Term
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Definition
| The study of peoples perceptions of fairness in organizations. |
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Term
| 4 Forms of Organizational Justice |
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Definition
| Distributive Justice, Informational Justice, Procedural Justice and Interpersonal Justice |
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Term
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Definition
| Satisfaction with outcomes (pay or work assignments). Form of Organizational Justice that focuses on people's beliefs that they have recieved fair amounts of valued work-related outcomes. |
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Term
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Definition
| Adherence to the rules. Form of Organizational Justice that focuses on peoples perceptions of the fairness of the procedures used to determine the outcomes they recieve |
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Term
| Procedural Justice Criteria |
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Definition
*Voice in the making of decisions *Consistency in applying rules
*Accuracy is use of information *Opportunity to be heard
*Safeguards against bias |
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Term
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Definition
| Feelings about one's leader. Form of Organizational Justice that focuses on peoples perceptions of the fairness in the manner in which they are treated by others. |
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Term
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Definition
| Form of Organizational Justice that focuses on people's perception of the fairness of the information used as the basis for making a decision |
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Term
| Group-Value Explanation (of organizational justice) |
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Definition
| The idea that people believe they are an important part of the organization when an orginizational official takes the time to explain thoroughly to them the rationale behind a decision. |
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Term
| Distributive Injustice Examples |
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Definition
*high level of stress
*feel dissatisfied with their jobs and the companies in which they work
*less productive
*because they received less, they did less. |
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Term
| (True or False) The postive outcome is likely to be percieved as being less distributively just than the negative outcome. |
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Definition
| False-The postive outcome is likely to be perceived as being more distributivey just (Distributive Justice) than the negative outcome. |
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Term
| (True or False) Generally, you will respond more positively to the fair procedure (Procedural Justice) than the unfair procedure (Procedural Injustice). |
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Definition
| True-Generally, you will respond more positively to the fair procedure (Procedural Justice) than the unfair procedure (Procedural Injustice). |
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Term
| (True or False) Specifically people's reactions to favorable outcomes (Distributive Justice) are affected little by the fairness of the procedure (Procedural Justice), wheras peoples reactions to unfavorable outcomes (Distributive Justice) are enhanced by the use of fair procedures (Procedural Justice). |
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Definition
| True-People dont care so much about procedural fairness (Procedural Justice) if it is a favorable outcome (Distributive Justice), however they care more about procedural fairness (Procedural Justice) when it is an unfavorable outcome (Distributive Justice) . |
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Term
| Interactive Relationship between Distributive Justice and Procedural Justice. |
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Definition
| People normally have postive reactions to favorable outcomes whether they are fair or not. But they will act more negatively if the outcome is unfavorable and not based on a fair procedure. However people will react better to unfavorable outcomes if it was based on a fair procedure. |
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Term
| Why is the interactive relationship between distributive justice and procedural justice important to understand in organizations? |
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Definition
| It is not always possible to give people the favorable outcome. However, the possibility of negative reactions may be minimized by following fair procedures (and of course, by ensuring that everyone involved is well away of the fairness of the procedures followed). |
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Term
| The additive relationship between Interpersonal Justice and Informational Justice |
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Definition
| Research has shown that perceptions of justice are enhanced when people explain outcomes (Informational Justice) in a manner that demonstrates a considerable amount of dignity and respect Interpersonal Justice. |
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Term
| (True or False) Sharing lots of information about outcomes makes workers accept those outcomes better (INFORMATION JUSTICE), as does presenting the information in a sesitive and caring fashion (INTERPERSONAL JUSTICE). However, being both highly informative AND highly sensitive and caring in ones presentation style at the same time enhances feelings of unfairness. |
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Definition
| False-Being both highly informative (INFORMATION JUSTICE) and highly sensitive and caring in ones presentation (INTERPERSONAL JUSTICE) style at the same time enhances feelings of justice and promotes positive behavior most effectively of all. |
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Term
| (True or False) Since managers can generally do very little about distributive injustices because pay and fringe benefits are determined by organization policies, they can do a great deal to promote Informational Justice by explaining things and Interpersonal Justice by showing dignity and respect. |
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Definition
