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MGT 341: ETHICS FINAL

Judging people on prejudice not merit
discrimination
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agency run by the secretary of labor
OSHA
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theory that argues discrimination is unethical because it is not reversible
rights theory
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publicly reporting an organization's bad behavior
whistleblowing
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major provisions of 1991 civil right act
SNODARRR
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quid pro quo is a form of this
harassment
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not being able to smoke at home invades this form of privacy
physical
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consideration requested by someone inside the organization by someone outside the organization for favorable treatment
extortion
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under this it is ok to be fired for having blonde hair
at - will employment
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consideration offered by someone outside the firm to someone inside the firm for special treatment
bribe
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one way a defendant can rebut a charge of adverse impact
BFOQ
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name the four components of CSR
1. Economic Responsibilities 2. Legal Responsibilities 3. Ethical Responsibilities 4. Discretionary Responsibilities
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what are some economic responsibilities within CSR?
generate high profits maximize EPS operate at high efficiency
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what are some legal responsibilites within CSR?
* comply with local/state/federal laws * produce goods and services that meet the minimum legal standards
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what are some ethical responsibilities within CSR?
*meet/exceed minimum legal/governmental standards *meet/exceed social norm expectations
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what are some discretionary responsibilities within CSR?
charitable giving employee programs community involvement cultural development
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Note: the responsibilities within CSR create conflicting pressures to sacrifice one of the responsibilities to meet the responsibilities of another component
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Dennis Kozlowski worked for which company and what did he do to go to jail?
*Tyco *Company paid $1 million to hold a party on an Italian island and was disguised as a shareholder's meeting to get corporate funding * Sentenced to 8-25 years
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Who did Ken Lay and Jeff Skilling work for and what did they do to go to jail?
*Enron *Fraud and conspiracy *Fined $45 million dollars and serving a 24 year sentence
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Who did Bernard Madoff work for and what did he do to go to jail?
Madoff Securities *Ponzi Scheme *Sentenced to 150 years in prison
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Who was the CFO at healthsouth that blew the whistle?
William Owens - he wore a wire
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•Formal relationships designed to achieve some technical or economic goal with maximum efficiency •Formal structure and hierarchy with clear lines of authority
Rational Organizations
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Law of Agency states that employees have a duty to
* work towards the goal of the firm * avoid activities that would harm the firm
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• When self-interests of employees lead to decisions that are not in the best interest of the firm they are called
Conflicts of Interest
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What are some possible conflicts of interest?
–Financial –Personal –Consulting –Real or potential –Appearance
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When is a gift acceptable?
When the gift is given with no strings attached
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What are some rules of gifting?
•Is the value of the gift substantial enough to influence one’s decisions? •Was the gift intended as a bribe? •Was the gift given to celebrate an event? •Is the recipient in a position to influence decisions in favor of the giver? •Is gift giving part of the industry standard? •What is the company policy on gifts? •What is the law?
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Using company resources for your own benefit is referred to as
Theft
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List some possible ways to steal from a company
–Padding an expense account –Taking home office supplies –Embezzlement –Stealing time
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•Buying or selling stock based on “inside” information about the company not available to the general public is referred to as
insider trading
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Insider trading violates:
* individuals' rights by getting them to sell their stock at a lower value * unfair to use information that doesn't belong to you * decreases market efficiency (utility) by driving up the cost of buying and selling stock
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Firms must provide its employees with
* a fair wage * satisfying jobs * provide safe and healthful working conditions
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The right to determine what, to whom, and how much information about oneself shall be disclosed to others is referred to as
Right to Privacy
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Name the two types of privacy
psychological & physical
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protection of one's inner thoughts, plans, beliefs, values, feelings, and wants
psychological privacy
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protection of one's personal activities
physical privacy
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what are the limits on the invasion of privacy?
* Relevance * Consent
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Relevance (with regards to limits on privacy invasion) means
the inquiry from an employer must be relevant to the job performed
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Consent (with regards to limits on privacy) means
employees must provide consent before employers can investigate private aspects of their lives
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What are the two methods to invade someones privacy?
