Principle of Management Chapter 5

Business ethics
the moral principles and standars that guide behavior in the world of business.
Caux Principles
Ethical principles established by international executives based in Caux, Switzerland, in collaboration with business leaders from Japan, Europe, and the United States.
Compliance-based ethics programs
Company mechanisms typically designed by corporate counsel to prevent, detect, and punish legal violations.
Corporate socail responsibility
Oligation toward society assumed by business.
Ecocentric management
Its goal is the creation of sustainable economic developement and improvement of quality of life worldwide for all stakeholders.
Economic Reponsibilities
to produce goods and services that society wants at a price that perpetuates the business and satifies its obligations to investors/
Egoism
An ethical system defining acceptable behavior as that which maximizes consequences for the individual.
Ethical Climate
In an organization, the processes by which decisions are evaluated and made on the basis of right and wrong.
Ethical issue
Situations, problem, or processes by which maximizes consequences for individual must be evaluated as morally right or wrong.
Ethical leader
One who is both a moral person and a moral manager infleuncing others to behave ethically.
Ethical responsibilties
Meeting other social expectations, not written as law.
Ethics
The system of rules that governs the ordering of values.
Integrity-based ethics programs
Company mechanisms designed to instill in people a personal responsibility for ethical behavior.
Kohlberg’s model of cognitive moral developement
Perspective that what is moral comes from what a mature person with good moral character would deem right.
Legal responsibilities
To obey local, state, federal, and relevant international laws.
Life-cycle analysis
A process of analyzing all inputs and outputs, through the entire cradle to grave life of a product, to determine total environmental impact.
Moral philosophy
Principles, rules, and values people use in deciding what is right or wrong.
Philanthropic responsibilities
Additional behaviors and activities that society finds desirable and that the values of the business support.
Relativism
Philosophy that bases ethical behavior on the opinions and behaviors of relavant other people.
Sarbanes Oxley Act
an act passed into law by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence.
Sustainable growth
Economics growth and developement that meet present needs without harming the needs of future generations.
Transcendent education
An education with five higher goals that balance self-interest with responsibility to others.
Universalism
An ethical system stating that all people should uphold certain values that society needs to function.
Utilitarianism
An ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers.
Virtue ethics
Classification of people based on their level of moral judment.