D072 Fundamentals for Success in Business Review Unit 2

World Trade Organization (WTO)

- International organization tasked with promoting global trade, enforcing common trade regulations, and helping promote ethical behavior among members

Sarbanes-Oxley Act (SOX)

- Law aimed at improving corporate transparency by requiring clear reporting practices. SOX applies to publicly traded companies and is enforced by the Securities and Exchange Commission. It covers multiple topics, such as the independence of corporate boards and outside certified public accounting firms that audit corporations. The law also makes the CEO and CFO personally responsible for errors in annual audits—thus making it harder to "cook the books."

corporate social responsibility (CSR)

- Philosophy in which a company voluntarily engages in actions that benefit society, be it economically, socially, politically, or environmentally

Morals

- Rules people develop as a result of cultural norms and values and are, traditionally passed down through generations and characterize a cultural group

Organizational ethics

- Rules, principles, and standards for deciding what is morally right or wrong when doing business

Values

- Stable life goals that people have, reflecting what is most important to them

Organizational culture

- The shared values, beliefs, and norms of an organization that affect the strategies and operating procedures of the business

Stakeholders

- Those who have a stake in the performance and output of an organization, such as employees, unions, investors, suppliers, consumers, local and national governments, and communities

whistleblowers

- Those who tell the public or the authorities about alleged misconduct occurring in a government department, private company, or organization

international business culture

- Variations in attitudes, values, goals, and practices shared by individuals, organizations, or societies based on geography

greenwashing

- When organizations carry about CSR missions in an inauthentic way, using them to increase publicity rather than to spur real change

legal-ethical

- When the law and personal or organizational ethics are in accordance with each other

The chief executive officer (CEO) of a company decides to change the way the company has been functioning over the years in order to improve its reputation. The CEO decides to pay the employees a fair wage, show a good profit margin, and produce a reliable product. But even after a year, there is not much change in the way the community perceives the company. Which action will provide the improvement this CEO is seeking? Creating an internal safety awareness program Advertising products during popular sports programs Investing in social and environmental causes Recruiting additional employees

Investing in social and environmental causes

legal

- An act that is allowed or is in conformity with the law of the land

personal ethics

- Codes, principles, and values that shape our interactions with others

Internal transparency

- Degree to which an organization operates with openness, communication, and accountability

legal-unethical

- Dilemma in which established laws are not in accordance or do not uphold the ethical choice

illegal-ethical

- Dilemma in which the ethical choice would be in violation of established laws

code of ethics

- Guide that publicly sets out an organization's key values and ethical obligations

Pentagon Papers

- Illegal-ethical conflict in which U.S. government officials leaked top secret papers to inform the public about government actions during the Vietnam War

Ethics

- Principles that serve as a guide about how to behave

Which group is responsible for setting the ethical tone of a corporation? Shareholders Managers Frontline employees Creditors

Managers (Integrity and ethics starts at the top with organizations' leadership and trickles down to everyone else.)

societal issues

These are the issues relating to the world as a whole. Many companies get involved with these issues because of the ethics the organization creates out of care and concern for individuals.

A group of employees discovered alleged misconduct by senior managers of their company and leaked information about the situation to the press and general public.What is term for this group of employees? Greenwashers Whistleblowers Public auditors Compliance board

A whistleblower is someone like an employee or group of employees who informs the public about alleged misconduct occurring in an organization.

Which term describes domestic employees' actions if their concern about battery manufacturing appears to be actually taking place, and they informed the media about the situation? Intrapreneur Internal auditor Compliance officer Whistleblower

A whistleblower is someone who tells the public about alleged misconduct within an organization. In this scenario, if the employee informs the media about Sure Start's moving all production operations oversees, they would be called a whistleblower.

stakeholder issues

Anyone affected by a company's actions. In this level, businesses must deal with policies that affect their customers, employees, suppliers, and people within the community.

The chief executive officer (CEO) of a beverage company wants to promote a healthy lifestyle to its customers. Which action will achieve this goal? Set an example to customers by donating corporate profits to a local health organization. Encourage employees to carpool to work. Build a park for the community that includes walking trails Donate food to a local food bank.

Build a park for the community that includes walking trails

Which organizational emphasis is being demonstrated by the production of the new product? Code of social ethics CSR Internal transparency responsibility Code of conduct

CSR is a philosophy in which a company makes decisions while considering the impact on, and the benefits to, the wider community. The company is now choosing to manufacture rechargeable batteries for electrical cars, which are more environmentally friendly than traditional batteries. The change in the type of batteries being produced is part of a CSR emphasis by the company.

What is the strategic value of implementing CSR? To maintain global operating guidelines such as those set by WTO. To generate a profit and meet the letter of the law in their business operations To help recruit, train, and maintain groups of local employees To increase profits and trust in the long-term while promoting positive community relations

CSR is designed to increase long-term profits and shareholder trust while promoting positive community relations and maintaining high ethical standards.

