BA385

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sharmin28
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BA385
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2011-11-05 18:55:20
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BA385 EXAM
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BA385 EXAM 2
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  1. List and briefly describe three of the five key findings of the Marist College Institute for Public Opinion poll on ethics from 2009.
    • Both the public and business leaders assigned the lowest marks to the financial and investment industry.
    • A majority of Americans gave corporate America D or F grades for honest and ethics and rated the country’s business leadership as poor, while business leaders gave B and C for honesty and ethics and considered themselves as doing a fair job at leading.
    • More than three quarters of Americas, compared to 58% of business executives said the moral compass of Corporate America is pointing in the wrong direction.
  2. Descriptive Ethics
    Is concerned with describing, characterizing and studying the morality of a people, an organization, a culture, or a society. The focus is on what is “occurring”.
  3. Three Major Approaches to Business Ethics:
    • Conventional: It’s not okay to take credit for someone else’s work.
    • Principle: How would my religion instruct me to act?
    • Ethical: If this was on the front page of a newspaper test.
  4. Provide one example each from your textbook of moral, amoral and immoral management and explain why each is a good example. You will want to demonstrate in your explanation that you understand the differences between the management styles by defining them clearly as you write about each example.
    • Moral: Merck & Co. giving away drug to prevent “river blindness” and overseeing its distribution.
    • Amoral: Nestle and infant formula distribution in 3rd world countries
    • Immoral: Enron, Ken Lay and Jeff Skillings
  5. According to your textbook, how can senior management make moral management actionable?
    This can be accomplished by a variety of methods whether it means training staff, adopting polices, hiring an ethics officer or more sensitivity by leadership in the decision making process management can make moving from amoral management to moral management actionable.
  6. 7. Define the following: moral imagination, moral identification and a sense of moral obligation. How do amoral and moral managers differ on these three dimensions?
    • Moral Imagination: Refers to the ability to perceive that a web of competing economic relationships is, at the same time, a web of moral or ethical relationships.
    • Moral Identification: refers to the ability to discern the relevance or non-relevance of moral factors that are introduced into a decision-making situation.
    • Moral obligation: The learned understanding or intuition that the application of fairs, justice and due process to people groups and communities is an integral part that holds the system together.
    • How to amoral and moral managers differ? A moral manager is concerned and using critical thinking when evaluating decisions. They often will turn to normative reasoning to assist with decisions. Amoral managers are passive and in some cases may not think about the ethical side at all.
  7. Define the following: moral evaluation, tolerance for moral disagreement & ambiguity and integration of managerial and moral competence. How do amoral and moral managers differ on these three dimensions?
    • Moral evaluation: Is the practical process of decision phase of moral judgment and entails essential skills, such as coherence and consistency that have proved to be effective principles in other contexts. Generally speaking it is the implementation of this judgment into the organizations goals, purpose and legitimacy.
    • Tolerance of Moral disagreement & Ambiguity: Understanding that disagreement and ambiguity is part of the ethical decision making process and to recognize that it may not be precise, but must be taken into consideration
    • Integration of Managerial and Moral Competence: The belief that moral issues do not arise in isolation and are part of a series of decisions and approach’s by management.

    Amoral managers and moral managers differ in that an amoral manager employs moral evaluation erratically and in some cases not at all. A moral manager uses a coherent approach consistently.

    Amoral managers believe disagreement and ambiguity is a reason to by pass moral evaluation all together whereas a moral manager understands they are apart of the process, and although certainty is rarely achieved, it is important to still utilize a formal process.

    Integration and moral competence for an amoral manager is viewed in isolation and does not use it as part of an overall strategy. A moral manager believes decisions are generally interrelated and should apply more evaluation at every step of the way.
  8. List and describe/define three principles of ethics that can help a person resolve an ethical problem. Any of the many listed in the text or lecture will do. Choose your favorite and be specific about your definitions/descriptions of them.
    • Principle of Utilitarianism: The belief that we should also act so as to produce the greatest ratio of good to evil for everyone.
    • Principle of Rights: The belief that certain rights are inalienable and may or may not be protected under the current legal system.
    • Principal of Servant Leadership: The idea that serving others first is the most important thing to do.
  9. List and describe five of the seven ethical tests.
    • Test of Common Sense: One has to ask themselves, does this decision really make sense? Somewhat subjective, but generally if it is obviously a poor decision, or a decision a prudent person would not make, then it probably is not a good decision.
