SOM Midterm (AL)- Ethics & CSR- Part 1

Which role is tasked with integrating the organization's ethics and values initiatives, compliance activities, and business practices into the company's decision-making processes?

Ethics officer -An ethics officer is tasked with implementing and enforcing the company's ethics program throughout the organization.

At an accounting firm, the top managers often charge their personal meals and trips to the company credit card. Later, several employees are indicted in a scheme to falsify the financial records of one of the company's clients. Based on this scenario, how did the organization fail to foster high ethical standards?

Managers did not set an ethical example for employees

What should a manager do if an employee reports witnessing an ethical violation?

Reward the employee and punish the unethical behavior

An electronics manufacturer prides itself on its ethical standards. Job candidates are screened based on their past behaviors, top managers work hard to set a good example for employees, and the company has rewards in place for employees who live up to the company's ethical codes. However, after an exceptionally busy year, customers begin to complain that customer service representatives no longer respond to product failures. Based on this scenario, how did the organization fail to foster high ethical standards?

The company did not provide regular ethics training.

Shaking hands when meeting someone in the United States is an example of a(n) ______.

Cultural norm

What do we call the combined ethics, values, attitudes, and behaviors that are typical among a society or group?

Cultural norms

From the list below, select all of the steps managers should take to establish an ethical climate.

-Create an ethical hiring culture -Reward ethical behavior -Set an ethical example

Drag each description to the correct business practice. No items may be used more than once.

-Ending relationships with suppliers who use child labor matches-Legal and ethical -Making low-quality products that break after a few uses matches- Legal but unethical -Paying bribes to government officials to avoid environmental restrictions matches- Illegal and unethical -Paying union employees more than their contract allows matches- Illegal but ethical

What are ethics?

-Principles of right and wrong that influences behavior

From the list below, select all of the employee behaviors that should be rewarded by managers.

-Raising concerns that the company's new product could pose a danger to consumers -Refusing to accept credit for another person's accomplishments -Reporting another employee for harassment

From the list below, select all of the factors that make a given behavior an issue of ethics.

-Whether the behavior conforms to cultural beliefs regarding right and wrong -Whether the behavior reflects how most people would like to be treated

What is a law?

A formal and binding rule of conduct that is enforced by a controlling authority

In the context of ethics and social responsibility, what is a value?

A relatively permanent and deeply held beliefs or attitude.

What is a code of ethics?

A set of ethical standards to help guide an organization's actions

To protect whistleblowers from retaliation, systems for reporting unethical behavior should be ______.

anonymous

The ethics, values, attitude, and behaviors that are typical in a given culture are known as cultural __________.

norms

A deeply held belief or attitude that helps determine people's ethical systems, such as a physician's oath to "first do no harm," is known as a(n)

values

Drag each manager behavior to the corresponding way that organizations fail to foster high ethical standards. No items may be used more than once.

-Managers do not set an ethical example. - Because executives looked the other way when suppliers used banned substances in their products, employees feel justified in dumping pollutants down the drain. -The company does not create an ethical hiring culture. - Recruiters look for "ruthless moneymakers" in their sales personnel, and soon customers begin complaining about dishonest sales pitches. -The company does not set a code of ethics and provide ethical training.- Employees are confused about which behaviors are acceptable in the office, leading to complaints about harassment and offensive jokes. -The company does not reward ethical behavior.- An employee reports being overpaid in her quarterly sales bonus but is not acknowledged for her honesty. The next time, she decides not to report the mistake.

Drag each quote to the correct step managers must take to establish an ethical climate.

-Set an ethical example.- "We're not just giving lip service." -Create an ethical hiring culture.- "We want honest employees." -Create ethical codes and training.- "We need to share our expectations." -Reward ethical behavior- "We should discipline appropriately."

From the list below, select all of the factors that make a given behavior an issue of legality.

-Whether the behavior contradicts a rule formally recognized as binding -Whether the behavior is enforced by controlling authorities such as police officers or the court system