CHAPTER 5- Ethics & Social Responsibility

Question 1

what are ethics?

Answer 1

standards of moral behaviour accepted by society as right versus wrong.

Question 2

what is the golden rule?

Answer 2

Do unto others as you would have them do unto you.

Question 3

what are the parts of the ethical checklist?

Answer 3

• Is It Legal?
  • Is It Balanced?
  • How Will It Make Me Feel About Myself?

Question 4

what do some managers think about ethics?

Answer 4

they think ethics is a personal matter— that individuals either have ethical principles or they don’t.

Question 5

ethic codes can be classified into what two categories?

Answer 5

Compliance-based ethics codes, Integrity-based ethics codes

Question 6

what are compliance based ethic codes?

Answer 6

emphasize preventing unlawful behaviour by increasing control & by penalizing wrongdoers. (get in trouble)

Question 7

what are integrity based ethic codes?

Answer 7

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).

Question 8

what are whistleblowers?

Answer 8

people who report illegal or unethical behaviour among employees.

Question 9

what is the whistleblowing legislation in Canada?

Answer 9

Bill C-11: The Public Servants Protection Disclosure Act

Question 10

what are the six steps to improve ethics?

Answer 10

1. Top management support
2. Expectations begin at the top
3. Ethics imbedded in training
4. Ethics office set up
5. External stakeholders informed
6. There must be enforcement

Question 11

what does SOX apply to?

Answer 11

it prevents misconduct and improves governance practices. pubicy traded companies. wants people to report wrongdoing

Question 12

what is Corporate Social Responsibility (CSR)?

Answer 12

deals with concern businesses have for the welfare of society.

Question 13

what are some examples of what CSR does?

Answer 13

hiring minority workers, making safe products, minimizing pollution, using energy wisely, & providing a safe work environment

Question 14

what do people critic CSR about?

Answer 14

they believe that a manager’s sole role

is to compete & win in the marketplace.

Question 15

what do people defend CSR about?

Answer 15

that businesses owe their existence to the societies they serve.

Question 16

what is corporate Philanthropy

Answer 16

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.

Question 17

what is strategic philanthropy?

Answer 17

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.

Question 18

what does corporative social initiatives include?

Answer 18

include enhanced forms of corporate philanthropy more directly related to company’s competencies.

Question 19

what is the strategic approach?

Answer 19

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

Question 20

what is the pluralist approach?

Answer 20

recognizes special responsibility of management to optimize profits, but not at the expense of employees, suppliers & members of community.

Question 21

what does the pluralist approach say on economic viability?

Answer 21

corporations can maintain their economic viability only when they fulfill their moral responsibilities to society as a whole.

Question 22

what is the one responsibility of businesses?

Answer 22

to satisfy customers by offering them g&s of real value.

Question 23

is unethical behaviour good for businesses?

Answer 23

it does cause financial damage. Unethical behaviour may seem to work in ST, but it guarantees eventual failure.

Question 24

what is insider trading?

Answer 24

it involves insiders using private company information to further their own fortunes or those of their family & friends.

Question 25

what is a businesses responsibility to employees?

Answer 25

they have a responsibility to create jobs if they want to grow.

Question 26

once a company creates jobs, what does it have an obligation to?

Answer 26

to ensure that hard work & talent are fairly rewarded.

Question 27

what is the Factor that most influences a company’s effectiveness & financial performance?

Answer 27

human resource management

Question 28

what is a business’s responsibilities to society?

Answer 28

to create new wealth, which is disbursed to employees, suppliers, shareholders & other stakeholders.

Question 29

what are businesses criticized for?

Answer 29

for their role in damaging the environment.

Question 30

what is social audit?

Answer 30

evaluation of how the firm is progressing socially responsibility

Question 31

what are community related activities?

Answer 31

participating in local fundraising campaigns, donating employee time to non-profit organizations & participating in urban planning & development

Question 32

what are Employee-related activities?

Answer 32

establishing equal opportunity programs, offering flex-time, promoting job enrichment, ensuring job safety & conducting employee development programs

Question 33

what are political activities?

Answer 33

taking a position on nuclear safety, gun control, pollution control, consumer protection & working more closely with local, provincial & federal government officials

Question 34

what are consumer activities?

Answer 34

product safet, truthful advertising, handling complaints promptly, setting fair prices. & consumer education programs

Question 35

what is triple bottom line?

Answer 35

measuring & reporting corporate performance against economic, social, & environmental parameters.

Question 36

what does triple bottom line focus on?

Answer 36

TBL) focuses not just on economic value corporations add, but also on the environmental & social

Question 37

what is fair trade?

Answer 37

a growing social movement dedicated to making sure that producers in developing countries are paid a fair price for the goods we consume

Question 38

what is sustainable development?

Answer 38

development that meets the needs of the present without compromising the ability of future generations to meet their own needs.