Chapter 3

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1. 
ethical issue
 
problem, situation, or opporunity that requires an individual or group to choose among actions
 
2. 
Honesty
 
Truthfulness or trustworthiness

telling the truth to the best of your knowledge
 
3. 
dishonesty
 
A Lack of integrety, incomplete discolsure, or an unwilligness to tell the truth
 
4. 
Fariness
 
The quality of being just, equitable, and impartial
 
5. 
equality
 
how wealth or income is distributed
 
6. 
reciprocity
 
occurs when an action that has an effect upon another is returned
 
7. 
optimization
 
the tradeoff between equity and efficency
 
8. 
integreity
 
uncompromising adherence to ehtical values
 
9. 
ethical dilemma
 
a proble, situation, or an opportunity that requires an individual or group to chose among several wrong or unethical actions
 
10. 
4 examples of shareholder issues
 
1. bitter interaction and positioning with shareholders
2. protest votes in director elections
3. long term value creatioin
4. expanding roles for women
 
11. 
what is the leading form of observed misconduct
 
misuse of company resoures

can range from unauthorized use of equipment and computers to embezzling company funds
 
12. 
abusive or intimidating behaviors
 
can be physical threats, false accusations, profanity, insults, harshness, ignoring someone, or unreasonableness

intent is important in determing abuse

bullying is a growing problem
 
13. 
what are the 3 types of lies
 
1. joking without malice

2. commission lying- creating a false perception with words that decieve the reciever

3. ommision lying- in intentionally not infomring channel members of problems relating to product that affects awareness, intention, or behavior
 
14. 
conflicts of interst
 
exist when an individual must choose whether to advance his or her personal intersts of the organization, or some other group
 
15. 
what is bribery and what are the different types
 
the practice of offering something in order to gain an illict advantage

1. active bribery- the person who promises or gives the bribe commits the offense

2. passive bribery- an offense committed by the offical who recievies the bribe

facilitation payments- legal as long as they are small
 
16. 
Corporate Intelligance
 
the collection and anaylysis of information on:

markets

technoligies

customers and competitors

socioeconomic and external political trends
 
17. 
a company can be sued for discrimination if it
 
Refuses to hire an individual for discriminatory reaons

unreasonably excludes and indivdual from employment

unreasonably discharges an individual

disciminates against an individual with respect to hiring, employment terms, promotion, or privileges
 
18. 
unethical dual relationship
 
the relationship causes a conflict of interst or impariment of professional judgement
 
19. 
the kyoto protocol
 
an international treaty that commits nations to reducing greenhouse gas emissions
 
20. 
fraud
 
any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression
 
21. 
accounting fraud
 
misreprensnetation of a company's financial reports

accountants should abide by a strict code of ethics
 
22. 
marketing fraud
 
the process of dishonestly creating, distributing, promoting, and pricing products

puffery- exaggerated advertising claims, blustering, and boasting

implied falisty- an advertising message that misleads, confuses, or decieves the public,

literally false- claims can be divided into prove and bald assertions
 
23. 
consumer fraud
 
when consumers attempt to decieve businesses for personal gain
- price tag switchin, item switching, or lying to obtain discounts

colllusion- involves an employee who helps a consumer comitt fruad

duplicity- involves a consumer duping a store

guile- is associated with a peroson who uses tricks to obtain unfair advantage
 
24. 
financial misconduct
 
the failure to understand and manage ethical risks was a key problem in the recent financial crisis
 
25. 
what are the two types of insider trading?
 
legal insider trading- involes legally buying and selling stock in an insider's own company ,but not all the time


illegal insider trading- the buying or selling og stocks by insiders who posses material that is not public
 
26. 
most ethical issues become visible through?
 
stakeholder concerns
 
27. 
the ehtical decision making process starts when
 
ehtical issue awarness occurs and a discussion begins