Ethics and Social Responsibility - Chapter 5

Question 1

Ethics

Answer 1

The standards of moral behaviour; that is, behaviour that is accepted by society as right vs wrong

Question 2

Compliance-based ethics codes

Answer 2

Emphasize the prevention of unlawful behaviour by increasing control & penalizing wrongdoers.

Question 3

Integrity-based ethics codes

Answer 3

The organization’s guiding values, create an environment that supports ethically sound behaviour & stress shared accountability among employees.

Question 4

What are the 6 steps to help improve business ethics:

Answer 4

1. top management must adopt & unconditionally support an explicit corporate code of conduct.
2. Employees must understand that expectations for ethical behaviour begin at the top & that senior management expects all employees to act accordingly.
3. Managers & others must be trained to consider the ethical implications of all business decisions.
4. Ethics office must be set up.
5. Outsiders such as suppliers must be told abt the ethics program.
6. Ethics code must be enforced w/ timely action if any rules are broken.

Question 5

Sox (Sarbanes-Oxley Act of 2002)

Answer 5

This legislation established stronger standards to prevent misconduct & improve corporate governance practices.
The goal of Sox is to ensure the accuracy & reliability of published financial information

Question 6

What is FAA short for?

Answer 6

Federal Accountability Act

Question 7

FAA (The federal accountability Act)

Answer 7

A wide range of measures to help make the Canadian federal gov more accountable & to increase transparency oversight in gov operations.

Question 8

CSR (corporate social responsibility)

Answer 8

The concern businesses have for the welfare of society, not just for their owners

Question 9

Ethical consumerism

Answer 9

Strategy where “companies provide products that appeal to ppl’s best selves.”

Question 10

Corporate philanthropy

Answer 10

Charitable donations to non-profit groups of all winds.

Question 11

Corporate social initiatives

Answer 11

Enhanced forms of corporate philanthropy.

Question 12

Corporate responsibility

Answer 12

Includes everything from hiring minority workers to making safe products, minimizing pollution, etc, everything that has to do w acting responsibly within society.

Question 13

Corporate policy

Answer 13

The position a firm takes on social & political issues

Question 14

What is EPAC short for?

Answer 14

Ethics Practitioners Association of Canada

Question 15

EPAC (Ethics Practitioners Association of Canada)

Answer 15

Enables individuals to work successfully in field of ethics in organization

Question 16

What are the 2 views on CSR to stakeholders?

Answer 16

1. Strategic approach
2. Pluralist approach

Question 17

The strategic approach

Answer 17

Requires that management’s primary orientation be toward the economic interest of shareholders.

Question 18

Pluralist approach

Answer 18

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

Question 19

What are the 4 basic rights of consumers?

Answer 19

1. The right to safety
2. The right to be informed
3. The right to choose
4. The right to be heard

Question 20

Insider trading

Answer 20

Uses private company info to further insider’s own fortunes, or those of their family & friends.

Question 21

Social audit

Answer 21

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

Question 22

Triple bottom line (people, planet, and profit):

Answer 22

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

Question 23

What are the 5 types of groups that serve as watchdogs regarding how well orgs enforce ethical and social responsibility policies?

Answer 23

1. Socially conscious investors
2. Socially conscious research organizations
3. Environmentalists
4. Union officials
5. Customers

Question 24

Sustainable development:

Answer 24

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

Question 25

Socially conscious investors

Answer 25

they insist that a company extends its own high standards to all its suppliers

Question 26

Socially conscious research organizations

Answer 26

they analyze and report on CSR efforts

Question 27

Environmentalists

Answer 27

they apply pressure by publicly, identifying companies that do not abide by the environmentalists standards

Question 28

Union officials

Answer 28

they identify violations and force companies to comply to avoid negative publicity