Chapter 5 - Ethics

Question 1

Define corporate citizenship

Answer 1

Contract between business and society, what happens to societies happens to business

Question 2

Four main principles of corporate citizenship

Answer 2

Minimize harm

Maximize benefit

Accountable and Responsive to Key Stakeholders

Support strong financial results

Question 3

What are the 3 Ethical Models?

Answer 3

1 Utilitarian Model

2 Justice Model

3 Moral-Rights Model

Question 4

Characteristics of Utilitarian Model

Answer 4

Focuses of actions not motives for actions

Choose course of action that benefits greatest number of people

Potential positive results > potential negative results

Under capitalism: primary managerial obligation is to max shareholder profits and long term interests

Question 5

Characteristics of Moral-rights Model

Answer 5

decisions to be consistent with fundamental rights and privileges

Basis is respect for other people

Question 6

Characteristics of the Justice Model

Answer 6

Decisions are evaluated with regard to how equitably they distribute benefits costs among individuals and groups

Suggests people should appreciate view points of others

Distributive justice principle

Fairness principle

Natural duty principle

Question 7

Define Distributive Justice Principle

Answer 7

Individuals are not to be treated different on the basis of Arbitarily defined characteristics

Question 8

Fairness principle

Answer 8

Requires employees to support the rules of the organization when who conditions are met

1 organization is just

2 employees have voluntarily accepted benefits

Question 9

Natural duty principle

Answer 9

Decisions based on universal principles associated with being a responsible member of societ