Business Ch 2 Flashcards
What is the difference between ethics and the law?
Business ethics are standards of conduct and moral values regarding right and wrong actions in the work environment
Legal behavior follows the laws, which may change over time. Although laws may follow ethical standards, they are different
What are the three stages in the development of individual ethics and what occurs during each stage?
Stage 1: Preconventional where the person looks out for their own interests and rules are followed out of fear of punishment or expectation of reward
Stage 2: Conventional where the person considers the interests and expectations of others in making decisions and rules are followed because it is part of belonging to the group.
Stage 3: Post conventional where the person follows their own personal principles for resolving ethical issues and they consider personal group and societal interests
Define each of the following ethical dilemmas: Conflict of Interest, Honesty and Integrity, Loyalty vs Truth, and
Whistle-blowing.
A conflict of interest: when a businessperson is faced with a situation in which an action benefiting one person or group has the potential to harm another.
Honesty and integrity: An employee who is honest can be counted on to tell the truth. An employee with integrity goes beyond truthfulness. Having integrity means adhering to deeply felt ethical principles in business situations.
Loyalty vs Truth: a situation in which an employee decide between loyalty to the company and truthfulness.
Whistle-blowing: an employee’s disclosure to officials of illegal, immoral, or unethical practices committed by an organization.
What is a Code of Conduct and how is ethical awareness gained in an organization?
Code of conduct is a formal statement that defines how an organization expects its employees to resolve ethical issues.
Ethical awareness can be gained through ethical education where a company institutes an ethics training program or through ethical
leadership–actions demonstrated by leaders
Define corporate social responsibility (CSR) and explain the aim of CSR
Corporate social responsibility is the ethical role of the corporation in society. It is the business’s consideration of society’s wellbeing and consumer satisfaction, in addition to profits.
The aim of CSR is to increase long-term profits and shareholder trust through positive public relations and high ethical standards to reduce business and legal risk by taking responsibility for corporate actions
What are the drivers of corporate social responsibility?
Demands for CSR come from increased pressure from consumers, shareholders and investors, and supply-chain pressure.
Businesses have a social responsibility to whom?
To the general public, customers, employees, and investors & financial community
What is corporate philanthropy?
Corporate philanthropy is the effort of an organization to make a charitable contribution to the communities in which it earns profits.
Define consumerism and list the rights of consumers.
Consumerism is the public demand that a business considers the wants and needs of its customers in making decisions.
The rights of consumers are the right to be safe, the right to be informed, the right to choose, and the right to be heard.
In what ways do companies have a social responsibility towards their employees?
Businesses have a wide-ranging responsibility to their employees including workplace safety, quality-of-life issues (balancing work and family), fair wages, ensuring equal opportunity on the job, avoiding age discrimination, and preventing sexual harassment and sexism.