* Ordinary: supervisory activities that are normally used to oversee employees' work * Extraordinary: hidden microphones, secret cameras, wiretaps, lie detector tests, personality tests
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What are some justifications for the use of extraordinary privacy methods?
* Cannot solve the problem without them * Using the method will end the problem * Temporary usage
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The freedom from having to participate in activities that you feel are wrong is referred to as:
Freedom of Conscience
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Disclosing any wrongdoing in or by an organization by an employee or former employee
Whistleblowing
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Activities reported to authorities in the organization who are in a position to fix the problem
Internal Whistleblowing
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Activities reported to government officials, newspapers, or public interest group
External whistleblowing
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What are some justifications for external whistleblowing?
* internal whistleblowing has failed * external whistleblowing will stop the activity * clear evidence shows the firm is engaged in an activity that is or will seriously wrong other parties * wrong is serious enough to justify the damage that will be inflicted on oneself, family, and others
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Employment at will means
you are employed without a contract and can be hired or quit at anytime for any reason
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The use of tactics by individuals or groups that are not formally sanctioned by the organization to advance one’s own goals refers to
organizational politics
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Name some political tactics
* Blaming others * Controlling information * Developing coalitions * Building one's image * Ingratiating * Associating with influential others * Creating obligations * Developing power bases
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The wrongful act of distinguishing illicitly among people not on the basis of individual merit but on the basis of prejudice is referred to as
discrimination
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What are the elements of discrimination?
1.Ignoring qualifications when making a decision 2.Basis of the decision cannot be morally justified 3.The decision has a harmful effect on the object of the decision
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What are the forms of discrimination?
Institutionalized & Intentional
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The Civil Rights of 1964:
* Prohibited discrimination based on race, color, religion, sex, or national origin * Protected compensation and employment terms, conditions, and privileges * Impetus was Wallace’s “Stand in the School House Door”
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EEO Cases That Preceded the 1991 Civil Rights Act
* Patterson v. McLean Credit Union (1978) –section 1981 - contracts * Wards Cove v. Antonio (1989) –shifted the burden of proof * Martin v. Wilks (1989) –allowed reverse discrimination claims * Lorance v. AT&T (1989) –300-day filing deadline
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The 1991 Civil Rights Act added provisions which included:
* SNODARRR * Added damages and jury trials * Eliminated “Race Norming” of employment tests * Expanded coverage under Section 1981 * Allowed statistics to develop prima facie case in adverse impact situations * Established the Glass Ceiling Commission
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Name the two types of discrimination
Disparate Treatment & Adverse Impact
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Disparate treatment involves
different rules for different groups
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Adverse impact involves
same rules for all but one group is impacted more than another
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In disparate treatment cases the plaintiff must demonstrate that:
(1) he or she belongs to a minority (2) he or she applied for and was qualified for the job (3) he or she was rejected for the job (4) that the job remained open
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In a disparate treatment case the defendant must:
must show a job-based, non-discriminatory reason for the action taken.
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In an adverse impact case the plaintiff must:
* must demonstrate statistically that the practice in question affects various groups differently * must show that an alternative practice can be used, and that the alternative practice results in less adverse impact.
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In an adverse impact case the defendant:
can rebut charges with –bona fide occupational qualification, –business necessity, or –validation data
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"Society’s productivity will be optimized when jobs are awarded based on merit or competency" is a _____ view of discrimination
utilitarian
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"Individuals have a moral right to be treated as free persons equal to any other persons" is the ____ view of discrimination
* Rights * Discriminatory behaviors cannot be universalized or reversalized
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"Discrimination violates the laws of justice because it closes off desirable offices and positions creating conditions of inequality lBenefits are not equally distributed" is the ____ view of discrimination
Justice
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Name some management practices that can create discrimination
* Recruitment * Screening * Promotions * Conditions of Employment * Discharge
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submission to such conduct is made either explicitly or implicitly a term or condition of an individual’s employment is this type of sexual harassment
quid pro quo
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such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance is referred to as
a hostile work environment
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The obligation companies have to develop and implement courses of action that abide by social and ethical norms and aid in social issues that impact society.
corporate social responsibility
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