Chapter 4

Question 1

ethics

Answer 1

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

Question 2

code of ethics

Answer 2

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

Question 3

transparency

Answer 3

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

Question 4

whistleblowing

Answer 4

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

Question 5

ethical lapse

Answer 5

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

Question 6

ethical dilemma

Answer 6

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

Question 7

conflicts of interest

Answer 7

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 8

corporate social responsibility (CSR)

Answer 8

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

Question 9

philanthropy

Answer 9

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

Question 10

strategic CSR

Answer 10

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

Question 11

nongovernmental organizations (NGOs)

Answer 11

Nonprofit groups that provide charitable services or promote social and environmental causes

Question 12

purpose-driven business

Answer 12

Any company that aspires to accomplish more than just make money for owners and investors

Question 13

sustainable development

Answer 13

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

Question 14

circular economy

Answer 14

Model of resource usage that operates as a series of loops in which materials and products are continually reused, recycled, and repurposed rather than being used by one owner and then discarded

Question 15

identity theft

Answer 15

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

Question 16

discrimination

Answer 16

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