Chapter 4: Managing Ethics And Social Responsibility

Question 0

Three domains of human action

Answer 0

Domain of codified law (legal standard)

Domain of ethics (social standard)

Domain of free choice (personal standard)

Question 1

Ethics

Answer 1

Code of moral principles and values that govern the behaviors of right or wrong.

Question 2

Unethical/illegal behavior towards customers

Answer 2

• false or deceptive sales practices
• submitting misleading invoices
• fabricating product quality data

Question 3

Unethical/illegal behavior towards Financiers

Answer 3

• falsifying financial reports
• breaching database controls
• using confidential information

Question 4

Unethical/illegal behaviors towards society

Answer 4

• violating environmental standards
• exposing public to safety risks
• violating international human rights

Question 5

Unethical/illegal behavior towards suppliers

Answer 5

• accepting favors or kickbacks
• violating contract terms
• paying without accurate records or invoices

Question 6

Unethical/illegal behaviors towards employees

Answer 6

• discriminating against employees
• creating a hostile work environment
• violating health and safety rules

Question 7

Utilitarian approach

Answer 7

Moral behavior produces the greatest good for the greatest number.

Question 8

Individualism approach

Answer 8

Acts are moral if they promote the individuals long-term interests.

Question 9

Moral-rights approach

Answer 9

Humans have fundamental rights and liberties that cannot be taken away by an individual’s decision.

Question 10

Justice approach

Answer 10

Moral decisions must be based on standards of equity, fairness, and impartiality.

Question 11

Practical approach

Answer 11

Bases decisions on prevailing standards, society, and all stakeholders

Question 12

Three levels of personal moral development

Answer 12

Level 1: preconventional

Level 2: conventional

Level 3: postconventional

Question 13

Preconventional

Answer 13

Follows rules to avoid punishment. Acts in own interest. Obedient for its own sake.

Question 14

Conventional

Answer 14

Lives up to expectations of others. Fulfills duties and obligations of social system. Upholds law.

Question 15

Postconventional

Answer 15

Follows self-chosen principles of justice and right. Aware the people hold different values and seek creative solutions to ethical dilemmas. Balances concern for individual with concern for common good.

Question 16

Corporate social responsibility (CSR)

Answer 16

Making choices that contribute to society and stakeholders.

Question 17

Stakeholders

Answer 17

Any group within or outside of a business entity that are affected by that entity.

Question 18

Sustainability

Answer 18

Economic development that generates wealth and meets the needs of current generation while preserving the environment for the needs of future generations.

Question 19

Code of ethics

Answer 19

A formal statement of the company’s values regarding ethics and social issues.

Question 20

Ethical structure

Answer 20

Systems, positions, and programs like ethics training.

Question 21

Whistle-blowing

Answer 21

Employee disclosure of illegal, immoral, or illegitimate practices.