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Terms in this set (106)
3 Stages of ISCT Decision-Making 1. A decision is ethical if it is compatible with the
ethical rules of a community in which doing
business. 2. Permit members to exit when they're in
distress about a particular norm. 3. Allows
community members a voice in influencing the
development on the evolution of the norm.
Who shapes moral decision Peer and superiors.
The Pygmalion Effect The quality of an individual ethical respond to a
dilemma generally reflects the expectations
whether high or low that superiors expect of an
individuals.
Diffusion of responsability Allows individuals to escape responsibility for their
own actions, by putting distance between the
individual and the consequences of their decision
or contribution to a decision.
Kinds of Diffusion of responsability I. Responsibility is taken away. II. Shared with others
in decision making groups. III. Obscured by
organization hierarchy. IV. Diluted by psychological
distance between their victims.
,Roles A firmly established role in an organization may
reduce an individual's sense of his or her own
responsibility for a given ethically related action.
Deindividuation Is the process of which an individual minimizes his
or her personal responsibility on an action by
focusing on his or her assigned role. In other words
you are only fulfilling the function the organization
gave you to fulfill.
Zimbardo prison experiment Study involving 24 healthy subjects given the role
of prison guards or inmates. The people assigned
to be guards became hostile and aggressive, those
assigned to be prisoners generally felt hopeless
and victimized.
Business Law Reflecting society's minimum norms and standards
of business conduct.
BIGGEST EFFECT: the dramatic increase of in-house
ethics to ensure compliance with internal and
external company laws
The Domain of Ethics Includes the law but extends beyond it to include
the ethical standards and issues that the law does
not address.
Corporate Rules / Internal Rules These rules exceed the minimum requirements of
state imposed law. They also shape ethical decision
inside an organization every bit as much as laws on
the books.
The Fair Employement and Housing California and Federal Law prohibit discrimination
Act. (cali law) / Tittle 7 (Federal law) in employment based on race, gender, religion,
and other characteristics.
, Federal Organizational Sentencing Business cannot be imprisoned if convicted of a
Guidelines crime but they can be fined. In 1991 in response to
corporate scandals the federal government
established guidelines for judges to use in
sentencing business and other organizations
ultimately convicted of crime, such as defrauding
the government, bribery or other offences. The key
in determining the organization's criminal sentence,
the amount of the fine the business would have to
pay the government for its ethical misconduct is its
CULPABILITY SCORE from 0 - 10 starting at 5.
critiques of Federal Organizational 1. does nothing to help employees defend
Sentencing Guidelines themselves
2. prevents business from performing a good
investigation of its employees
3. prevents corporations from turn the results of
investigation into the government
Cognitive Biases Are ways psychologist have found that people
think that can actually reduce the appropriateness
or the validity of the decision that they make. Ways
that they don't recognize that these biases are
going on in their head.
Types of Cognative Biases I. Fact Gathering, II. Looking at consequences and
III.Thinking about integrity.
Fact Gathering (Bias) Overconfident about your knowledge of the facts.
avoid by thinking you could be wrong