Chapter 5: Ethics And Responsibility

Question 1

Ethics and legality are

Answer 1

Two very different things

Question 2

Legality vs ethics

Answer 2

Legality: laws that have been written to protect ourselves from fraud, theft, and violence

Ethics: how should people treat others, what responsibility should they feel for others

Question 3

Unethical but no illegal

Answer 3

Sharing secrets about a neighbors

Raising price of “life saving medicine”

Question 4

Ethics

Answer 4

Standards of moral behavior, that is, behavior that is accepted by society as right vs wrong

Question 5

The golden rule

Answer 5

Do unto others as you would have them do unto you

Treat others how you would want to be treated

Question 6

Ethics begins with

Answer 6

All of us

Question 7

3 questions to ask about ethics

Answer 7

Is my action legal?

Is it balanced

How will it make me feel about myself

Question 8

Is my action legal

Answer 8

Am I violating laws or policies?

Question 9

Is it balenced?

Answer 9

Am I acting fairly, would I want to be treated this way?

Question 10

How will it make me feel about myself?

Answer 10

Would I feel proud if my family found out? Will I have to hide these actions?

Question 11

Compliance based ethics

Answer 11

Ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers

Act unethical? You’re fired

Question 12

Integrity based ethics

Answer 12

Ethical standards that define the organizations guiding values, creates an environment that supports ethically sound behavior, and stress a shared accountability among employees

Act unethical? Take this course and better yourself

Question 13

Whistleblower

Answer 13

People who report illegal or unethical behaviour

Question 14

Sarbanes-Oxly ACT (SOX)

Answer 14

Us legislation that established stronger standards to prevent misconduct, and to ensure the accuracy and reliability of published financial information

Protects whistleblowers

Question 15

Corporate social responsibility (CSR)

Answer 15

A businesses concern for the welfare of society

Examples: hiring disabled, minimizing pollution, hiring minorities

Question 16

Ethical consumerism

Answer 16

A strategy where companies provide products that appeal to people’s best selves

Question 17

Corporate philanthropy

Answer 17

Dimensions of social responsibility that includes charitable donations

Tim hortons camp day
McDonalds McHappy Day

Question 18

Corporate social initiatives

Answer 18

Dimensions of social responsibility that includes enhanced forms of corporate philanthropy that are more directly related to the company’s competencies

(Earthquake in haiti and companies sent free medical supplies)

Question 19

Corporate policy

Answer 19

Refers to the position a firm takes on social and political issues

Question 20

The strategic approach

Answer 20

Requires managements primary orientation to be toward the economic interests of shareholders.

Question 21

Pluralist approach

Answer 21

Recognizes the special responsibility of management to optimize profits, but not at the expense of employees, suppliers, and members of the community

Question 22

Customers four basic rights

Answer 22

1) the right to safety
2) the right to be informed
3) the right to choose
4) the right to be heard

Question 23

Insider trading

Answer 23

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

Question 24

Social audit

Answer 24

A systemic evaluation of an organizations progress toward implementing programs that are socially responsible and responsive

Question 25

5 types of groups to watch social audits

Answer 25

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

Question 26

Sustainable development

Answer 26

Implementing a process that integrates environmental, economic, and social considerations into decision making

Question 27

Triple bottom line (TBL)

Answer 27

A framework for measuring and reporting corporate performance against economic, social, and environmental parameters

Question 28

Fair trade

Answer 28

Social movement dedicated to making sure that producers in developing countries are paid a fair price for the good we consume