chapter 2

Question 1

Ethics

Answer 1

the moral principles and beliefs that govern group or individual behavior according to what is right or wrong and what contributes to the balanced good of all stakeholders.

Question 2

Explain ethics as they relate to the five domains of individual, organizations, stakeholders, government, snd the global community

Answer 2

As described by psychologist Lawrence Kohlberg, INDIVIDUALS go through “stages of moral development” in their lives. ORGANIZATIONS that carry out unethical business practices have a negative impact on their STAKEHOLDERS. In addition, GOVERNMENTS play an important role in establishing rules and regulations to guide business ethics. Finally the GLOBAL COMMUNITY must adhere to the ethical principles outlines by the United Nations.

Question 3

stakeholders

Answer 3

individuals or groups who have a direct interest in an organizations behavior and experience the effects of the company’s management decisions

Question 4

Demonstrate processes and practices for managing organizational ethics

Answer 4

when there is no clearly correct course of action, managers are required to make decisions based on one or more of the following principles: legal, individual, virtuous, long-term self interest, community, utilitarian, and distributed justice. To assist ethical decision making, many organizations publish ethical guidelines called codes of conduct

Question 5

legal principle

Answer 5

making decisions that follow both the letter and the spirit of the law

Question 6

individual rights principle

Answer 6

making decisions that do not infringe upon the rights of other people

Question 7

Virtuous principle

Answer 7

making decisions you would be publicly proud of

Question 8

long-term self interest principle

Answer 8

making decisions that support the long-term interests of you and your organization

Question 9

community principle

Answer 9

making decisions that contribute to the strength and well-being of the community

Question 10

utilitarian principle

Answer 10

making decisions that provide the greatest good to the greatest number (or the least harm to the lowest number)

Question 11

distributed justice principle

Answer 11

the degree to which people perceive outcomes to be fairly allocated

Question 12

codes of conduct

Answer 12

an organizations guidelines for ethical behavior

Question 13

Summarize manager’s role in building responsible businesses based on ethical decision making.

Answer 13

managing responsibly in today’s business environment requires managers to make principle-based decisions informed by industry and societal standards. In some cases, organizations may decide to address a negative externality proactively by internalizing it, thus benefiting stakeholders.

Question 14

• Managers define and foster ethical organizations cultures in two ways:

Answer 14

• applying a framework for ethical decision-making

- ethics training.

Question 15

describe how businesses approach social responsibility

Answer 15

when social responsibility goes beyond managers to the organization itself, it is called corporate social responsibility (CSR), an ethical framework for describing the efforts made by corporations to drive positive environmental and societal changes

Question 16

social responsibility

Answer 16

an ethical framework for outlining the duties managers need to perform to benefit both the organization and society.

Question 17

social entrepreneurship is:

Answer 17

the process of sourcing innovative solutions to social and environmental problems.
- many of these problems relate to the environment, poverty, sustainability, equality, education, child mortality, terrorism, and health and wellness.

Question 18

illustrate the role of social entrepreneurship in society

Answer 18

• Social entrepreneurs are people who start a business for the dual purpose of profit and societal benefit. There are several models of social entrepreneurship: special ventures, social consequence ventures, and enterprising nonprofits

Question 19

special purpose ventures:

Answer 19

business that aim to resolve a social problem and make a profit

Question 20

social consequence ventures

Answer 20

a for-profit business with a primarily social impact

Question 21

enterprising non-profits

Answer 21

a form of social entrepreneurship in which both the venture missions and the market impact are for social purposes