| True- Since managers can generally do very little about distributive injustices because pay and fringe benefits are determined by organization policies, they can do a great deal to promote Informational Justice by explaining things and Interpersonal Justice by showing dignity and respect. |
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Term
| (True or False) People who feel unfairly treated are less likely to do such things as work less hard, steal from their employers, do poor-quality work, or even quit their jobs altogether and then sue their former employers. |
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Definition
| False- People who feel unfairly treated are MORE likely to do such things as work less hard, steal from their employers, do poor-quality work, or even quit their jobs altogether and then sue their former employers. |
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Term
| (True or False) Fairness has been associated with such desirable behaviors as helping one's fellow workers and going along with organizational Policies. |
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Definition
| True-Fairness has been associated with such desirable behaviors as helping one's fellow workers and going along with organizational Policies. |
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Term
| When doing a study with employees is hotels, they found that departments composed of employees who felt _____ treated suffered significantly higher rates of turnover and lower levels of customer satisfaction than those composed of employees who felt ______ treated. |
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Definition
| When doing a study with employees is hotels, they found that departments composed of employees who felt _unfairly_ treated suffered significantly higher rates of turnover and lower levels of customer satisfaction than those composed of employees who felt _fairly_ treated. |
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Term
| Strategies for Promoting Organizational justice |
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Definition
*Pay workers what they deserve *Offer workers a voice
*Openly follow Fair Procedure
*Explain Decisions Thoroughly in a Manner Demonstrating Dignity and Respect
*Train Workers to Be Fair |
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Term
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Definition
| The tendency for people to better accept outcomes into which they have had some input in determining than when they they have no such involvement. |
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Term
| Ways to offer workers a voice |
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Definition
*Meet regularly and invite input
*Conduct Employee Surveys
*Keep an "open door policy"
*Use suggestion systems. |
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Term
| Why pay workers what they deserve? |
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Definition
| A company paying below-market wages is likely to lose because the best workers will be disinclined to remain working there. |
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Term
| The practices of saving a little money by underpaying employees or informally discouraging them from taking vacation days they are due, or asking them work "off the clock" are doomed to fail. What is a better way? |
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Definition
| The better was is to pay the going wage in you community for work of a certain type and not cheating workers out of what they have coming to them. Workers who feel cheated out of pay are unmotivated to perform at high levels. |
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Term
| Why should you offer workers a voice? |
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Definition
*One of the best esablished principles of procedural justice is that people will better accept outcomes when they have had some input into determining them than when they are not involved (also known as fair process effect).
*better-quality decisions (because it taps workers expertise)
*involve workers in the process
*Workers whose input is solicited are inclined to feel better accepted as valued workers than thos ignored. |
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Term
| Why should you Openly Follow Fair Procedures? |
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Definition
*It is important for managers to be consistent, unbiased, and accurate in their treament of employees in all ways.
*Making decisions in such an open fashion not only promoted perceptions of fairness, but demonstrates to workers precisely what they have to do to be recognized. |
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Term
| Why should you Explain Decisions Throughly in a Manner Demonstrating Dignity and Respect? |
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Definition
| To be fair, both interpersonally and informationally, it is essential for managers to take great care in presenting decisions to their employees. Fairness demands giving employees lots of information about how decisions were made and explaining those decisions in a manner that deonstrate dignity and respect for them. |
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Term
| When is explaining decisions throughly in a manner demonstrating dignity and respect most impotant? |
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Definition
| When the decision has a negative impact on workers. |
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Term
| Is training employees in ways of enhancing organizational justice relatively new? |
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Definition
| Yes and the results have been very promising |
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Term
| What is the difference between Moral Values and Ethics? |
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Definition
| Moral Values are people funamental beliefs regarding what is right and wrong, ethics refers to standards of conduct that guide peoples decisions and behavior. |
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Term
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Definition
| The study of people's tendencies to behave in morally appropriate ways in organization. |
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Term
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Definition
| Peoples funamental beliefs regarding what is right or wrong, good or bad. |
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Term
| When philosophers talk about justice, they usually conceive of it as part of a larger interest in the topics of _____. |