A company has embraced the philosophy of CSR. Which practice reflects this commitment? Providing the workers with free coffee and tea during their shifts Ensuring that local, state, and federal taxes are paid on time Abiding by state environmental laws Holding a food drive to support local residents in need

CSR refers to voluntary actions taken by a company that benefit the community at large. A food drive is both voluntary and works to benefit the local community.

During a meeting, a senior manager became upset over an issue and used profanity when responding to lower-level managers. The behavior disrupted the whole company. Which organizational element of ethics did this manager violate? Mission Culture Charter Bylaws

Culture

A large manufacturer of ice cream products has a core value of "making the world a better place." However, it was discovered that the manufacturer sourced their main raw ingredient from a company that used practices considered detrimental to the well-being of animals. Which situation is occurring with this discrepancy? Publicizing Kickbacking Whistleblowing Greenwashing

Greenwashing is when a company's ethical commitments and statements run contrary to their actual practices. Sourcing ingredients from suppliers who have practices detrimental to the well-being of animals is clearly contrary to the manufacturer's commitment to "making the world a better place."

A chief executive officer (CEO) of a company that engages in corporate social responsibility is trying to cut costs. As a result, the CEO decides to move the operations overseas to a country with low wages and plans on paying a bit more than the prevailing wage in that location. Which description accurately describes this company's action? Illegal and socially irresponsible Illegal but socially responsible Legal but socially irresponsible Legal and socially responsible

Legal and socially responsible

In an effort to cut costs, an apparel factory is moving operations to another country where labor is cheap and employment laws are less stringent. Costs can only be kept low if the factory operates like a sweatshop. Which type of problem is this company facing? Illegal-ethical Legal-ethical Legal-unethical Illegal-unethical

Legal-unethical

A manager in a large corporation is trying to encourage the employees to engage in individual corporate social responsibility (CSR) activities. Which action should the manager take to support this employee behavior? Encourage them to attend meetings to brainstorm new project ideas Ask them to work extra time at the offices so they can earn more money Ask them to take a pay cut and contribute the missing funds to a department party Encourage them to volunteer their time for social concerns

Encourage them to volunteer their time for social concerns

What type of motivation is Charlie exhibiting by changing emphasis on the type of product being produced? CSR Code of ethics Altruistic leadership Enlightened self-interest

Enlightened self-interest is when organizations are motivated to adopt CSR policies because they recognize it can actually help improve their financial well-being. Changing emphasis from traditional battery manufacturing to a more environmental friendly rechargeable battery is a form of enlightened self-interest.

Charlie is looking to hire employees with______ that will maintain the corporate vision. _______are the personal values and principles that define what is right and wrong in a context. ________ are essential in appropriate interactions with the organization's stakeholders throughout the continent.

Ethics

Sharing credit with co-workers and treating subordinates with respect demonstrates what level of organization ethics? _____ (high or low)

Good: Sharing credit with co-workers and treating subordinates with respect demonstrates high level of organizational ethics. Bad: Treating others unfairly, showing preferences within the workplace is a low level of organizational ethics.

Charlie suggests in a press release that the company is planning to phase out its traditional car battery production in an effort to focus on sustainable business practices. Which action is Charlie taking? Perjury Business tort Conscious consumerism Greenwashing

Greenwashing is when a company makes an ethical commitment, but their actions are different than the commitment made. In the scenario, Sure Start is still planning on continuing the production of traditional batteries, which are not as environmental friendly as electric batteries. Charlie's statement is greenwashing as the company has no plans to discontinue production of traditional batteries.

A judge believes that the use of cannabis should never be allowed due to personal principles of what is right and wrong, regardless of the situation. A law was recently passed, however, allowing individuals to use cannabis. Which type of issue does the judge face?

Legal-unethical (The judge's personal ethics are that cannabis use is unethical even though it is legal.)

internal policy issues

In this level, the concern is for internal relationships between a company and its employees. Fairness in management, pay, and employee participation would all be considered issues.

A company leader facilitates a planning meeting to engage everyone in the company's decision to use post-consumer recycled materials in its packaging. Which impact does this meeting have on the organization? It provides more packaging choices. It improves company profitability. It increases employee awareness. It enhances government support.

Increases employee awareness (This leader is sharing how using post-consumer recycled materials in packaging could be achieved in an effort to engage employees in corporate social responsibility.)

_______ identify rules and guidelines for how employees behave in the business setting. They describe expectations the business has for its employees. Carl and Kim were relocated to foreign countries with the goal of hiring new employees and ensuring that they knew and shared the company's unified visions.

