Chapter 4: Ethics, corporate social responsibility, sustainability, and governance

Question 1

• moral principles and values that govern the behavior of people, firms, and governments regarding right and wrong

Answer 1

ethics

Question 2

a meer of operating a business that meets or exceeds the ethical, legal, commercial, and public expectations of customers, shareholders, employees, and communities

Answer 2

corporate social responsibility (CSR)

Question 3

meeting humanitys needs without harming future generations

Answer 3

sustainability

Question 4

the system of procedures and processes by which corporations are managed, directed, and controlled

Answer 4

corporate governance

Question 5

• ethics
• corporate social responsibility
• sustainability

Answer 5

corporate governance
(organizing framework for ethical behavior)

Question 6

• acting in a fair and respectful way that does not harm human rights is the right thing to do
• is often prescribed within laws and regulations
• customers, governments, and the news media demand ethical behavior
• is good business, leading to enhanced corporate image and selling prospects

Answer 6

value of ethical behavior

Question 7

are ethical standards unifrom around the world

Answer 7

not really. each sociaety develops its own traditions, values, attitudes, norms, customs, and laws

Question 8

a probelm that involves two or more possible solutions, none of which resolves the situation in a morally satisfactory manner

Answer 8

ethical dilemma

Question 9

the belief that ehtical truths are not absolute but differ from group to group

Answer 9

relativism

Question 10

the belief that ehtical behavioral standards are niversal and global firms should seek to uphold them

Answer 10

normativism

Question 11

• corruption
• bribery
• harmful work environment
• unethical business practices
• harmful global sourcing
• illicit products and marketing
• intellectual property infringement

Answer 11

ethical challenges in interantional business

Question 12

• the practice of obtaining power, personal gain, or influence through illegitimate means
• includes bribery, embezzlement, fraud, extortion and blackmail, and money laundering

Answer 12

corruptions

Question 13

• recent data suggest the cost amounts to more than 5 percent of global GDP annually
• corruption increases global business costs by up to 10 percent

Answer 13

corruptions

Question 14

• widely practiced around the world, is the most notable form of corruption in international business

Answer 14

bribery

Question 15

numerous countries signed the anti-bribery convention developed by

Answer 15

Organization for economic co-operation and development (OECD)

Question 16

makes it illegal for US fimrs to offer bribes to foreign parties to secure or retain business
- excludes grease payments (small payments made to low level government officials to perform routine duties more efficiently

Answer 16

foreign corupt practices act (FCPA)

Question 17

ideas or works that individuals or firms create, including discoveries and inventions; artistic, musical, and literary works; and words, phases, symbols, and designs

Answer 17

intellectual property

Question 18

• legal claim through which the proprietary asset of firms and individuals are protected froom unauthorized use by other parties

Answer 18

intellectual property

Question 19

trademarks, copyrights, and patents

Answer 19

examples of intellectual property rights, the legal claim through which proprietary assets are protected from unathorized use

Question 20

arises in the form of piracy and counterfeiting, the unathorizing reproduction of use of copyrighted or patended work for financial gain

Answer 20

intellectual property infringement

Question 21

refers to operating a business in a manner that meets exceeds the ethical, legal, and commercial expectations of customers, shareholders, employees, and the communitites where the firm does business

Answer 21

corporate social responsibility (CSR)

Question 22

• workplace csr
• marketplace csr
• environmental csr
• ccommunity csr

Answer 22

settings for corporate social responsibility

Question 23

focuses on the fimrs employees and implies a thoughtful appraoch to diversity, recruitment, salary, safety, health, and working conditions
which setting of csr is this ?

Answer 23

workplace csr

Question 24

emphasizes interactions with customers, competitors, suppliers, and distributors and appropriate behavior regarding product development, marketing, and advertising
which setting of csr is this ?

Answer 24

marketplace csr

Question 25

refers to the firms activites to minimize or eliminate the creation of pollutants as well as efforts to improve the natural environment
which setting of csr is this ?

Answer 25

envrionemental csr

Question 26

accounts for the firms activites aimed at benefiting the community and society. it includes employee which setting of csr is this ? programs and philantrhopy
d

Answer 26

community csr

Question 27

• avoiding human rights abuses
• upholding the right to join or forum labor unions
• eliminating child labor
• avoiding workplace discrimination

Answer 27

examples of CSR values

Question 28

inplies the development and execution of company practices that avoid harming the ability of future generations to meet their needs
- it is endorsed by economic development experts, environmentalists, and human rights activists

Answer 28

sustainability

Question 29

• beneficial agricultural practices
• air quality protection
• water conservation

Answer 29

examples of sustainable practices

Question 30

provides the measn thorugh which the firms directors and managers undertake such behaviors

Answer 30

corporate governance

Question 31

creating a set of values and set of ground rules for guiding behavior

Answer 31

the role of corporate governance

Question 32

a document that describes the values and expectations that guide decision making be all employees in the in the firm

Answer 32

code of ethics

Question 33

a document that translates the code of ethics into specific rules regarding behaviors and practices

Answer 33

code of conduct

Question 34

1. build internal and external capabilites to enhance the firms contribution to the local community and global environment
2. ensure diverse voices are heard by creating organizational structures that employ managers and workers around the world
3. develop global ethical standards and objectives that are commincated and implemented across the firm worldwide
4. train managers in glonal ethical principles and integrate these into managerial repsonsibilities
5. develop closer relations with foreign stakeholders to understand their needs better and jointly work toward solutions

Answer 34

embracing CSR and sustainability

Question 35

has developed an anti-bribery agreement

Answer 35

organization for economic co-operation and development (OECD)

Question 36

means institutionalizing appropriate behavior in the organizations culture so it becomes part and parcel of strategy

Answer 36

going deep

Question 37

implies a continuous effort to understand how CSR and sustainability affect every aspect of the firms operations worldwide

Answer 37

going wide

Question 38

goes hand in hand with globalization. it requires the firm to examine its global operations to identify and improve specific local issues that affect stakeholders

Answer 38

going local

Question 39

1. identify problem
2. examine the facts
3. create alternatives
4. implement course of action
5. evaluate results

Answer 39

5 step framework for making ethical decisions