Man 1107 - Ch 4

Persons, groups, or organizations that affect or can be affected by an organization's policies and actions.

Stakeholders

In the United States, many employees report that they are unethical at work because they:

goof off violate safety standards

Integrity-based ethics codes define the organization's

guiding values, create an environment that supports ethically sound behavior, and stress shared accountability

What are two important factors in enforcing an ethics code?

having an ethics officer who is fair conducting objective investigations

Many corporate executives reported that they use social media to communicate their socially responsible activities to customers because it:

reaches broad and diverse groups allows them to connect directly with customers allows them to reach specific groups more directly

Whistleblowers can be helped by protecting them from:

retaliation

If the statement "ethics is caught more than it is taught" is true, then management can facilitate this by:

setting a good example by acting ethically

Unethical behavior in business, especially in the real estate and banking industries, has resulted in ______.

severe financial crises lack of trust in the free market system

To truly create an ethical culture, managers must:

show strong commitment to ethics and compliance

Formal review of a company's endeavors in terms of its corporate social responsibility.

Social audit

Who sets the standards of right and wrong as defined by ethics?

Society

Effective ethics officers:

Effective ethics officers:

In addition to social audits conducted by companies themselves, five types of groups serve as watchdogs to monitor how well companies enforce their ethical and social responsibility policies:

1. Socially conscious investors (SRI) 2. Socially conscious research organizations 3. Environmentalists 4. Union officials 5. Customers

Rank the following jobs according to their importance in influencing the implementation of ethical standards. List the most influential on top. Part-time co-workers Supervisors Top Management Full-time co-workers

1. Top Management 2. Supervisors 3. Full-time co-workers 4. Part-time co-workers

Identify which of the following would classify as Internet plagiarism.

Cutting and pasting information from a website without giving proper credit Copying full article content from Internet sites and presenting it as your own Buying research papers online and submitting them as your own

Which of the following are examples of outside stakeholders that must be told about a company's ethics program?

Distributors Customers Suppliers

Here are six steps many believe can improve U.S. business ethics:

1. Top management must adopt and unconditionally support an explicit corporate code of conduct. 2. Employees must understand that expectations for ethical behavior begin at the top and that senior management expects all employees to act accordingly. 3. Managers and others must be trained to consider the ethical implications of all business decisions. 4. An ethics office must be set up with which employees can communicate anonymously. Whistleblowers (insiders who report illegal or unethical behavior) must feel protected from retaliation. 5. Outsiders such as suppliers, subcontractors, distributors, and customers must be told about the ethics program. Pressure to put aside ethical considerations often comes from the outside, and it helps employees resist such pressure when everyone knows what the ethical standards are. 6. The ethics code must be enforced with timely action if any rules are broken. When it was discovered that the Houston Astros had violated the rules of Major League Baseball and stolen signals in the 2017 World Series, team owner Jim Crane immediately fired both the manager and general manager of the team That is the most forceful way to communicate to all employees that the code is serious.

According to recent U.S. Census Bureau research volunteerism is at an all time high, but

3 out of 4 citizens do not give any time to the communities in which they live

Corporate Social Responsibility (CSR)

A business's concern for the welfare of society.

Studies show that companies with good ethical reputations also enjoy which of the following outcomes as a result?

Attract and retain better employees Draw more customers

A corporation's assessment of and responsibility for its impact on the welfare of society.

CSR

Which code of ethics emphasizes preventing unlawful behavior by increasing control and penalizing wrongdoers?

Compliance-based ethics codes

The act of a corporation donating a portion of its profits or other resources to nonprofit organizations.

Corporate philanthropy

The dimension of social responsibility that refers to a firm's position on social and political issues.

Corporate policy

Which social performance dimension includes treating employees fairly and ethically?

Corporate responsibility

______ of the ethics code in a timely manner is the most forceful way to communicate its importance.

Enforcement

A set of principles establishing whether conduct is right or wrong.

Ethics

Trust and cooperation between workers and managers must be based on which of the following?

Fairness Honesty Moral integrity

As long as managers are honest and open with workers, their decisions do not have to be fair.

False

In the long run, unethical activities will successfully add to the bottom line of their companies.

False

Which set of ethics codes defines an organization's guiding values, creates an environment that supports ethically sound behavior, and stresses shared accountability?

Integrity-based ethics codes

What motivated the unethical behavior of real estate agents, lenders, and borrowers that led to the financial crisis of 2008?

Greed

Buying or selling stocks by someone who has access to nonpublic information about the company.

Insider trading

corporate philanthropy

The dimension of social responsibility that includes charitable donations.

What do strong managers help instill into the corporation when setting examples of ethical behavior?

Values

What are two characteristics of businesses that practice corporate social responsibility?

They care for the welfare of society as a whole They care about being fair and honest with their stakeholders

Corporate Social Responsibility (CSR) and corporate profits can at times go hand in hand.

True

Individuals have social responsibilities regarding their ethical behavior in the business world.

True

Many investors believe that by choosing to put their money into companies whose goods and services benefit society, they can improve society's financial health as well as their own.

True

Someone within an organization who reports the company's wrongdoing to the public or to those in positions of authority.