Internal policies

A retail company frequently updates its principles, rules, and guidelines to reflect input by employees. Which level of organizational ethics is being illustrated by this company? Personal issues Stakeholder issues Internal policy issues Societal issues

Internal policies are between the organization and its internal stakeholders, the employees. The regular policy updates will include employee input and reflect internal policy issues.

The top management of a company implemented a policy in which all employees can attend the board meetings so they can be present when important decisions are made. Which practice is being followed by this company? Greenwashing Internal auditing Social responsibility Internal transparency

Internal transparency is the ability of all individuals in an organization to operate in an environment of openness, communication, and accountability.

A manager attends training on different languages, business conduct, and approaches to working with diverse populations. Which aspect of the company is the manager learning? Organizational culture International business culture International business success Organizational leadership

International business culture

Sure Start's marketing strategy must be able to translate across the different business locations so that the company's values and products are accepted by all customer groups. Which ethical element will this strategy address? Personal Ethics Morals International Business Culture Business Law

International business culture refers to the differences in values, goals, and attitudes of various stakeholders from different countries or geographic regions. Culture is a group's shared values, traditions, beliefs, and understandings that influence how individuals perceives an environment. Charlie wants to make sure that the company's marketing strategy is relevant and aligns with the cultural values of different customer groups in the different countries.

A corporation is opening a new factory in a small rural community and would like to demonstrate an ethical commitment to environmental responsibility in the new location. Which action demonstrates this commitment? Pledge to only recruit and hire from the local community Create a citizen hotline for anonymous reporting of company problems Provide funding for laboratories at the local medical college Invite local citizens to a tree-planting event along the town's main street

Invite local citizens to a tree-planting event along the town's main street

An entry-level employee decides to borrow the company car for the weekend despite the company's code of ethics against the practice. Which ethical analysis applies to this behavior? It is acceptable since the employee is in an entry-level position. It is acceptable as long as no one discovers the car was borrowed. It is not acceptable since it clearly violates policy. It is not acceptable because the employee could have an accident while driving the car.

It is not acceptable since it clearly violates policy.

A manufacturing cosmetics company currently avoids testing its products on animals, but the new chief executive officer (CEO) decides to begin that practice since it will help cut company costs. Which impact will this have on the organization? It will reduce the company's position as an advocate for customer safety. It will be able to increase the company's market share. It will be viewed as being unethical. It will be seen as being committed to producing reliable products.

It will be viewed as being unethical.

A company develops a program to help guide employees in decision-making and defines expectations for accepting gift from clients. What is the name of the program? Compliance and ethics Internal transparency Whistleblower and protection Social responsibility

Many organizations implement compliance and ethics programs to help guide decision-making and employee behavior.

1. Where do an organization's ethics tend to start? A. They develop over time B. They start at the bottom and bubble up C. They start at the top and trickle down

Organization's ethics tend to start (or fail) from the top (management) then trickle down.

A manager understands the importance of the company's transparent and ethical supply chain but learns about a foreign supplier's unethical conduct. During a meeting with the supplier, the manager makes a point of reviewing the company's code of conduct without explicitly discussing the supplier's unethical practices. What is the manager discussing in this meeting with the supplier? International business success Organizational leadership International business culture Organizational culture

Organizational culture

A CEO of a company wishes to create training material that clearly indicates shared assumptions, values, and beliefs.Which term is this material describing? Organizational culture Institutional behavior International business culture Organizational ethics

Organizational culture comprises the company's established values and beliefs as expressed through a mission and vision statement.

A senior manager makes an effort to engage in corporate social responsibility (CSR) activities to build the company's reputation. Which action should the manager take to continue to move towards this goal? Focus on increasing profit margins Manufacture an inexpensive product Pay fair wages to employees Focus on marketing efforts

Pay fair wages to employees

An act of violence occurs in the country. When a company leader is asked about the situation by a colleague at lunch, the leader opens up to the colleague and expresses concerns about the aggression associated with the event. Which ethical concept is driving this leader's response? Personal ethics Cultural morals Professional values Organizational norms

Personal Ethics

Speaking the truth, respecting my elders and never purposely hurting someone are examples of _____ ( personal or professional ) ethics.

Personal Ethics

As Sure Start expands internationally, Charlie is focused on addressing concerns that domestic employees have about the new product. Which issues should he address with existing employees about their concerns? Culture Societal Policy Personal

Personal issues affect how employees interact in the workplace. Charlie is working to address employee concerns, which are personal issues and feelings they have toward the company's international expansion and how it affects their jobs.

Being punctual, refraining from gossip, and having good time management are examples of _____ ( personal or professional ) ethics.

Professional Ethics

The top management of a publicly traded company has been cited for violation of the transparency standards with respect to their financial and accounting reporting practices. Which law has this company violated? Sarbanes-Oxley Act (SOX) Corporate Social Responsibility (CSR) Act Generally Accepted Accounting Principles (GAAP) Act Governmental Accounting Standards (GAS) Act

SOX mandates publicly traded companies to follow reporting transparency in financial and accounting reporting. The law also makes the top management of the company personally responsible for errors in financial reporting.

