Chapter 4 Part 3 Flashcards Preview

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Flashcards in Chapter 4 Part 3 Deck (10)
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Total harm or benefit derived from an ethical decision

Magnitude of consequences


Agreement on whether behavior is bad or good

Social consensus


Chance that something will happen that results in harm to others

Probability of effect


Time between an act and the consequences the act produces

Temporal immediacy


Social, psychological, cultural, or physical distance between a decision maker and those affected by his or her decisions

Proximity of effect


Total harm or benefit that an act produces on the average person

Concentration of effect


Long-term self-interest
Religious injunctions
Government requirements
Individual rights
Personal virtue
Distributive justice
Utilitarian benefits

Principles of Ethical Decision Making


Selecting and hiring ethical employees
- By using overt integrity tests or personality-based integrity tests
Establishing a specific code of ethics and developing standards and procedures specific to the company
Training employees to make ethical decisions
- Developing employees' awareness of ethics
- Achieving credibility with employees
- Teaching a practical model of ethical decision making

Practical Steps to Ethical Decision Making


Ensuring managers act ethically themselves
Ensuring top management is active and committed to the company ethics program
Developing a reporting system that encourages whistle-blowers
Fairly and consistently punishing those who violate the code of ethics

Steps for Establishing an Ethical Climate


Organization’s overriding goal should be profit maximization for the benefit of shareholders

Shareholder model