Ch 3

Question 1

corporate social responsibility

Answer 1

a business firm’s intention, beyond its legal and economic obligations to do the right things and act in ways that are good for society

Question 2

social obligation

Answer 2

when a business firm engages in social actions because of its obligations to meet legal and economic responsibilities.

Question 3

social responsiveness

Answer 3

when a business firm engages in social actions in response to some popular social need

Question 4

What does society expect from organizations and managers

Answer 4

Society expects them to be responsible, ethical, and give something back.

Question 5

Parochialism

Answer 5

a narrow focus where managers see things only through their own eyes and their own perspective

Question 6

sustainability

Answer 6

a company’s ability to achieve its business goals and increase long term shareholder value by integrating economic, environmental, and social opportunities inside its business strategies

Question 7

ethics

Answer 7

a set of rules that determines right and wrong conduct

Question 8

utilitarian view of ethics

Answer 8

ethical decisions are based solely on the outcome or consequences

Question 9

rights view of ethics

Answer 9

ethical decisions made to respect and protect individuals rights

Question 10

theory of justice view of ethics

Answer 10

ethical decisions made to enforce rules fairly and be impartial

Question 11

3 views of ethics

Answer 11

1. utilitarian
2. rights
3. theory of justice

Question 12

code of ethics

Answer 12

states an organization’s primary values and ethical rules it expects its managers and non-managerial employees to follow

Question 13

ethical leadership

Answer 13

-managers must be good role models in words and in actions
-unethical behavior must be punished and publicize the outcome to everyone one in the organization

Question 14

ethical training

Answer 14

seminars, workshops, and training programs to encourage ethical behavior

Question 15

global village

Answer 15

goods and services produced and marketed worldwide with no boundries

Question 16

How Organizations Go Global (in order of size of investment)

Answer 16

1. global sourcing
2. exporting/importing
3. licensing
4. franchising
5. joint venture
6. foreign subsidiary

Question 17

global sourcing

Answer 17

purchasing labor or materials from around the world at the cheapest price

Question 18

exporting

Answer 18

making products domestically and selling them abroad

Question 19

importing

Answer 19

acquiring products made abroad and selling domestically

Question 20

licensing

Answer 20

allowing an organization, for a fee, to make or sell products of another organization using its technology or product specifications

Question 21

franchising

Answer 21

allowing an organization to use, for a fee, another organization’s name and operating methods

Question 22

joint venture

Answer 22

Partners agree to a form a separate, independent organization for a business purpose

Question 23

foreign subsidiary

Answer 23

investment in a foreign country by setting up an independent facility or office