Business Chapter 2 Questions

9. What are a business's responsibilities toward the community in which it operates?

Through donations to local and national charitable organizations.

3. Why has ethics become so important in business?

Without ethics the consumer loses their trust in a business/corporate America and this can cause a decline in the economy.

Define business ethics. Who determines whether a business activity is ethical? Is unethical conduct always illegal?

Business Ethics: principles and standards that determine acceptable conduct in business. The acceptability of a business if determined by the organization, customers, competitors, government regulators, interest groups, and the public.

5. What is a code of ethics? How can one reduce unethical behavior in business?

Code of Ethics: formalized rules and standards that describe what a company expects of its employees. Implementing training programs advance ethical behavior because they prescribe which activities are acceptable and which are not, ad they limit the opportunity for misconduct by providing punishments for violations of the rules and standards.

4. What is an ethical issue? What are some of the ethical issues named in your text book? Why are they ethical issues?

Ethical Issue: an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical. Ethical Issues: Misuse of company time Abusive and intimidating behavior Misuse of company resources Conflict of interest

2. Distinguish between ethics and social responsibility.

Ethics is the standards set by outsiders and responsibility if the businesses obligation to uphold these standards to maximize their positive impact and minimize their negative impact.

6. List and discuss the arguments for and against social responsibility by business.

For: 1. Business created a lot of problems. Should have a hand in fixing example: pollution reduction and cleanup 2. Business should be more responsible because they have the financial and technical resources to fix social problems 3. Businesses are members of society and should do their fair share 4. Socially responsible decisions made by business can decrease the regulation of the government 5. Social responsibility is necessary to ensure economic survival. Against: 1. It side tracks managers from the primary goal of business 2. When a business participates in social programs it gives them greater power 3. Some question is business can make social responsible decisions 4. Social problems are the government's problem

7. What responsibilities does a business have towards its employees?

Provide a safe work space Pay them adequately for the time they work Be kept informed on what is happening in the company

8. What responsibilities does business have with regard to the environment? What steps have been taken by some responsible businesses to minimize the negative impact of their activities on the environment?

Sustainability: conducting activities in a way that allows for the long-term well-being of the natural environment, including all biological entities. Sustainability involves the assessment and improvement of business strategies, economic sectors, work practices, technologies, and lifestyles so that they maintain the health of the natural environment. Many firms are trying to eliminate wasteful practices, the emission of pollutants, and/or the use of harmful chemicals from their manufacturing processes.