Which of the following statements regarding abusive and intimidating behavior is true?

State legislation (Assembly Bill 2053) defines abusive conduct as:

Conduct of an employer or employee in the workplace, with malice, that a reasonable person would find hostile, offensive, and unrelated to an employer’s legitimate business interests. Abusive conduct may include repeated infliction of verbal abuse, such as the use of derogatory remarks, insults, and epithets, verbal or physical conduct that a reasonable person would find threatening, intimidating, or humiliating, or the gratuitous sabotage or undermining of a person’s work performance. A single act shall not constitute abusive conduct, unless especially severe and egregious.

University of California Guidance including President Napolitano's letter to the Chancellors and the Abusive Conduct Working Group's Report

Click HERE for specific examples of bullying behavior.

Workplace bullying does not include reasonable management action taken to direct and control how work is done, to monitor workflow and give feedback on workplace performance. The exercise of legitimate authority, administered in a professional and constructive manner, cannot be classified as bullying. A “demanding” supervisor who sets high standards and provides the resources needed to meet them is not a bully.

Who Bullies?
Workplace bullying often involves an abuse or misuse of power. However, many bullying situations involve employees bullying their peers. In some cases, subordinates may bully “up.” An individual may bully one or more other employees. A group may also bully an individual.

See: How workplace bullying differs from performance management, harassment/discrimination, and retaliation

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Emerging business ethics issues

