Key Terms Ch 5

Question 1

The moral principles and standards that guide behavior in the world of business

Answer 1

Business Ethics

Question 2

Ethical principles established by international executives based in Caux, Switzerland, in collaboration with business leaders from Japan, Europe, and the United States

Answer 2

Caux Principles

Question 3

The output of carbon dioxide and other greenhouse gases

Answer 3

Carbon Footprint

Question 4

Company mechanisms typically designed by corporate counsel to prevent, detect, and punish legal violations

Answer 4

Compliance-based ethics programs

Question 5

Obligation toward society assumed by business

Answer 5

Corporate Social Responsibility

Question 6

Its goal is the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders

Answer 6

Ecocentric Management

Question 7

To produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors

Answer 7

Economic Responsibilities

Question 8

An ethical system defining acceptable behavior as that which maximizes consequences for the individual

Answer 8

Egoism

Question 9

In an organization, the processes by which decisions are evaluated and made on the basis of right and wrong

Answer 9

Ethical Climate

Question 10

Situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong

Answer 10

Ethical Issue

Question 11

One who is both a moral person and a moral manager influencing others to behave ethically

Answer 11

Ethical Leader

Question 12

Meeting other social expectations, not written as law

Answer 12

Ethical Responsibilities

Question 13

The system of rules that governs the ordering of values

Answer 13

Ethics

Question 14

Company mechanisms designed to instill in people a personal responsibility for ethical behavior

Answer 14

Integrity-Based Ethics Programs

Question 15

Perspective that what is moral comes from what a mature person with “good” moral character would deem right

Answer 15

Kohlberg’s model of cognitive moral development

Question 16

To obey local, state, federal, and relevant international laws

Answer 16

Legal Responsibilities

Question 17

A process of analyzing all inputs and outputs, through the entire “cradle-to-grave” life of a product, to determine total environmental impact

Answer 17

Life-Cycle Analysis (LCA)

Question 18

Principles, rules, and values people use in deciding what is right or wrong

Answer 18

Moral Philosophy

Question 19

Additional behaviors and activities that society finds desirable and that the values of the business support

Answer 19

Philanthropic Responsibilities

Question 20

Philosophy that bases ethical behavior on the opinions and behaviors of relevant other people

Answer 20

Relativism

Question 21

An act passed into law by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence

Answer 21

Sarbanes-Oxley Act

Question 22

Economic growth and development that meet present needs without harming the needs of future generations

Answer 22

Sustainable Growth

Question 23

An education with five higher goals that balance self-interest with responsibility to others

Answer 23

Transcendent Education

Question 24

Economic, social, and environmental performance

Answer 24

Triple Bottom Line

Question 25

The ethical system stating that all people should uphold certain values that society needs to function

Answer 25

Universalism

Question 26

An ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers

Answer 26

Utilitarianism

Question 27

Classification of people based on their level of moral judgment

Answer 27

Virtue Ethics