Chapter 2- understanding business ethics and social responsibility – Flashcards
Unlock all answers in this set
Unlock answersquestion
when a business balances its committment to groups and individuals in an environment, such as customers
answer
social responsibility
question
business balances making customers happy versus manager's expectations at work
answer
name one example of social responsibility
question
how you go about your resoning for things
answer
ethics
question
peers and parents
answer
ethics is influenced by who?
question
involves what to do to make right choices and be on track
answer
business ethics
question
standard of behavior guiding individual managers in their workplace
answer
managerial ethics
question
-employees -organization -other economic agents
answer
name three types of behavior managers are responsible towards?
question
this covers hiring/firing, wages/working conditions, and privacy/respect
answer
behavior toward employees
question
determining ethical issues from employee to employer toward areas of conflict, such as honesty, interest, and confidentiality
answer
behavior toward the organization
question
how ethics comes into play toward customers, competitors, stockholders, suppliers, dealers, unions; anything related to primary agents of interest
answer
behavior toward other economic agents
question
-gather relevant factual info -analyze facts -make ethical judgments
answer
how do you assess ethical behavior?
question
-is it legal? -is it balanced? -how will it make me feel about myself?
answer
when considering ethical norms, what three questions should you ask?
question
does a particular act make the best use of the benefits to those who are affected by it? (do all relevant parties receive free benefits from it)
answer
what issue does utility ethical norms entail?
question
does it respect the rights of all individuals involved?
answer
what issue do ethical norms regarding rights entail?
question
is it on top of what's fair?
answer
what issue do ethical norms regarding justice entail?
question
is it on top of people's responsibilities to each other
answer
what issue do ethical norms regarding caring entail?
question
this is involved with adopting written codes
answer
code of ethics
question
this is involved with instituting ethics program
answer
ethics online
question
this is also involved with instituting ethics program
answer
leadership
question
employees, managers, and organizations
answer
name all of the internal stakeholders involved in a company?
question
groups, individuals, and organizations directly affected by practices of an organization and have a role in its performance
answer
stakeholders
question
suppliers, society, government, creditors, shareholders, and creditors
answer
name all of the external stakeholders involved in a company?
question
-treating customers fairly and honestly -respecting and treating employees fairly -transparency and proper accounting procedures from investors -maintaining mutual beneficial relationship between suppliers in business -being involved in programs/chairities locally and internationally
answer
what does the stakeholder (person with interest/concern in something) model of responsibility involve?
question
expectation of expanding businesses in order to protect and make an impact on society
answer
what is the concept of accountability?
question
many factors contributing to lower air quality
answer
air pollution consists of what?
question
chemical/waste dumping
answer
what is the cause of water pollution?
question
-damaged quality of land -future contamination, such as new forms of solid-waste disposal
answer
what are the two key issues characterizing land pollution?
question
-protecting the rights of consumers, and -avoiding collusion
answer
what is the concept of accountability through consumerism?
question
plotting together and all agree upon it
answer
collusion
question
-production process- cut greenhouse gas emissions by making cars more fuel efficient -product modification- modify products to more environmentally friendly materials, like organic food -carbon offsets- emissions test -packaging reduction- making cups out of recycled material -sustainability- growing crops from the sun with no pesticides
answer
what are all of the elements of green marketing, and name examples for each?
question
that you have consumer rights when packaging products
answer
what does the consumer Bill of Rights state?
question
-insider training- confidential information used to gain from purchase/sale of stock. Ex: lawyer of company and two companies merge together, and -misrepresentation of finances- when you say assets are 9 mill when they're only 1 mill
answer
Name two responsibilities toward investors, and explain them.
question
confidential information used to gain from purchase/sale of stock. Ex: lawyer of company and two companies merge together
answer
insider trading
question
this requires a CFO to determine accuracy of all financial reporting
answer
Sarbanes-Oxly Act
question
when you say assets are $9 mill when they're only $1 mill
answer
misrepresentation of dollars
question
social responsibility
answer
business balances its committment to groups and individuals in an environment, such as customers
question
-obstructionist stance -defensive stance -accommodation stance -proactive stance
answer
name four different approaches to social responsibility, and explain them
question
barely do minimum legal requirement
answer
defensive stance
question
do what you're told, exceed limits, but barely
answer
accommodation stance
question
do bare minimum
answer
obstructionist stance
question
yes, by building trees
answer
can small businesses be socially responsible?
question
-Political Action Committee- special organizations created to solicit money and then distribute it to political candidates -Lobbying- go to other companies/Congress with some purpose/goal
answer
how do organizations influence the gov't?
question
special organizations created to solicit money and distribute to to political candidates
answer
Political Action Committee
question
go to other companies/Congress with some purpose/goal
answer
Lobbying
question
-legal compliance- when organization conforms to federal, state, local, and international laws. task of managing this generally assigned to appropriate functional managers -ethical compliance- when members of organization follow basic standards of behavior -philanthropic giving- awarding funds/gifts to charities/other worthy causes
answer
name some different formal organizational dimensions, and explain them?
question
when organization conforms to federeal, state, local, and international laws.
