The Challenges and Benefits of Acting with Integrity 2-3

Question 1

Because of their size and their desire to succeed.

Answer 1

Small Companies are Often Vulnerable

Question 2

Small, privately held firms that are not part of the corporate world epitomized by Wall Street may face greater pressures to act ______ than do large businesses.

Answer 2

Unethically

Question 3

Do not have the deep pockets and superior resources than large businesses so it may be easier to rationalize unethical actions.

Answer 3

Small Businesses

Question 4

Misrepresenting the facts or creating false impressions to mislead others intentionally and earn their confidence.

Answer 4

Legitimacy Lies

Question 5

This happens because startups do not have a history and reputation to lean on when trying to sell customers on their new product or service or to impress important stakeholders.

Answer 5

Legitimacy Lies: Reason

Question 6

• Threatens the reputation of the business
• Creates trust issues
• Future sales or support could be compromised if the lies are revealed.

Answer 6

Characteristics of Legitimacy Lies

Question 7

Customers are least likely to decide to purchase if they have significant questions about the product or service about the product or service that the new venture is offering, about those who represent and/or run the business, and about the organization itself. These Features are known as:

Answer 7

PRO Factors (Products, Representatives, and the Organization)

Question 8

Will the _____ (or _____) serve my needs better than the alternatives and will it be a hassle to change from the brand I currently buy?

• Most important factor when customers make purchase decisions.

Answer 8

Product (or Service)

Question 9

Do the company’s _____ know what they are talking about, and will they (can they) live up to their assurances?

Answer 9

Representatives

Question 10

Will the _____ still be around behind its product or service if I have a problem with it six months from now?

Answer 10

Organization

Question 11

• Advertising (can be expensive)
• Well-crafted publicity program
• Social media tools
• Other promotional stragegies
• Highlight and honestly bolster the credibility of anyone who represents the venture.
• Make credentials of key employees known
• Encourage key employees to build important relationships and organizations.
• High quality web-site
• Strategic alliances

Answer 11

Addressing PRO Factors

Question 12

An issue of great concern for Internet buyers.

Answer 12

Privacy

Question 13

Digital ID tags that connect data on customer’s buying habit related to a particular Internet address. Businesses can use this to create a detailed profile of the customers, while it may then sell to media buying companies and other interested groups.

• Allows a business to create a more personalized shopping experience.
• Opens the door to potential misuse of data

Answer 13

Cookies

Question 14

Be honest and transparent with customers about its practices and draft a privacy policy that conforms to the guidelines provided by organizations like the Better Business Bereau or through consultation with an attorney.

Answer 14

To Minimize Customer Concerns about Privacy

Question 15

Another issue of privacy concern between employees and their employers out of concern for “cyber slacking”

Answer 15

Reading Personal E-Mails

Question 16

Original intellectual creations, including inventions, literary creations, and works of art, that are protected by patents, copyrights, trademarks, design rights, and trade secrets.

Answer 16

Intellectual Property

Question 17

Intellectual property allows originators of such to require _______ for its use.

Answer 17

Compensation

Question 18

Has made it easy for millions of users to copy intellectual property free of charge.

Answer 18

The Internet

Question 19

Ethical questions that can arise deal with:

• Consulting services to a foreign government if it refuses to support basic human rights or repress its citizens politically
• The use of toxic chemicals that are legal in other countries
• Bribes

Answer 19

Doing Business Abroad

Question 20

Frequently, when dealing with companies abroad, the U.S. will simply apply U.S. _____ to the situation.

• Problem that arises: ethical imperialism

Answer 20

Standards

Question 21

The belief that the ethical standards of one’s own country can be applied universally.

Answer 21

Ethical Imperialism

Question 22

Makes it illegal for U.S. businesses to use bribery in their dealings anywhere in the world.

Answer 22

Foreign Corrupt Practices Act

Question 23

The belief that eithical standards are subject to local interpretation.

Answer 23

Ethical Realism

Question 24

Troublesome because it implies that anything goes if the local culture accepts it.

Answer 24

Ethical Realism

Question 25

• Consider the nuances if its particular international environments
• Training- for employees to understand the firm’s commitment to integrity
• Consulting an attorney with expertise
• One-time practices may set a pattern for future behavior (so avoid bad ones)

Answer 25

Dealing with Inegrity and International Business

Question 26

Aware of the importance of the bottom line, but this is not their singular focus. Nontheless, extraordinary financial performance often follows their efforts.

Answer 26

Those who have Integrity

Question 27

• Improved financial performance
• Enchanced brand image and reputation
• Increased sales and customer loyalty
• Improved productivity and quality
• Better recruitment and reduced employee turnover
• Fewer regulatory inspections and less paperwork
• Improved access to capital

Answer 27

Benefits of Eithical and Responsible Business Practices (BSR)

Question 28

The greatest benefit of integrity in business. Results only when there’s a match betweenthe stated values of a company and its behavior in the marketplace.

Answer 28

Trust