Chapter 8
compliance orientation
Creates order by requiring employees to identify with and commit to specific required conduct
ethics officers
Responsible for managing their organizations’ ethics and legal compliance programs
ethics audit
A systematic evaluation of an organization’s ethics program and performance to determine effectiveness
triple bottom line
A perspective that takes into account the social, environmental, and financial impacts of decisions made within an organization
ethical business conflicts
When there are two or more positions on a decision that conflicts with organizational goals
values orientation
Strives to develop shared values
shared values
The glue of successful management as well as of business ethics programs
social audit
The process of assessing and reporting on a business’s performance in fulfilling the economic, legal, ethical, and philanthropic responsibilities expected of it by its stakeholders
Global Reporting Initiative
A prominent framework that companies have adopted to report their social and sustainability progress
leader–follower congruence
When leaders and followers share the same vision, ethical expectations, and objectives for the company
codes of conduct
Formal statements that describe what an organization expects of its employees
formal controls
Include input controls such as proper selection of employees, effective ethics training, and strong structural systems (including communication systems)
ethical disasters
Are the discovery of large-scale unethical activity and follow recognizable phases of escalation, from ethical issue recognition and the decision to act unethically to the organization’s discovery of and response to the act
verification
An independent assessment of the quality, accuracy, and completeness of a company’s social report
emotional intelligence
The ability to manage themselves and their relationships with others effectively, characterized by self-awareness, self-control, and relationship building
code of ethics
Comprehensive and consists of general statements, sometimes altruistic or inspirational, that serve as principles and as the basis for rules of conduct
process controls
Include management’s commitment to the ethics program and the methods or system for ethics evaluation
integrity
One of the most important and oft-cited elements of virtue, and refers to being whole, sound, and in an unimpaired condition
leadership
The ability or authority to guide and direct others toward a goal
transactional leaders
Leaders who create employee satisfaction through negotiating, or “bartering,” for desired behaviors or levels of performance
statement of values
Serves the general public and also addresses distinct groups such as stakeholders
output controls
Involve comparing standards with actual behavior
Balanced Scorecard
A management system that focuses on all the elements that contribute to organizational performance and success, including financial, customer, market, and internal processes
normative myopia
When managers overlook or stifle the importance of core values in their business decisions
transformational leaders
Leaders who strive to raise employees’ level of commitment and foster trust and motivation