Flashcards on Foundations of Business Chapter 2
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ethics
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the study of right and wrong and of the morality of the choices individuals make
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business ethics
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the application of moral standards to business situations
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3 factors that affect the level of ethical behavior in an organization
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individual factors, social factors, opportunity
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Sarbanes-Oxley Act of 2002
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provides sweeping new legal protection for employees who report corporate misconduct
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code of ethics
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a guide to acceptable and ethical behavior as defined by the organization
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whistle-blowing
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informing the press or government officials about unethical practices within one's organization
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social responsibility
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the recognition that business activities have an impact on society and the consideration of that impact in business decision making
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caveat emptor
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a Latin phrase meaning "let the buyer beware"
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economic model of social responsibility
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the view that society will benefit most when business is left alone to produce and market profitable products that society needs
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socioeconomic model of social responsibility
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the concept that business should emphasize not only profits but also the impact of its decisions on society
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consumerism
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all activities undertaken to protect the rights of consumers
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minority
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a racial, religious. political, national or other group regarded as different from the larger group of which it is a part and that is often singled out for unfavorable treatment
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affirmative action program
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a plan designed to increase the number of minority employees at all levels within an organization
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reverse discrimination
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a form of discrimination where courts rule that such quotas are unconstitutional
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Equal Employment Opportunity Commission (EEOC)
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a government agency with the power to investigate complaints of employment discrimination and the power to sue that practice it
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hard-core unemployed
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workers with little education or vocational training and a long history of unemployment
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pollution
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the contamination of water, air, or land through the actions of people in an industrialized industry
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social audit
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a comprehensive report of what an organization has done and is doing with regard to social issues that affect it
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Customer's expect a firm's products to be:
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safe, reliable, and reasonable priced
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The field of business ethics applies moral standards to business situations. T or F
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true
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Business ethics rarely includes the application of moral standards to the business activity of a normal company. T or F
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false
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The economic model of social responsibility emphasizes the effect of business decisions on society. T or F
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false
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Consumerism consists of all activities undertaken to protect the rights of consumers. t or F
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true
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Manufacturers are NOT required by law to inform consumers about the potential dangers of using their products. T or F
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false
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Affirmative-action plans encompass all areas of human resources management, including recruiting, hiring, training, promotion, and pay. T or F
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true
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Hard-core unemployed workers are those with little education or vocational training. T or F
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true
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The EPA was created by the government to develop new improved ways to clean and improve the environment. T or F
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false
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Consumers will probably pay in large part for cleaning up our environment through increased taxes or increased product cost. T or F
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true
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A key step in developing and implementing a social responsibility program is the environmental audit. T or F
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false
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Some AIG executives were aware of the financial problems the company was facing and yet failed to reveal the information to the public. these actions taken by AIG executives were:
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unethical
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Bribes are unethical. t or f
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true
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What are three sets of factors that influence the standards of behavior in an organization?
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opportunity, industrial factors, social factors
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Social responsibility is
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costly but provides tremendous benefits to society and the business
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Where does social responsibility of business have to begin?
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management
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Primary emphasis in the economic model of social responsibility is on
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production