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Definition
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Term
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Definition
| Standards of coduct that guy people's decisions and behaviors. |
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Term
| 4 Main Sources of Moral Values. |
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Definition
1. Religous Background
2. Beliefs
3. Training we receive.
4. Level of cognitive moral development |
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Term
| (True or False) It is the companys place to teach employees moral values. |
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Definition
| False, morals come with people as they enter the workplace. |
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Term
| If companies dont teach employees morals what is the companies responsibility? |
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Definition
| It is a companys responsibility to set clear standards of behavior and totrain employees in recognizing and following them. |
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Term
| Just as organizations prescribe other kinds of ______ that are expected in the workplace, so too should the prescribe appropriate ________ ________. |
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Definition
| Just as organizations prescribe other kinds of _behavior_ that are expected in the workplace, so too should the prescribe appropriate _ethical_ _behavior_. |
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Term
| Most tope business leaders recognize that clearly prescribing ______ _______ is a fundamental part of good management. |
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Definition
| Most tope business leaders recognize that clearly prescribing _ethical_ _behavior_ is a fundamental part of good management. |
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Term
| _______ ________ provide the basis for _______ |
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Definition
| _Moral_ _Values_ provide the basis for _Ethics_ |
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Term
| ________ standards influence both decisions and behavior in the workplace. |
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Definition
| _Ethical_ standards influence both decisions and behavior in the workplace. |
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Term
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Definition
| The nation's sixth-largest cable television service provider filed for bankruptcy and is under federal investigation. The companys founder, John Rigas, and his two sons were arrested and charged with using company funds as personal income. |
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Term
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Definition
| This accounting firm was found guilty of obstructing justice by destroying documents related to the investigation of Enron, its client over which it had auditing responsibility. |
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Term
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Definition
| The bakruptcy of this former giant energy company has been a catalyst for many of today's ethics probes. Company officials were charged with creating bogus partnerships that allowed managers to shift debt off the books. This enabled officals to become enormously wealthy as Enron's stocks soared. |
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Term
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Definition
| Officials from this telecommunitcations company were alleged to have entered into deals with other firms that were designed solely to artificially inflate its revenue. This allowed the company's chairman to sel $750 million in stock before the company collapsed. |
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Term
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Definition
| The chief executive officer of this company was indicted on charges of tax evasion and evidence tampering in the wake of investigations in which he and others were accused of receiving improper bonuses and company loans. |
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Term
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Definition
| Former top executives of this larg long-distance provider were accused of misrepresenting the company's financial pictures, making some 3.8 billion in accounting errors to artificially inflate the company's bottom line. |
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Term
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Definition
| This Houston-based provider of services to the oil and gas industry is alleged to have wasted the $18 billion it was awarded by the Pentagon to help rebuild war-torn Iraq. |
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Term
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Definition
| Ms. Steward was imprisoned after being convicted or conspiring with her stockbroker to obstruct a federal investigation onto her sale of person ImClone Systems stock. |
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Term
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Definition
| This large Italian dairy-foods company was forced to declare bankruptcy after an ccounting fraud resulted in $8.5 to $12 billion in missing assets. |
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Term
| (True or False) In response to the spate of ethical scandals, the public has been growing intolerant of unethical behavior among company officials. |
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Definition
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Term
| First, over the long rung, being ethical is __________. Second, being ethical satisfies many of today ______ ________. |
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Definition
| First, over the long rung, being ethical is _profitable_. Second, being ethical satisfies many of today _legal_ _regulations_ |
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Term
| Case studies provide abundant evidence that companies whose reputations are sullied by ethical scandals are both ________ by consumers and _________ by stockholders. |
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Definition
| Case studies provide abundant evidence that companies whose reputations are sullied by ethical scandals are both _scorned_ by consumers and _deserted_ by stockholders. |
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Term
| Following ________ ________ is not merely the same as ________ the _______. |
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Definition
| Following _ethical_ _standard_ is not merely the same as _obeying_ the _law_. |
