Ethics test 3 Study Guide

CH.7

Importance of finance & ethics- Pg. 233

Definition of Valuation- Pg. 234- A powerful tool in weighing options. The summarization of entire future scenarios into a single number that can help simplify complex decisions.

Standards of accounting- Pg. 245

Strategies for stakeholders in regards to finance- Changing the reporting or classification for specific purpose/stakeholder. Making operational decisions based on their impact to financial statements. Manipulating revenue or expenses with short term focus. Making decisions because everyone else does it in your industry.

Reversibility test- Do unto others what you would have them do to you.

Publicity test- A persons actions manifest essential elements of his or her character.

Sarbanes Oxley- Created the public company accounting oversight board PCAOB. Five member board has the authority to set auditing, quality control, and ethical standards. Inspect accounting firms’ audit operations, and investigate and impose sanctions for violations.

Ch. 8

5 phases according to B.W Tuckman in regards to teams- Forming, Storming, Norming, Performing, Adjourning.

General idea of management- A view of the individual, Hierarchy and managing, groups, the enterprise. Managing is about people.

5 factors of individuals & relationships to corporation- Motivation, relationships with authority, role of gender in relationships, psychological contract in workplace, groups and teams.

Diversity- All the ways organizational members differ, including such features as age, gender, religion, ethnicity, place of birth, sexual orientation, and abilities.

Principles of business and ethics- Pg. 302

Growth & development of a company. Investing in employees, technical knowledge, growth of teams, stock options for employees, Employers must invest in employees.

Ch.9

3 mindsets of the environment- Pg. 321 Doomsayer mindset, cornucopian mindset, haves versus have nots mindset, aesthetic mindset.

4 shades of green- Pg. 328 light green, market green, stakeholder green, dark green

Pascals wager- If believe in God then ur all good, if you don’t believe in God, then ur screwed, so why not just believe.

Ch. 10

Innovation- thought of as an amoral endeavor, devoid of value judgments or without moral implications.

Frontier of knowledge-

Genus Species approach- Deborah Johnson. New technology introduces issues that are different species of a known genus. This approach makes the issues more accessible as it ties the ethics at the frontier to our existing ethical principles.

Definition of privacy-

Dynamic process- absorbing changes while delivering products and services.
Dynamic corporation- Responsibility change. Organizational relationships need to avoid responsibility gaps.