Chapter 04: Responding to the Ethical and Social Environment

The Walmart Foundation and Walmart exceeded $1 billion in charitable contributions worldwide.

social welfare

Walmart and the Walmart Foundation are providing career opportunities for nearly 1 million women and 100,000 U.S. veterans.

social welfare

In a disagreement about what is right and what is wrong, if your greatest concern is utility, you want to know,

"Does it optimize the best for all?"

In a disagreement about what is right and what is wrong, if your greatest concern is rights, you want to know,

"Does it respect the rights of those involved?"

In a disagreement about what is right and what is wrong, if your greatest concern is caring, you want to know

"Is it consistent with responsibility to care?"

In a disagreement about what is right and what is wrong, if your greatest concern is justice, you want to know,

"Is it consistent with what is fair?"

Which entity relies upon securities legislation as a tool of influence?

government

Arguments for Social Responsibility

1. Businesses create problems and should help solve them. 2. Corporations are citizens in our society. 3. Businesses have the resources to solve problems. 4. Business is a partner in society.

Arguments against Social Responsibility

1.Business lacks expertise in social programs. 2.Involvement gives businesses more power. 3.There may be conflicts of interest. 4.Business exists to generate profit for the owners.

In companies that strive to be first to market with new technology, the risk that employees may divulge trade secrets is great.

Employee's Treatment of Organization

Nina waits tables, and a large part of her earnings comes from tips, which depend on how large the bill is. She falsely tells customers who order less expensive dishes that the kitchen is sold out of those items so that they are limited to more expensive choices.

Employee's or Organization's Treatment of Others

What premise of ethical leadership is supported by the Siemens story? Companies want to avoid bad press. Leaders serve as role models for others. It's easy to conduct background checks.

Leaders serve as role models for others.

How can companies show social responsibility? Check all that apply. Making ethical decisions Improving operations management Educating the public about a social issue Donating money to charity

Making ethical decisions Educating the public about a social issue Donating money to charity

Corporate leaders may face a variety of ethical dilemmas. Which ethical concern is addressed by the Sarbanes-Oxley Act? The reporting of dividends paid to investors The accuracy of corporate financial disclosures The compliance of a corporation with environmental standards The price-fixing of products

The accuracy of corporate financial disclosures

Which entity relies upon personal contacts as a tool of influence?

business

Eliminating landfill waste

environment

Scott Thompson stepped down from his role as CEO. Had he not resigned, the board of directors would have faced an ethical issue in ______________________. information technology leadership social responsibility

leadership

Because ______________ seek to influence laws that benefit corporations, they are sometimes portrayed in a negative light in the media. lobbyists activists powerbrokers advocates

lobbyists

The Obstructionist approach is ____________ the Defensive approach in degree of social responsibility. lower than higher than

lower than

At Zappos, managers are committed to making workers happy.

Organization's Treatment of Employees

In your role as manager of the quality assurance program, you observe that one of the products manufactured by your company has a safety feature with a high rate of malfunction. What should your first step be? Report the issue to your supervisor. Report the issue to the ethics committee. Report the issue to the local news anchor. Report the issue to the regulatory agency that sets safety requirements for the industry.

Report the issue to your supervisor.

Which approach to social responsibility is best explained by the statement, Meet legal and ethical obligations and do more on a case by case basis? Accommodative Obstructionist Proactive Defensive

Accommodative

Compliance is important for every organization, but complying with local, state, and federal laws is most challenging for companies doing business ________________ simply because there are more regulations to follow. without a code of ethics online in heavily regulated industries in a single country

in heavily regulated industries

The Vitale story illustrates how ethical issues in _____________________can threaten the rights of individuals. leadership information technology corporate governance

information technology

Because Monsanto's board members have worked for the EPA, advised the U.S. Department of Agriculture (USDA), and served on the president's Advisory Committee for Trade Policy and Negotiations, it is well positioned to use _____________________ as a source of influence. direct regulation political action committees lobbying personal contacts

personal contacts

In what type of publication do companies summarize their social responsibility efforts and their achievements? Charitable Giving Report Corporate Social Responsibility Report Annual Report for publicly-traded companies Articles of Incorporation

Corporate Social Responsibility Report