chapter 3

Question 1

Ethics

Answer 1

individual standards or moral values regarding what is right and wrong or good and bad.

Question 2

Business Ethics

Answer 2

Ethical or unethical behaviours by a manager or employee of a business.

Question 3

Managerial ethics

Answer 3

Standards of behaviour that guide individual managers in their work.

Question 4

Conflict of interest

Answer 4

Occurs when an activity benefits the employee at the expense of the employer.

Question 5

Corruption

Answer 5

dishonest or fraudulent conduct by those in power, typically involving bribery.

Question 6

Utility ethical norm

Answer 6

Does a particular act optimize what is best for those who are affected by it?

Question 7

Rights ethical norm

Answer 7

Does it respect the rights of the individuals involved?

Question 8

Justice ethical norm

Answer 8

Is it consistent with what we regard to be fair

Question 9

caring ethical norm

Answer 9

Is it consistent with people’s responsibilities to each other?

Question 10

Corporate social responsibility

Answer 10

The idea that a business should balance its commitments to individuals and groups that are directly affected by the organization’s activities

Question 11

managerial capitalism

Answer 11

is that a company’s only responsibility is to make as much money as possible for its shareholders, as long as the company doesn’t break any laws.

Question 12

fair-trade movement

Answer 12

A movement designed to help workers in developing countries receive fair payments for their work.

Question 13

organizational stakeholders

Answer 13

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

Question 14

main stakeholders

Answer 14

(1) customers, (2) employees, (3) investors, (4) suppliers, and (5) the local communities where they do business

Question 15

three key areas regarding the social responsibility of business toward customers

Answer 15

consumer rights, unfair pricing , and ethics in advertising

Question 16

consumerism

Answer 16

A social movement that seeks to protect and expand the rights of consumers in their dealings with businesses

Question 17

consumer rights

Answer 17

The right to safe products, to be informed about all relevant aspects of a product, to be heard, choose what they buy, be educated about what they purchase, courteous service

Question 18

collusion

Answer 18

secret or illegal cooperation or conspiracy, especially in order to cheat or deceive others.

Question 19

issues with ethics in advertising

Answer 19

truth-in-advertising claims, the advertising of counterfeit brands, the use of stealth advertising, and advertising that is morally objectionable.

Question 20

whistle blower

Answer 20

An individual who calls attention to an unethical, illegal, or socially irresponsible practices on the part of a business or other organization

Question 21

insider trading

Answer 21

The use of confidential information to gain from the purchase or sale of stock.

Question 22

OBSTRUCTIONIST stance

Answer 22

do as little as possible to solve social or environmental problems

Question 23

defensive stance

Answer 23

will do everything required of it legally, but nothing more.

Question 24

accommodative stance

Answer 24

meets its legal and ethical requirements but also goes further in certain cases if it is asked, and solicitors must convince the firm that these programs are worthy of funding

Question 25

proactive stance

Answer 25

take to heart the arguments in favour of CSR. They view themselves as good citizens of society, and they proactively seek opportunities to contribute.

Question 26

social audit

Answer 26

A systematic analysis of how a
firm is using funds earmarked for social responsibility goals and how effective these expenditures have been

Question 27

ethics vs social responsibility

Answer 27

Ethics are individual beliefs about what is right and wrong, whereas social responsibility refers to the way a firm attempts to balance its commitments to organiza-tional stakeholders.