Chapter 3: Demanding Ethical and Socially Responsible Behavior

Question 1

Standards of moral behavior; that is, behavior accepted by society as right versus wrong.

Answer 1

Ethics

Question 2

Ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers.

Answer 2

Compliance-based ethics codes

Question 3

Ethical standards that define the organization’s guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees.

Answer 3

Integrity based eithics codes

Question 4

A business’s concern for the welfare of society.

Answer 4

Corporate social responsibility (CSR)

Question 5

The dimension of social responsibility that includes charitable donations.

Answer 5

Corporate philanthropy

Question 6

Enhanced forms of corporate philanthropy directly related to the company’s competencies.

Answer 6

Corporate social initiatives

Question 7

The dimension of social responsibility that includes everything from hiring minority workers to making safe products.

Answer 7

Corporate responsibility

Question 8

The dimension of social responsibility that refers to the position a firm takes on social and political issues.

Answer 8

Corporate policy

Question 9

An unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends.

Answer 9

Insider trading

Question 10

Ethical standards that define the organization’s guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees.

Answer 10

Integrity-based ethics codes

Question 11

Ethical standards that define the organization’s guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees.

Answer 11

Integrity-based ethics codes

Question 12

A payoff for socially conscious behavior is

Answer 12

new and loyal customers

Question 13

Insider trading involves

Answer 13

investors using private company information to further their own fortunes

Question 14

Which statement best describes ethical behavior in the United States?

Answer 14

We can find common moral values that many Americans uphold, including respect for human life, self-control, honesty, integrity, and courage.

Question 15

A very critical last step in the process of establishing an ethics code is

Answer 15

Enforcement

Question 16

Business relationships often present ethical dilemmas that are

Answer 16

not easily resolved

Question 17

The Foreign Corrupt Practices Act deals with

Answer 17

bribery to obtain business

Question 18

Determining what is involved for a firm to be socially responsible

Answer 18

varies even among those who are interested in corprate responsibility

Question 19

What is an unresolved ethical issue that surrounds global trade?

Answer 19

Labor standards

Question 20

One problem with conducting a social audit is

Answer 20

how to determine what should be measured and how to calculate the effect on society.

Question 21

Corporate social responsibility describes the firm’s

Answer 21

concern for the welfare of society.

Question 22

A(n) __________-based ethics code emphasizes the prevention of unlawful behavior by increasing control and penalizing wrongdoers.

Answer 22

compliance

Question 23

Considering the potential impact on others prior to making a decision is consistent with __________ behavior.

Answer 23

ethical

Question 24

The benefit of using ________ to communicate a business’s CSR efforts to the public is that it allows companies to reach broad and diverse groups directly in a low-cost, efficient way.

Answer 24

Social media

Question 25

When working with international firms, U.S. businesses

Answer 25

expect socially responsible behavior from their business partners.

Question 26

Following an ethics-based approach to decision making will normally lead to

Answer 26

Lower employee turnover