SMG SM 131 Quiz: Exam 2 Lecture Notes SM131

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Rebecca Nichols

Document Summary

System 1 thinking: based on intuition or emotion, quick, effortless. System 2 thinking: slower, more conscious, logical, and critical. What you see is not all there is. Motivated blindness: failure to notice others" unethical conduct when doing so would harm you. Volkswagen pushed to be number 1, ambitions fueled scandal. By 2018, we want to take our group to the very top of the global car industry . 50,000 cars sold with a cheating mechanism on emissions. 2011; employees of volkswagen warned that what they were doing was illegal. Moody, standard and poor"s, and fitch ratings are paid by the companies they are rating; have bias. Rated lehman brother"s investments as safe days before they went under. Conflict of interest: a bias that favors those that benefit you. Ethical fading: ethics fade away when we consider a problem just as a business decision. False claims act: community fraud against the federal government.