Ch.16 - Ethics, sustainability and corporate responsibility

Question 1

What types of ethics are there?

Answer 1

1. Personal ethics – relates to the way in which individuals conduct themselves
2. Business ethics – the way a firm behaves as a whole
3. Corporate responsibility – the belief that a firm owed a responsibility to society and stakeholders

Question 2

What are ethical tests?

Answer 2

• Transparency – does the company mind other knowing about a decision?
• Effect – whom does the decision hurt? Are any stakeholders receiving negative outcome?
• Fairness – would the company’s decision be considered fair?
• Legality
• Confidentiality
• Sustainability
• Honesty

Question 3

What is sustainability?

Answer 3

– ability to meet the needs of the present without compromising the ability of future generations to satisfy their own needs

 - Social
 - Environmental
 - Economic

Question 4

What are corporate responsibility issues?

Answer 4

• health and safety, protecting the environment, staff welfare, customer welfare, using fair trade suppliers, charitable giving