ch. 2 SOM

Moving factory production to an area with low wages and few health regulations may not be illegal, but it would mostly likely be considered

Unethical behavior

corporate social audit

a systematic analysis of a firm's success in using funds earmarked for meeting its social responsibility goals

Define: a defensive stance toward social responsibility

The approach to social responsibility by which a company meets only minimum legal requirements in its commitments to groups and individuals in its social environment

an accommodative stance toward social responsibility

The approach to social responsibility by which a company, if specifically asked to do so, exceeds legal minimums in its commitments to groups and individuals in its social environment

Ethics

-based on individual beliefs and social concepts and vary from person to person

highest to lowest level of social responsibility

1. proactive stance 2. accommodative stance 3. defensive stance 4. obstructionist stance

example of consumerism:

A group of people working together to create a Passenger's Bill of Rights that protects airline ticket buyers

A political action committee is _____________

A means through which organizations legally contribute to campaign funds in order to influence the government

whistleblower

A person who discovers and tries to put an end to a company's unethical, illegal, or socially irresponsible actions by publicizing them

philanthropic giving

As the owner of a store that sells high-quality accessories, Drew supports her local community's women's shelter through donations of cash as well as items such as leather handbags, a kind of social responsibility

regulation

The establishment of laws and rules that dictate what organizations can and cannot do

an example of a government-created agency to regulate environmental issues

EPA

What issue would likely be addressed in an organization's code of ethics

Gift giving and receiving

example of whistleblowing

Ida contacts the Food and Drug Administration to report contamination problems at the pharmaceutical company where she works.

collusion

Illegal agreement between two or more companies to commit a wrongful act

An organization that __________ conducts business in a way that treats employees respectfully, complies with proper accounting procedures, and stands behind the quality of its products or services.

Is socially responsible

Which of the following statements BEST describes ethical behavior?

It means that individuals act in a manner that follows their beliefs and social norms about what is right and good.

political action committees

Special organizations created to solicit money and then distribute it to political candidates

managerial ethics

Standards of behavior that guide individual managers in their work

Define: a proactive stance toward social responsibility

The approach to social responsibility by which a company actively seeks opportunities to contribute to the well-being of groups and individuals in its social environment

ethical compliance

The extent to which the members of the organization follow basic ethical and legal standards of behavior

proactive stance

approach to social responsibility by which a company actively seeks opportunities to contribute to the well-being of groups and individuals in its social environment

defensive stance

approach to social responsibility by which a company meets only minimum legal requirements in its commitments to groups and individuals in its social environment

accommodative stance

approach to social responsibility by which a company, if specifically asked to do so, exceeds legal minimums in its commitments to groups and individuals in its social environment

obstruction stance

approach to social responsibility that involves doing as little as possible and may involve attempts to deny or cover up violators

ethical behavior

behavior conforming to generally accepted social norms conncerning beneficial and harmful actions

unethical behavior

behavior that does not conform to generally accepted social norms concerning beneficial and harmful actions

Sam was at home reading his email when he realized his supervisor had accidentally included him on a private work email about one of his colleagues. Sam immediately contacted his supervisor and explained that he would keep the information confidential. This is an example of

business ethics

Proactive stance

company exhibiting when they have the highest degree of social responsibility

whistle-bower

employee who detects and tries to put an end to a company's unethical, illegal, or socially irresponsible actions by publicizing them

business ethics

ethical or unethical behaviors by employees in the context of their jobs

The beliefs that it is good to help others and wrong to steal, for example, are known as

ethics

consumerism

form of social activism dedicated to protecting the rights of consumers in their dealings with businesses

insider trading

illegal practice of using special knowledge about a firm for profit or gain

If you work as a supplier to a corporation, you are a(n)

organizational stakeholder

Political Action Committees (PACs)

special

code of ethics should be

specific to lead the employees, but also should allow some freedom of judgment

Insider trading

term for the illegal practice of using special knowledge about a firm for profit or gain

Obstructionist stance

the approach to social responsibility that involves doing as little as possible and may involve attempts to deny or cover up violations

social responsibility

the attempt of a business to balance its commitments to groups and individuals in its

Philanthropic Giving

the awarding of funds or gifts to charities or other worthy causes

Legal Compliance

the extent to which the members of the organization follow basic ethical (and legal) standards of behavior

Legal compliance

the extent to which the organization conforms to local, state, federal, and international laws

Lobbying

the use of persons or groups to formally represent an organization or group of organizations before political bodies

lobbying

the use of persons or groups to formally represent an organization or group of organizations before political bodies

organizational stakeholders

those groups, individuals, and organizations that are directly affected by the practices of an organization and who therefore have a stake in its performance