MGMT exam 1

Organizations may exercise social responsibility toward

their stakeholders, toward the natural environment, and toward general social welfare

ethical compliance

The extent to which an organization and its members follow basic ethical standards of behavior

legal compliance

The extent to which an organization complies with local, state, federal, and international laws

corporate social audit

A formal and thorough analysis of the effectiveness of a firm's social performance

code of ethics

A formal, written statement of the values and ethical standards that guide a firm's actions

Sarbanes-Oxley Act

A law passed in 2002 that requires CEOs and CFOs to personally vouch for the truthfulness and fairness of their firms' financial disclosures

defensive stance

A social responsibility stance in which an organization does everything that is required of it legally, but nothing more

accommodative stance

A social responsibility stance in which an organization meets its legal and ethical obligations but will also go beyond these obligations in selected cases

proactive stance

A social responsibility stance in which an organization views itself as a citizen in a society and proactively seeks opportunities to contribute

obstructionist stance

An approach to social responsibility in which firms do as little as possible to solve social or environmental problems

political action committee

An organization created to solicit and distribute money to political candidates

philanthropic giving

Awarding funds or gifts to charities or other worthy causes

ethical behavior

Behavior that conforms to generally accepted social norms

unethical behavior

Behavior that does not conform to generally accepted social norms

In what type of publication do companies summarize their social responsibility efforts and their achievements? Charitable Giving Report Corporate Social Responsibility Report Annual Report for publicly-traded companies Articles of Incorporation

Corporate Social Responsibility Report

Which of the following are examples of promoting social responsibility through organizational leadership and culture? Check all that apply. Donating to charities that serve the public good Operating in accordance with government regulations Dealing fairly and honestly with all stakeholders Directing managers to act as ethical role models for other employees

Dealing fairly and honestly with all stakeholders Directing managers to act as ethical role models for other employees

regulation

Government's attempts to influence business by establishing laws and rules that dictate what businesses can and cannot do

ethics

One's personal beliefs about whether a behavior, action, or decision is right or wrong

organizational stakeholders

Person or organization who is directly affected by the practices of an organization and has a stake in its performance

Imagine you have been hired to advise the Chief Compliance Officer on ways to improve the company's rate of ethical compliance. What do you recommend? Check all that apply. Create a penalty system for ethical infractions. Provide training in ethics. Develop a code of conduct. Appoint an ethics committee.

Provide training in ethics. Develop a code of conduct. Appoint an ethics committee.

Managerial ethics

Standards of behavior that guide individual managers in their work

whistle blowing

The disclosure by an employee of illegal or unethical conduct on the part of others within the organization

organizational justice

The perceptions of people in an organization regarding fairness

social responsibility

The set of obligations an organization has to protect and enhance the societal context in which it functions

lobbying

The use of persons or groups to formally represent an organization or group of organizations before political bodies to influence the government

task environment

comprising those elements in an organization's external environment that directly affect the organization in one or more ways

3 areas of special concern for managers regarding ethics

relationships of the firm to the employee, the employee to the firm, and the firm to other economic agents

the organization's top human resource executive is responsible for ensuring compliance with regulations concerning hiring, pay, and workplace safety and health this is an example of what?

legal compliance

the top financial executive generally oversees compliance with securities and banking regulations. this is an example of?

legal compliance