Topic 2 - Making Ethical Decisions and Managing a Socially Responsible Business

Question 1

What is Ethics?

Answer 1

Set of moral standards for judging whether something is “good” or “bad” or “right” or “wrong” in one’s conduct.

Question 2

What is Ethical Behavior?

Answer 2

It is what is accepted as good and right in the context of the governing moral code

Question 3

Business ethics

Answer 3

Principles and standards that guide the behavior of individuals and groups in the world of business.

Question 4

Ethical issues in Business

Answer 4

An ethical issue is a problem, situation, or opportunity requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical.

Question 5

List

Ethical issues in business

Answer 5

• Honesty and fairness
• Conflict of interest
• Fraud
• Discrimination
• Information technology abuse

Question 6

List

Factors that influence the ethical decision-making process

Answer 6

• Individual factors
• Organizational relationships
• Opportunity

Question 7

Define

Utilitarianism

Moral Philosophies

Answer 7

Focuses on the consequences of an action taken by a person or organization. The notion that people should act so as to generate the greatest number is derived from utilitarianism.

Question 7

List steps

How to create ethical Relationships in Business

Answer 7

1. Listen and learnIdentify the ethical issues.
2. Create and analyze options, Identify the best options.
3. Explain the decision and reslove any differences that may arise.

Question 8

List

**Opportunity **(Conditions that limit barriers or provide rewards)

Answer 8

• Financial gain
• Recognition
• Promotion
• Positive feelings from a job well done.

Question 9

Define

Deontology

Moral Philosophies

Answer 9

The philosophy that people should meet their obligations and duties when analyzing an ethical dilemma. Actions or decisions based on duty or obligation.

Question 10

Define

Consequentialism

Moral Philosophies

Answer 10

Prioritizes the outcomes or results of a decision. It is an ethical theory that judges whether or not something is right by what its consequences are.

Question 11

Define

Egoism

Moral Philosophies

Answer 11

Actions or decisions are based on self-interest. It is the theory that one’s self is, or should be, the motivation and the goal of one’s own action.

Question 12

Define

Ethical Formalism

Moral Philosophies

Answer 12

Defines morality based on universal absolutes. It is a type of ethical theory which defines moral judgments in terms of their logical form rather than their content.

Question 13

Define

Justice theory

Moral Philosophies

Answer 13

What is fair according to prevailing standards of society. It is a philosophical framework for ethics focused on providing fair and equitable distribution of goods, services, and rights.

Question 14

Define

Code of ethics

Answer 14

Provides employees with the knowledge of what is expected in terms of the responsibilities and behavior towards fellow employees, customers and suppliers.

Question 15

Define

Social Entrepreneurship

Answer 15

A unique form of entrepreneurship that seeks novel ways to solve processing social problems at home and abroad.

Question 16

Define

What is Corporate social responsibility (CSR)

Answer 16

Is the concern of businesses for the welfare of society as a whole. It consists of obligations
beyond those required by law or union contract.

Question 17

What is social responsibility and corporate governance?

Answer 17

Looks at ethical issues on the organizational level Obliges organizations to act in ways that serve both its own interests and the interests of society at large.

Question 18

Define

Classical View

Perspective on social responibility

Answer 18

Managements only responsibility is to maximize profits.

Question 19

Define

Socioeconomic view

Perspective on social responibility

Answer 19

Management must be concerned for the broader social welfare, not just focus on the profits.

Question 20

State

What are the arguments against social responsibility?

Answer 20

• Reduced business profit, Higher business costs
• Dilution of business purpose
• Too much social power for business
• Lack of public accountability.

Question 21

Identify

Zone of Compliance

Criteria for evaluating corporate social perfromance

Answer 21

• Economic Responsibility: Be Profitable
• Legal Responsibility: Obey the Law

Question 22

Identify

Zone of conviction

Criteria for evaluating corporate social perfromance

Answer 22

• Ethical Responsibility: Do what is right
• Discretionary Responsibility: Contribute to community.

Question 23

Obstructionist

Strategies for pursuing social responsibility

Answer 23

Meets economic responsibilities.

Question 24

Defensive

Strategies for pursuing social responsibility

Answer 24

Meets economical and legal responsibilities.

Question 25

Accommodative

Strategies for pursuing social responsibility

Answer 25

Meets economical, legal and ethical responsibilities.

Question 26

Strategies for pursuing social responsibility

Question 27

Strategies for pursuing social responsibility

Question 28

Proactive

Strategies for pursuing social responsibility

Question 29

Proactive

Strategies for pursuing social responsibility

Answer 29

Meets economic, legal, ethical and discretionary responsibilities.

Question 30

Strategic changes in corporate philanthropy

Trends in ethics and corporate social responsibility.

Answer 30

Strategic giving that ties philanthropy and CSR efforts closely to the mission or goals of a business.

Question 31

A new social contract between employers and employee

Trends in ethics and corporate social responsibility.

Answer 31

Both groups have to be committed to working together in order for the organization to prosper.

Question 32

The growth of global ethics and corporate social responsibility

Trends in ethics and corporate social responsibility.

Answer 32

Multinational corporations must implement ethical guidelines that foster respect for both local and international laws.