Business Ethics Test 1

Uncompromising adherence to ethical values (one of the most important terms relating to virtue)

Integrity

Refers to a person'a personal philosophies about what is right or wrong - PERSONAL AND SINGULAR

Morals

Acceptable behavior as defined by the company and industry

Organizational ethical culture

Specific and pervasive boundaries for behavior that should not be violated (Ex: human rights, freedom of speech and justice)

Principles

When do ethical decisions occur?

When the accepted rules no longer apply and decision makers must weigh values and reach a judgment

Who are some primary stakeholders?

customers employees government agencies investors suppliers communities

a problem, situation, or opportunity that requires an individual or group to choose among several wrong or unethical actions - there is no ethical choice

ethical dilemma

Who are some secondary stakeholders?

media trade associations special interest group (do not typically engage in transactions with firms and are not essential to a firm's survival

What are some examples of observed misconduct in the workplace?

1. Misuse of company resource 2. Abusive behavior 3. Harassment 4. Accounting fraud

What are some steps a firm could take to avoid sexual misconduct?

1. Statement of policy 2. Definition of sexual harassment 3. Non-retaliation policy 4. Specific procedures for prevention 5. Establish, enforce, and encourage victims to report 6. Establish a reporting procedure 7. Timely reporting requirements to the proper authorities

3 main aspects of corporate governance?

1. accountability - how closely workplace decisions align with a firm's strategic direction 2. oversight - system of checks and balances to minimize opportunities for misconduct 3. control - process of auditing and improving organizational decisions and actions

What are the 4 levels of social responsibility?

1. economic 2. legal 3. ethical 4. philanthropic

What constitutes as corporate governance?

1. executive compensation 2. enterprise-wide risk management 3. short and long-term strategies 4. board composition and structure 5. shareholder relations 6. CEO selection, termination, and succession plans 7. role of the CEO in board decisions 8. auditing, control, and integrity of financial reporting 9. compliance with government regulation and reform 10. organizational ethics programs

The extent to which businesses strategically meet their economic, legal, ethical, and philanthropic responsibilities

Corporate citizenship

An organization's obligation to maximize positive impact and minimize negative impact on stakeholders

Corporate social responsibility

Why be ethical?

- contributes to employee commitment - produces stronger investment wealth - boosts customer satisfaction - contributes to profits

T/F: Business can be considered a game people plat, like basketball or boxing

F

T/F: Business ethics focuses mostly on personal ethical issues

F

T/F: Fraud occurs when a false impression exists, which conceals facts

F

T/F: Investments in business ethics do not support the bottom line

F

T/F: Only 10 percent of employees observe abusive behavior in the workplace

F

T/F: Social responsibility in business refers to maximizing the visibility of social involvement

F

T/F: The most significant influence on ethical behavior in an organization is the opportunity to engage in unethical behavior

F

T/F: The trend is away from cultural or ethically based initiatives to legal initiatives in organizations

F

T/F: Three primary stakeholders are customers, special interest groups, and the media

F

Collaborative efforts to establish goals and set minimum levels of ethical behavior

Global ethical culture

T/F: An ethical culture is based upon the norms and values of a company

T

T/F: Business ethics contributes to investor loyalty

T

T/F: Business ethics deals with right or wrong behavior within a particular organization

T

T/F: Key ethical issues in an organization relate to fraud, discrimination, honesty and fairness, conflicts of interest, and technology

T

T/F: Putting one's own interests ahead of the organization's is the most commonly observed type of misconduct

T

T/F: Stakeholders provide resources that are more or less critical to a firm's long-term success

T

T/F: The stakeholder perspective is useful in managing social responsibility and business ethics

T

Enduring beliefs and ideals that are socially enforced (Ex: teamwork, trust and integrity)

Values

Comprises organizational principles, values, and norms that may originate from individuals, organizational statements, or from the legal system that primarily guide individual and group behavior in business

business ethics