Chapter 5

Question 1

Ethics

Answer 1

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

Question 2

Corruption

Answer 2

The abuse of power to achieve illegitimate personal gain

Question 3

Corporate social responsibility (CSR)

Answer 3

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

Question 4

Sustainability

Answer 4

Meeting humanity’s needs without harming future generations

Question 5

Corporate governance

Answer 5

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

Question 6

Intellectual property

Answer 6

Ideas or works created by individuals or firms, including discoveries and inventions; artistic, musical, and literary works; and words, phrases, symbols, and designs

Question 7

Intellectual property rights

Answer 7

The legal claim through which the proprietary assets of firms and individuals are protected from unauthorized use by other parties

Question 8

Relativism

Answer 8

Belief that ethical truths are not absolute but differ from group to group

Question 9

Normativism

Answer 9

Belief that ethical behavioral standards are universal, and firms and individuals should seek to uphold them around the world