Ethics and Strategic Decision Making Flashcards

Accepted principles of right and wrong that govern the conduct of businesspeople and organizations.

A situation where there is disagreement over what the accepted principles of right and wrong are, or where none of the available alternatives seem ethically acceptable.

Many accepted principles of right and wrong for businesses have been codified into law, and violating these laws is both unethical and illegal.

Situations where the interests of managers, acting as agents, diverge from those of the stakeholders they are supposed to serve.

• Self-dealing and self-enrichment
• Information manipulation and concealment
• Anticompetitive activity
• Exploitation of value chain members
• Exploitation of employees
• Environmental damage
• Fraud and corruption

Deeply held principles that shape a company’s identity and define how it conducts business.

• Transparency
• Sustainability
• Responsibility

Corporate culture encompasses shared norms and values that shape how members of an organization behave, influencing responses to ethical dilemmas.

• Ethical leadership
• Core ethical values
• Formal ethics program

It increases the potential impact of behavioral conflicts due to differing values and ethical standards across cultures.

Differing business cultures and expectations, such as the expectation of bribes in some locations.

By defining their own principles of behavior, outlining organizational values, and creating a code of ethics and corporate conduct.

Consistent application across the whole organization, even if it means passing up opportunities that require disregarding ethical values.

Aligning business actions with accepted principles of right and wrong while respecting stakeholder rights.

• Fraud
• Exploitation
• Environmental harm
• Anticompetitive behavior