Business Chapter 4

Card Set Information

Business Chapter 4
2015-03-16 18:29:23
Final Exam

from the review made by Elizabeth
Show Answers:

  1. compliance-based ethics codes
    emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers.
  2. corporate philanthropy
    includes charitable donations to nonprofit groups of all kinds
  3. corporate policy
    refers to the position a firm takes on social and political issues
  4. corporate responsibility
    includes everything from hiring minority workers to making safe products, minimizing pollution, using energy wisely, and providing a safe work environment--essentially everything that has to do with acting responsibly within society.
  5. corporate social initiatives
    include enhanced forms of corporate philanthropy.  Corporate social initiatives differ from traditional philanthropy in that they are more directly related to the company's competencies.
  6. corporate social responsibility (CSR)
    the concern businesses have for the welfare of society, not just for their owners. CSR goes well beyond being ethical.  It is based on a commitment to integrity, fairness, and respect.
  7. ethics
    society's accepted standards of moral behavior, that is, behaviors accepted by society as right rather than wrong
  8. insider trading
    uses private company information to further insiders' own fortunes or those of their family and friends.
  9. integrity-based ethics codes
    define the organization's guiding values, create an environment that supports ethically sound behavior, and stress shared accountability.
  10. social audit
    a systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs. One of the major problems of conducting a social audit is establishing procedures for measuring a firm's activities and their effects on society.
  11. whistleblowers
    insiders who report illegal or unethical behavior
  12. How is legality different from ethics?
    • Ethics goes beyond obeying laws to include abiding by the moral standards accepted by society.
    • Ethics reflects people's proper relationships with one another.
    • Legality is more limiting; it refers only to laws written to protect people from fraud, theft, and violence.
  13. How can we tell if our business decisions are ethical?
    • Is it legal?
    • Is it balanced?
    • How will it make me feel?
  14. What is management's role in setting ethical standards?
    Managers often set formal ethical standards, but more important are the messages they send through their actions. Management's tolerance or intolerance of ethical misconduct influences employees more than any written ethics codes.
  15. What's the difference between compliance-based and integrity-based ethics codes?
    Whereas compliance-based ethics codes are concerned with avoiding legal punishment, integrity-based ethics codes define the organization's guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees.
  16. What is corporate social responsibility?
    the concern businesses have for society
  17. How do businesses demonstrate corporate responsibility toward stakeholders?
    • Business is responsible to four types of stakeholders:
    • customers (with goods and services of real value)
    • investors (make money)
    • employees (create jobs, maintain job security, reward hard work and talent)
    • society (create new wealth, promote social justice, contribute to making its own environment a better place)
  18. How are a company's social responsibility efforts measured?
    A corporate social audit measures an organization's progress toward social responsibility. Some people believe the audit should add together the organization's positive actions and then subtract the negative effects to get a net social benefit.
  19. How can U.S. companies influence ethical behavior and social responsibility in global markets?
    Many U.S. businesses are demanding socially responsible behavior from their international suppliers by making sure their suppliers do not violate U.S. human rights and environmental standards. Companies like Sears, Phillips-Van Heusen, and Dow Chemical will not import products from companies that do not meet their ethical and social responsibility standards.