Unit 2- Common Ethical Issues

Question 1

Branch of philosophy concerned with the meaning of all aspects of human behavior- right vs. wrong, just vs. unjust

Answer 1

Ethics

Question 2

Act allowed or in conformity with the law of the land

Answer 2

Legal

Question 3

Situations not causing many issues

Answer 3

Legal-ethical

Question 4

Ignoring dangerous work conditions in overseas clothing manufacturers; personal ethics vs. legality

Answer 4

Legal-unethical

Question 5

US government leaking docs during Vietnam war; Personal ethics vs. legality

Answer 5

Illegal- ethical

Question 6

Stable, enduring goals a person has for life; most important principles

Answer 6

Values

Question 7

Sets of rules that people develop based on cultural norms and beliefs passed through generations and cultural groups

Answer 7

Morals

Question 8

Rules, principles, standards in the context of business activities

Answer 8

Organizational Ethics

Question 9

Four main levels of ethical issues

Answer 9

Societal, Stakeholder, Internal Policy, Personal

Question 10

Ethical issues relating to the world as a whole

Answer 10

Societal Issues

Question 11

Policies that affect organization’s customers, employees, suppliers, people in the community

Answer 11

Stakeholder Issues

Question 12

Internal relationships between company and employees such as fairness in management, pay, or employee participation

Answer 12

Internal Policy Issues

Question 13

How people treat others in their organization such as gossip or taking credit for another’s work

Answer 13

Personal Issues

Question 14

How does a company’s ethical behavior impact organizational outcomes?

Answer 14

Ethical behavior is set and modeled by managers; objectives are specific and measurable

Question 15

Philosophy in which companies voluntarily engage in actions that benefit society at large- socially, economically, environmentally, or politically

Answer 15

Corporate Social Responsibility (CSR)

Question 16

Examples of CSR

Answer 16

Reliable product, charging a fair price, paying a fair wage, caring for the environment, acting on social concerns

Question 17

What does CSR depend on?

Answer 17

Resources, available assets, corporate culture, personal beliefs, priorities of senior management, ownership

Question 18

All parties who have a stake in performance or output of a company such as unions, employees, investors, suppliers, consumers, government, communities

Answer 18

Stakeholders

Question 19

Aim of CSR

Answer 19

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

Question 20

Governs global trade by overseeing implementation of trade agreements between nations

Answer 20

World Trade Organization (WTO)

Question 21

Purpose of WTO

Answer 21

improve stability and predictability of global trade

Question 22

Establishes a company’s key values, describes company’s obligation to stakeholders, details how company plans to implement values and vision, guides staff on ethical standards and ways to achieve them

Answer 22

Code of Ethics

Question 23

Ethical commitments or statements that are contrary to actual practices

Answer 23

Greenwashing

Question 24

Ability of all individuals in an organization to exist in a system of openness, communication, and accountability; perceived quality of intentionally shared info

Answer 24

Internal Transparency

Question 25

Act passed in response to several highly-publicized corporate fraud cases; mandates reporting transparency in financial and accounting as well as supply-chain activities

Answer 25

Sarbanes-Oxley Act (SOX)

Question 26

Those who tell public or authorities about alleged misconduct in government departments, private companies or organizations

Answer 26

Whistleblowers

Question 27

Companies are motivated to adopt CSR policies because they recognize it can help improve financial well-being

Answer 27

Enlightened Self-Interest

Question 28

What steps can a business take to encourage internal transparency?

Answer 28

Conduct annual trainings, develop company-wide code of ethics, establish a corporate culture that values ethical behavior and condemns unethical actions, have an ethics hotline for anonymous reporting