Chapter 4

Question 1

Ethics is defined as

Answer 1

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

Question 2

What basic morale values are considered right?

Answer 2

Integrity, respect for human life, self-control, honesty, courage, and self sacrifice are right

Question 3

What actions are considered in opposition to basic morale values?

Answer 3

Cheating, cowardice, cruelty

Question 4

What three questions should you ask yourself when making decisions

Answer 4

1. Is it legal and within company policy?
2. Is it balanced and fair?
3. How will I feel about myself?

Question 5

How do ethics and legality differ?

Answer 5

Just because something is legal doesn’t mean it is ethical. Ethics reflects proper relationships with one another.

Question 6

How do people learn ethical behavior

Answer 6

Caught more than taught. By seeing what others do not what they say. Starts at the top with leaders

Question 7

Trust and cooperation between workers and managers must be based on?

Answer 7

Fairness, honesty, openness, and moral integrity.

Question 8

What are compliance-based ethics codes?

Answer 8

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

Question 9

What are integrity based ethics codes?

Answer 9

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

Question 10

What are six steps to improving U.S. business ethics?

Answer 10

1. Top management must adopt and support a code of conduct.
2. Employees must understand that expectations for ethical behavior begin at the top and that senior leadership expects everyone to act accordingly
3. Managers and others must be trained on ethical implications
4. An ethics office must be set up for anonymous communication.
5. All outside suppliers, sub-contractors, etc must be told about the ethics program.
6. Must be enforced in a timely manner.

Question 11

What is a whistleblower?

Answer 11

An insider that reports illegal or unethical behavior

Question 12

The concern businesses have for the welfare of society, not just their owners Is called what

Answer 12

Corporate social responsibility. (CSR)

Question 13

What do detractors think about CSR?

Answer 13

That the only social responsibility a business has is to make it’s investors money. Using investor money for anything else is like stealing from investors.

Question 14

What do advocates say about CSR?

Answer 14

That businesses owe their profits and success to society and can’t survive without society and that CSR will return better investements in the long run.

Question 15

What is corporate philanthropy

Answer 15

includes charitable donations to nonprofit groups of all kinds.

Question 16

What is Corporate social initiatives?

Answer 16

enhanced forms of corporate philanthropy. They are more directed towards a companies competencies

Question 17

What is corporate responsibility

Answer 17

In clouds essentially everything that has to do with acting responsibly within society.

Question 18

Corporate policy related to CSR is what?

Answer 18

Refers to a firms position on social and political issues.

Question 19

What are four customer rights?

Answer 19

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

Question 20

A low cost was to communicate a companies CSR

Answer 20

Social media

Question 21

Define insider trading

Answer 21

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

Question 22

how do companies get respect from employees?

Answer 22

By giving it

Question 23

For some companies, charity is not enough. What else do they do?

Answer 23

Environmental cleanups, building community toilets, providing computer lessons, caring for elderly, and comporting underprivileged children.

Question 24

What is a social audit

Answer 24

a systematic evaluation of an organizations progress toward implementing socially responsible and responsive programs.

Question 25

A problem when conducting social audits is knowing how to conduct it and measure a firms effects. What are some considerations? 6 items

Answer 25

environment, product safety, community relations, military weapons contracting, international operations and human rights.

Question 26

What five types of groups serve as watch dogs to CSR?

Answer 26

1. Socially conscious investors
2. Socially conscious research organizations
3. Environmentalist
4. Union officials
5. Customers

Question 27

How are U.S. businesses demanding socially responsible behavior from international suppliers?

Answer 27

By demanding they adhere to U.S. human rights and environmental standards.