Business Ethics and Social Responsibility: Chapter 2

Which act criminalized securities fraud, strengthened penalties for corporate fraud, and created an accounting oversight board?

Sarbanes-Oxley Act

The_____ Antitrust Act, passed in 1890, was put in place to prevent businesses from restraining trade and monopolizing markets.

Sherman

Social Responsibility

a business's obligation to maximize its positive impact and minimize its negative impact on society

Sustainability refers to____

a product's or company's ability to exist without causing harm to the environment

Physical threats, false accusations, use of profanity and yelling at others all fall under which category of organizational misconduct?

abusive behavior

Which behavior is the most common ethical problem for employees?

abusive behavior

When some chemical compounds emitted by manufacturing facilities react with air and rain, the resulting type of air pollution is called_______

acid rain

Ethical Issue

an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical

What is the dispute resolution method that involves submission of a dispute to one or more people, usually chosen by the disputing parties, whose decision usually is final and must be followed?

arbitration

If a business cannot meet its financial obligations its must sometimes file for______

bankruptcy

What are two typical forms of consumerism?

boycotting companies and writing letters to companies

Money given in exchange for a special favor is called a _____ and it benefits an individual or a company at the expense of other stakeholders

bribe

Payments, gifts, or special favors intended to influence the outcome of a decision

bribery and are unethical

Although sexual harassment has legal recourse, _______had little recourse at this time

bullying

During the 2020 pandemic shutdown, many companies were forced to move to a remote working situation. In terms of unethical behavior, the likely reduced incidents of

bullying

What type of behavior creates a hostile workplace environment but has little legal recourse?

bullying

____is/are principles and standards that determine acceptable conduct in business

business ethics

_______________ refers to the rules and regulations that govern the conduct of business

business law

COPPA was enacted in 2000 to protect which aspect of Internet activity ?

children's online activities

______ law specifies the rights and duties of individuals and organizations and violations may result in fines but not imprisonment

civil

Sustainability can be defined as________

conducting activities in such a way as to provide for the long-term well-being of the natural environment

The activities that independent individuals , groups, and organizations undertake to protect their rights as consumers is called______

consumer

A_________is a mutual agreement between two or more parties that van be enforced in a court if one party chooses not to comply

contract

_____law not only prohibits a specific kind of action, such as unfair competition or mail fraud, but also imposed a fine or imprisonment for violating the law.

criminal

When a business is accused of mail fraud and members of the staff face possible imprisonment, it is an example of

criminal law

What are stakeholders?

customers, competitors, government regulators, interest groups, the public

Business Ethics

determine acceptable conduct in business organizations

Businesses must first be responsible to their owners, who are primarily concerned with______

earning a profit

An identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical

ethical issue

Jarek is short of his sales goal this month. He knows if he adds small items to his customer's orders, they most likely won't notice the small increase and then he would be able to make his goal. His only other choice is to accept he hasn't met the goal and will lose some of his commission. The exemplifies a(n)______

ethical issue

What are the 4 categories of social responsibility?

ethics, legal, economic, philanthropy

What is at the heart of business ethics?

fairness and honesty

What is industry is least trusted in business?

financial services

What is a purposefully unlawful act to deceive or manipulate in order to damage others?

fraud

Knowing the importance of employee relations, what is likely result of a company that listens to employees' grievances and treats them fairly?

higher morale among employees

A manufacturer made the decision to buy less expensive component parts from a supplier which resulted in the reduced quality of its products. As a result, company sales dropped and many retailers refused to carry the product line. This is an example of ________

how negative judgements can affect an organization's ability to achieve its goals

What is 'Trust in Business' ?

in business, trust is the glue that holds relationships together.

