Chapter 4

Question 1

Ethics

Answer 1

As set of beliefs about right and wrong, good and bad.

Question 2

Universal Ethical Standards

Answer 2

Ethical norms that apply to all people across a broad spectrum of situations.

Question 3

Business Ethics

Answer 3

The application of right and wrong, good and bad, in a business setting.

Question 4

Ethical Dilemma

Answer 4

A decision that involves a conflict of values, every potential course of action has some significant negative consequences.

Question 5

Code of Ethics

Answer 5

A formal, written document that defines the ethical standards of an organization and gives employees the information they need to make ethical decisions across a range of situations.

Question 6

Whistle-Blowers

Answer 6

Employees who report their employer’s illegal or unethical behavior to either the authorities or the media.

Question 7

Social Responsibility

Answer 7

The obligation of a business to contribute to society.

Question 8

Stakeholders

Answer 8

Any groups that have a stake - or a personal interest - in the performance and actions of an organization.

Question 9

Consumerism

Answer 9

A social movement that focuses on four key consumer right: (1) the right to be safe, (2) the right to be informed, (3) the right to choose, and (4) the right to be heard.

Question 10

Sarbanes-Oxley Act

Answer 10

Federal legislation passed in 2002 that sets higher ethical standards for public corporations and accounting firms. Key provisions limit conflict-of-interest issues and require financial officers and CEOs to certify the validity of their financial statements.

Question 11

Corporate Philanthropy

Answer 11

All business donations to nonprofit groups, including money, products, and employee time.

Question 12

Cause-Related Marketing

Answer 12

Marketing partnerships between businesses and nonprofit organizations, designed to spike sales for the company and raise money for the nonprofit.

Question 13

Corporate Responsibility

Answer 13

Business contributions to the community through the actions of the business itself rather than donations of money and time.

Question 14

Sustainable Development

Answer 14

Doing business to meet the needs of the current generation without harming the ability of future generations to meet their needs.

Question 15

Social Audit

Answer 15

A systematic evaluation of how well a firm is meeting its ethics and social responsibility goals.