ch.3 mgmt 310

Fiduciary

A person who is entrusted with property, information, or power to act on behalf of a beneficiary

Privacy

A person's right to determine the type and extent of information that is disclosed about him or her

Procedural Justice

A subset of justice claiming that rules should be clearly stated, consistently obeyed, and impartially enforced.

Distributive Justice

A subset of justice that deals with the distribution of wealth and prosperity among members of society

Economic Responsibilities

A business's duty to make a profit and increase shareholder value.

Ethical Responsibilities

A business's duty to meet the expectations of society beyond its economic and legal responsibilities

Legal responsibilities

A business's duty to pursue its economic responsibilities within the boundaries of the law

CSR

A business's obligation to pursue policies, decisions, and actions that align with the objectives and values of society.

Corporate Social Responsibility

A business's obligation to pursue policies, decisions, and actions that align with the objectives and values of society.

Which of the following best supports Milton Friedman's claim that the only social responsibility of business is to increase its profits

Among the 50 companies that shut down operations last year in the US, 35 had invested heavily in CSR

Vitue Ethics

An ethical philosophy claiming that morality's primary function is to develop virtious character

Justice

An ethical philosophy that provides the framework for society to judge what is morally right or wrong, fair or unfair, and establishes ways to evaluate or punish those who behave in morally wrong ways.

Ethical Responsibility (Pyramid 2)

Be ethical. Do what is right. Avoid Harm REQUIRED

Discretionary Responsibility (Pyramid 1)

Contribute to the community; be a good corporate citizen

strategic CSR

Corporate social responsibility activities that are directly related to business activities so that they can combine social welfare with financial welfare

C (4-STEP PROCESS FOR IMPLEMENTING CORPORATE SOCIAL RESPONSIBILITY)

Create a corporate social agenda (incorporate with stragety)

D (4-STEP PROCESS FOR IMPLEMENTING CORPORATE SOCIAL RESPONSIBILITY)

Create a social dimension to the value proposition

Which of the following is the last step in the 4-step process to implementing CSR?

Create a social dimension to the value proposition

Cadmia, a small island nation, recently revised its income-tax law. The new law sought to increase taxes on wealthy corporations and citizens with higher incomes. Surprisingly, everyone responded positively to the tax revision as they believed that it will decrease inequality in the nation. In this scenario, the people of Cadmia have demonstrated support for:

Distributive justice

A (4-STEP PROCESS FOR IMPLEMENTING CORPORATE SOCIAL RESPONSIBILITY)

Identify points of intersection between company and society

Which of the following statements is true of Kantianism?

It assumes that motives are important when judging moral action

Which of the following is a shortcoming of utilitarianism?

It leads to a tyranny of the majority and a failure to respect minorities

Which of the following best describes corporate social responsiveness?

It refers to how businesses should respond when society pressurizes them to do more

_________is the idea that behaviors must be based on standards of equity, fairness, and impartially to preserve order in society

Justice

I understand that people want privacy, but how am I going to be compensated for the money their privacy loses for my company?

Justice Approach

People who are in the business community have the right to make money. I don't think it is ethical for any individual to take that freedom away from me or my company.

Moral rights approach

Legal Responsibility (pyramid 3)

Obey the Law REQUIRED

Which of the following subsets of justice claims that rules should be clearly stated, consistently obeyed, and informally enforced?

Procedural Justice

B (4-STEP PROCESS FOR IMPLEMENTING CORPORATE SOCIAL RESPONSIBILITY)

Select social issues to address

Preconventional Morality(Kohlberg's)

Stage 1 (Obedience and Punishment) & Stage 2 (Individualism and Exchange)

Conventional Morality(Kohlberg's)

Stage 3 (Interpersonal Relationshios) & Stage 4 (Maintaining Social Order)

Postconventinal Morality (Kohlberg's)

Stage 5 (Social Contracts and Individual Rights) & Stage 6 (Universal Principles)

Utilitarianism

The ethical philosophy claiming that behaviors are considered moral if they produce the greatest good, or utility, for the greatest number of people

Morality

The standards that people use to judge what is right or wrong, good, or evil

Ethics

The study of moral standards and their effect on behavior and conduct

A ________ is information used in conducting business that is not commonly known by others and often provides a strategic advantage for a company over its competitors.

Trade Secret

As CEO, I have to think about the interests of a large number of stakeholders. There may be a few individuals who are concerned about Facebook's privacy policies, but far more people receive a benefit from those same polocies, because they don't have to see a bunch of ads that aren't relevant to them.

Utilitarian Approach

Kantianism

an ethical philosophy claiming that motives and universal rules are important aspects in judging what is right or wrong

Trade Secret

any type of information used in conducting business that is not commonly known by others. It often provides a stategic advantage for a company over its competitors

Strategic CSR refers to corporate social responsibility activities that:

are directly related to the business objectives of a company.

Most whistle-blowers:

are punished or pointing out of problems

Economic Responsibility (pyramid 4)

be profitable REQUIRED

Rafael, the manager, has a _________. He is responsible for purchasing all the food that his company will need for their next managerial retreat, and his son owns a local, but highly priced, delicatessen. Rafael can't devide whethe to give his son the business or to choose a lower-priced vendor.

conflict of interest

Conflict of interest

conflicts that occur when employees or managers engage in activities on behalf of the company and have a personal interest in the outcome of those activities

Conformation to social expectations and consideration of interpersonal relationships tend to influence:

conventional morality

The study of ______ shows us the overall relationship between what people believe and how they act

ethics

Bribery

offering something valuable to a party to act on his or her behalf, often to an unfair advantage

One of the most important concepts in _______ is the idea that laws must result in fair outcomes

procedural justices

Corporate social responsiveness

the practice of businesses responding to pressure from society to engage in socially responsible ways.

Whistle-blowing

the release of information by a member of an organization that is evidence of illegal or immoral conduct to executives in a company or regulating agencies outside a company

The release of evidence of illegal or immoral conduct by a member of an organization to executives in the company or regulating agencies outside the company is known as ________ .

whistle-blowing