    • Test of One’s Best Self: Most people have a self concept of themselves and know how they would react if there were define something as “their best”. Ask yourself if this is your highest and best self. If not, you may need to find out why and reconsider your decision.
    • Test of Making Something Public: This is a great test in that it requires one to consider who they would feel if their friends, families and the general public knew about their decision. Would they have to explain themselves and justify their decision or would it be generally accepted. If you have concerns that exposing your decision to the public it may be an indicator you need to reconsider.
    • Test of Ventilation: Sharing your ideas with people you know that will give you realistic feedback and even play the devils advocate if necessary.
    • Test of Purified Idea: Seeking approval from a person in a position of authority such as an accountant, supervisor, priest or lawyer.
    • However, it is important to realize that just because an idea is blessed by a purified source doesn’t necessarily mean it is right.
  10. When managers were asked to rank the factors they thought influence or contributed to unethical behavior, what did they list (list and describe four of the five factors)?
    • Behavior of superiors: Ranked #1 among all three studies. The culture set by upper management has a significant impact on the overall ethical behavior of the organization.
    • The ethical behavior of the industry/profession: Ranked in the upper half of all studies, it is clear that if behavior appears to be accepted by ones colleagues then many people feel they have permission to act in accordance with everyone else, whether it is right or wrong.
    • Behavior of one’s peers in the organization: Ranked high it two of the three studies, it is clear that organization can be venerable to an ethical downward spiral if a organization has large proportion of unethical/amoral employees.
    • Formal organizational policy: Though not a the most popular reason for contributing to unethical behavior, it is important to be aware that not having a formal policy on ethics may communicate to the organization that ethics are a low priority.
  11. According to your textbook or lecture, list and describe five ways to improve an organization’s ethical climate or culture.
    • Top Management Leadership: As demonstrated in several studies, the superiors of the organization set the tone and ethical culture of the organization. Making sure you have moral leadership in place is one of the best ways to improve the ethical culture. Leadership cannot only lead by personal example, but they have the authority and ability to shape policy.
    • Ethics Officers/Ethics programs: The quality of your program and officer is heavily related to the amount of authority and resources the ethics officer has. It is also important to have an ethics officer to implement policy and make changes as the organization develops overtime. This is because organizations with a weak ethical culture generally fair better by first focusing on compliance which is a more formal process and then moving to a less formal more initiative based model once an ethical culture has been established.
    • Disciplining violators of Ethics: Disciplining violators of ethical standards must be practiced if an organization wishes to demonstrate its sincerity and legitimacy to both society and the firm. Failure to do so not only reflects poorly on the company, but creates an environment where unethical behavior can thrive.
    • Ethical Decision making process: Making ethical decisions is a multi-faceted process which a process cannot fully capture. However, have a process that will help guide the decision is key. After all managements major function is to make decisions. By adopting a decision making model it can help expedite and facilitate the process of making decisions that have ethical consequences.
    • Ethics “hotlines” and Whistle Blowing Mechanisms: By establishing a hotline for people to come forward the organization not only shows that it is important to upper management, it also creates a safe avenue for one to come forward about ethical concerns.
  12. Should a pharmaceutical company give away expired drugs to impoverished nations for distribution to those in need of such drugs who could otherwise not afford them? Assume the drugs could a.) be helpful and still work and b.) not harm
    people more than if they were “fresh” and not expired but c.) wouldn’t work as well as “fresh” drugs. Describe how you can use this flow chart to decide what to do.
    • The first step would be to identify the action, decision or behavior I am about to take. As stated, my intent is to distribute expired drugs to underserved nations.
    • The second process is to articulate all dimensions of my proposed action, decision and behavior. In this case I would be important to note that the drugs are expired, however they could still function, not cause additional harm beyond fresh drugs, but they may not work as well.
    • The third step would be the ethical screen. The conventional approach appears to render a gray area because the standard in our country would be not to distribute them within our country, however, the country these being sent to do not have “norms” and does have an immediate need. Ultimately among the conventional, principle and ethical test approaches I would rely on utilitarian approach and the public disclosure approach. Given that the drugs would not inflict additional harm, will work, though not has well, it is better than the alternative. Some may disagree, but the ratio of good to evil outweighs the evil which would make me feel comfortable about it being publicly disclosed via my friends, family, media, etc…
  13. What is an ethics code of conduct? List two things important to know about such codes. Give one example.
    An ethics code of conduct is a document that articulates to the company a wide variety of policies on subjects such as employment, conflicts of interest, employee, client and vendor information, etc…It is important to note however that the code must be a living document in order to be effective, if it is simply printed and filed away you cannot expect change. Another important factor is that the codes, if administered properly can have a real impact on the firm and improve its ethical behavior. An example of this tool is that it gives employee a shield to raise ethical concerns from. Instead of feeling like an complete outsider, the concerned party can refer to the code of conduct and its importance to upper management which should be revealed by how it’s implemented.
