FBP C4 - Ethics and Social responsibility

Question 1

Ethics

Answer 1

society’s accepted standards of moral behavior: that is behavior accepted by society as right rather than wrong.

Question 2

How is legality different from ethics?

Answer 2

Ethics goes beyond obeying laws to include abiding by the moral standards accepted by society.

Question 3

How can we tell if our business decisions are ethical?

The three questions:

Answer 3

How can we tell if our business decisions are ethical?
We can put our business decisions through an ethics check by asking three questions:
1. Is it legal?
2. Is it balanced?
3. How will it make me feel?

Question 4

What is management’s role in setting ethical standards?

Answer 4

Mangers often set formal ethical standards but more important are the messages they send through their actions. Management’s tolerance or intolerance of ethical misconduct influences employees more than any written ethics code.

Question 5

Compliance based ethic codes

Answer 5

are concerned with avoiding legal punishment / emphasize preventing lawful behavior by increasing control and penalizing wrongdoers

Question 6

Integrity based ethics codes

Answer 6

define the organizations guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees.

Question 7

Whistleblowers

Answer 7

insiders who report illegal or unethical behavior

Question 8

Cooperate social responsibility (CSR)

Answer 8

is the concern businesses have for society

Question 9

How do business demonstrate cooperate responsibility toward stakeholders?
Businesses demonstrate CSR by:

Answer 9

1. Satisfying customers with goods and services for real value
2. Making money for investors
3. Creating jobs for employees, maintaining job security, and seeing that hard work and talent are rewarded
4. Creating new wealth for society, promoting social justice, and contributing to making the businesses’ own environment a better place

Question 10

How are a company’s social responsibility efforts measured?

Answer 10

A corporate social audit measures organizations progress toward social responsibility.
** Some people believe the audit should add together the organizations positive actions and then subtract the negative effects to get a net social benefit.

Question 11

corporate social audit

Answer 11

measures organizations progress toward social responsibility.

Question 12

Corporate philanthropy

Answer 12

includes charitable donations to non-profit groups of all kinds

Question 13

Corporate social initiatives

Answer 13

include enhanced forms of cooperate philanthropy

Question 14

Corporate policy

Answer 14

refers to the position a firm takes on social and political issues

Question 15

Corporate responsibility

Answer 15

includes essentially everything that has to do with acting responsibility with society

Question 16

How can US companies influence ethical behavior and social responsibilities in global markets?

Answer 16

Many U.S businesses are demanding social responsibility behavior from their international suppliers by making sure their suppliers do not violate U.S human rights and environmental standards. Companies such as PVH and Dow Chemicals will not import products from companies that do not meet their ethical and social responsibility standards.