corporate Intelligence: This involves the collection and analysis of information about competitors, markets, technologies, and external factors like political trends. This can include accessing corporate records, court documents, regulatory filings, or press releases.
    • Discrimination: Discrimination based on factors such as race, color, religion, sex, sexual orientation, or age is illegal in many jurisdictions. Federal agencies like the Equal Employment Opportunity Commission (EEOC) protect against this.
    • Sexual Harassment: This involves any repeated, unwanted behavior of a sexual nature, creating a hostile work environment.
    • Fraud: Fraud includes deceitful communication to manipulate, deceive, or conceal facts for personal gain, potentially harming others. Forms of fraud include accounting fraud, marketing fraud, consumer fraud, and chargeback fraud, to name a few examples.
    • Consumer Fraud: Consumers attempt to deceive businesses for personal gain; examples include price tag switching, item switching, return fraud, and showrooming.
    • Financial Misconduct: The failure to comprehend and properly manage ethical risks, partially causing the global financial crisis. Complex financial instruments and inadequate responsibility for their use remain salient issues in the financial sector.
    • Insider Trading: Buying or selling stocks based on non-public information is illegal. Legitimate trading by insiders, if properly reported, is not illegal.

    The Challenge of Determining an Ethical Issue

    • Stakeholder concerns often reveal underlying ethical issues in a business.
    • Changing societal values influence how events and actions are perceived through an ethical lens.
    • Crisis management involves handling high-impact events marked by doubt and requiring immediate action to mitigate potential harm.

    Framework for Ethical Decision Making

    • Ethical Issue Intensity: The relevance or importance of an event or decision to individuals, work groups, or organizations.
    • Moral Intensity: Individuals' perception of social pressure and harm caused by their decisions impacts ethical decision-making.
    • Ethical awareness is the ability to recognize ethical issues as they arise in various situations.

    Normative Considerations

    • Veil of Ignorance: A thought experiment that examines how individuals would form ethical principles when unaware of their future standing.
    • Equality Principle: Recognizes fundamental rights compatible with individual liberties.
    • Difference Principle: Suggests that economic and social inequalities should benefit the most disadvantaged members of a society.
    • Core Values: Businesses convert ethical principles to core values, shaping operations, collaborations, and decision-making in line with the company's goals and ethical standards.

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    Description

    Explore the complexities of ethical decision making in business through this quiz. Understand the importance of integrity, honesty, and the impact of ethical dilemmas on organizational success. You'll navigate through concepts like collusion and the consequences of deceit in the business environment.

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