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Term
| The law may be considered ________ acceptable standard to which companys must adhere. |
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Definition
| The law may be considered the _minimum_ acceptable standard to which companys must adhere. |
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Term
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Definition
| Provides mechanisms for reporting fraudulent behavior against U.S. government agencies and protects individuals who do so. |
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Term
| Foreign Corrupt Practices Act |
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Definition
| Prohibits officers from soliciting business by paying bribes to foreign officials. |
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Term
| Federal Sentencing Guidelines for Organizations |
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Definition
| Specifies guidelines for federal judges to follow when imposing fines on organizations whose employees engage in criminal acts. Its underlying rationale is that the more steps companies take to discourage criminal behavior by its employees, the less they will be penalized should such acts occur. This law specifies several actions which, if taken, will be recognized as efforts to discourage illegal behavior. As a result, companies are actively engaged in following courses of action. |
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Term
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Definition
| Enacted to guard against future accounting scandals, such as occured at Enron, this law raises the standards that public companies must use to report accounting data. Specifically, this law has kept companies actively involved in monitoring the ethical behavior of their officers. |
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Term
| Federal Prosecution of Business Organizations |
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Definition
| A revision to the Federal Sentencing Guidelines of Organizations that is designed to protext investors against unscrupulous acts by top executives (also in response to the Enron scandal). The focus on boards of directors is intended to discourage unethical behavior, given that such individuals often are the only parties in sufficient clout to prevent wrongdoing by top company officials. |
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Term
| The 2 laws with the greatest influence on the practice of ethics. |
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Definition
| Federal Sentencing Guidelines and the Sarbanes-Oxley Act. |
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Term
| Because of the Federal Sentencing Guidelines, companies now take the following steps to promote ethics.. |
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Definition
*Create and widesly disseminate clear standards for following the law.
*Have a high-ranking offical, usually an ethics officer, to oversee adherence to legal and ethical practices.
*Closely monitor and audit behavior to be able to detect unethical acts
*Follow a clear policy for disciplining rule violators. |
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Term
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Definition
| The belief that no cultures ethics are better than any other's and that ther are no internationally acceptable standards of right and wrong. |
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Term
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Definition
| The belief that the ethical standards of one's own country should be imposed when doing business in other countries. |
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Term
| Three Guiding Principles of Global Ethics |
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Definition
1. Show respect for Core Human Values
2. Demonstrate Sensativity to Local Traditions
3. Recognize that context matters when distinguishing between right and wrong. |
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Term
| Cognitive Moral Development |
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Definition
| differences between people in the capacity to engage in the kind of reasoning that enables them to make moral judgments. |
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Term
| Kohlberg's Theory of Cognitive Moral Development |
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Definition
| The theory based on the idea that people develop over the years in their capacity to understand what is right and wrong. |
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Term
| Preconventional Level of Moral Reasoning |
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Definition
| In Kohlberg's theory of cognitive moral development, the level at which people haven't yet developed the capacity to assume the perspective of others, leading them to interpret what is right solely with respect to themselves. |
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Term
| Conventional Level of Moral Reasoning |
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Definition
| n Kohlbergs thoery of cognitive moral development, the level attained by most people, in which they judge right and wrong in terms of what is good for others and society as a whole. |
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Term
| Postconventional level of Moral Reasoning |
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Definition
| In Kohlberg's theory of cognitive moral development, the level at which people judge what is right and wrong not solely in terms of their interpersonal and societal obligations, but in terms of complex philosophical principles of duty, justice, and rights. |
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Term
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Definition
| The practice of willingly hiding relevant information by being secretive and deceitful, which occurs when organizations punish individuals who are open and honest and reward those who go along with unethical behavior. |
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Term
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Definition
| Practices that are accepted within an organization despite that fact that they are contrary to the prevailing ethical standards of society at large. |
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Term
| Situational Determinants of unethical Behavior |
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Definition
*Some Organizational Norms Discourage Ethical Behavior (STONEWALLING and COUNTERNORMS)
*Managerial Values Sometimes Discourage Ethical Behavior (BOTTOM LINE MENTALITY, EXPLOITATIVE MENTALITY and MADISON AVENUE MENTALITY.
