busn chapter 4

code of ethics

A formal, written document that defines the ethical standards of an organization and gives employees the information they need to make ethical decisions across a range of situations

Consumerism

A social movement that focuses on four key consumer rights: (1) the right to be safe, (2) the right to be informed, (3) the right to choose, and (4) the right to be heard.

Sarbanes-Oxley Act

Federal legislation passed in 2002 that sets higher ethical standards for public corporations and accounting firms. Key provisions limit conflict-of-interest issues and require financial officers and CEOs to certify the validity of their financial statements.

In the context of ethics and social responsibility in the global arena, U.S. corporations are forbidden to offer bribes since 1977 under the _____.

Foreign Corrupt Practices Act

The _____ limits conflict-of-interest issues by restricting the consulting services that accounting firms can provide for the companies they audit.

Sarbanes-Oxley Act

ethical dilemma

a decision that involves a conflict of values; every potential course of action has some significant negative consequences

ethics

a set of beliefs about right and wrong, good and bad

social audit

a systematic evaluation of how well a firm is meeting its ethics and social responsibility goals

corporate philanthropy

all business donations to nonprofit groups, including money, products, and employee time

stakeholders

any groups that have a stake - or a personal interest - in the performance and actions of an organization

In the context of globalization, which of the following is the most challenging issue faced by companies and individuals that are involved in international business?

bribery

corporate responsibility

business contributions to the community through the actions of the business itself rather than donations of money and time

One of the ways by which companies can show their responsibility toward the environment is by reducing their _____.

carbon footprint

In the context of social responsibility, which of the following is a way of contributing to nonprofits?

cause related marketing

Rupert is an individual who believes in contributing to the community by using eco-friendly products. In the context of universal ethical standards, Rupert most likely possesses the core value of _____.

citizenship

Krempe Foods, a fast-food chain in Dallas, gives paramount importance to consumer feedback and has a well-established consumer feedback system. Given this information, it can be said that Krempe Foods supports ___

consumerism

Homebound, a home decor company, annually donates blankets to various nonprofit organizations. These nonprofit organizations distribute the blankets among the poor. Given this information, Homebound's gesture is an example of:

corporate philanthropy

Trexlex, a sports retailer, employs Olympic hopefuls in its stores through the Olympic Job Opportunities Program. It offers athletes full-time pay and benefits for a flexible 20-hour workweek to accommodate their training schedules. In the context of a business's responsibility toward the community, this act by Trexlex exemplifies _____.

corporate responsibility

green marketing

developing and promoting environmentally sound products and practices to gain a competitive edge

sustainable development

doing business to meet the needs of the current generation, without harming the ability of future generations to meet their needs

whistle blowers

employees who report their employer's illegal or unethical behavior to either the authorities or the media

universal ethical standards

ethical norms that apply to all people across a broad spectrum of situations

In the context of universal ethical standards, being open-minded and not taking advantage of others exemplifies the core value of _____.

fairness

Broche Technologies, a brand of electronic appliances, develops a new range of refrigerators that do not release chlorofluorocarbons. The company promotes these products as the most eco-friendly refrigerators in the market. In this scenario, Broche Technologies is engaging in _____.

green marketing

Promoting high-calorie/low-nutrient foods with inadequate information about the risks is a(n) _____ practice.

legal but unethical

cause-related marketing

marketing partnerships between businesses and nonprofit organizations, designed to spike sales for the company and raise money for the nonprofit

Research from the Ethics Resource Center suggests that _____ has more influence than any other variable on the ethical conduct of individual employees.

organizational culture

carbon footprint

refers to the amount of harmful greenhouse gases that a firm emits throughout its operations, both directly and indirectly

Heleus Oil & Gas Company routinely performs emission tests to keep a check on the emissions produced by its corporate operations and find new ways to reduce them significantly. In this scenario, Heleus Oil & Gas Company is tracking its:

scope 1 emissions

Ethics refer to:

sets of beliefs about right and wrong.

Andrew, an employee in a corporate company, is asked to conduct a systematic evaluation of how well the company is meeting its ethics and corporate responsibility goals. In the given scenario, Andrew is most likely asked to do a _____.

social audit

The obligation of a business to contribute to society is referred to as _____.

social responsibility

Companies that step in with on-site day care programs for employees facing challenges such as caring for elderly parents are fulfilling their:

social responsibility.

In the context of social responsibility, _____ include employees and investors who have a personal interest in the performance and actions of an organization.

stakeholders

business ethics

the application of right and wrong, good and bad, in a business setting

Social Responsibility

the obligation of a business to contribute to society

planned obsolescence

the strategy of deliberately designing products to fail in order to shorten the time between purchases

Lily, a salesperson at a clothing store, observes the department head misbehaving with a customer. She brings the issue to the notice of the store manager, and the offender is immediately dismissed from his job. In this scenario, Lily is a _____.

whistle blower