Chapter 2

Question 1

ethics

Answer 1

beliefs about what is right and wrong or good and bad in actions that affect others

Question 2

ethical behavior

Answer 2

behavior that conforms to individual beliefs and social norms about what’s good or bad

Question 3

unethical behavior

Answer 3

behavior that conforms to individual beliefs and social norms about what is defined as wrong and bad

Question 4

business ethics

Answer 4

ethical or unethical behavior by employees and managers in the context of their jobs

Question 5

managerial ethics

Answer 5

standards of behavior that guide individual managers in their work

Question 6

conflict of interest

Answer 6

activity may benefit the individual to the the detriment of the employer

Question 7

primary agents of interest

Answer 7

customers, competitors, stockholders, suppliers, dealers, unions

Question 8

ponzi scheme

Answer 8

using funds from new clients to pay the returns to the old clients (Madoff)

Question 9

Assessing Ethical Behavior

Answer 9

Gather relevant factual info
Analyze the facts to determine the most appropriate moral values
Make ethical judgment based on the rightness or wrongness of the proposed activity or policy

Question 10

Ethical Norms

Answer 10

utility
rights
justice
caring

Question 11

utility

Answer 11

an act that optimizes the benefits to all parties

Question 12

rights

Answer 12

respect the rights of all

Question 13

justice

Answer 13

consistent with what is fair

Question 14

caring

Answer 14

people’s responsibilities to one another

Question 15

How do Companies Formalize Top Management Commitment

Answer 15

Adopting written codes

Instituting Ethics Programs

Question 16

social responsibility

Answer 16

attempt of a business to balance its commitments to groups and individuals in its environment, including customers, other business, employers, investors, and local communities

Question 17

organizational stakeholders

Answer 17

groups, individuals, and organizations that are directly affected by the practices of an organization and who therefore have a stake in its performance

Question 18

what do companies that strive to be responsible focus on

Answer 18

customer
employees
investors
suppliers
local and international communities

Question 19

consumerism

Answer 19

form of social activism dedicated to protecting the rights of consumers in their dealing with business

Question 20

collusion

Answer 20

illegal agreement between two or more companies to commit a wrongful act

Question 21

price gouging

Answer 21

responding to increased demand with overly steep price increases

Question 22

whistle blower

Answer 22

employee who detects and trues to put an end to a company’s unethical, illegal, or social irresponsible actions by publicizing them

Question 23

insider trading

Answer 23

illegal practice of using special knowledge about a firm for gain or for profit

Question 24

Sarbanes-Oxley Act

Answer 24

requires an organizations CFO to personally guarantee the accuracy of all financial reportings

Question 25

Approaches to social responsibility

Answer 25

obstructionist stance defensive stance accommodative stance proactive stance

Question 26

obstructionist stance

Answer 26

involves doing as little as possible and may involve attempts to deny or cover up violations

Question 27

defensive stance

Answer 27

a company meets only the minimum legal requirements in its commitments to groups and individuals

Question 28

accommodative stance

Answer 28

a company, if specifically asked to do so, exceed the legal minimums

Question 29

proactive stance

Answer 29

company actively seeks for opportunities to contribute to the well beings of groups and individuals

Question 30

regulation

Answer 30

establishment of laws and rules that dictate what organizations can and cannot do

Question 31

lobbying

Answer 31

use of persons to formally represent an organization or groups of organizations before political bodies

Question 32

political action committees

Answer 32

special organization created to solicit money and they distribute to political candidates

Question 33

how do businesses influence government

Answer 33

personal contacts lobbying political action committees favors

Question 34

formal organizational dimensions

Answer 34

legal compliance ethical compliance philanthropic giving

Question 35

legal compliance

Answer 35

extent to which the organization conforms to local, state, federal, and international laws

Question 36

ethical compliance

Answer 36

extent to which the members of the organization follow basic and ethical legal standards of behavior

Question 37

philanthropic giving

Answer 37

awarding of funds or gifts to charities or other worthy causes

Question 38

informal organizational dimensions

Answer 38

leadership | whistle blowing

Question 39

corporate social audit

Answer 39

formal and thorough analysis of the effectiveness of a firm's social performance