Ch. 5: Managing Ethics and Social Responsibility

Question 1

ethics

Answer 1

the code of moral principles and values that governs the behavior of a person with respect to what is right and wrong

Question 2

3 types of human behavior

Answer 2

1. codified law (legal standard)
2. free choice (personal standard)
3. ethics (social standard)

Question 3

5 Approaches to Ethical Decision Making

Answer 3

1. utilitarianism: greatest good for greatest # of people
2. individualism: individual’s long term success
3. moral-rights: best maintain rights of those affected
4. justice: equal, fair and impartial
5. practical: interests of all stakeholders

Question 4

3 levels of personal moral development

Answer 4

1. pre-conventional: concerned with external rewards and punishments; personal consequences
2. conventional: conform to expectations of society
3. post-conventional: internal set of values

Question 5

corporate social responsibility

Answer 5

mgmt.’s responsibility to take actions that benefit the interests of society and not just the corporation

Question 6

triple bottom line

Answer 6

profit, planet, people

Question 7

stakeholder

Answer 7

anyone with person interest or investment in the corporation and will be affected by its decisions

Question 8

4 types of corporate social responsibilities

Answer 8

1. economic
2. legal
3. ethical
4. discretionary

Question 9

policy vs. principle based statements in code of ethics

Answer 9

principle based: designed to affect corporate culture

policy based: used in specific ethical situations