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1. CHAPTER 3 : EMERGING BUSINESS ETHICS ISSUES
2. TABLE OF CONTENT  Summary  Recognizing an Ethical Issue (Ethical Awareness)  Foundational Values for Identifying Business Ethics Issues  Ethical Issues and Dilemmas in Business  Misuse of company time and resources  Abusive or intimidating behaviour  Lying  A conflict of interest  Bribery  Corporate Intelligence  Discrimination  Sexual Harassment  Fraud  Financial Misconduct  Insider Trading  Intellectual Property Rights  Privacy Issues  The Challenge of Determining an Ethical Issue in Business
3. SUMMARY  In this chapter, we consider some of the ethical issues emerging in business today, including how they arise from the demands of specific stakeholder groups.  In the first half of the chapter, we explain certain universal concepts that pervade business ethics, such as integrity, honesty, and fairness.  The second half of the chapter explores a number of emerging ethical issues, including misuse of company time and resources, abusive and intimidating behavior, lying, conflicts of interest, bribery, corporate intelligence, discrimination, sexual harassment, fraud, financial misconduct, insider trading, intellectual property rights, and privacy.  We also examine the challenge of determining decisions that have an ethical component for the firm to consider.
4. RECOGNIZING AN ETHICAL ISSUE (ETHICAL AWARENESS)  The first step in understanding business ethics is to develop ethical issue awareness.  Awareness arises because of conflicts among individuals’ personal moral philosophies and values, the values and culture of the organizations in which they work, and those of the society in which they live.  Failure to acknowledge ethical issues puts corporations at great risk, particularly in industries where business is perceived as a game that must be won at all costs.  An ethical issue is a situation or a problem that requires thought, discussion, or investigation in order to make a decision.
5. Next, a video on Creating ethical cultures in business: Brooke Deterline at TEDxPresidio
6. FOUNDATIONAL VALUES FOR IDENTIFYING BUSINESS ETHICS ISSUES  Understanding foundational values can help identify and develop discussions and a constructive dialogue on appropriate conduct.  Honesty, fairness and integrity are the glue that holds businesses together. Three Foundational Values Honesty Integrity Fairness
7. FOUNDATIONAL VALUES FOR IDENTIFYING BUSINESS ETHICS ISSUES  Honesty refers to truthfulness or trustworthiness. Issues related to honesty also arise because business is sometimes regarded as a “game,” governed by its own rules rather than by those of society.  Dishonesty is a lack of integrity, incomplete disclosure, and an unwillingness to tell the truth. Lying, cheating, and stealing are actions usually associated with dishonest conduct. Three Foundational Values Honesty Integrity Fairness
8. FOUNDATIONAL VALUES FOR IDENTIFYING BUSINESS ETHICS ISSUES  Integrity refers to being whole, sound, and in an unimpaired condition. In an organization, it means uncompromising adherence to ethical values. Three Foundational Values Honesty Integrity Fairness
9. FOUNDATIONAL VALUES FOR IDENTIFYING BUSINESS ETHICS ISSUES  Fairness is the quality of being just, equitable, and impartial.  In business, equality is about the distribution of benefits and resources. This distribution could be applied to stakeholders or the greater society.  Reciprocity is an interchange of giving and receiving in a social relationship. It is the return of small favors of approximately equal value.  Optimization is the trade-off between equity (that is, equality or fairness) and efficiency (that is, maximum productivity). Three Foundational Values Honesty Integrity Fairness
10. Next, a video on The Significance of Ethics and Ethics Education in Daily Life | Michael D. Burroughs | TEDxPSU
11. ETHICAL ISSUES AND DILEMMAS IN BUSINESS
12. ETHICAL ISSUES AND DILEMMAS IN BUSINESS Ethical Issue  An ethical issue is a problem, situation, or opportunity that requires an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical. Ethical Dilemma  An ethical dilemma is a problem, situation, or opportunity that requires an individual, group, or organization to choose among several actions that have negative outcomes.
13. TYPES OF ETHICAL ISSUES AND DILEMMAS IN BUSINESS
14. TYPES OF ETHICAL ISSUES AND DILEMMAS IN BUSINESS 1. Misuse of company time and resources 2. Abusive or intimidating behaviour 3. Lying 4. A conflict of interest 5. Bribery 6. Corporate Intelligence 7. Discrimination 8. Sexual Harassment 9. Fraud 10.Financial Misconduct 11.Insider Trading 12.Intellectual Property Rights 13.Privacy Issues 14.Environmental Issues
15. TYPES OF ETHICAL ISSUES AND DILEMMAS IN BUSINESS MISUSE OF COMPANY TIME AND RESOURCES
16. Misuse of company time and resources A Major Misconduct  Misuse of company time and resources is a major form of observed misconduct in organizations. Computer and Internet  Using company computer software and Internet services for personal business is one of the most common ways employees misuse company resources.  Many companies, like Boeing, have implemented official policies delineating acceptable use of company resources.
17. Next, a video on Misusing the Company's Computer | Dodging Landmines
18. TYPES OF ETHICAL ISSUES AND DILEMMAS IN BUSINESS ABUSIVE OR INTIMIDATING BEHAVIOUR
19. ABUSIVE OR INTIMIDATING BEHAVIOR Common for Employees  Abusive or intimidating behavior is a common ethical problem for employees. What is abusive or intimidating means?  The concepts of abusive or intimidating behavior can mean anything from physical threats, false accusations, annoying behavior, profanity, insults, yelling, harshness, ignoring someone, or even unreasonableness.  The meaning of these words can differ from person to person.