*Subordinates Emulate their Managers Unethical Behaviors. |
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Term
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Definition
| The belief that an organizations financial success is the only thing that matters. |
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Term
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Definition
| The belief that ones own immediate interests are more important than concern for others. |
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Term
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Definition
| The way of viewing the world according to which people are more concerned about how things appear to others than how they really are. That is, the appearance of doing the right thing matters more than the actual behavior. |
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Term
| Components of Corporate Ethics Program |
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Definition
*CODE OF ETHICS
*Ethics Training
*Bodies Formally Responsible for Ethics (ETHICS COMMITTEE and ETHICS OFFICER)
*A Mechanism for Communications Ethical Standards (ETHICS HOTLINES)
*ETHICS AUDITS |
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Term
| Corporate Ethics Programs |
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Definition
| Formal, Systematic efforts designed to promote ethics by making people sensitive to potentially unethical behavior and discouraging them from engaging in unethical acts. |
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Term
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Definition
| A Document describing what an organization stands for and the general rules of conduct expected of employees (to avoid conflicts of interests, to be honest) |
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Term
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Definition
| A group composed of senior-level managers from various areas of an organization who assist an organization's CEO in making ethical decisions by developing and evaluations company wide ethics policies. |
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Term
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Definition
| A high-ranking organizational offical who is expected to provide strategies for ensuring ethical conduct throughout an organization. |
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Term
| Ethics Hotlines (or help lines) |
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Definition
| Special telephone lines that employees can call to ask questions about ethical behavior and to report any ethical misdeeds they may have observed. |
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Term
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Definition
| The practice of assessing an organization's ethical practice by actively investigating and documenting incidents of dubious ethical value, discussing them in an open and honest fashion, and developing a concrete plan to avoid such actions in the future. |
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Term
| How Effective are Corporate Ethics Programs? |
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Definition
| By themselves, codes of ethics have only limited effectiveness in regulating ethical behavior in organizations. However combined, they can be quite effective. |
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Term
| Compared to companies that dont have ethics programs in place, those that do are... |
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Definition
*more like likely to report ethical misconduct to company authorities
*are considered more accountable for ethics violations
*face less pressure to compromise standards of business conduct. |
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Term
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Definition
| The contemporary notion that in addition to focusing on an organization's financiel performance, officials also are interested in assuring that their companies are performing well in respect to promoting environmental quality and social justice. |
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Term
| Pyramid of Corporate Social Responsibilty |
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Definition
| The term used to describe an organization's four most basic forms of responsibility, to ethical responsibility, to philanthropic responsibility. |
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Term
| Corporate Social Responsibility |
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Definition
| Business Practices that adhere to ethical values that comply with legal requirements, that demonstrate respect for individuals, and that promote the betterment of the community at large and the environment. |
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Term
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Definition
| Through its charitable foundations, this large aluminum products company has been helping the community by funding programs in violence and injury prevention, providing health care for those who cannot afford it, and improving opportunities for people with dissabilities. |
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Term
| Chiquita Brands International |
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Definition
| The world's top producer of bananas also is considered a leader in corporate social responsibility. The company has a Corporate Responsibility Officer at the vice president level, avoids using toxic chemicals, and unlike some competitors, refrains from mistreating and underpaying its laborers. |
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Term
| Forms of Socially Responsible Behvaior |
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Definition
*Helping the community by making charitable contributions
*Preserving the Environment
*Socially Responsible Investing
*Promoting the Welfare of its Employees |
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Term
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Definition
| The tendency for companies that are successful financially to invest in social causes because they can afford to do so and for socially responsible companies to perform well financially (they do well by doing good) |
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