CHAPTER 5- Ethics & Social Responsibility Flashcards
what are ethics?
standards of moral behaviour accepted by society as right versus wrong.
what is the golden rule?
Do unto others as you would have them do unto you.
what are the parts of the ethical checklist?
- Is It Legal?
• Is It Balanced?
• How Will It Make Me Feel About Myself?
what do some managers think about ethics?
they think ethics is a personal matter— that individuals either have ethical principles or they don’t.
ethic codes can be classified into what two categories?
Compliance-based ethics codes, Integrity-based ethics codes
what are compliance based ethic codes?
emphasize preventing unlawful behaviour by increasing control & by penalizing wrongdoers. (get in trouble)
what are integrity based ethic codes?
ethical standards that define the organization’s guiding values, create an environment that supports ethically sound behaviour & stresses shared accountability among employees. (does not get in trouble, you can internalize these values and behave according to to their own standards of ethics).
what are whistleblowers?
people who report illegal or unethical behaviour among employees.
what is the whistleblowing legislation in Canada?
Bill C-11: The Public Servants Protection Disclosure Act
what are the six steps to improve ethics?
- Top management support
- Expectations begin at the top
- Ethics imbedded in training
- Ethics office set up
- External stakeholders informed
- There must be enforcement
what does SOX apply to?
it prevents misconduct and improves governance practices. pubicy traded companies. wants people to report wrongdoing
what is Corporate Social Responsibility (CSR)?
deals with concern businesses have for the welfare of society.
what are some examples of what CSR does?
hiring minority workers, making safe products, minimizing pollution, using energy wisely, & providing a safe work environment
what do people critic CSR about?
they believe that a manager’s sole role
is to compete & win in the marketplace.
what do people defend CSR about?
that businesses owe their existence to the societies they serve.
what is corporate Philanthropy
the act of a corporation contributing to nonprofit organizations through donations, volunteerism, sponsorships, in-kind donations, and more in order to help advance the organizations’ missions.
what is strategic philanthropy?
an approach that corporate and other philanthropic endeavors of a firm are designed in such a way that it best fits with the firm’s overall mission, goals, and values.
what does corporative social initiatives include?
include enhanced forms of corporate philanthropy more directly related to company’s competencies.
what is the strategic approach?
stepping back from your organisation so that you can view it in a way that helps you understand what is important today, and what you need to do to make it successful in the future
what is the pluralist approach?
recognizes special responsibility of management to optimize profits, but not at the expense of employees, suppliers & members of community.
what does the pluralist approach say on economic viability?
corporations can maintain their economic viability only when they fulfill their moral responsibilities to society as a whole.
what is the one responsibility of businesses?
to satisfy customers by offering them g&s of real value.
is unethical behaviour good for businesses?
it does cause financial damage. Unethical behaviour may seem to work in ST, but it guarantees eventual failure.
what is insider trading?
it involves insiders using private company information to further their own fortunes or those of their family & friends.
