Week 7 : Chapters 3, 4, & 5

Question 1

Corporate Power

Answer 1

The capability of corporations to influence government, the economy, and society, based on their organizational power.

Question 2

Iron Law of Responsibility

Answer 2

In the long run those who do not use power in ways that society considers responsible will tend to lose it.

Question 3

Corporate Social Responsibility

Answer 3

A corporation should act in a way that enhances society and its inhabitants and be held accountable for any of its actions that affect people, their communities, and their environment.

Question 4

Social Enterprise

Answer 4

An organization that uses business strategies for the purpose of improving human and environmental well-being.

Question 5

B (benefit) Corporation

Answer 5

A corporation that seeks to blend social objectives with financial goals.

Question 6

Microfinance

Answer 6

Occurs when financial organizations provide loans to low-income clients or solidarity lending groups,

Question 7

Ethical Relativism

Answer 7

Ethical principles should be defined by various periods of time in history, a society’s traditions, the special circumstances of the moment, or personal opinion.

Question 8

Integrity Capital

Answer 8

The financial benefit a company reaps from promoting a culture of integrity among its workforce.

Question 9

Sarbanes-Oxley Act

Answer 9

Maintains high ethical standards among companies. Ex: Executives responsible to pay back bonuses that are later found to be fraudulent.

Question 10

U.S. Foreign Corrupt Practices Act

Answer 10

Prevents US companies from pay bribes to foreign government officials.