Exam

Question 1

Triple Bottom Line

Answer 1

people, planet and profit. It measures an organizations social, environmental, and financial performance.

Question 2

Social Audit

Answer 2

a systematic assessment of a companies performance in implementing socially responsible programs.

Question 3

Ethical Dilemmas

Answer 3

a situation in which you have to decide whether to pursue a course of action that may benefit you or the organization

Question 4

What are Ethics?

Answer 4

the standards of right and wrong that influence behaviors

Question 5

Ethical Behaviors

Answer 5

Behavior that is accepted as right as opposed to wrong according to set standards

Question 6

Values?

Answer 6

A set of beliefs or traits that are at the core of a organization

Question 7

What are the 4 approaches to ethical dilemmas?

Answer 7

The utilitarian approach, the individual approach, the moral rights approach and the justice approach.

Question 8

Utilitarian

Answer 8

what will result in the greatest good for the greatest number of people. Managers often take this route such as efficiency and profit to constitute the greatest good for the greatest number

Question 9

Individual Approach

Answer 9

what will result in the individual’s best long-term interest. The assumption is that you will act ethically in the short run to avoid other harming you in the long run. The problem is that ones short term goal may not be good for everyone in the long run.

Question 10

Moral Rights Approach

Answer 10

respect for the fundamental rights of human beings, such as the ones in the bill of rights.

Question 11

Justice Approach

Answer 11

respect for impartial standards of fairness and equity. One consideration’s here is whether an organizations policy such as those governing promotions are administered impartially.

Question 12

Insider Trading

Answer 12

the illegal trading of a company’s stock by people using confidential company information to gain an edge.

Question 13

Ponzi Scheme

Answer 13

when cash was used from newer investors to pay off older ones that had yet to receive dividends.

Question 14

What is the Sarbanes-Oxley act?

Answer 14

established requirements for proper financial record keeping for public companies and penalties for 25 years. It also requires the CFO and CEO to verify financial reports, prohibits taking personal loans, etc.

Question 15

What are Kohlberg’s 3 levels of personal social moral development

Answer 15

preconventional, conventional and postconventional

Question 16

Level 1

Answer 16

preconventional (follows rules), people who have achieved this level follow rules and obey authority to avoid consequences. These managers seen to to autocratic or coercive , expecting employees to be obedient for obedience’s sake.

Question 17

Level 2

Answer 17

conventional (follows expectations of others). People whose moral development has reached this level are conformist but not slavish. These managers lead by encouragement and cooperation and are more group and team oriented.

Question 18

Level 3

Answer 18

postconventional (guided by internal values). This is the furthest along in moral development. These managers follow their own values and standards. They focus the needs of their employees and lead by empowering those who work for them. One 1/5 of American mangers get to this level.

Question 19

How can organizations promote better ethics?

Answer 19

By creating a strong ethical climate, screening prospective employees, instituting ethics codes and training programs and rewarding ethical behavior

Question 20

What is Corporate Social Responsibility ?

Answer 20

a manager’s duty to take actions that benefit the interest of society as well as the organization.

Question 21

What are the responsibilities of an organization as said by Archie B. Carroll?

Answer 21

be a good global corporate citizen, be ethical in it its practices, obey the law and make a profit.

Question 22

What are the responsibilities of an organization as said by Milton Friedman?

Answer 22

the social responsibility of a business is to make profits, unless it is focuses on maximizing profits, then it will become distracted and fail to provide goods and services and pay stockholders.

Question 23

What are the responsibilities of an organization as said by Paul Samuelson?

Answer 23

a company needs to try its best to engage in social responsibility, which means as much focus is put into making profits should be the same energy into social responsibility.

Question 24

How does being good in a company pay off?

Answer 24

There are effects on customers, employees’ work effort, job applications and employee retention, sales growth, company efficiency, company revenue, stock price and profits

Question 25

What is corporate governance?

Answer 25

the system of governing a company so that the interests of corporate owners and other stakeholders are protected.