BA 310 Study Guide # 3 - Study Guide BA 310 Test 3 1 Ethics...

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Study Guide  BA 310 Test # 3 Stakeholders: Any internal or external groups that are affected by the organization’s decisions and actions. Ethics: Rules and principles that define right and wrong conduct *Corporate Responsibility* Management is responsible to Broader Social Groups Social Responsibility: A business’s obligation is to pursue long-term goals that help society. (A philosophical commitment to go beyond legal / economic obligations) Social Responsiveness: Capacity of a firm to adapt to changing societal conditions and norms. (Businesses should respond to social trends) Socioeconomic View: Businesses have a responsibility to improve and protect the welfare of a society that endorses and supports them. Management is responsible to Owners Social Obligation: Management should be responsible for meeting economic and legal responsibilities. Maximizing profits / capital growth lets society’s total resources grow as rapidly as possible. (Firms should take socially responsive or responsible actions only when they increase profits) Classical View: Businesses can not or should not make decisions for society; that is the role of the state and of collective expression of individual choice. *Ethical Decision Models* Utilitarian Model: An ethical decision produces the greatest good for the greatest number of people Moral Rights: An ethical decision best protects the rights and privileges of people affected by it. Justice Model: An ethical decision distributes benefits and harms among stakeholders in a fair, equitable, or impartial (“follow the rules”) manner. Social Contracts: An ethical decision is compatible with existing ethical norms in companies, industries, and regions. (Do what’s “normal” or “accepted”) *Stages of Moral Development* Pre-conventional: Sticking to rules to avoid physical punishment, following rules only when doing so is in your immediate interest. Conventional: Living up to what is expected by people close to you, maintaining conventional order by fulfilling obligations to which you have agreed. Principled: Valuing rights of others and upholding absolute values and rights regardless of the majority’s opinion, following self chosen ethical principles even if they violate the law. *Issue Intensity* How clearly an issue raises an important ethical dilemma. The higher it is, the more likely ethical behavior will result.
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Components: Consensus of Wrong (is it wrong) Relation to Victim Greatness of Harm Concentration of Effect Probability of Harm Immediacy of Consequences What can management do to make organizational decision making more ethical? Goals and Appraisals Code of Ethics and policies Training programs Disciplinary Actions Audits and protections Organizational culture MOVIE: Class Action Mr. Keller’s car explodes killing his wife and daughter. Sues Argo Motors, represented by Maggie (his lawyer (Gene Hackman’s) daughter).
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BA 310 Study Guide # 3 - Study Guide BA 310 Test 3 1 Ethics...

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