Understand Business Ethics

What are ethics?

set of principles relating to what is morally right or wrong

How does strategic giving differ from corporate philanthropy?

Corporate philanthropy includes cash contributions, donations of equipment/products and support for the volunteer efforts of company employees. Strategic giving is seeking charitable groups and giving them money or donating company products or services.

What action can be taken to encourage employees to abide by their company's code of ethics?

Leading by example and offering ethics training programs. Able to recognize unethical business activities. Companies can establish formal codes of ethics for all employees to live by.

List and briefly describe the four layers of the pyramid of social responsibilities.

Philanthropic Responsibilities - Highest level of the pyramid, consider only after economic, legal and ethical responsibilities. Contribute resources to community. Legal Responsibilities - Corporations must follow the law. The second level of the pyramid recognizes legal considerations is necessary for a corporation's success. Ethical Responsibilities - A corporation can turn its attention to ethical matters after ensuring its economic and legal position. Doing what's right and avoid harm. Economic Responsibilities - Be profitable. Profit is the foundation on which all other responsibilities rest.

What collective term would be used to describe the employees, investors, suppliers, and customers of a manufacturer of laboratory equipment? Explain the basic relationship of these to the organization.

Stakeholders. Responsibility to Employees - Provide a job. Provide a clean and safe environment free from discrimination. Responsibility to Customers - Deliver what it promises. Being honest and direct in everyday interactions with customers, suppliers and others. Responsibility to Investors - To be economic responsibility to make a profit but also more emphasis aspects of social responsibility. Like not being irresponsible with the companies or else they will lose profits and customers.