A junior accountant discovered fraud in the recording of accounts receivable and plans to report this information to the local media. Which law protects this junior accountant from retaliation by management of the company? Fair Labor Standards Act Sarbanes-Oxley Act Civil Rights Act of 1964 Securities and Exchange Act

Sarbanes-Oxley Act

A junior accountant discovered fraud in the recording of accounts receivable and plans to report this information to the local media. Which law protects this junior accountant from retaliation by management of the company? Sarbanes-Oxley Act Civil Rights Act of 1964 Securities and Exchange Act Fair Labor Standards Act

Sarbanes-Oxley Act

A chief executive officer (CEO) personally supports internal transparency for the organization. Which action by the CEO reflects this personal ethical belief? Hosting a community forum where local citizens can learn about the corporation Sharing with employees how annual bonuses will be computed and awarded Designating offices as smoke-free to promote health and well-being Funding art initiatives for children's programs at the local art museum

Sharing with employees how annual bonuses will be computed and awarded

A company is working hard to establish objectives that promote ethics and standards.What terms describe how these objectives are defined? Broad and measurable Specific and qualitative Broad and qualitative Specific and measurable

Specific outcomes define a desired outcome, and measurable outcomes define a method for determining if an objective has been met. Promoting ethics and standards requires specifically defining which ethics and standards have been established and should be measurable based on outcomes.

A chief executive officer (CEO) wants to implement a corporate social responsibility (CSR) strategy that will positively affect the company's employees, unions, suppliers, consumers, and local and national governments. Which group is being targeted by this CSR activity? Board of directors Shareholders Market niche Stakeholders

Stakeholders

A company insists on treating suppliers with respect and refuses to push them to the lowest pricing possible. Which level of organizational ethics is being used by this company? Internal policy issues Stakeholder's issues Societal issues Personal issues

Stakeholders include anyone affected by the organization, including suppliers.

Which employee action illustrates a personal commitment to environmentally friendly business processes that also benefit the organization and local community? Beginning an exercise program in an effort to improve heath and fitness Starting a recycling programming at the workplace to reduce landfill waste Participating in a mandatory management training program to prepare for a promotion Choosing to ride a bicycle to work in an effort to reduce greenhouse gas emissions

Starting a recycling programming at the workplace to reduce landfill waste

A corporation is expanding its operations from being based solely in the United States to having operations in Europe and China. The chief financial officer (CFO) is concerned about variations in attitudes, values, and goals that may be seen across these regions and how they will impact the company. Which issue is of concern to the CFO? Organizational ethics International code of conduct International business culture Personal ethics

The scenario describes variations in attitudes, values, and goals that vary across global regions, the factors associated with international business culture.

There was an accidental oil spill caused by unforeseen circumstances. The company immediately notified the affected stakeholders that they were implementing CSR programs to manage its reputation and avoid losing profit. Which stakeholder should the company first contact? Employees Customers Shareholders Community

There is a loss of reputation for the company, which in turn affects the shareholders directly, because the price of the company shares drops as a result of the incident.

personal issues

These deal with how people treat others within their organization. For example, gossiping at work or taking credit for another's work would be considered this issue

If the company establishes unrealistic high goals, employees may feel that they will be required to do whatever it takes to reach those goals, regardless of whether they need to make decisions that may result in unethical practices. True or False

True

A job candidate asks questions during an interview to determine if personal life goals align with those of the organization. Which factor is the candidate using to guide the decision? Morals Values Cultural norms Personal experiences

Values are personal ideas about what is important and are consistent and relevant to establishing goals.

Charlie has decided to listen to complaints from residents of the community where the new battery manufacturing facility is located. He hopes CSR practices will help in managing these relationships. Why is Charlie willing to hear these complaints? He is familiar with research indicating these types of press events improve corporate outcomes. He is required to listen to community members as part of the code of ethics. He recognizes that members of the local community are also stakeholders. He wants to receive feedback from the community to comply with government regulations.

When following CSR practices, local community members are recognized as stakeholders and have a voice that should be acknowledged.

A company employee notices that a member of upper management is harassing a newly hired employee. The employee reports this behavior to the local authorities. Which term describes the action taken by the employee who reported the incident? Whistleblowing Transparency Brainstorming Social responsibility

Whistleblowing

1. Which of the following is true about Corporate Social Responsibility? a. It can be framed as a response to public backlash for a long track record for harming environments b. It guarantees the company is acting ethically c. It encourages promotion from within the organization d. It comes at little additional cost to the organization

a. It can be framed as a response to public backlash for a long track record for harming environments