  14. Technology
    The totality of the means employed to provide objects necessary for a human sustenance and comfort.
  15. Technological determinism
    The idea that what can be developed; will be developed without regard for the ethical consequences.
  16. Ethical lag
    This happens when the speed of technology outpaces the ethical development of a society. Without time to reflect over the various dimensions that make up an issue it is unclear how exactly to proceed.
  17. Three benefits of technology
    • Allowed more production of goods and services
    • Reduced the amount of resources to produce to the same amount of goods and services.
    • Improved the standard of living for many.
  18. Three side effects of technology
    • Damage to the environment i.e. automobiles
    • Depletion of natural and sometimes non-renewable resources
    • Displaces work that humans once did with machines creating technological unemployment
  19. List and describe four key issues in the ethics of e Commerce.
    • Access: The difference in access to computers among the rich and poor.
    • Intellectual Property: Downloading and uploading of digital content and the ethics around it.
    • Privacy and informed consent: The collection of information without the users knowledge and the distribution of that data.
    • Protection of children: Protecting children for adult related content i.e. pornography.
  20. What has the Federal Trade Commission done to protect consumer’s privacy (list two things)? What has business done to protect consumer’s privacy (list two things)?
    • The Federal Trade Commission has implemented the Financial Services Modernization Act and the Fair Credit Reporting Act.
    • Business have appointed Chief Privacy Officers and have increased data security substantially.
  21. List five of the ten commandments of computer ethics.
    • Thou shalt not use a computer to harm other people
    • Thou shalt not interfere with other people’s computer work
    • Thou shalt no snoop around in other people’s computer files
    • Thou shalt not use a computer to steal
    • Thou shalt not use a computer to bear false witness.
  22. List and describe two of the business ethics challenges of genetic engineering.
    • Stem Cell Research: Stem cells are the raw materials from which humans are built. There is significant debate that surrounds the ethics of what kind of cells can be use and what for. This is a difficult subject to address for business because both sides have valid arguments based on their unique belief structures.
    • Cloning: Cloning is the process of making an identical copy of an existing life form. As with stem cell research the subject of cloning is complex and broad. What should be cloned, what can be cloned and should we clone are all heavily debated topics.
  23. List and describe two of the business ethics issues with genetically modified foods.
    • Safety issues: To date there is little research funded independently regarding GMF’s. Some believe that because we do not know the long term effects of such foods that the production should be halted until further research has be done. However, the research that has been conducted has not given any indication that GMF’s are dangerous according the World Health Organization.
    • Labeling: As a potential compromise critics of GMF’s has pushed for labeling of products that contain GMF’s. They argue that people have a to know where their food comes from and what is in it. Opponents deem the practice unnecessary, expensive and difficult. To date the FDA has not pushed for the labeling of any of the products.
  24. Internationalization
    Is a process by which firms increase their awareness of the influence of international activities on their future and establish and conduct transactions with firms from other countries.
  25. Globalization or Globalism
    The integration of many formerly national economies into one global economy.
  26. Describe two major business issues with globalization (“backlash”).
    Two major issues with globalization have arisen in the recent decade. The first is dealing with the offshoring of jobs and the second is the North American Free Trade Agreement (NAFTA).
  27. Contrast the views of globalists and anti-globalists along three dimensions.
    • Consumers: Globalists believe that open markets allow for free trade of goods which leads to greater efficiency, lower prices and an increase in the standard of living for many. Opponents argue that free trade only benefits a few and widens the gap between the have and have not’s.
    • Employees: Supporters believe free trade leads to faster economic growth, increased wages and improved working conditions. Critics argue that profits ultimately come first and people are often taken advantage of, displaced with their rights being undermined.
    • Developing Nations: Proponents argue that open markets lead to investment in developing nations, better working conditions and an increased standard of live whereas anti-globalists believe organizations most notably financial institutions conspire to burden nations with debt, destroy local economies and further impoverish the people.
