One Reason Managers Need To Act Ethically Is That

Employees follow leader's behavior, either ethical or unethical.

One reason managers need to act ethically is that

have trouble recruiting talented employees.

A company like Wells Fargo that was known in 2016 for pressure tactics and unethical behavior will

An active ethics program

The US Sentencing Guidelines essentially offer incentives for detecting and preventing crime, provided that any offense is reported to the authorities, and no high-level employee has committed the offense. Companies do this by creating

setting up a whistleblower hotline

In the event an employee does defraud a customer, a company can reduce its liability in a number of ways, including

probability that the decision implemented will lead to the predicted consequence

The factors affecting ethical intensity of a decision include

long-term self interest

Patty has been working on a marketing team with four others. Two members of the five-person team did very little. Should the three hard-working members demand to receive proper credit while pointing out that two members of the team did not pull their weight? What principle might Patty consider in making this decision?

Matthew believes in sharing and distributive justice. Paul could argue long-term interest of the company

Matthew argues that the bonus pool should be shared proportionately among all the staff. The work could not be done without everyone pulling together. Paul argues that the bonus should go to those who added the most to the bottom line. The worker bees can be replaced easily; the people with real insight cannot. What principles might cause them to disagree?

A policy statement of a company's values, responsibilities, and conduct expectations.

The Securities and Exchange Commission requires companies listing on the New York Stock Exchange and the Nasdaq Stock Market to have codes of ethics. A code of ethics is

ethics training

________ enhances ethical awareness and will uncover ethical concerns related to individual needs or to the organization's processes.

personality tests or situation-specific questionnaires can be used to select and hire ethical employees

What is the role of personality tests in filtering out less ethical job candidates?

A whistleblower hotline.

One of the best ethics enforcement tools is

Encouraging employees to raise issues and address ethics issues as they come up.

To avoid higher fines under US Sentencing Guidelines, senior management must actively support the company's ethics program. This includes

operate responsibly and address social and environmental issues

Consumers today expect a lot out of companies. According to a study by Cone Communications, 9 out of 10 consumers expect companies to ________ rather than simply make a profit.

communities benefit when their citizens are employed.

When a company is in a good state, the stakeholders are affected positively. For example,

CSR

The markets depend on audits, outsiders who check the accounting of publicly held companies. Likewise, the market uses ________ audits to confirm that companies are not just "greenwashing" their activities. Greenwashing means spinning a story of social responsibility around something that may be inconsequential or even harmful.

business ethics

________ prevents the external constituents of an organization (i.e., the public, other organizations, and the environment) from being harmed.

NOT - The guidelines explain the difference between legal and ethical behavior

Why do managers need to know about the US Sentencing Guidelines for Organizations?

a code of ethics or statement of values

The compliance steps of the US Sentencing Guidelines include

Ethical intensity

The degree of importance of an issue for an individual or group is called

It is better to hire someone who is naturally inclined to behave in an ethical manner than to rely on a company code of ethics to encourage an unethical employee to make ethical choices.

How does a company's ethical program depend on its hiring process?

Senior management

It is the role of ________ to be active in the ethics program. For example, they should introduce the ethics training or be the speaker.

The interests of all major stakeholders--customers, employees, investors, communities, suppliers, and the environment.

Whole Foods Market CEO John Mackey refers to CSR as conscious capitalism. He believes capitalism, or a free market system, is better than other systems but that business leaders need to be "conscious" of

enhances the ability to attract more highly more qualified personnel

Economic studies of Corporate Social Responsibility show that CSR