Chapter 3- Business Ethics and Social Responsibility

What is business ethics?

Written and unwritten codes of principles and values that govern decisions and actions within a company

Which of the following would most likely cause unethical behavior?

a competitive business environment

Which of the following would NOT be an associated negative faced by a business that is focused on cheating the costumers?

a desirable reputation in the community.

What is a corporate ethics code?

a detailed policy, containing specific behavioral requirements

It is sometimes difficult to determine in the moment what is ethical and what is not because the idea of ethics is _____

a dynamic concept

Which of the following does transparency imply?

all of these answers

What is a short-term and quite rare occurrence in one's business experience?

an ethical lapse

Which of the following is a term that helps us to understand the difference between a conflict of interest and impropriety?

conflict of roles

Which of the following would NOT be considered an external stakeholder?

employees

An organization continuing to meet an employee's expectations of fairness creates a reciprocal relationship between organizational justice and _____.

trust

Which of the following is the best explanation of corporate transparency?

The concept of removing all barriers to-and the facilitation of-free and easy public access to corporate information

Which of the following can be thought of as the fairness that can be promoted by providing explanations for decisions and delivering news with sensitivity and respect?

interactional justice

Government regulation includes controls on all of the following EXCEPT _____

market failures

Which of the following is NOT a way that companies can demonstrate social responsibility?

maximizing profits

What type of companies do individuals tend to want to work for?

ones in which ethical dilemmas are minimized

Which of the following is a situation in which a stockbroker who owns a security artificially infllates its price by "upgrading" it or spreading rumors, sells the security and adds a short position, then "downgrades" it or spreads negative rumors to push its price down?

pump and dump

Which of the following is a method used to organize, create and manage a social venture to achieve a desired social change?

social entrepreneurship

Which of Andrew Carnegie's business principles advocates that the rich hold their money "in trust" for the rest of society, using it for any purpose society deems appropriate?

stewardship

How are stakeholders contributing to the heightened motivation for corporations to become more socially responsible?

they expect corporations to understand and address social issues relevant to the stakeholders