chapter 3

Question 1

Ethics

Answer 1

• Basic moral values.
• Integrity.
• Respect for human life.
• Self-control.
• Honesty.
• Courage.
• Self-sacrifice.

Question 2

ethics issues

Answer 2

• Organizational ethics begins at the top.
• Based on fairness, honesty, openness, and moral
  integrity.
• Growing number of people think ethics has everything to do with management.

Question 3

Compliance-based ethics codes.

Answer 3

comprehensive guidelines that organizations implement to ensure adherence to laws, regulations, and industry standards.

Question 4

Integrity-based ethics codes.

Answer 4

spell out an organization’s values while giving employees the leeway to decide how they will behave according to their own standards.

Question 5

corporate social responsibility

Answer 5

Based on a commitment to integrity, fairness, and
respect

Companies with good ethical reputations attract and
retain better employees, draw more customers, and enjoy greater employee loyalty.

Question 6

Responsibility to Customers

Answer 6

1. The right to safety.
2. The right to be informed.
3. The right to choose.
4. The right to be heard.

Question 7

Insider trading

Answer 7

is an unethical means to improve a
person’s financial health.

Question 8

Responsibility to Society and the Environment

Answer 8

• Businesses partly responsible for promoting social justice.
• Green movement continues growing as concern about
  climate change increases.
• Many companies trying to minimize their carbon footprints.
• Environmental efforts may increase costs but can create
  new job opportunities.
• Environmental quality is a public good

Question 9

Social Auditing

Answer 9

• It’s difficult to establish procedures for measuring a firm’s
  activities and their effects on society.
• Workplace issues, charitable donations, and pollution
  control efforts are some areas to consider.
• Watchdogs:
• Socially conscious investors.
• Socially conscious research organizations.
• Environmentalists.
• Union officials.
• Customers