Chapter 3: Business Ethics, Environmental Sustainability and Corporate Social Responsibility

Question 1

principles of conduct within organizations that guide decision making and behavior

Answer 1

Business Ethics

Question 2

Define Business Ethics

Answer 2

principles of conduct within organizations that guide decision making and behavior

Question 3

actions an organization takes beyond what is legally required to protect or enhance the well-being of living things

Answer 3

Social Responsibility

Question 4

Define Social Responsibility

Answer 4

actions an organization takes beyond what is legally required to protect or enhance the well-being of living things

Question 5

the extent that an organization’s operations and actions protect, mend, and preserve rather than harm or
destroy the natural environment

Answer 5

Sustainability

Question 6

What are the Seven Principles of Admirable Business Ethics

Answer 6

1. Be trustworthy; no individual or business wants to engage in
   business with an organization it does not trust
2. Be open-minded, continually asking for “ethics-related feedback”
   from all internal and external stakeholders.
3. Honor all commitments and obligations.
4. Avoid misrepresenting, exaggerating, or misleading with print
   materials, actions, or words.
5. Visibly be a responsible community citizen.
6. Use your accounting practices to identify and eliminate questionable
   activities.
7. Follow the Golden Rule: “Do unto others as you would have them do
   unto you.”

Question 7

To ensure that the code of ethics is read, understood, believed, and remembered, periodic ethics workshops are
needed to sensitize people to workplace circumstances in
which ethics issues may arise.

Answer 7

Code of Business Ethics

Question 8

Define Code of Business Ethics

Answer 8

To ensure that the code of ethics is read, understood, believed, and remembered, periodic ethics workshops are
needed to sensitize people to workplace circumstances in
which ethics issues may arise.

Question 9

How to Establish an Ethics Culture

Answer 9

Follow the Code of Business Ethics

Question 10

What are the Business Ethics Topics That Have
Become Important?

Answer 10

• Whistle-blowing
• Bribery
• Workplace romance

Question 11

This refers to employees reporting any unethical violations they discover or see in the firm

Answer 11

Whistle-Blowing

Question 12

the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person
in discharge of a public or legal duty

Answer 12

Bribery

Question 13

Define Bribery

Answer 13

• the offering, giving, receiving, or soliciting of any item of
  value to influence the actions of an official or other person
  in discharge of a public or legal duty
• a crime in most countries of the world, including the United States

Question 14

a crime in most countries of the world, including the United States

Answer 14

Bribery

Question 15

Define Whistle-Blowing

Answer 15

This refers to employees reporting any unethical violations they discover or see in the firm

Question 16

Workplace romance can be detrimental to morale and productivity:

Answer 16

• favoritism complaints can arise
• confidentiality of records can be breached
• reduced quality and quantity of work could result
• personal arguments can lead to work arguments
• whispering secrets can lead to tensions
• sexual harassment charges may ensue
• conflicts of interest could arise

Question 17

Define Environmental Sustainability

Answer 17

• Employees, consumers, governments, and society are especially resentful of firms that harm rather than protect the natural environment.
• Conversely, people today are especially appreciative of firms that conduct operations in a way that mends, conserves, and preserves the natural environment.

Question 18

Employees, consumers, governments, and society are especially resentful of firms that harm rather than protect the natural environment.

Answer 18

Environmental Sustainability

Question 19

Conversely, people today are especially appreciative of firms that conduct operations in a way that mends, conserves, and preserves the natural environment.

Answer 19

Environmental Sustainability

Question 20

Sustainability report:

Answer 20

• reveals how a firm’s operations impact the natural environment
• discloses to shareholders information about the firm’s labor practices, product sourcing, energy efficiency, environmental impact, and business ethics practices

Question 21

• reveals how a firm’s operations impact the natural environment

Answer 21

Sustainability report

Question 22

• discloses to shareholders information about the firm’s labor
  practices, product sourcing, energy efficiency, environmental impact, and business ethics practices

Answer 22

Sustainability report

Question 23

The ISO 14000 family of standards concerns ____

Answer 23

The ISO 14000 family of standards concerns the extent to which a firm minimizes harmful effects on the environment
caused by its activities and continually monitors and
improves its own environmental performance.

Question 24

This is a set of standards adopted by thousands of firms worldwide to certify to their constituencies that they are conducting business in an environmentally friendly
manner

Answer 24

ISO 14001

Question 25

Define ISO 14001

Answer 25

* ISO 14001 is a set of standards adopted by thousands of firms worldwide to certify to their constituencies that they are conducting business in an environmentally friendly manner * Results in an Environmental Management System (EMS)

Question 26

What does EMS stands for?

Answer 26

Environmental Management System (EMS)

Question 27

Reasons Why Preserving the Environment Should Be a Permanent Part of Doing Business

Answer 27

* Consumer demand for environmentally safe products and packages is high. * Public opinion demanding that firms conduct business in ways that preserve the natural environment is strong. * Environmental advocacy groups now have more than 20 million Americans as members. * Federal and state environmental regulations are changing rapidly and becoming more complex. * Many lenders are examining the environmental liabilities of businesses seeking loans. * Many consumers, suppliers, distributors, and investors shun doing business with environmentally weak firms. * Liability suits and fines against firms having environmental problems are on the rise.

Question 28

Ralph Nader proclaims ___that organizations have tremendous social obligations.

Answer 28

Ralph Nader proclaims that organizations have tremendous social obligations.

Question 29

Milton Friedman asserts ________

Answer 29

Milton Friedman asserts that organizations have no obligation to do any more for society than is legally required.

Question 30

Who proclaims that organizations have tremendous social obligations?

Answer 30

Ralph Nader

Question 31

Who asserts that organizations have no obligation to do any more for society than is legally required.

Answer 31

Milton Friedman

Question 32

Provide an example of a Corporate Social Responsibility

Answer 32

* Ralph Nader proclaims that organizations have tremendous social obligations. * Milton Friedman asserts that organizations have no obligation to do any more for society than is legally required.

Question 33

What does CSR stands for?

Answer 33

Corporate Social Responsibility

Question 34

Provide an example of a Corporate Social Responsibility (CSR) and Performance

Answer 34

* Research reveals a u-shaped relationship between CSR and corporate financial performance, whereby firms with the greatest CSR are generally also the firms with the highest financial performance; firms with the lowest CSR tend to have higher performance than those with moderate social responsibility. * Important to know that no social need can be met if the firm fails.

Question 35

* Consumers expect humane treatment of animals. * Consumers are flocking to organic products.

Answer 35

Food Suppliers and Livestock Welfare

Question 36

Consumers globally are becoming increasingly intolerant of any business or nation that directly or indirectly destroys wildlife, especially endangered wildlife, such as tigers, elephants, whales, songbirds, and coral reefs.

Answer 36

Wildlife Welfare

Question 37

10 Companies With The Best CSR Reputation as Rated by Consumers

Answer 37

1. The Lego Group 2. Microsoft 3. Google 4. Walt Disney Company 5. B MW Group 6. Intel 7. Robert Bosch 8. Cisco Systems 9. Rolls-Royce Aerospace 10. Colgate-Palmolive