Chapter Two

Question 1

Managerial integrity

Answer 1

Personal integrity of the owners, respecting customers, valuing employees

Question 2

Stakeholders

Answer 2

Individuals or groups who either can affect or are affected by the performance of the company

Question 3

Social responsibilities

Answer 3

Companies ethical obligations to the community

Question 4

Intellectual property

Answer 4

Original intellectual creations, including inventions, literary creations, and works of art, that are protected by patents or copyrights

Question 5

Ethical imperialism

Answer 5

The belief that the ethical standards of one’s own country are superior and can be applied universally

Question 6

Ethical relativism

Answer 6

Belief that ethical standards are subject to local interpretation. “When in Rome, do as the Romans do”.

Question 7

Underlying values

Answer 7

Unarticulated ethical beliefs that provide a foundation for ethical behavior in a firm

Question 8

Code of ethics

Answer 8

Official standards of employee behavior formulated by a business owner

Question 9

Fundamental principles for ethical policymaking

Answer 9

– Purpose
– Perspective
– Persistence
– Patience
– Pride

Question 10

An ethical decision-making process

Answer 10

1. Define the problem
2. Identify alternate solutions to the problem
3. Evaluate the identified alternatives
4. Make the decision
5. Implement the decision
6. Evaluate the decision

Question 11

Environmentalism

Answer 11

The effort to protect and preserve the environment

Question 12

Sustainable small business

Answer 12

Profitable company that response to customers needs while showing the reasonable concern for the environment

Question 13

Social entrepreneurship

Answer 13

Entrepreneurial activity with an embedded social purpose (goal) of finding innovative solutions to social needs, problems, and opportunities

Question 14

Integrity

Answer 14

An uncompromising adherence to doing what is right and proper.