20. ABUSIVE OR INTIMIDATING BEHAVIOR Importance of Intent  Intent is an important factor in determining whether a situation is abusive. Bullying  Bullying is associated with a hostile workplace where a person or group is threatened, harassed or overly criticized.  The concept of bullying is now considered a legal issue, with millions of Americans reporting having experienced or witnessed bullying at work.
21. Next, a video on Bullying and Corporate Psychopaths at Work: Clive Boddy at TEDxHanzeUniversity
22. TYPES OF ETHICAL ISSUES AND DILEMMAS IN BUSINESS LYING
23. LYING  Lying relates to distorting the truth.  The point at which a lie becomes unethical in business is based on the context of the statement and its intent to distort the truth. A lie becomes illegal if it is determined by the judgment of courts to damage others.  There are three types of lies Omission Lying Commission Lying Joking
24. LYING  Joking without malice Omission Lying Commission Lying Joking
25. LYING  Commission lying is creating a perception or belief by words that intentionally deceive the receiver of the message.  Commission lying involves using words or creating noise that intentionally confuse the receiver of a message. Noise can be the intentional use of modes of communication that the sender knows the receiver does not fully understand. Omission Lying Commission Lying Joking
26. LYING  Omission lying is intentionally not informing others of any differences, problems, safety warnings, or negative issues related to the product or company that significantly affects awareness, intention, or behavior. Omission Lying Commission Lying Joking
27. Next, a video on How to Deal with a Lying Co-Worker
28. TYPES OF ETHICAL ISSUES AND DILEMMAS IN BUSINESS A CONFLICT OF INTEREST
29. A CONFLICT OF INTEREST  A conflict of interest exists when an individual must choose whether to advance his or her own interests, those of the organization, or those of some other group.  To avoid conflicts of interest, employees must be able to separate their private interests from business dealings. Separation of Interest Personal Dealings Business Dealings
30. Next, a video on Conflict of Interest
31. TYPES OF ETHICAL ISSUES AND DILEMMAS IN BUSINESS BRIBERY
32. BRIBERY  Bribery is the practice of offering something (usually money) in order to gain an illicit advantage.  Bribery can be defined as an unlawful act, but it can also be a business ethics issue in that a culture includes such fees as standard practice.  Types of Bribery Types of Bribery Active Bribery Passive Bribery
33. BRIBERY  Active bribery means that the person who promises or gives the bribe commits the offense. Types of Bribery Active Bribery Passive Bribery
34. BRIBERY  Passive bribery is an offense committed by the receiver of the bribe. Types of Bribery Active Bribery Passive Bribery
35. BRIBERY  Facilitation payments to obtain or retain business do not constitute bribery payments in the United States, as long as they are small.  However, the legality of this practice varies in other countries.
36. Next, a video on Dilemma: Bribery in International Business: Ethics and the Foreign Corrupt Practices Act
37. TYPES OF ETHICAL ISSUES AND DILEMMAS IN BUSINESS CORPORATE INTELLIGENCE
38. CORPORATE INTELLIGENCE (CI) What is CI? Corporate intelligence is the collection and analysis of information on markets, technologies, customers and competitors, as well as on socioeconomic and external political trends. CI involves in-depth discovery of information from corporate and court documents, regulatory filings, and press releases. CI is not an ethical issue if the information is obtained legally. However, there are a number of questionable or illegal techniques used to collect information. Tools of CI Hacking Social Engineering Dumpster diving Whacking Phone Eavesdropping
39. CORPORATE INTELLIGENCE (CI)  Hacking is one of the top methods for obtaining trade secrets.  System hacking assumes that the attacker already has access to a user account  Remote hacking involves remotely trying to penetrate a computer system via the Internet  Physical hacking requires that an agent personally enter a facility Tools of CI Hacking Social Engineering Dumpster diving Whacking Phone Eavesdropping
40. CORPORATE INTELLIGENCE (CI)  Social Engineering is another popular method of obtaining valuable corporate information. Social Engineering is tricking or fooling individuals into revealing their passwords or other valuable corporate information.  Shoulder surfing is when someone looks over an employee’s shoulder to obtain a password  Password guessing is self- explanatory Tools of CI Hacking Social Engineering Dumpster diving Whacking Phone Eavesdropping
41. CORPORATE INTELLIGENCE (CI)  Dumpster diving is a messy but very successful way to acquire trade secrets. Once trash is discarded onto a public street or alley, it is considered fair game. Tools of CI Hacking Social Engineering Dumpster diving Whacking Phone Eavesdropping
42. CORPORATE INTELLIGENCE (CI)  Whacking is wireless hacking. Tools of CI Hacking Social Engineering Dumpster diving Whacking Phone Eavesdropping
43. CORPORATE INTELLIGENCE (CI)  Phone Eavesdropping is yet another tool for CI agents. A person with a digital recording device can monitor and record a fax line. Tools of CI Hacking Social Engineering Dumpster diving Whacking Phone Eavesdropping
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45. TYPES OF ETHICAL ISSUES AND DILEMMAS IN BUSINESS DISCRIMINATION
