Chapter 4. demanding Ethical and Socially Responsible Behavior

Question 1

Ethics

Answer 1

standards of moral behavior; that is, behavior accepted by society as right versus wrong

Question 2

3 questions

Answer 2

1. Is my proposed action legal?
2. Is it balanced?
3. How will it make me feel about myself?

Question 3

Compliance-based ethics code

Answer 3

emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers

Question 4

Integrity-based ethics code

Answer 4

Define the organization’s guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability

Question 5

Whistleblowers

Answer 5

insiders who report illegal or unethical behavior

Question 6

Corporate Social Responsibility (CSR)

Answer 6

a business’s concern for the welfare of society

Question 7

Corporate philanthropy

Answer 7

includes charitable donations

Question 8

Corporate social initiatives

Answer 8

include enhanced forms of corporate philanthropy directly related to the company’s competencies

Question 9

Corporate responsibility

Answer 9

Includes everything from hiring minority workers to making safe products

Question 10

Corporate policy

Answer 10

the position a firm takes on social and political issues

Question 11

4 basic rights of consumers

Answer 11

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

Question 12

Insider trading

Answer 12

an unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends

Question 13

5 types of watchdogs

Answer 13

1. socially conscious investors
2. socially conscious research organizations
3. environmentalists
4. union officials
5. customers