  28. Describe the dilemma of the multinational corporation
    MNC are faced with a series of challenges. One is simply trying to reconcile the differences culturally between the nation they come from and the nation they are operating in. Another major challenge is to avoid the temptation to capitalize or exploit less developed countries that lack regulation, safety standards and an infrastructure i.e. legal system to punish those who operate immorally. MNC’s also have to determine if they are comfortable with the customs of a host nation i.e. bribery.
  29. List and describe two ethical issues in the global environment and give an example for each.
    • Questionable Marketing: MNC’s can be tempted to conduct marketing campaigns that may lack ethical policy. It is important that firms consider the impact of their marketing on the cultural, the literacy of the culture and if what is being advertised is true. Nestle developed a notorious reputation for employing questions marketing tactics in an attempt to sell their baby formula to less developed nations.
    • Plant Safety: As with many other areas of business, when operating in a less developed countries with relaxed or inadequate regulations and policies it may be hard to resist making sacrifices in design in order to save money. However, is this ethical? What will it cost if something goes wrong? An example that has gained global attention is the Union Carbide Bhopal Crisis which led to the death of thousands of local residences, destruction to the environment and the facility due to poor planning and design.
  30. Normative Ethics
    Is concerned with supplying and justifying a coherent moral system of thinking and judging. The focus is on “what ought to be” or “what should be”.
  31. Moral Imagination
    Refers to the ability to perceive that a web of competing economic relationships is, at the same time, a web of moral or ethical relationships.
  32. Moral Identification
    Refers to the ability to discern the relevance or non-relevance of moral factors that are introduced into a decision-making situation.
  33. A Sense of Moral obligation:
    The learned understanding or intuition that the application of fairs, justice and due process to people groups and communities is an integral part that holds the system together.
  34. Moral evaluation
    Is the practical process of decision phase of moral judgment and entails essential skills, such as coherence and consistency that have proved to be effective principles in other contexts. Generally speaking it is the implementation of this judgment into the organizations goals, purpose and legitimacy.
  35. Tolerance of Moral disagreement & Ambiguity:
    Understanding that disagreement and ambiguity is part of the ethical decision making process and to recognize that it may not be precise, but must be taken into consideration
  36. Integration of Managerial and Moral Competence:
    The belief that moral issues do not arise in isolation and are part of a series of decisions and approach’s by management.
  37. How to amoral and moral managers differ?
    A moral manager is concerned and using critical thinking when evaluating decisions. They often will turn to normative reasoning to assist with decisions. Amoral managers are passive and in some cases may not think about the ethical side at all.
  38. Test of Common Sense:
    One has to ask themselves, does this decision really make sense? Somewhat subjective, but generally if it is obviously a poor decision, or a decision a prudent person would not make, then it probably is not a good decision.
  39. Test of One’s Best Self:
    Most people have a self concept of themselves and know how they would react if there were define something as “their best”. Ask yourself if this is your highest and best self. If not, you may need to find out why and reconsider your decision.
  40. Test of Making Something Public:
    This is a great test in that it requires one to consider who they would feel if their friends, families and the general public knew about their decision. Would they have to explain themselves and justify their decision or would it be generally accepted. If you have concerns that exposing your decision to the public it may be an indicator you need to reconsider.
  41. Test of Ventilation:
    Sharing your ideas with people you know that will give you realistic feedback and even play the devils advocate if necessary.
  42. Test of Purified Idea:
    Seeking approval from a person in a position of authority such as an accountant, supervisor, priest or lawyer. However, it is important to realize that just because an idea is blessed by a purified source doesn’t necessarily mean it is right.
  43. Principle of Utilitarianism:
    The belief that we should also act so as to produce the greatest ratio of good to evil for everyone.
  44. Principle of Rights:
    The belief that certain rights are inalienable and may or may not be protected under the current legal system.
  45. Principal of Servant Leadership:
    The idea that serving others first is the most important thing to do.
  46. Stem Cell Research:
    Stem cells are the raw materials from which humans are built. There is significant debate that surrounds the ethics of what kind of cells can be use and what for. This is a difficult subject to address for business because both sides have valid arguments based on their unique belief structures.
  47. Cloning:
    Cloning is the process of making an identical copy of an existing life form. As with stem cell research the subject of cloning is complex and broad. What should be cloned, what can be cloned and should we clone are all heavily debated topics.

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