46. DISCRIMINATION Discrimination on the basis of race, color, religion, sex, marital status, sexual orientation, public assistance status, disability, age, national origin, or veteran status is illegal in the United States. A company in the United States can be sued for discrimination if it:  Refuses to hire an individual for discriminatory reasons  Maintains a system of employment that unreasonably excludes an individual from employment  Unreasonably discharges an individual  Discriminates against an individual with respect to hiring, employment terms, promotion, or privileges of employment as it relates to discrimination
47. DISCRIMINATION  The Equal Employment Opportunity Commission (EEOC) handles discrimination filings.  The Age Discrimination in Employment Act specifically outlaws hiring practices that discriminate against people 40 years of age or older, as well as those that require employees to retire before the age of 70.  Many companies have initiated affirmative action programs, which involve efforts to recruit, hire, train, and promote qualified individuals from groups that have traditionally been discriminated against on the basis of race, gender, or other characteristics. These programs may be mandated from the federal level, but many companies opt to implement them voluntarily. Discrimination can also be an ethical issue in business when companies use race or other personal factors to discriminate against specific groups of customers.
48. AFFIRMATIVE ACTION PROGRAMME IN MALAYSIA  New Economic Policy 1971  Equality in wealth distribution amongst three (3) major ethnic groups in Malaysia i.e Malay, Chinese, Indian  Why it has been perceived as a discrimination? 48
49. Next, a video on Affirmative Action: Crash Course Government and Politics #32
50. TYPES OF ETHICAL ISSUES AND DILEMMAS IN BUSINESS SEXUAL HARASSMENT
51. SEXUAL HARASSMENT  Sexual harassment is a form of sex discrimination that violates Title VII of the Civil Rights Act of 1964. It is defined as a repeated, unwanted behavior of a sexual nature perpetrated upon one individual by another.
52. SEXUAL HARASSMENT  To establish sexual harassment, an employee must understand the definition of a hostile work environment, for which three criteria must be met:  The conduct was unwelcome  The conduct was severe, pervasive, and regarded by the claimant as so hostile or offensive as to alter his or her conditions of employment  The conduct was such that a reasonable person would find it hostile or offensive
53. SEXUAL HARASSMENT  The key ethical issue within sexual harassment is called dual relationship, which is defined as a personal, loving, and/or sexual relationship with someone with whom you share professional responsibilities.  An unethical dual relationship is one where the relationship causes a conflict of interest or risk of impairment to professional judgment.  Consent is created if any sexual relationship is considered mutual.
54. Next, a video on Preventing Sexual Harassment At The Workplace
55. TYPES OF ETHICAL ISSUES AND DILEMMAS IN BUSINESS FRAUD
56. FRAUD What is Fraud?  In general, fraud is any purposeful communication that deceives, manipulates, or conceals facts in order to harm others.  Fraud is a crime that can result in fines and/or imprisonment. Types of Fraud Types of Fraud Accounting Fraud Marketing Fraud Consumer Fraud
57. FRAUD  Accounting fraud usually involves falsifying information about a corporation’s financial reports, which would otherwise provide important information about the financial health of the company to investors and other stakeholder groups.  Accountants today feel increased pressure to perform, to keep fees low, and must follow complicated regulations—all of which can contribute to the pressure to commit fraud. Types of Fraud Types of Fraud Accounting Fraud Marketing Fraud Consumer Fraud
58. FRAUD  Marketing fraud is the process of dishonestly creating, distributing, promoting, and pricing products.  Serious ethical issues can occur in this area.  False or misleading marketing communications can destroy stakeholder trust in a corporation.  False or deceptive advertising is a key issue in marketing communications. Types of Fraud Types of Fraud Accounting Fraud Marketing Fraud Consumer Fraud
59. FRAUD – MARKETING FRAUD  Puffery can be defined as exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely.  Implied falsity means that an advertising message has a tendency to mislead, confuse, or deceive the public.  Literally false claims can be divided into tests prove (establishment claims), when the advertisement cites a study or test that establishes the claim; and bald assertions (non-establishment claims), when the advertisement makes a claim that cannot be substantiated, as when a commercial states a certain product is superior to any other on the market. Categories of Misleading Advertisements Categories Puffery Implied Falsity Literally False
60. FRAUD  Consumer fraud occurs when consumers attempt to deceive businesses for their own gain.  There are many different ways of engaging in consumer fraud, from stealing from stores, to price tag switching, to lying to obtain discounts. Types of Fraud Types of Fraud Accounting Fraud Marketing Fraud Consumer Fraud
61. FRAUD  Collusion involves an employee who helps a consumer commit fraud.  Duplicity involves a consumer duping a store. For example, a customer who stages an accident and then sues the store for damages is engaging in duplicity.  Guile is associated with a person who knows right from wrong but uses tricks to obtain an unfair advantage. Types of Consumer Fraud Types of Consumer Fraud Collusion Duplicity Guile
62. TYPES OF ETHICAL ISSUES AND DILEMMAS IN BUSINESS FINANCIAL MISCONDUCT
