Ethics, Social Responsibility and Sustainable Development

Question 1

ethics

Answer 1

the code of moral principles and values that governs the behaviour of a person or a group with respect to what is right or wrong

Question 2

examples of unethical and illegal organisation behaviour

Answer 2

• false or deceptive sales practices
• fabricating product quality data
• falsifying financial reports
• violating environmental standards
• violating contract terms
• discriminating against employees
• creating a hostile work environment

Question 3

ethical dilemma

Answer 3

a situation where all alternative choices or behaviours have potentially negative consequences. Right or wrong cannot be clearly distinguished.

Question 4

utilitarian approach

Answer 4

the ethical concept that moral behaviour produces the greatest good for the greatest number

Question 5

individualism approach

Answer 5

the ethical concept that acts are moral when they promote the individual’s best long-term interests, which ultimately leads to the greater good

Question 6

moral rights approach

Answer 6

the ethical concept that moral decisions are those that best maintain the rights of those people affected by them

Question 7

justice approach

Answer 7

the ethical concept that moral decisions must be based on standards of equity, fairness and impartiality

Question 8

practical approach

Answer 8

bases decisions on prevailing standards of the profession and larger society, taking the interests of all stakeholders into account

Question 9

stage of moral development

Answer 9

at the preconventional level, individuals are concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences

at the conventional level, people learn to conform to the expectations of good behaviour as defined by colleagues, family, friends and society

at the postconventional level, individuals are guided by an internal set of values based on universal principles of justice and right and will even disobey rules and laws that violate these principles

Question 10

corporate social responsibility (CSR)

Answer 10

corporate social responsibility involves going above and beyond legal requirements in order to produce an overall positive impact on the community through operating in an economically, socially and environmentally sustainable manner whilst balancing the interests of diverse stakeholders

Question 11

stakeholder

Answer 11

a person or a group that has a vested interest in the activities of a business

Question 12

sustainability

Answer 12

economic development that generates wealth and meets the needs of the current population while preserving the environment for the needs of future generations

Question 13

triple botton line

Answer 13

refers to measuring an organisation’s social performance, environmental performance and financial performance

Question 14

ethical leadership

Answer 14

managers are honest and trustworthy, fair in their dealings with employees and customers, and behave ethically in both their personal and professional lives

Question 15

organisational mechanisms that can help employees and the company stay on an ethical footing

Answer 15

• code of ethics
• ethical structures
• implementing measures to protect whistleblowers

Question 16

code of ethics

Answer 16

a formal statement of the organisation’s values regarding ethics and social issues

Question 17

ethical structure

Answer 17

represent the various systems, positions and programs that a company can undertake to encourage and support ethical behaviour

Question 18

whistleblowing

Answer 18

disclosure by an employee of the illegal, immoral or illegitimate practices by the organisation

Question 19

advantages of CSR / why businesses should employ CSR practices

Answer 19

• businesses can create a favourable public image
• businesses can prevent criticism and discourage further government involvement or regulation
• businesses have the financial and human resources to support public and charitable projects that need assistance
• socially responsible companies tend to have more secure long-run profits

Question 20

disadvantages of CSR / why businesses should not employ CSR practices

Answer 20

• pursuing social goals dilutes business’s primary purpose; which is to maximise profits
• it is not the responsibility of businesses but of the government to address social and environmental problems
• business leaders lack the necessary skills to address social issues

Question 21

types of CSR initiatives

Answer 21

• cause promotion: increasing awareness and concern for social causes.
• cause related marketing: contributions to causes related to sales
• corporate philanthropy: donating directly to causes
• community volunteering: Employees donating time and talent in community
• socially responsible business practices: discretionary practices and investment to support causes

Question 22

ways to build an ethical organisation

Answer 22

Structure

• Chief Ethics Officer and Ethics Committee
• Code of Ethics and Ethics training
• hotlines and support for whistle-blowers

Culture

• humble, moral leaders
• beware of incongruences between values and reward structures

Politics

• power to diverse individuals (diverse perspectives)
• build diverse networks (to avoid groupthink)