Intro to Business CH.4

Ethics

Standards of moral behavior, that is, behavior accepted by society as right versus wrong.

_____ guide peoples' decisions about how to treat one another in an honest and responsible way, whereas ___ are narrower and protect us from fraud, theft, and violence.

ethics laws

The mortgage bankers and real estate companies who helped create the financial crisis of 2008 were driven by ____.

greed

Responsible business behavior depends on the responsible behavior of each ____ in the business world.

individual

A(n) ____ _______ ethics code creates an environment which supports ethically sound behavior by stating an organizations guiding values, shared responsibilities, and accountability.

integrity based

Built on an ethical standard of providing stylish eyewear at reasonable prices and creating an environment that supports ethically sound behavior, Warby Parker is demonstrating _____ ethics codes.

integrity-based

Filing income tax is an example of obeying the ____, but it is only the first step in being ethical.

law

_____ protect people from fraud, theft, and violence, while_____ are used to decide how we treat others responsibly according to society's views of right and wrong.

laws ethics

Using information from the internet or other sources without giving credit to the author is:

plagiarism

Corporate ____ is the dimension of social responsibility that refers to a position a firm takes or statement it makes on social and political issues.

policy

Companies that try to act in a socially responsible way are likely to focus on such activities as.

providing safety equipment and training for their workers, using recyclable packaging, and increasing the diversity of their workforce

Executives at Enron, and Tyco were found guilty of ____ behavior that damaged their companies' reputations.

unlawful

About one out of four adults in the U.S chooses to take responsibility for the communities they live in through ____ work.

volunteer

Studies have found a strong correlation between academic dishonesty and dishonesty at _____.

work

Is it possible to obey the law and still act unethically

yes

Social Audit

A systematic evaluation of an organizations progress toward implementing socially responsible and responsive programs

Warby Parker and Vision Spring business partnership demonstrates success through its ethical business practices and commitment to corporate social responsibility. Which of the following is NOT one of the partnership's core business philosophies?

Focusing on investors

Making decisions that we know are different from what is right erodes our _____ ____.

self-esteem

Corporate social responsibility (CSR)

A business's concern for the welfare of society

How are a company's social responsibility efforts measured?

A corporate social audit measures an organizations progress toward social responsibility. Some people believe that audit should add together the organizations positive actions and then subtract the negative effects to get a net social benefit.

In what way do Vision Spring and Warby Parker participate in corporate social responsibility?

By establishing an ethical standard

What is corporate social responsibility?

Corporate social responsibility is the concern businesses have for society

Whistleblowers

Insiders who report illegal or unethical behavior

True or False: An employee with access to the Internet at work, who does personal shopping during work hours is acting unethically?

True

How can we tell if our business decisions are ethical?

We can put our business decisions through an ethics check by asking three questions: (1) is it legal? (2) is it balanced? and (3) How will it make me feel?

Ethics codes that emphasize control and punishment of wrong-doers are _____ - ____ ethics codes.

compliance based

_______ _______ ________ is a business's concern for the welfare of society.

corporate social responsibility

The concern businesses have for the welfare of society, not just for their owners is:

corporate social responsibility and based on a commitment to integrity and respect

A low cost, efficient way for companies to connect with specific groups and inform them of corporate social responsibility efforts is ____ _____.

social media

Corporate Philanthropy

The dimension of social responsibility that includes charitable donations

Corporate responsibility

The dimension of social responsibility that includes everything from hiring minority workers to making safe products

Corporate policy

The dimension of social responsibility that refers to the position a firm takes on social and political issues

According to some, the most recent financial crisis in the United States occurred as a result of the ___ business practices of greedy lenders and borrowers alike.

unethical

____ are insiders who report illegal or unethical behavior (answer is one word).

whistleblowers

In business, managers and employees are face with many decisions. Management writer Ken Blanchard and religious leader Norman Vincent Peale provide a set of questions individuals should ask themselves when saving an ethical dilemma. Which of the following is NOT one of those questions?

Will it help me further my career?

Insider Trading

An unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends

How do businesses demonstrate corporate responsibility toward stakeholders?

Businesses demonstrate responsibility to stakeholders by (1) satisfying customers with goods and services of real value; (2) making money for investors; (3) creating jobs for employees, maintaining job security, and seeing that hard work and talent are fairly rewarded; and (4) creating new wealth for society, promoting social justice, and contributing to making the businesses' own environment a better place

Who set the standards of right and wrong as defined by ethics?

Society

Corporate social initiatives

Enhanced forms of corporate philanthropy directly related to the company's competencies

Integrity-based ethics codes

Ethical standards that define the organizations guiding values, create and environment that supports ethically sound behavior, and street a shared accountability among employees.

Compliance-based ethics codes

Ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers

How is legality different from ethics?

Ethics goes beyond obeying laws to include abiding by the moral standards accepted by society. Ethics reflects people proper relationships with one another. Legality is more limiting; it refers only to laws written to protect people from fraud, theft, and violence

What motivated the unethical behavior of real estate agents, lenders, and borrowers that led to the financial crisis of 2008?

Greed

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. Managements tolerance or intolerance of ethical misconduct influences employees more than any written ethics codes.

How can U.S. companies influence ethical behavior and social responsibility in global markets?

Many US 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 such as Sears, PVH, and Dow Chemical will not import products from companies that do not meet their ethical and social responsibility standards.

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 organizations guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees.

An employee was fired for not carrying out an unethical request by his manager. This is an example of ____?

a negative consequence of acting ethically

The standards of right versus wrong in a society are also called:

ethics

Joseph has taken a sick day, although he is not actually sick. This is an example of a decision that is legal, but not ___.

ethical

An ___ ____ creates a situation where you must choose between two equally unsatisfactory alternatives.

ethical dilemma

New accounting laws that produce more transparency will hopefully restore ____ in the accounting profession.

trust

Positive moral values common to the cultures that subscribe to the Bible, Aristotle's Ethics, the Koran, and the Analects of Confucius include:

respect for human life and honesty

An organizations managers instill corporate values and ____ in employees by the examples they set.

standards

Warby Parker and Vision Spring operate under a "triple bottom-line" philosophy which takes into consideration company profits, human capital, and

the environment in which the firm operates