Ethical decisions in organizations are influenced by what 3 key factors?

individual moral standards, the opportunity to engage in misconduct, the influence of managers and co-workers

3 factors that influence Business Ethics

individual standards and values, influence of managers and co-workers, opportunity: codes and compliance requirements

The legal power of a court, through a judge, to interpret and apply the law and make a binding decision in a particular case is referred to as _______

jurisdiction

Employees except businesses to__________

keep them informed of what is happening in their economy, pay them adequately for their work, provide a safe workplace

When one individual or organization takes another to court using civil laws, that individual is attempting to resolve a conflict through a

lawsuit

The primary method of resolving conflicts and business disputes using civil law is through_____

lawsuits

Bankruptcy is sometimes called ______ insolvency.

legal

Social responsibility defined

maximize positive and negative impact

3 major factors associated with corporate social responsibility

maximize positive societal impact, minimizing negative societal impact, and acting in the organization's best interest in returning a profit

A business's primary obligation to its owners and investors is to_____

maximize the owner's investments in the firm

Rachel spends an hour or more each day at work checking her Facebook feed, Instagram account, and watching Youtube videos. Rachel is guilty of which form of misconduct?

misuse of company time

Laws and Regulations

most basic ethical and social responsibility concerns have been codified by laws and regulations; encourage businesses to confirm to society's standards, values, attitudes

Acceptability of behavior determine by

organization

Bribes

payments, gifts, or special favors intended to influence the outcome of a decision

An individual's values, principles, and standards of conduct are referred to as _______

personal ethics

What is the focus for future legislative efforts regarding business conducted on the internet?

personal private protection

When companies follow the key factors of Corporate Social Responsibility, a _____ usually results, thus_____

positive public image, attracting more customers

An agency relationship, the ______ is the one who wishes to have a specific task accomplished

principal

A number of studies have found a direct relationship between social responsibility and_________as well as a link that exists between employee commitment and customer loyalty

profitability

Which type of property consists of real estate and anything permanently attached to it ?

real property

Customer

safety; the right to safety, the right to be informed, the right to choose, and the right to be heard

What do studies show about the relationship between social responsibility and profitability?

social responsibility is associated with improved business performance.

Regardless of what an individual believes about a particular action, if ______ judges it to be unethical or wrong, whether correctly or not, that judgement directly affects the organization's ability to achieve its business goals

society or the public

The Uniform Commercial Code is a set of ______

statutory laws covering several business laws topics

Conducting activities in such a way to provide for the long-term well-being of the natural environment is referred to as______

sustainability

What are the two subsets of personal property?

tangible and intangible

What industry is globally trusted in business?

technology

Plagiarism

the act of taking someone else's work and presenting it as your own without mentioning the source

Jacinta has high individual moral standards and values but the opportunity still exists for her to engage in misconduct in her company. What key factor would keep Jacinta from behaving unethically?

the ethical behavior of her managers and co-workers

According to your text, ethical decisions in organizations are influenced by what three key factors?

the opportunity to engage in misconduct, individual moral standards and values, the influence of managers and co-workers

ROI

the right to a return on investment

Environment

the right to a sage environment and just compensation

Society

the right to contributions for the betterment of society

While unemployment is seen as an economic issue, it carries ethical implications when________

the unemployment gap between rich and poor is large

_____is a common area of misconduct observed in the workplace

theft of time

If the driver of Quick Eats, a grocery delivery service, loses control of the car and damages property or injures a person when making a delivery, a resulting lawsuit would be an example of a

tort

Which issue resulting from factory closures can be considered an ethical issue because of the repercussions it has on other businesses—mainly in the loss of sales?

unemployment

When it comes to fairness and honesty, which two actions are expected of businesses?

1. to avoid harming customers , employees, clients, or competitors 2. to follow applicable laws and regulations

The Global Business Ethics Survey found that nearly_______of employees surveyed observed examples of ethical misconduct.

50%

Of all the federal regulatory units, the_____ most influences business activities related to questionable practices that create disputes between businesses and their customers

Federal Trade Commission

Which organization allocates a large portion of its resources to curbing false advertising, misleading pricing, and deceptive packaging and labeling?

Federal Trade Commission