CHAPTER 4

Question 1

Ethics

Answer 1

The rules or standards governing the conduct of a person or group.

Question 2

Insider Trading

Answer 2

The use of unpublicized information that an individual gains from the course of his or her job to benefit from fluctuations in the stock market.

Question 3

Code of Ethics

Answer 3

A written statement that sets forth the principles that guide an organization’s decisions.

Question 4

Transparency

Answer 4

The degree to which affected parties can observe relevant aspects of transactions or decisions.

Question 5

Whistle-blowing

Answer 5

The disclosure by a company insider of information that exposes illegal or unethical behavior by others within the organization.

Question 6

Ethical Lapse

Answer 6

A situation in which an individual or a group makes a decision that is morally wrong, illegal, or unethical.

Question 7

Ethical dilemma

Answer 7

A situation in which more than one side of an issue can be supported with valid ethical arguments.

Question 8

Conflicts of Interest

Answer 8

Situations in which competing loyalties can lead to ethical lapses, such as when a business decision may be influenced by the potential for personal gain.

Question 9

Corporate Social Responsibility (CSR)

Answer 9

The idea that business has obligations to society beyond the pursuit of profits.

Question 10

Philanthropy

Answer 10

The donation of money, time, goods, or services to charitable, humanitarian, or educational institutions.

Question 11

Strategic CSR

Answer 11

Social contributions that are directly aligned with a company’s overall business strategy.

Question 12

Monogovernmental Organizations (NGOs)

Answer 12

Not-for-profit groups that provide charitable services
or promote social and environmental causes.

Question 13

Purpose-driven Business

Answer 13

A company that aspires to accomplish more than just making money for owners and investors.

Question 14

Sustainable Development

Answer 14

Operating business in a manner that minimizes pollution and resource depletion, ensuring that future generations will have vital resources.

Question 15

Consumerism

Answer 15

A movement that pressures businesses to consider consumer needs and interests.

Question 16

Identity Theft

Answer 16

A crime in which thieves steal personal information and use it to take out loans and commit other types of fraud.

Question 17

Discrimination

Answer 17

In a social and economic sense, denial of opportunities to individuals on the basis of some characteristic that has no bearing on their ability to perform in a job.

Question 18

Affirmative Action

Answer 18

Activities undertaken by businesses to recruit and promote members of groups whose economic progress has been hindered through either legal barriers or established practices.