Term
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Definition
| Standards of moral behaviour; that is, behaviour that is accepted by society as right versus wrong. |
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Term
| Compliance-based ethics codes are... |
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Definition
| Ethical standards that emphasize preventing unlawful behaviour by increasing control and by penalizing wrongdoers. |
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| Integrity-based ethics codes are... |
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Definition
| Ethical standards that define the organization's guiding values, create an environment that support ethically sound behaviour, and stress a shared accountability among employees. |
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Term
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Definition
| People who report illegal or unethical behaviour. |
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Term
| Corporate social responsibility (CSR) is... |
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Definition
| A business's concern for the welfare of society as a whole. |
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Term
| Corporate philanthropy is... |
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Definition
| The dimension of social responsibility that includes charitable donations. |
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Term
| Corporate social initiatives are... |
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Definition
| The dimension of social responsibility that includes enhanced forms of corporate philanthropy in that they are more directly related to the company's competencies. |
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Term
| Corporate responsibility is... |
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Definition
| The dimension of social responsibility that includes everything from hiring minority workers to making safe products. |
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Term
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Definition
| The dimension of social responsibility that refers to the position a firm takes on social and political issues. |
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Term
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Definition
| An unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends. |
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Term
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Definition
| A systematic evaluation of an organization's progress toward implementing programs that are socially responsible and responsive. |
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Term
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Definition
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Term
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Definition
| Abiding by the moral standards accepted by society |
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Term
| How is legality different from ethics? |
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Definition
| Ethics reflects people's proper relation with one another. Legality is more limiting; it refers only to laws written to protect people from fraud, theft, and violence. |
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Term
| What influences our ethical decision making? |
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Definition
| Ethical behaviour starts with you and me. We are influenced by our society and what it considers to be ethical, the behaviour of others (both socially and in a work setting), and by our own personal values and beliefs. |
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Term
| How can we tell if our business decisions are ethical? |
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Definition
Our business decisions can be put through an ethics check by asking three questions:
1) Is it legal?
2) Is it balanced?
3) How will it make me feel?
Companies (and individuals) that develop strong ethics codes and use these three questions have a better chance than most of behaving ethically. |
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Term
| Some managers think that ethics... |
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Definition
| Is an individual issue and has nothing to do with management while others believe that ethics has everything to do with management. |
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Term
| What is management's role in setting ethical standards? |
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Definition
| Managers often set formal ethical standards, but more important are the messages they send through their actions. |
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Term
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Definition
| Management's tolerance of intolerance of ethical misconduct influences employees more than... |
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Term
| What's the difference between compliance-based and integrity-based ethics codes? |
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Definition
| Compliance-based ethics codes are concerned with avoiding legal punishment whereas integrity-based ethics codes define the organization's guiding values, create an environment that supports ethically sound behaviour, and stress a shared accountability among employees. |
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Term
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Definition
| Corporate social responsibility goes beyond... |
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Term
| Corporate social responsibility is... |
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Definition
| The concern businesses have toward stake-holders |
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Term
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Definition
| Business has a responsibility to... |
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Term
| What responsibility do businesses have to customers? |
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Definition
| To satisfy them with goods and services of real value. |
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Term
| What responsibility do businesses have to investors? |
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Definition
| To make money for its investors. Implicit is that decisions are good not only for the economic bottom line but also for the social responsibility bottom line. |
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Term
| What responsibility do businesses have to employees? |
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Definition
| To create jobs, to maintain job security, and to see that hard work and talent are fairly rewarded. This should be accomplished within a safe work environment. |
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Term
| What responsibility do businesses have to society? |
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Definition
| To create new wealth, to promote social justice, and to contribute to making its own environment a better place. |
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Term
| What responsibility do businesses have to the environment? |
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Definition
| To minimize its negative impact on the environment. |
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Term
| How are a company's social responsibility effects measured? |
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Definition
| A corporate social audit measures an organization's progress toward social responsibility. Some people believe that the audit should sum the organization's positive actions and then subtract the negative effects of business to get its net social benefit. |
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Term
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Definition
| How many dimensions of corporate social responsibility are there? |
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Term
| Corporate philanthropy includes... |
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Definition
| Charitable donations to non-profit groups |
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Term
| Corporate responsibility includes... |
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Definition
| Everything from hiring minority workers to making safe products |
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Term
| Corporate policy refers to... |
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Definition
| The position a firm takes on social and political issues |
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Term
| What are the six steps that can improve business ethics? |
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Definition
1) Top management must adopt and support an explicit corporate code of conduct
2) Employees must understand that expectations for ethical behaviour begin at the top and that senior management expects all employees to act accordingly
3) Managers and others must be trained to consider the ethical implications of all business decisions
4) An ethics office must be set up and phone lines to the office should be established
5) Outiders such as suppliers, subcontractors, distributors, and customers must be told about the ethics program
6) The ethics code must be enforced |
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Term
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Definition
| Business ethics can be improved if companies follow... |
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Term
6) The ethics code must be enforced
In order for a company's ethics policy to be taken seriously, it must be enforced. |
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Definition
| Which step is the most critical in the six-step process? |
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Term
| Discuss the strategic approach. |
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Definition
| The strategic approach requires that management's primary orientation be toward the economic interests of shareholders. This approach encourages managers to consider actions' effects on stakeholders other than owners, but ultimately others' interests are secondary. Often these interests are considered only when they would adversely affect profits if ignored. |
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Term
| Discuss the pluralist approach. |
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Definition
| The pluralist approach recognizes the special responsibility of management to optimize profits, but not at the expense of employees, suppliers, and members of the community. This approach recognize the moral responsibilities of management that apply to all human beings. The guiding philosophy for the twenty-first century will be some version of the pluralist approach. |
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