Chapter 4

Question 1

Ethics

Answer 1

Society’s accepted standards of moral behavior

Question 2

Compliance-based ethics codes

Answer 2

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

Question 3

Integrity-based ethics codes

Answer 3

Definte the organizations guiding values, create an environment that supports ethically sound behavior, and stress shared accountability.

Question 4

Whistleblowers

Answer 4

Insiders who report illegal or unethical behavior

Question 5

Corporate Social Responsibility

Answer 5

The Concern businesses have for the welfare of society, not just for their owners.

Question 6

Corporate Philanthropy

Answer 6

Corporate responsibility that includes charitable donations.

Question 7

Corporate Social Incentives

Answer 7

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

Question 8

Corporate Responsibility

Answer 8

Social responsibility that includes everything from hiring minority workers to making safe products.

Question 9

Corporate Policy

Answer 9

Refers to the position a firm takes on social and political issues.

Question 10

Triple Bottom Line

Answer 10

People. Profit. Planet. A way of measuring corporate performance

Question 11

Insider Trading

Answer 11

Unethical Activity in which insiders use private company information to further their own fortunes or those of their family and friends

Question 12

Regulation FD (Fair Disclosure)

Answer 12

Requires companies that release any information to share it with everybody.

Question 13

Social Audit

Answer 13

A systemic Evaluation of an organizations progress toward implementing socially responsible and responsive programs

Question 14

Foreign Corrupt Practices Act (1970)

Answer 14

US law that prohibits the payment of anything of value to foreign government officials in order to gain a business advantage

Question 15

What three questions need to be answered when faced with a potentially unethical action?

Answer 15

• Is my proposed action legal?
• Is it balanced?
  -How will it make me feel about myself?

Question 16

What are the four basic rights of consumers?

Answer 16

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

Question 17

Sarbanes Oxley Act

Answer 17

protects whistleblowers by requiring all public corporations to allow employee concerns.