answer
legal compliance
question
functional managers
answer
task of managing legal compliance generally assigned to whom?
question
when members of an organization follow basic standards of behavior
answer
ethical compliance
question
awarding funds/gifts to charities/other worthy causes
answer
philanthropic giving
question
through a corporate social audit- systematic analysis used to measure success in a firm through funds earnmarked for meeting its goals related to social responsibility (when a business balances its commitment to groups/individuals in an environment)
answer
how do you evaluate social responsibility (when a business balances its commitment to groups/individuals in an environment)?
question
systematic analysis used to measure success in a firm through funds earnmarked for meeting its goals related to social responsibility (when a business balances its commitment to groups/individuals in an environment)
answer
corporate social audit
question
-clearly define all social goals -analyze resources devoting to each goal -determine how well organization achieves various goals -make recommendations toward which areas need more attention
answer
what does a corporate social audit requore?
question
growing crops from the sun with no pesticides
answer
sustainability
question
making cups out of recycled material
answer
packaging reduction
question
emissions test
answer
carbon offsets
question
modify products to more environmentally friendly materials, like organic food
answer
product modification
question
cut greenhouse gas emissions by making cars more fuel efficient
answer
production process
question
through a combination of factors, such as how our peers, parents, teachers, and bosses respond to our mannerisms.
answer
How are personal code of ethics developed?
question
enforcing laws and prevent illegal activity from happening, such as fraud.
answer
How can companies try to encourage and enforce ethical behavior?
question
-Areas toward the environment- carbon monoxide pollutants from cars -Areas toward customers- Food and Drug Administration enforcing labeling guidelines for food practices -Areas toward employees- just hire whoever interviews well, regardless of race. -Areas toward its investors- Sarbanes-Oxly Act- this requires CEO to guarantee accuracy of financial reporting
answer
What are the various areas of social responsibility (when a business balances its commitment to groups and individuals in an environment)? Give an example of each.
question
carbon monoxide pollutants from cars
answer
name one example of social responsibility in regard to the area toward the environment
question
Food and Drug Administration enforcing labeling guidelines for food practices
answer
name one example of social responsibility in regard to the area toward customers
question
just hire whoever interviews well, regardless of race
answer
name one example of social responsibility in regard to the area toward employees
question
Sarbanes-Oxly Act- this requires CEO to guarantee accuracy of financila reoprting
answer
name one example of social responsibility in regard to the area toward its investors
question
-regulation- establishment of laws/rules dictating what businesses can/cannot do -legislation- make laws to determine what businesses can/cannot do -tax codes- indirect form of regulation of gov't used to determine how much to charge on taxes, such as how much tax to charge on cigarettes and tobacco.
answer
list and describe three ways gov'ts influence social responsibility
question
establishment of laws/rules dictating what businesses can/cannot do
answer
regulation
question
make laws to determine what businesses can/cannot do
answer
legislation
question
indirect form of regulation of gov't used to determine how much to charge on taxes, such as how much to charge on cigarettes/tobacco
answer
tax codes
question
-organization leadership and culture -whistle-blowing- disclosure of illegal/unethical conduct on part of others within an organization.
answer
name some informal organizational dimensions of social responsibility
question
-legal compliance -ethical compliance -philanthropic giving
answer
name some formal organization dimensions of social responsibility
question
disclosure of illegal/unethical conduct on part of others within an organization
answer
whistle-blowing
question
groups that are directly affected by the organizational practices and have a stake (interest/concern of something) in its performance
answer
organizational stakeholders
question
-local communities -customers -suppliers -investors -employees
answer
what are some of the major corporate stakeholders in a business organization?
question
ethical/unethical behaviors by employees/managers in the context of their personal jobs
answer
what does business ethics refer to?
question
by adopting written codes of ethics
answer
How do top managers BEST demonstrate a commitment to ethical business practices?
question
social responsibility
answer
What term refers to the way in which a business tries to balance its commitments to groups and individuals in its social environment?
question
guarantee the accuracy of financial reporting
answer
What does the Sarbanes-Oxley Act of 2002 require a chief financial officer to do?
question
Many of the dresses are made from fabrics spun by unprotected child laborers.
answer
Dara's Dress Shop was honored last year for its strong commitment to corporate social responsibility. Which of the following would MOST likely decrease the shop's chances of being recognized again this year?
question
no
answer
Are illegal actions considered to be ethical?
question
following proper accounting procedures
answer
What does a business social responsibility to investors include?
question
it raises questions about his personal ethics
answer
Jordan is a recent college graduate with a degree in computer programming. He has just begun his first full-time job and is excited to apply the skills that he worked so hard to acquire. Though he excelled as a student, Jordan is anxious about how successful he will be as an employee. When an opportunity unexpectedly presents itself to take credit for a brilliant software program that someone else wrote, Jordan does not resist and claims the program as his own. Which of the following statements must be true about Jordan's decision?
question
The company engages in practices that benefit local investors.
answer
SeaBreeze Sailing Company manufactures sailboats for personal pleasure use. Which of the following would suggest that SeaBreeze Sailing Company is NOT committed to corporate social responsibility?
