Chapter 2 Flashcards by Clairrisa Klassen | Brainscape

Q

WATCHDOG GROUP

A

Activist Customers
Investors
Unions
Environmentalists
Community Groups

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Q

Ethics

A

Ethics –
beliefs about
right and wrong

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Q

Social responsibility

A

Social responsibility – the obligation of a business to contribute to society

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Q

Universal ethical standards

A

Universal ethical standards – developed by Character Counts, a non-partisan organization of educators, community leaders, and ethicists

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Q

Ethical dilemma

A

Ethical dilemma – negative consequences; two unfavourable options

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Q

Ethical lapse

A

Ethical lapse –

clear misconduct

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Q

Business ethics

A

Business ethics – the application of right and wrong in the workplace

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Q

Creating and Maintaining an Ethical Organization

A

Organizational culture
Role of top management
Code of ethics:
Executive buy-in
Clear expectations
Integrated approach
Global and local
Whistleblower support
Reporting and enforcement

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Q

Ethics at Work: How Would You Judge the Actions of These Business Leaders?

A

Microsoft CEO Bill Gates and his wife established the Bill & Melinda Gates Foundation, promoting health, education, and development around the world.

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Q

Ethics at Work: How Would You Judge the Actions of These Business Leaders?

A

Whole Foods CEO John Mackey posted thousands of comments on Yahoo! Finance, hyping his company and attacking Wild Oats, a competitor he was planning to purchase.

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Q

Ethics at Work: How Would You Judge the Actions of These Business Leaders?

A

Chris Spence resigned from being the director of the Toronto District School Board for plagiarizing speeches, blogs, and newspaper articles.

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Q

Ethics at Work: How Would You Judge the Actions of These Business Leaders?

A

Martin Shkreli, CEO of Turing Pharmaceuticals, raised the prices for a cancer drug by 5000% after they acquired marketing rights for the drug.

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Q

Ethics at Work: How Would You Judge the Actions of These Business Leaders?

A

Sylvie Therrien blew the whistle in 2013 when the government forced her to meet aggressive savings quotas aimed at reducing payments to EI claimants.

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Q

Ethics at Work: How Would You Judge the Actions of These Business Leaders?

A

Former Prime Minister, Brian Mulroney, accepted cash from a German businessman, placing it in a home safe and a New York safety deposit box.

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Q

Social responsibility

A

Social responsibility – the obligation of a business to contribute to society

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Q

Stakeholders

A

Stakeholders – any groups that have a stake, or a personal interest, in the performance and actions of an organization

Q

Capitalism with a Conscience

A

The gains in wealth, health care, education, and technology have not been evenly spread.
Half of the world’s population lives on less than $2 per day.
94% of the world’s earnings go to 40% of the people.
Bill Gates has called for a new approach to economics: creative capitalism.

Q

Business responsibilities to….

A

Employees - Creating jobs that work
Customers - Values, honesty, and communication
Investors - Fair stewardship and full disclosure
Community - Business and the greater good
Environment - Sustainable development

Q

Responsibility to Employees: Creating Jobs That Work

A

Meet legal standards
Provide workplace safety
Meet minimum wage/overtime requirements
Value employees
Provide work/life balance

Q

Consumerism

A

Consumerism – the right to be safe, the right to be informed, the right to choose, and the right to be heard

Q

Planned obsolescence

A

Planned obsolescence – deliberately designing products to fail in order to shorten the time between purchases

Q

Fair Stewardship and Full Disclosure

A

Legal requirements: Sarbanes-Oxley Act
Responsible use of corporate dollars
Honesty
Is optimism or pessimism socially responsible?

Q

Corporate philanthropy

A

Corporate philanthropy – business donations to non-profit groups, including both money and time

Q

Cause-related marketing

A

Cause-related marketing – partnerships between businesses and non-profit organizations, designed to spike sales for the company and raise money for the non-profit

Q

Corporate responsibility

A

Corporate responsibility – the actions of the business rather than donations of money and time

Q

Sustainable development

A

Sustainable development – doing business to meet the needs of this generation without harming the ability of future generations

Q

Green marketing

A

Green marketing – marketing environmental products and practices for competitive advantage

Q

Carbon footprint

A

Carbon footprint – amount of harmful greenhouse gases that a firm emits

Q

Social audit

A

Social audit – a systematic evaluation of how well a firm is meeting its ethics and social responsibility objectives

Q

Social audit

A

Establish goals

2. Determine how to measure the achievement of those goals