Study Guide - Unit 2

Question 1

Define ethics (U2, M1, L1)

Answer 1

Ethics encompasses the principles that guide a person’s behaviors. Reflects ones beliefs about what is righht and wrong, what is just and unjust.

Question 2

Define legal (U2, M1, L1)

Answer 2

Denotes an act that is permissible or in conformity with the law of the land. An illegal act is in defiance of the stated or established laws of a defined jurisdiction.

Question 3

What is an example of legal-ethical? (U2, M1, L1)

Answer 3

Law and ethics are in line. This doesn’t cause many problems.

Question 4

What is an example of legal-unethic (U2, M1, L1)

Answer 4

Actions that don’t break any laws but pose other unethical questions/concerns.

Question 5

What is an example of illegal-unethical? (U2, M1, L1)

Answer 5

Things that conflict with a person’s conscious and are in the defiance of the law.

Question 6

Define values. (U2, M1, L1)

Answer 6

Values are the stable, enduring goals that a person has for life. Priciniples that are counted as most important to the individual.

Question 7

Define morals. (U2, M1, L1)

Answer 7

Morals are sets of rules that individuals can develop based on cultural norms and beliefs. They are individual characteristics that can affect an individual’s ethics.

Question 8

Define organizational ethics. (U2, M1, L1)

Answer 8

Branch of applied ethics that focuses on rules, principles, and standards, in the context of business activities.

Question 9

What are the four main levels of ethical issues? (U2, M1, L1)

Answer 9

Societal, Stakeholder, Policy, Personal.

Question 10

What is an example of Societal Issues? (U2, M1, L1)

Answer 10

Concerns issues relating to the world as a whole - involvement happens because of the ethics the organization creates out of care and concern for individuals.

Question 11

What is an example of Stakeholder Issues? (U2, M1, L1)

Answer 11

Concerns policies that affect its customers, employees, suppliers, and people within the community.

Question 12

What is an example of Internal Policy Issues? (U2, M1, L1)

Answer 12

Concerns interal relationships between a company and it’s employees. Examples include fairness in management, pay, and employee participation.

Question 13

How does a company’s ethical behavior impact organizational outcomes? (U2, M1, L2)

Answer 13

Ethics and integrity start from the top down.

Question 14

How does a company’s unethical behavior impact organizational outcomes? (U2, M1, L2)

Answer 14

Unrealistic business objectives are the most common factor to cause employees to compromised their ethical standards. 75% of employees identified senior or middle management as a primary source of such pressure to compromise standards of an organization.

Question 15

Speaking the truth, respecting my elders, and never hurting someone are examples of _________ ethics. (Unit 2, Module 1)

Answer 15

Personal

Question 16

Offering paid services on your time off to a company customer is an example of a __________. (Unit 2, Module 1)

Answer 16

Conflict of interest.

Question 17

______ reflects beliefs about what is right and what is wrong. (Unit 2, Module 1)

Answer 17

Ethics

Question 18

Being punctual, refraining from gossip, and having good time management are examples of _____ ethics. (Unit 2, Module 1)

Answer 18

Professional

Question 19

_____ are the principles that are counted as most important to the individual. (Unit 2, Module 1)

Answer 19

Values

Question 20

_____ are sets of rules that individuals develop based on cultural norms and beliefs. (Unit 2, Module 1)

Answer 20

Morals

Question 21

What are some benefits to an organization that has high organizational ethics? (Unit 2, Module 1)

Answer 21

Business ethics offer companies a competitive advantage. Consumers learn to trust ethical brands and remain loyal to them, even during difficult periods. Employees feel more at ease, are more open to taking educated changes, and have a more pleasant work experience.

Question 22

Where do an organization’s ethics tend to start? (Unit 2, Module 1)

Answer 22

They start at the top and trickle down?

Question 23

Define corporate social responsibility (CSR). (Unit 2, Module 2, Lesson 3)

Answer 23

Philosophy in which a company voluntarily engages in actions that benefit society at large.

Question 24

How is a company’s CSR approach shaped? (Unit 2, Module 2, Lesson 3)

Answer 24

Can be framed as a response to the backlash many corporations face for a long track record of harming environments and communities in their efforts to be more efficient and profitable. In it’s ideal form, focuses mangers’ attention on demonstrating social good of their new product and endevors.

