Management Ch. 2

Question 1

Ethics

Answer 1

beliefs about what is right and wrong or

good and bad in actions that affect others

Question 2

Ethical Behavior

Answer 2

behavior conforming to generally accepted
social norms concerning beneficial and
harmful actions

Question 3

Unethical Behavior

Answer 3

behavior that does not conform to
generally accepted social norms concerning
beneficial and harmful actions

Question 4

Business Ethics

Answer 4

ethical or unethical behaviors by

employees in the context of their jobs

Question 5

Managerial Ethics

Answer 5

standards of behavior that guide individual

managers in their work

Question 6

Social Responsibility

Answer 6

the attempt of a business to balance its
commitments to groups and individuals in
its environment, including customers,
other businesses, employees, investors,
and local communities

Question 7

Organizational Stakeholders

Answer 7

those groups, individuals, and
organizations that are directly affected by
the practices of an organization and who
therefore have a stake in its performance

Question 8

Consumerism

Answer 8

form of social activism dedicated to
protecting the rights of consumers in their
dealings with businesses

Question 9

Collusion

Answer 9

illegal agreement between two or more

companies to commit a wrongful act

Question 10

Whistle-Blower

Answer 10

employee who detects and tries to put an
end to a company’s unethical, illegal, or
socially irresponsible actions by publicizing
them

Question 11

Insider Trading

Answer 11

illegal practice of using special knowledge

about a firm for profit or gain

Question 12

Obstructionist Stance

Answer 12

approach to social responsibility that
involves doing as little as possible and may
involve attempts to deny or cover up
violations

Question 13

Defensive Stance

Answer 13

approach to social responsibility by which a
company meets only minimum legal
requirements in its commitments to groups
and individuals in its social environment

Question 14

Accommodative Stance

Answer 14

approach to social responsibility by which a
company, if specifically asked to do so,
exceeds legal minimums in its
commitments to groups and individuals in
its social environment

Question 15

Proactive Stance

Answer 15

approach to social responsibility by which a
company actively seeks opportunities to
contribute to the well-being of groups and
individuals in its social environment

Question 16

Regulation

Answer 16

the establishment of laws and rules that
dictate what organizations can and cannot
do

Question 17

Lobbying

Answer 17

the use of persons or groups to formally
represent an organization or group of
organizations before political bodies

Question 18

Political Action Committees

PACs

Answer 18

special organizations created to solicit
money and then distribute it to political
candidates

Question 19

Legal Compliance

Answer 19

the extent to which the organization
conforms to local, state, federal, and
international laws

Question 20

Ethical Compliance

Answer 20

the extent to which the members of the
organization follow basic ethical (and legal)
standards of behavior

Question 21

Philanthropic Giving

Answer 21

the awarding of funds or gifts to charities

or other worthy causes

Question 22

Corporate Social Audit

Answer 22

systematic analysis of a firm’s success in
using funds earmarked for meeting its
social responsibility goals