Chapter 4

____________________________ is a formal statement of a company's values concerning ethics and social issues; it communicates to employees what the company stands for

Code of Ethics

_____ is the highest level of total corporate social responsibility, is voluntary, and is demonstrated by a company's contributions to the community. a. Discretionary responsibility b. Legal responsibility c. Ethical responsibility d. Economic responsibility

a. Discretionary responsibility

__________suggests that actions are ethical when they promote the individuals best long-term interests because with everyone pursuing self interest the greater good is ultimately served. a. individualism approach b. utilitarian approach c. justice approach d. moral-rights approach

a. individualism approach

For some time now, GlaxoSmithKline (GSK), a pharmaceutical company, has been making anti-AIDS drugs available in underprivileged areas of Africa at up to 75% less than the global price. By providing the drugs at a lower cost, GSK is fulfilling its _____. a. technological responsibility b. economic responsibility c. discretionary responsibility d. legal responsibility

c. discretionary responsibility

__________ says that ethical decisions must be based on standards of equality, fairness, and impartiality a. individualism approach b. utilitarian approach c. justice approach d. moral-rights approach

c. justice approach

__________which holds that ethical decisions are those that best maintain the fundamental rights of the people affected by them a. individualism approach b. utilitarian approach c. justice approach d. moral-rights approach

d. moral-rights approach

The idea of "equal pay for equal work" by men and women is an expression of

distributive justice

Henry and Shirley Rose have run their small corner grocery store for over twenty years, and many of their customers have been coming since they opened. However, as part of their ____________________________ , they give every customer the same high level of service, whether they know the customer well or have never met the person before.

ethical responsibility

When managers use environmental and social impacts as criteria in all their decision making, __________ is an important part of their philosophy.

sustainability

People focus on developing a personal code of ethics to be universally applied. A) Preconventional B) Conventional C) Postconventional

Postconventional

People focus on the social implications of their behavior. A) Preconventional B) Conventional C) Postconventional

Conventional

____________________________ managements obligation to make choices and take actions that will contribute to the welfare and interests of society, not just the organization

Corporate Social Responsibility (CSR)

Which of the following stakeholders are primarily concerned with job satisfaction and pay at the new stores? Shareholders Employees Suppliers Government agencies

Employees

What Ethical Approach? People who are in business have a right to make money. It's been that way since the first caveman traded the first wooly mammoth hide. That's an essential human freedom, and no one should be allowed to interfere with it.

Moral-rights approach Under a moral rights approach to ethics, decisions about right and wrong are guided by a need to protect fundamental rights and freedoms. This manager is arguing here that a fundamental right is the freedom to make money, so no one should be allowed to interfere with that pursuit.

People focus on the personal consequences of their actions. What happens to them as individuals determines what kind of behaviors are right or wrong. A) Preconventional B) Conventional C) Postconventional

Preconventional

Investors/shareholders, employees, customers, and suppliers are considered an organization's

Primary Stakeholders

_______________ provides a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders.

Stakeholder mapping

_______________ refers to measuring an organization's social performance, its environmental performance, and its financial performance.

Triple Bottom Line

What Ethical Approach? As a manager, I have to think about the interests of a large number of stakeholders. While a few individuals may be concerned about Facebook's privacy policies, far more people benefit from those same policies because they don't have to see a bunch of ads that aren't relevant to them.

Utilitarian approach This manager sees his actions as providing the greatest good for the greatest number of people, which is the definition of a utilitarian approach to ethics.

In the context of the approaches that help managers in ethical decision making, the _____ holds that moral behavior produces the greatest good for the greatest number. a. individualism approach b. utilitarian approach c. justice approach d. moral-rights approach

b. utilitarian approach

A level of corporate social performance that is completely voluntary is __________________ , which includes actions that benefit the community and may not have any measurable benefit for the organization.

discretionary responsibility