Chapter 7

Question 1

Business ethics

Answer 1

The moral principles and standards that guide behaviour in the world of business.

Question 2

Carbon footprint

Answer 2

The output of carbon dioxide and other greenhouse gases.

Question 3

Caux principles

Answer 3

Ethical principles established by international executives based in Caux, Switzerland, in collaboration with business leaders from Japan, Europe and the United States.

Question 4

Compliance-based ethics programs

Answer 4

Company mechanisms typically designed by corporate counsel to prevent, detect, and punish legal violations.

Question 5

Corporate social responsibility (CSR)

Answer 5

Obligation toward society assumed by business.

Question 6

Ecocentric management

Answer 6

Its goal is the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders.

Question 7

Economic responsibilities

Answer 7

To produce goods and service that society wants at a price that perpetuates the business and satisfies its obligations to investors.

Question 8

Egoism

Answer 8

An ethical system defining acceptable behaviour as that which maximizes consequences for the individual.

Question 9

Ethical climate

Answer 9

In an organization, the processes by which decisions are evaluated and made on the basis of right and wrong.

Question 10

Ethical leader

Answer 10

One who is both a moral person and a moral manager influencing others to behave ethically.

Question 11

Ethical responsibilities

Answer 11

Meeting other social expectations, not written as law.

Question 12

Ethics

Answer 12

The system of rules that governs the ordering of values

Question 13

Integrity-based ethics programs

Answer 13

Company mechanisms designed to instil in people a personal responsibility for ethical behaviour.

Question 14

Kohlberg´s model of cognitive moral development

Answer 14

Classification of people based on their level of moral judgement.

Question 15

Legal responsibilities

Answer 15

To obey local, state, federal and relevant international laws.

Question 16

Life-cycle analysis (LCA)

Answer 16

A process of analyzing all inputs and outputs, through the entire´´ cradle-to-grave´´ life of a product to determine total environmental impact.

Question 17

Moral philosophy

Answer 17

Principles, rules, and values people use in deciding what is right or wrong.

Question 18

Philanthropic responsibilities

Answer 18

Additional behaviours and activities that society finds desirable and that the values of the business support.

Question 19

Relativism

Answer 19

Philosophy that bases ethical behaviour on the opinion and behaviours of relevant other people.

Question 20

Sarbanes-Oxley Act

Answer 20

An act passed into law by Congress to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence.

Question 21

Stewardship

Answer 21

Contributing to the long-term welfare of others.

Question 22

Sustainable growth

Answer 22

Economic growth and development that meets present needs without harming the needs of future generations.

Question 23

Transcendent education

Answer 23

An education with fice higher goals that balance self-interest with responsibility to others.

Question 24

Triple bottom line

Answer 24

Economic, social, and environmental performance.

Question 25

Universalism

Answer 25

The ethical system stating that all people should uphold certain values that society needs to function.

Question 26

Utilitarianism

Answer 26

An ethical system stating that the greatest good for the greatest number should be the overriding concern of decision-makers.

Question 27

Virtue ethics

Answer 27

Perspective that what is moral comes from what a mature person with ´´good´´ moral character would deem right.