Chapter 2

Question 1

Stakeholders

Answer 1

Anyone with a stake in the company

Question 2

Normative

Answer 2

Identifies ethical guidlines that dicate how firms should treat stakeholders

Question 3

Descriptive

Answer 3

Focuses on the firm’s behavior, addresses how decisions are mdae for stakeholder relationships

Question 4

Instrumental

Answer 4

Describes what happens if firms behave in a particular way

Question 5

Social responsibility

Answer 5

An organization’s obligation to maximize its postive impact on stakeholders and minimize negative impacts

Question 6

Self serving

Answer 6

Using donation to promote yourself/business

Question 7

Salary compression

Answer 7

Salary doesn’t increase even with percentage raise

Question 8

Corporate citizenship

Answer 8

Extent to which business strategically meet the economic, legal, ethical, and philanthronpic responsbilities placed on them by stakeholders

Question 9

Reputation

Answer 9

Corporation’s image and an intangible asset with tangible value

Question 10

Corporate governance

Answer 10

The development of formal system of accountability, oversight, and control

Question 11

Duty of care

Answer 11

Legal obligation of an individual to make informed decisions and avoid behavior that could cause harm to others

Question 12

Duty of loyalty

Answer 12

The obligation of individuals to make decisions taht are in the best interest of the corportation and stakeholders

Question 13

Accountability

Answer 13

Hold people accountable to the rules of the workplace

Question 14

Oversight

Answer 14

Checks and balance of the employee and manager to prevent unethical and illegal activities

Question 15

Executive compesation

Answer 15

How they are paid