Chapter 4: Business Ethics

Question 1

Ethics

Answer 1

standard of moral behavior which is accepted by society as right vs wrong
-few people have moral absolutes (believing there is only one lens to judge somebody by)

Question 2

Unethical behavior-

Answer 2

Office ex: violate safety standards/goof off
Personal: people don’t usually volunteer
School: plagiarism/cheat on test

Question 3

3 questions to ask yourself when faced with an ethical dilemma

Answer 3

-is it balanced
-how will it make me feel
-is it legal

Question 4

3 Factors that influence managerial Ethics

Answer 4

Individual (values/family status)
-Organizational (management)
-Environmental (competition)

Question 5

Integrity vs Compliance-based ethics

Answer 5

-Managers and business creates ethical standards, managers try to uphold them in their employees, everyone keeps each other accountable
-These are the ethics of a business that they must follow that will result in penalty if not followed (prevents unlawful behavior)

Question 6

6 steps to improving business ethics

Answer 6

1) Top management must adopt the corporate code of conduct
2) employees must understand that managers expect them to act ethically
3) mangers are informed and trained on how to make ethical business decisions
4)An ethical officer is required for employees to anonymously reach out to
5) involve outsiders: suppliers, customers, distributors
6) Ethical code must be enforced in a timely manner

Question 7

What is a manager’s role in business ethics?

Answer 7

-to create and open, fair, and honest relationship between them and employees (gain trust)
-obey by the ethical standards

Question 8

Corporate Social Responsibility (CSR)

Answer 8

Business concern for the welfare of society
-^generally succeed at a higher rate
-some believe that these businesses owe their existence to societies they serve and not ones that fail

Question 9

Corporate philanthropy

Answer 9

-making donations (charities)

Question 10

corporate social initiatives

Answer 10

advanced form of corporate philanthropy that goes along with their competences

Question 11

Corporate responsibility

Answer 11

-everything from hiring more minority workers to making safer products (want to improve social, environmental factors

Question 12

Corporate policy

Answer 12

position a company takes on social and political issues

Question 13

Social Media and corporation social responsibility

Answer 13

-reaching a broader/narrow groups of people
-can compete better due to global competition
-reviews keep companies accountable

Question 14

Insider trading

Answer 14

-illegal activity where employees use corporate private information to improve their own lives/fortunes

Question 15

Social auditing

Answer 15

system approach to keeping track of a company’s social responsibility

Question 16

5 Types of Watchdogs

Answer 16

1) union
2) consumers
3) socially conscious investors
4) socially conscious research organizations
5) environmentalists

Question 17

Fraction of people that don’t volunteer every year

Answer 17

3/4

Question 18

What is Milton Freidman’s view on a business’ social responsibility

Answer 18

make profit for the owner and the rest is socialism

Question 19

-bribery
-peddling:

Answer 19

-unethical concern (sometimes not seen as a concern)
- act of promoting an idea widely (slightly like propaganda)

Question 20

Corporate social initiative

Answer 20

enhanced forms of corporate philanthropy that relate to a company’s competences (what they relate/make)

Question 21

What is the Dodd-Frank Wall Street Reform and Consumer Protection Act

Answer 21

Commission shall pay awards to eligible whistleblowers who voluntarily provides the SEC with original information that leads to a successful enforcement action yielding monetary sanctions of over $1 million