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:



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