Chapter 2 Making Ethical Decisions and Managing a Socially Responsible Business

Question 1

A set of moral standards for judging whether something is right or wrong is referred to as ________________.

Answer 1

ethics

Question 2

A(n) ___________ is a situation where a person must choose from a set of actions that may be ethical or unethical.

Answer 2

ethical issue

Question 3

_________ is what is considered fair according to the prevailing standards of society; an equitable distribution of the burdens and rewards that society has to offer.

Answer 3

justice

Question 4

The philosophy that holds that an action that affects the majority adversely is morally wrong is called ______________. It focuses on the consequences of an action to determine whether it is right or wrong.

Answer 4

utilitarianism

Question 5

A philosophy in which a person will follow his or her obligations to an individual or society because upholding one’s duty is what is ethically correct is called ___________.

Answer 5

deontology

Question 6

A firm may provide a __________ which is a set of guidelines prepared by a firm to provide its employees with the knowledge of what the firm expects in terms of their responsibilities and behavior toward fellow employees, customers, and suppliers.

Answer 6

code of ethics

Question 7

_________________ is the concern of businesses for the welfare of society as a whole; consists of obligations beyond those required by law or contracts.

Answer 7

corporate social responsibility (CSR)

Question 8

___________ are Individuals or groups to whom a business has a responsibility. This includes employees, customers, the general public, and investors.

Answer 8

stakeholders

Question 9

The practice of charitable giving by corporations, including contributing cash, donating equipment and products, and supporting the volunteer efforts of company employees, is called _____________.

Answer 9

corporate philanthropy

Question 10

The practice of limiting investments to securities of companies that behave in accordance with the investor’s beliefs about ethical and social responsibility to encourage businesses to be more socially responsible is called __________________.

Answer 10

social investing

Question 11

A company may tie philanthropy and corporate social responsibility efforts closely to to the company’s mission or goals and target donations to the communities where the company does business. This practice is called ______________.

Answer 11

strategic giving