MGMT 4350 Chapter 9: Ethics, Corporate Social Responsibility, Environmental Sustainability

Which of the following would be an example of a company shifting the environmental cost of its business onto society?

A manufacturer disposes of waste in public waters that must be treated and cleaned with tax revenues.

True or false: Ethical principles in business differ substantially from general ethical principles in society.

False

Which of the following statements about official codes of ethical conduct is most accurate?

In the United States, publicly traded companies must have an official code of ethics or explain why they do not have one.

What is a downside to an unethical business strategy?

It reflects badly on the character of the company and its employees.

Which of the following statements accurately reflect how ethical standards vary among different cultures?

Japanese managers, in contrast to managers in other countries, are likely to highly value showing respect for the collective good of society. European managers, in contrast to Chinese managers, tend to emphasize business standards that protect workers' freedom of political opinion.

Which of the following statements concerning the relationship between business and the environment is true?

Maintaining the finite supply of the world's natural resources is crucial to the long-term economic interests of corporations.

Which of the following statements about corporate social responsibility (CSR) are true?

Many firms organize their CSR strategies around themes that are consistent with their production or marketing strategies. CSR strategies are often linked to a company's core values. "Corporate citizenship" is a term commonly used to describe CSR initiatives.

Which of the following statements is true concerning the thinking that the "business of business is business, not ethics"?

That type of thinking is dangerous because it increases the likelihood that a company will adopt unethical strategies. That type of thinking has been apparent in a number business scandals covered in the media.

Some people have argued that there is an implied social contract between a business and the members of society, according to which of the following?

The members of society agree not to unreasonably restrain a business's pursuit of fair profit. A business has a moral responsibility to promote the general welfare and avoid doing harm.

Which of the following are actions a company should take according to integrative social contracts theory?

Uphold a small number of universal ethical principles that are applicable in all situations. Adhere to local values and customs that define the boundaries of ethical behavior.

The environmental sustainability strategies of Ford and Green Mountain Coffee Roasters have shown that

a significant number of consumers will buy a company's products in part to encourage environmentally sustainable business practices.

Adherents of ethical universalism are likely to believe that

common agreement about right and wrong is the basis for ethical standards that apply to all businesspeople.

Differences in which of the following cause variations in ethical standards across cultures?

core values religious beliefs social customs

Which the following practices increase the likelihood that a company will pursue unethical business strategies?

faulty oversight of daily business practices putting pressure on company managers to meet short-term targets

In the business world, the term "sustainability"

is used to refer to the relationship of a company to its environment and its use of natural resources. has been used interchangeably with the term "corporate social responsibility."

Which of the following have been cited as reasons why a company has a moral obligation to act in a manner that benefits all stakeholders?

ordinary decency civic-mindedness

An environmental sustainability strategy can enhance a company's competitive advantage by

promoting the company's reputation among environmentally conscious consumers.

Ethical business managers

provide an example to other employees by consciously living by the company's business principles. understand that there is a difference between simply having a code of ethics and seeing that the company follows it.

Which of the following actions can be effective ways to stop companies that practice socially irresponsible behaviors?

publicizing the bad behavior of companies boycotting the companies' products and services enacting legislation that makes the activity illegal

Ethical strategies are good business because they are likely to

sustain the reputation of the company. win the approval of suppliers, employees, and investors.

In general, business ethics consists of

the application of ethical principles and standards to the actions and decisions of business organizations.

A corporate social responsibility strategy can be defined as

the combination of socially responsible endeavors a company elects to pursue.

Which of the following is a reason for a business to establish an ethical business strategy?

to provide a competitive advantage, serving the self-interest of shareholders

According to the concept of ethical universalism, fundamental concepts of right and wrong

transcend culture, society, and religion.

Ethical business strategies

typically arise from managers with strong moral characters.

Which set of standards takes precedence in integrative social contracts theory?

universal ethical norms

Examining which of the following are ways to determine whether a company is actually guided by its official code of ethics?

whether the company adheres to the code of ethics when crafting strategy the extent to which daily operations follow the code of ethics

Business managers who are not deeply committed to ethical principles may nevertheless act ethically because they

wish to avoid scandal and disciplinary action. recognize the risks associated with unethical strategies. hope to prevent their staff from thinking negatively of them.