Business Ethics: Week 3 Psychology and contexts (descriptive theories)

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  • Created by: jf00632
  • Created on: 16-03-19 21:54
What is an ethical decision? (3)
1. The decision is likely to have effects on others 2. The decision is perceived as ethically relevant by one or more parties 3. Alternative courses of action are open
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what are ethical and un-ethical decision influecned by?
Individual factors
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What are these indivudal factors?
1. Personal values and integrity 2. Personal background 3. Psychological factors: locus of control and moral imagination
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What is Locus of control?
The extent to which a person believes that they have control over the events of their life
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unethical behaviour in organisations is largely influenced by what?
national context and industry culture and organisational context
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What is involved in organisational context?
Incentives • Leadership / Authority • Peer effects • Routines • Organizational culture • Organizational roles
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How can companies intervene to intervene to change (un)ethical practices in their organisations?
Social accounting: first measure, then manage • Designing effective codes of conduct
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Definition of descriptive ethical theory
this refers to how ethical decisions are actually made in business and explain what factors influence the process and outcomes of those decisions
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What are the stages in ethical decision making?
1. recognise a moral issue 2. make some kind of moral judgement about the issue 3. Establish an intention to act upon the judgement 4. Act according to their intentions
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What is the ethical decision making process?
1. recognise the moral isssue 2. make a moral judgement 3. establish more intent 4. engage in moral behaviour (jones)
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What is cognitive moral development?
A theory explainnig the different levels of moral reasoning that an individual can apply to ethical issues and problems depending on their conginitve cpactiy
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What does coginitve mean?
Cognition is "the mental action or process of acquiring knowledge and understanding through thought, experience, and the senses
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What did Kohelberg say were the 3 leves of cognitive moral development? 1.
1. the individual shows a concern with self interst and external rewards and punishments
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3 levles of conginitve more development 2.
the indivudal does what is expected of them by others
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3 levles of conginitve more development 3.
this is when a person is devloping more automous decision making based on principles of right and justice rather than external influences
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What is Bureuracy? p167
A type of formal organisation based on raational principle and characterized by detailed rules and procedures, impersonal hierachal relations and a fixed divsions of tasks. it tends to prevent personal moral reflection in favour of prescribed organis
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Mitchell said to perceive the importance of stakeholders depnds on 3 factors -
power, legitamcy and urgency
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What is social accounting?
this is the voluntary process of assessing and communicating organisational activites and impacts on social, ethical and enviro issues relevant to stakeholders
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Why do organisations engage in social accounting?
internal and external pressure, identifying risks, improved stakeholder man, enhanced accountability and transparency
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What makes for good social accounting? (4)
Inclusivity (two way comm), comparability, completness, evolution (learning and change),
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What makes for good social accounting? (4)
managment poicies and systems, diclosure, external vertification, continuous iprovement
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what are ethical and un-ethical decision influecned by?

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Individual factors

Card 3

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What are these indivudal factors?

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Card 4

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What is Locus of control?

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Card 5

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unethical behaviour in organisations is largely influenced by what?

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