Question 25

Who is considered a company stakeholder? (Unit 2, Module 2, Lesson 3)

Answer 25

Includes unions, company’s employees, investors, suppliers, consumers, local and national governments, and communities that may be affected by corporate activities such as construction, manufacturing, and pollution.

Question 26

What is the aim of CSR? (Unit 2, Module 2, Lesson 3)

Answer 26

Increase long-term profits and shareholder trust through positive public relations and high ethical standards to reduce business and legal risks by taking responsibility for corporate actions.

Question 27

What is the purpose of the World Trade Organization (WTO)? (Unit 2, Module 2, Lesson 3)

Answer 27

Functions as internal instruments governing global trade by overseeing implementation of trade agreements between nations. MIssion is to improve the stability and predictability of global trade.

Question 28

What is a code of ethics? (Unit 2, Module 2, Lesson 4)

Answer 28

Begins by established the organization’s key values and describes the copany’s obligation to it’s stakeholders.

Question 29

What is included in a company’s code of ethics? (Unit 2, Module 2, Lesson 4)

Answer 29

Publicly available and addressed to anyone with an interest in the company’s activities and the way it does business. Includes details for how to company plans to implement its values and vision, as well as guidance for the staff on ethical standards and ways to achieve them.

Question 30

Define the term greenwashing. (Unit 2, Module 2, Lesson 4)

Answer 30

Ethical committments and statements run contrary to actual principles (saying one thing and doing/practicing another).

Question 31

Define the term internal transparency/ (Unit 2, Module 2, Lesson 4)

Answer 31

Ability of all individuals in an organization to exist in a system of openness, communication, and accountability. Operating in such a way that is easy for others to see the actions are performed. Simply put, the perceived quality of intentionally shared information.

Question 32

What steps can organizations take to encourage transparent practices? (Unit 2, Module 2, Lesson 4)

Answer 32

Encourage quality intentionally shared information between company leadership and all employees of the company.

Question 33

Why was Sarbanes-Oxley Act (SOX) passed? (Unit 2, Module 2, Lesson 4)

Answer 33

In response to several highly publicized corporate fraud cases. The law mandates reporting transparency in areas ranging from finance to accounting to supply chain activity. Makes it both unethical abd illegal to device shareholders, creditors, and the public at large.

Question 34

Who is considered a whistleblower? (Unit 2, Module 2, Lesson 4)

Answer 34

Those who tell the public or authorities about allged misconduct in a government department, private company, or organization.

Question 35

“Which of the following is true about Corporate Social Responsibility?
(A) It can be framed as a response to public backlash for a long track record of harming environments; (B) It guarantees the company is acting ethically; (C) It encourages promotion from within the organzation; (D) It comes at little additional cost to the organization. “ (Unit 2, Module 2)

Answer 35

D - It comes at little additional cost to the organization.

Question 36

Why is Corporate Social Responsibility important to an organization and its local community? (A) It helps promotes a caring company culture; (B) It immediately increases the profit margin; (C) Increase long-term profits and shareholder trust; (D) It provides good marketing material and ways for the company to advertise. (Unit 2, Module 2)

Answer 36

C - It increases long-term profits and shareholder trust

Question 37

XYZ Inc. uses images of a leafy forest to promote their Green-Clean Cleaning Wipes. They advertise the wipes as being biodegradable, but the chemicals in the wipes do not break down well in the environment and the plastic container is definitely not biodegradable. This is an example of _______ (A) code of ethics, (B) greenwashing, (C) whistleblowing, (D) Morals
(Unit 2, Module 2)

Answer 37

B - greenwashing

Question 38

Cheyenne Jenkins, VP for a large gas company, wrote a letter to her boss regarding the extremely fraudulent accounting practices in their publicly traded company. She demanded that the company take action. Her letter became public five months after she wrote it and was fodder for national outrage. This is an example of ______________. Cheyenne continues to work while the matter is investigated. She is likely protected under ________ (A) whistleblowing, Sarbanes-Oxley Act; (B) internal transparency, Sally Mae Act; (C) code of ethics, Securites and Exchange Commision; (D) whistleblowing, Title VII.
(Unit 2, Module 2)

Answer 38

A - whistleblowing