Whistleblower

social audit

a systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs

If managers and workers are to cooperate with one another and trust one another, they must ______.

adhere to moral integrity be honest with one another

To allow whistleblowers to come forward with information organizations should

allow for complete anonymity protect them from retaliation

insider trading

an unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends

Studies show that companies with reputations for good corporate social responsibility ______.

attract and retain better employees

Effective ethics officers implement ethical standards in what two ways?

by maintaining confidentiality with employees by conducting objective investigations to ensure fairness

What are two ways that a company's ethics officer can help to enforce the company's ethics code?

communicate in a positive manner relate well to employees at every level

What are the two categories of ethics codes?

compliance-based integrity-based

select whether it is a compliance-based or integrity-based code of ethics. We are committed to fair employment practices everywhere we operate.

compliance-based ethics code

select whether it is a compliance-based or integrity-based code of ethics. We comply with all global trade laws.

compliance-based ethics code

select whether it is a compliance-based or integrity-based code of ethics. We deal fairly with all of our business partners and uphold the law in everything we do.

compliance-based ethics code

select whether it is a compliance-based or integrity-based code of ethics. We don't use unlicensed software or make copies of software to use at home or for someone else to use.

compliance-based ethics code

Corporate social responsibility is based on a ______.

concern for the welfare of society

A corporate donation to a local food bank would be considered ______.

corporate philanthropy.

The concern businesses have for the welfare of society, not just for their owners is referred to as ______.

corporate social responsibility

Socially conscious research organizations, such as Ethisphere, analyze and report on

corporate social responsibility efforts.

When implementing a new ethics program, businesses must also communicate the changes to outside parties such as:

customers

What are two elements of an integrity-based ethics code?

defines guiding values promotes shared accountability

The most forceful way to communicate the importance of an ethics code is to ______.

enforce it

corporate social initiatives

enhanced forms of corporate philanthropy directly related to the company's competencies

integrity-based ethics codes

ethical standards that define the organization's guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees

compliance-based ethics codes

ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers

When people observe the standards, values, and behaviors of leaders and other employees, they are better able to learn the organization's ______.

ethics

Compliance-based ethics codes focus on:

increasing control penalizing wrong-doers

Responsible business behavior depends on the responsible behavior of each ______ in the business world.

individual

whistleblowers

insiders who report illegal or unethical behavior

CSR goes well beyond being ethical. It is based on a commitment to

integrity, fairness, and respect.

select whether it is a compliance-based or integrity-based code of ethics. We act honestly and transparently to maintain the trust of our stockholders.

integrity-based ethics code

select whether it is a compliance-based or integrity-based code of ethics. We protect our natural resources and support the communities where we work, where we live and do business.

integrity-based ethics code

select whether it is a compliance-based or integrity-based code of ethics. We provide the best products on the market and adhere to honest marketing practices.

integrity-based ethics code

An important reason for a company to maintain its ethical reputation is

it attracts and retains customers

Those who oppose corporate social responsibility believe that ______.

it is using investors' money in ways they did not intend

A business should be managed ethically because

it reduces the likelihood of lawsuits by employees or customers businesses with good reputations attract customers it reduces employee turnover

Unethical behavior by financial and real estate businesses has led to ______.

lack of trust in the free market system

Enforcement in a timely manner is the ______ and most critical step in the development of an ethics code program.

last, final, or sixth

The strong relationship between academic dishonesty and dishonesty at work is likely to

make employers reluctant to hire those who have cheated

Defenders of CSR argue that it makes more _______ for investors in the long run.

money , profit, or revenue

We define ethics as society's accepted standards of

moral behavior; that is, behaviors accepted by society as right rather than wrong.

Environmentalists apply pressure by

naming companies that don't abide by environmentalists' standards.

Union officials hunt down violations and force companies to comply to avoid

negative publicity.

Even small companies participate in ______ through donations and volunteer support of local causes and national charities, such as the Red Cross and the United Way.

philanthropy

A common form of cheating in schools today that cuts and pastes information from the internet without giving credit is

plagiarism or plagiarizing

Corporate _____________ is the dimension of social responsibility that refers to a position a firm takes or statement it makes on social and political issues.

policy

Companies that try to act in a socially responsible way are likely to focus on which three activities?

providing safety equipment and training for their workers using recyclable packaging increasing the diversity of their workforce

Customers make buying decisions based on their

social conscience.

U.S. economist Milton Friedman believed that the only social responsibility of the corporation was to its stockholders. He also believed anything other than that would be considered ______.

socialism

When it comes to ethics, ______ sets the standards for moral behavior, that is behavior defined as right or wrong.

society

Studies have found a _____ correlation between academic dishonesty and dishonesty at work.

strong

Socially conscious investors insist that a company extend its own high standards to its

suppliers.

corporate responsibility

the dimension of social responsibility that includes everything from hiring minority workers to making safe products

corporate policy

the dimension of social responsibility that refers to the position a firm takes on social and political issues

Corporate social responsibility is a business's concern for:

the welfare of society

The motives of those involved in unethical behavior that caused the financial crisis in the real estate, banking, and mortgage industries included:

the wish to inflate their own earnings greedy borrowers and lenders

Implementing ethical standards within an organization starts with ______.

top management

If the free-market system is to prevail, it must retain the _______ of its participants despite the unethical behavior of a few.

trust, confidence, ethics, or integrity

According to some, the most recent financial crisis in the United States occurred as a result of the ______ business practices of greedy lenders and borrowers alike.

unethical

Compliance-based ethics codes emphasize preventing

unlawful behavior by increasing control and penalizing wrongdoers

An employee who reported her boss to the SEC for insider trading would be considered a(n) __________ protected by law.

whistleblower

Insiders, such as employees, who report concerns about a company's accounting or auditing practices are called:

whistleblowers