business 101 chapter 5

according to Milton Friedman:

Th only social responsibility of a business is to increase its profits so long as it stays within the rules of the game

a firms ___ is an important means of minimizing the uncertainty regarding the decisions that employees may encounter when faced with ethical dilemmas of the workplace

code of ethics

the following statement is true with respect to company decisions

companies should consider the interests of all stakeholders when making decisions

why is it important for a small business to adopt ethical behaviors and practices?

companies that treat their companies ethically and more likely to survive in the long run, customers are more confident that an ethical business will stand behind its products and services, engaging in ethically sound business practices can encourage repeat business from customers

which of the following statements about establishing an ethical reputation in business are TRUE?

customers want to purchase ethical business, companies are more likely to do business with an ethical firm

which of the following are stakeholders of an organization?

employees, government, customers

according to the text, corporate social responsibility is used interchangeably with all of the following terms except:

entrepreneurship

which of the following statements about ethics are TRUE?

ethics is defined within and across cultures, practices that are acceptable to some may not be acceptable to all

true of false: if an action is legal, it must be ethical

false

corporate social responsibility refers to:

how a company makes its profits and what it does with those profits

when given a choice, one would rather do business with someone who is ethical,because:

ones reputation will not be harmed when working with an ethical counterpart, the relationship will be mutually beneficial, the person can be trusted

which of the following statements about ethical dilemmas are TRUE?

people face ethical dilemmas, because the proper course of action is not always clearly defined

according to Milton Friedman, corporate social responsibility is the equivalent of ___

socialism

if you start a rumor about someone you know to keep her from getting into an organization, have you done something unethical?

yes, because you would not want to have someone do the same thing to you