Chapter 3: Ethics and Social Responsibility

Question 1

Define individual character

Answer 1

personal integrity, deserves constant attention

Question 2

Define ethics

Answer 2

the code of moral principles that sets standards of good or bad, or right or wrong

Question 3

Define ethical behavior

Answer 3

is right or good in the context of a governing moral code

Question 4

Define values

Answer 4

underlying beliefs and judgments regarding what is right or desirable and that influence individual attitudes and behaviors

Question 5

Define terminal values

Answer 5

preferences about desired end states

Question 6

Give examples of terminal values

Answer 6

• Examples include self-respect, family security, freedom, inner harmony, and happiness

Question 7

Define instrumental values

Answer 7

the preferences regarding the means to desired ends

Question 8

Give examples of instrumental values

Answer 8

• Examples include honesty, ambition, courage, imagination, and self-discipline

Question 9

Define utilitarian view

Answer 9

considers ethical behavior to be that which delivers the greatest good to the greatest number of people

Question 10

Define individualism view

Answer 10

ethical behavior advances long-term self-interests

Question 11

Define justice view

Answer 11

ethical behavior treats people impartially and fairly

Question 12

Define procedural justice

Answer 12

involves the fair administration of policies and rules

Question 13

Define distributive justice

Answer 13

focuses on treating peoples the same regardless of personal characteristics

Question 14

Define interactional justice

Answer 14

focuses on treating everyone with dignity and respect

Question 15

Define commutative justice

Answer 15

focuses on the fairness of exchanges or transactions

Question 16

Define moral rights view

Answer 16

ethical behavior respects and protects fundamental rights

Question 17

Define pecuniary ethic

Answer 17

push the law to its outer limit

Question 18

Define ethical dilemma

Answer 18

a situation requiring a decision about a course of actions that, although offering potential benefits, may be considered unethical

Question 19

Define ethical framework

Answer 19

well-thoughtout personal rules and strategies for ethical decision making

Question 20

Define preconventional stage of moral development

Answer 20

• In preconventional stage of moral development the individual is self-centered

Question 21

Define conventional stage of moral development

Answer 21

• In the conventional stage of moral development, attention broadens to include more social concerns

Question 22

Define postconventional stage of moral development

Answer 22

• In the postconventional stage of moral development also known as the principled stage, the individual is strongly driven by core principles and personal beliefs

Question 23

Define ethics training

Answer 23

seeks to help people understand the ethical aspects of decision making and to incorporate high ethical standards into their daily behavior

Question 24

Define spotlight questions

Answer 24

highlight the risks from public disclosure of one’s action

Question 25

Define whistleblowers

Answer 25

persons who expose organizational misdeeds in order to preserve ethical standards and protect against wasteful, harmful, or illegal acts

Question 26

Define immoral manager

Answer 26

chooses to behave unethically

Question 27

Define amoral manager

Answer 27

fails to consider the ethics of her or his behavior

Question 28

Define moral manager

Answer 28

makes ethical behavior a personal goal

Question 29

Define code of ethics

Answer 29

formal statement of values and ethical standards

Question 30

Define stakeholders

Answer 30

people and institutions most directly affected by an organization’s performance

Question 31

Define corporate social responsibility

Answer 31

obligation of the organization to act in ways that serve both its own interests and the interests of its stakeholders, representing society at large

Question 32

Define triple bottom line

Answer 32

organizational performance including financial, social, and environmental criteria

Question 33

Define 3 Ps of Organizational performance

Answer 33

profit, people, and planet

Question 34

Define classical view of CSR

Answer 34

management’s only responsibility in running a business is to maximize profits and shareholder value

Question 35

Define socioeconomic view of CSR

Answer 35

management of any organization should be concerned for the broader social welfare, not just corporate profits

Question 36

Define virtuous circle

Answer 36

corporate social responsibility leads to improved financial performance that leads to more socially responsible actions in the future

Question 37

Define shared value

Answer 37

business executives should make decisions that show full understanding that economic and social progress are fundamentally interconnected

Question 38

Define social responsibility audit

Answer 38

measures and reports on an organization’s performance in various areas of corporate social responsibility

Question 39

Define sustainability

Answer 39

a goal that addresses the rights of present and future generations as stakeholders of the world’s natural resource

Question 40

Define sustainable business

Answer 40

where firms operate in ways that both meet the needs of customers and protect or advance the well-being of our natural environment

Question 41

Define sustainable development

Answer 41

making use of natural resources to meet today’s needs while also preserving and protecting the environment for use by future generations

Question 42

Define environmental capital/natural capital

Answer 42

the storehouse of natural resources that we use to sustain life and produce goods and services for society

Question 43

Define ISO 14001

Answer 43

a global quality standard that requires certified organizations to set environmental objectives and targets; account for the environmental impact of their activities, products, or services; and continuously improve environmental performance

Question 44

Define social business

Answer 44

the underlying business model directly addresses a social problem

Question 45

Define social entrepreneurs

Answer 45

take business risks to find more novel ways to solve pressing social problems