63. FINANCIAL MISCONDUCT  The failure to understand and manage ethical risks played a significant role in the financial crisis. The 2008 global recession was caused in part by a failure on the part of the financial industry to take appropriate responsibility for its decision to utilize risky and complex financial instruments.  Corporate cultures were built on rewards for taking risks rather than rewards for creating value for stakeholders.
64. FINANCIAL MISCONDUCT  Major Ethical Financial Misconduct Leading to 2008 Global Recession  Subprime lending and  executive compensation in poorly performing or failed firms  The Dodd- Frank Wall Street Reform and Consumer Protection Act was passed in 2010 to increase accountability and transparency in the financial industry and protect consumers from deceptive financial practices. The act established a Consumer Financial Protection Bureau (CFPB) to protect consumers from unsafe financial products.  Remember that top executives are ultimately responsible for decisions made by the employees of their companies. Regulatory systems in place failed to catch the systemic risks that were at play during the financial industry meltdown.
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66. TYPES OF ETHICAL ISSUES AND DILEMMAS IN BUSINESS INSIDER TRADING
67. INSIDER TRADING Insider Trading. An insider is any officer, director, or owner of ten percent or more of a class of a company’s securities.
68. INSIDER TRADING  Illegal insider trading is the buying or selling of stocks by insiders who possess information that is not yet public.  Legal insider trading involves legally buying and selling stock in an insider’s company, but not all of the time. Insiders are required to report their trades within two days of the transaction. Types of Insider Trading Legal Insider trading Illegal Insider Trading
69. TYPES OF ETHICAL ISSUES AND DILEMMAS IN BUSINESS INTELLECTUAL PROPERTY RIGHTS
70. INTELLECTUAL PROPERTY RIGHTS Intellectual Property Rights involve the legal protection of intellectual property (IP), such as music, books, and movies.  Digital copyrights continue to be a controversial issue in the United States and across the world, and existing laws are often difficult to enforce.
71. TYPES OF ETHICAL ISSUES AND DILEMMAS IN BUSINESS PRIVACY ISSUES
72. PRIVACY ISSUES  Many privacy issues come into play in the business world.  Some issues that managers should consider involve monitoring employee use of technology and consumer privacy.  It can be a challenge for businesses today to meet the needs of consumers while at the same time protecting their privacy. Employee Privacy Issues Consumer Privacy Issues
73. PRIVACY ISSUES  There are few legal protections of an employee’s right to privacy while at work, which allows employers a great deal of leeway in monitoring employees.  Electronic monitoring allows a company to determine whether productivity is lower than it could be because employees are spending too much time on personal activities.  Practices that respect employee privacy but do not abdicate the employer’s responsibility help create a climate of trust that promotes opportunities for resolving employee– employer disputes without lawsuits. Employee Privacy Issues Consumer Privacy Issues
74. PRIVACY ISSUES  There are two dimensions to consumer privacy:  Consumer awareness of information collection  Growing lack of consumer control over how companies use the personal information they collect. Employee Privacy Issues Consumer Privacy Issues
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76. TYPES OF ETHICAL ISSUES AND DILEMMAS IN BUSINESS ENVIRONMENTAL ISSUES
77. ENVIRONMENTAL ISSUES  Kyoto protocol: international and global treaty in a world commitment to reducing emission of carbon dioxide in an attempt to reducing the global warming and pollution(USA did not sign the treaty).  Water pollution  30 million plastic bottles are thrown daily for a total 11 billion a year in the US  Nuclear power VS Green Energy Practices 77
78. THE CHALLENGE OF DETERMINING AN ETHICAL ISSUE IN BUSINESS
79. The Challenge of Determining an Ethical Issue in Business  Most ethical issues will become visible through stakeholder concerns about an event, activity, or the results of a business decision.  Determining ethical issues is a constant challenge. Over time, problems can become ethical issues as a result of changing societal values.  Stakeholders trigger ethical issue awareness and individuals openly discuss it and ask for guidance and the opinions of others  Once discussed, one enters the ethical decision-making process. Ethical Issues Visible to stakeholder Stakeholders discuss the issues Enters the Ethical Decision Making Process
80. “RESOLVING ETHICAL BUSINESS CHALLENGES” NOTES  In this case, recent graduate, Daniel, must decide how to handle the contradictions between writing copy for a product being endorsed by a person who no longer uses it. YOLO wants to use celebrity endorser, Gloria Kunies, to endorse a bacon product produced by Delicious Uber Bacon Ingredients Extraordinaire Corporation. While Gloria has consumed and enjoyed the bacon product in the past, she is currently a vegetarian for health reasons she attributed in part to consuming bacon.  While her endorsement does not officially break any laws, Daniel believes it is dishonest and a contradiction to have a vegetarian promoting bacon. Ask the students if the situation in any way violates the concepts of fairness, honesty, and integrity. What are the potential repercussions for Delicious Uber Bacon Ingredients Extraordinaire Corporation and YOLO if consumers discover Gloria is now a vegetarian? What would the students do if they were in Daniel’s place?
81. Discussion Question  https://www.chegg.com/homework-help/daniel- graduated-michigan-university-landed-job-copywriter- y-chapter-3-problem-2req-solution-9781285974644- exc