Exam 1 Chapter 4

Written statements of values and standards of behavior are called

codes of ethics

A corporate social audit is:

conducted by high-level managers within the firm.

________ occurs when a decision benefits the manager to the detriment of the organization.

conflict of interest

Political action committees are

created to give money to politicians

Using favors to legislators as a form of influence

dangerously open to misinterpretation

_____ are an individual's personal beliefs about whether a behavior, action, or decision is right or wrong.

ethics

To maintain a socially responsible stance toward investors, managers should:

follow proper accounting procedures

The first step for applying ethical judgements to situations is:

gathering the relevant factual information.

Tax incentives are a means of

indirect regulation of business by government

_____ relates to the degree of fairness people see in how they are treated by others in their organization.

interpersonal justice

Which of the following is an indirect form of government regulation?

tax codes

Which of the following is true of online information access?

It is costly because the information is spread across systems.

Which of the following is a formal organizational dimension to manage social responsibility?

Legal compliance

_____ is the awarding of funds or gifts to charities or other worthy causes.

Philanthropic giving

Which of the following is true of corporate governance?

The board of directors of a public corporation is expected to ensure that the business is being properly managed.

Which of the following is true of planned economies?

They are heavily regulated by the government.

Which of the following is true of ethical scandals?

They call into question the moral integrity of our society

The National Rifle Association is an example of

a group that uses lobbyists

A firm that meets its legal and ethical requirements, but also goes beyond those requirements in selected cases has adopted a(n) ________ stance to social responsibility.

accommodative

The _____ is a social responsibility stance in which an organization meets its legal and ethical obligations but will also go beyond these obligations in selected cases.

accommodative stance

Ethical issues in information technology do not include

board independence

Milton Friedman argues that

broadened social responsibility will weaken the economy

People who argue in favor of social responsibility point out that

businesses create many of society's problems and should help fix them

Arguments AGAINST businesses becoming more socially responsible include

businesses lack the expertise to manage social problems

________ is (are) affected by virtually everything a firm does.

organizational constitutes

Planned activities that help manage social responsibility include

philanthropic giving

Many organizations have placed strong emphasis on ethics due to

recent ethical scandals

Sometimes people act unethically even when it goes against their better judgment due to

situational factors

Organizations that are strongly in support of broadened views of social responsibility follow an approach of

social contribution

Firms that sometimes go beyond their legal obligations follow an approach of

social response

The obligation a firm has to protect and enhance the society in which it operates is

social responsibility

_____ is the set of obligations an organization has to protect and enhance the societal context in which it functions.

social responsibility

Which of the following is true of favors?

they are used to gain support

A corporate social audit is usually conducted by

top management

Unethical actions by individual managers most often occur when

upper management allows it to happen