Chapter 4 Homework

steps involved in developing a corporate code of ethics

1. management support 2. employees 3. training 4. ethics office 5.communicate to outsiders 6. enforcement

ethics

A set of principles of right versus wrong conduct.

social audit

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

stakeholders

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

whistleblower

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

Corporate philanthropy

The act of corporations donating a portion of their profits or other resources to non-profit organizations.

in what way do Vision spring and Warby Parker participate in corporate social responsibility?

by establishing an ethical standard

A business' concern for the welfare of society is called

corporate social responsibility

if a business is following all the laws and regulations, it still might not be acting

ethically

Warby Parker and VisionSpring's business partnership demonstrates success through its ethical business practices and commitment to corporate social responsibility. Which of the following is NOT one of the partnership's core business philosophies?

focusing on investors

Features of Compliance-based ethics codes

ideal: conform to outside standards objective: avoid criminal misconduct leader: lawyers methods: education, reduced employee discretion

Features of integrity-based ethics codes

ideal: conform to outside standards and chosen internal standards objective: enable responsible employee conduct leader: managers methods: accountability, decision processes, controls

Built on an ethical standard of providing stylish eyewear at reasonable prices and creating an environment that supports ethically sound behavior, Warby Parker is demonstrating _______ ethics codes.

integrity-based

a business that has a philanthropy program engages in this activity because

it wants to in order to give back

Warby Parker and VisionSpring operate under a "triple bottom-line" philosophy which takes into consideration company profits, human capital, and

the environment in which the firm operates

In business, managers and employees are faced with many decisions. Management writer Ken Blanchard and religious leader Norman Vincent Peale provide a set of questions individuals should ask themselves when facing an ethical dilemma. Which of the following is NOT one of those questions?

will it help further my career?

insider trading

Buying or selling stocks by someone who has access to non-public information about the company.

CSR (corporate social responsibility)

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

corporate policy

Dimension of social responsibility that refers to the firm's position on social and political issues.