Business Chapter 4

Ethics

a set of beliefs about right and wrong, good and bad.

What are the social responsibility issues in the global arena

bribery, corruption, human rights, environmental standards, legal differences, cultural differences

corporate responsibility

business contributions to the community through the actions of the business itself rather than donations of money and time

cause-related marketing

marketing partnerships between businesses and nonprofit organizations, designed to spike sales for the company and raise money for the nonprofit

The starting point for universal ethical standards

people typical agree on core values

What plays into the role of your ethical standards

who you are as a human being, your family, and culture

Give 3 examples of ethical dilemmas that workers or managers might face in a business setting.

1) If someone was to ask you if he should go to another job, but you need him to complete a job. So you have to make the decision to tell him to go or stay.2) If your boss tells you that you will get a raise but only if he was to fire your friend at work that will affect him and his family. And you have to make the decision to fire him or get the raise.3) If an office was wanting a new copy machine at the office and asks you to take it out of your pay or do some extra work and he will take it out of your friend at works pay.

What is the difference between corporate philanthropy and corporate responsibility to the community? Which do you think is better? Why?

Corporate philanthropy is when a company donates goods and money as well helping out employees money wise. Corporate responsibility focuses more on the business rather than donating. I think that corporate philanthropy is better because it focuses on donating good as well as helping out employees.

How do companies evaluate their efforts to be socially responsible

Many companies even some industries monitor them themselves. The process typically involves establishing objectives for ethics and social responsibility and then measuring achievement of those objectives on a systematic, periodic basis. Other groups play watchdog roles as well. Key players include activist customers, investors, unions, environmentalists, and community groups.

What are 3 examples of successful companies that have pursued sustainable development programs?

McDonald's ships orange juice in concentrate rather than ready to serve container helping out with less garbage. Dell became fully carbon neutral and became the greenest technology on the planet. Patagonia markets outdoor clothing using one hundred percent organic cotton and natural fibers.

How do relative ethics compare to universal ethical standards?

Relative ethics apply to mainly you and your family while universal ethics apply to everyone across a broad spectrum of situations.

stakeholder

any groups that have a stake or personal interest in the performance and actions of an organization

Ethical dilemmas

A decision that involves a conflict of values; every potential course of action has some significant negative consequence.

consumerism

A social movement that focuses on four key consumer rights: (1) the right to be safe, (2) the right to be informed, (3) the right to choose, and (4) the right to be heard.

Code of ethics

A formal, written document that defines the ethical standards of an organization and gives employees the information they need to make ethical decisions across a range of situations

Social Responsibility

An organization's obligation of a business to contribute to society.

Define sustainable development.

Doing business to meet the needs of this generation without harming the environment or the ability of future generations to meet their needs.

Example of a stakeholder

Employees, customers, investors, community

What is the impact on stakeholder groups?

Enlightened companies carefully consider the priorities of of all stakeholders as they make key decisions.

How does ethics relate to both the individual and the organization?

Ethical choices begin with ethical individuals. To help people make good decisions, experts have developed frameworks for reaching ethical decisions. While each person is responsible for his or her own actions, the organization can also have a dramatic influence of the conduct of individual employees.

Sarbanes-Oxley Act

Federal legislation passed in 2002 that sets higher ethical standards for public corporations and accounting firms. Key provisions limit conflict-of-interest issues and require financial officers and CEOs to certify the validity of their financial statements.

Explain the role of social responsibility in the global arena.

Social responsibility becomes more complex in the global arena, largely due to differences in the legal and cultural environment.

Business Ethics

The application of right and wrong, good and bad, in a business setting.

Define the concept of planned obsolescence.

The concept of planned obsolescence is to design a product to fail so that the consumer has to pay back what they said in a shorter time.

When might the need for social responsibility conflict with the need to maximize profits?

The two might conflict when the business is not doing to well and they need to maximize their profits. But at the same time they haven't contributed anything in a long time.

How can domestic companies that outsource manufacturing to foreign factories ensure that their vendors adhere to ethical standards?

They can monitor, enforce, and commit to finding solutions that work for all parties involved.

When the needs conflict, how should a firm decide which path to pursue?

They have to make the decision whether they want to keep the money and maximize profits or contribute.

corporate philanthropy

all business donations to nonprofit groups, including money, products, and employee time

What is an ethical dilemma?

When whatever you might do will have negative consequences. Forcing you to choose among bad options.

Should ethics ever be relative? Provide a rationale for your response.

Yes ethics should be relative. Because it very important what you do right and what you do wrong.

. Is this strategy ethically unsound? Why or why not?

Yes, it is ethically unsound because it is costing the consumer more money in a shorter amount of time.

social audit

a systematic evaluation of how well a firm is meeting its ethics and social responsibility goals

examples of watchdog groups

activists customers, investors, unions, environmentalists, community groups.

green marketing

developing and promoting environmentally sound products and practices to gain a competitive edge

whistle blowers

employees who report their employer's illegal or unethical behavior to either the authorities or the media

universal ethical standards

ethical norms that apply to all people across a broad spectrum of situations

carbon footprint

refers to the amount of harmful greenhouse gases that a firm emits throughout its operations, both directly and indirectly

planned obsolescence

the strategy of deliberately designing products to fail in order to shorten the time between purchases

ethical dilemmas in business setting

they arise when face business decisions that throw values into conflict. These are decision that force you to choose among less-than-ideal options because whatever choice you make will have some type of negative consequence.