Understanding business-chapter 4
Corporate social responsibility: companies that try to act in a socially responsible way are likely to focus on such activities as:
Providing safety equipment and training for their workers, using recyclable packaging, increasing the diversity of the workforce
SEC rule that requires companies to share information with everybody at the same time, instead of a select few, is known as
Regulation FD for Fair Disclosure
Ethics:
SOCITY standards of moral behavior, that is, behavior excepted by society as of right versus wrong
Social justice
Some people think that businesses have an influential and important role in promoting:
Corporate philanthropy
The act of corporations donating a portion of their profits or other resources to nonprofit organizations
Contented cows give better milk
The authors of the contented cows give better milk, attribute the difference in performance of companies to the commitment and caring the outstanding companies demonstrate towards their employees
Corporate responsibility
The dimension of social responsibility, which include certain aspects such as seeking employees that are racially diverse or producing low emission vehicles
Enron: illegal act committed
The management of Enron committed illegal act of creating off the books partnerships to high debts
Ethics
The standards of moral behavior, which is right or wrong, are known as?
Ethics
The standards of right versus wrong in a society
Insider trading
The use of private company information by an employee for personal financial gain.
Corporate social responsibility is a business's concern
The welfare of society
Ethical cultures failed:
When auto companies like General Motors and Toyota failed to recall cards with dangerous malfunctions it is an example of failed ethical cultures
Ethics programs: implementation
When implementing a new ethics program, businesses must also communicate the changes to outside parties such as: stakeholders
Ethical decisions:When faced with an ethical decision what should one ask themselves:
is it balanced, is the proposed action legal, will the action offend anyone
Ethical standards: Rank the following jobs according to their respective importance or implementation of ethical standards with the most influential on top
1. Top management 2. Supervisor 3. Full-time workers 4. Part-time workers
Corporate social responsibility
A business's concern for the welfare of society.
Ethics codes: compliance based ethics
A company whose ethics codes penalize wrong doers.
Corporate Policy
A dimension of social responsibility that refers to a position a firm takes or a statement it makes on social and political issues
Green movement
A movement that has had a positive impact on US labor force by creating jobs in new industries such as manufacture of solar panels. This movement has created new jobs in businesses that recycle were produced energy-efficient products.
Social audit
A systematic evaluation of a company's progress toward implementing socially responsible programs.
Enron: which of the following ethical violations were committed by Enron executives?
Accounting fraud, set of fake partnerships to improperly enhance profits
Environmentalists
Activist to apply pressure by publicly naming companies that pollute the air and water
Fair disclosure
Also known as Regulation FD. The SEC rule that requires companies to share information with everybody at the same time, instead of a select few
Social audit
Formal review of the companies endeavors in terms of its corporate social responsibility
Ethical behavior: Should be classified as unethical behavior by employees?
Frequently violating safety standards, taking home office supplies from work
Compliance-based ethics codes focus on:
Increasing control, penalizing wrong-doers
Unethical financial reporting: which of the following exemplifies a possible outcome of unethical financial reporting
Investors purchase stock only to see the price plummet as the real information is made public
Fraud:
It is important to have a committed workforce because employee FRAUD cost US based businesses about 5% each year and cons about 30% of all business failures
Human right violations
Make you suffer the loss of business do you do it's human rights violations in their overseas manufacturing facilities
Free-market system: Financial and political leaders can restore trust in the free-market system by?
Making business people more accountable for their actions, passing laws to make accounting records more transparent
Green movement: The emergence of the green movement has affected businesses by?
Offering consumers more product choices
Corporate philanthropy
Charitable donations to different nonprofit groups, such as the Ronald McDonald Houses, can be attributed to which dimension of social responsibility
Social audits: which of these categories should social outlets measure?
Community relations, product safety, environment
Corporate policy
Corporate policy is the dimension of social responsibility that refers to a position a firm takes or statement it makes on social and political issues
Corporate responsibility
Corporate responsibility is the dimension of social responsibility that includes everything from hiring my Nordie workers to making safe products
Social initiatives
Corporate social initiatives are an enhanced form of corporate philanthropy dealing directly with the company's core competencies
Ethics codes: Integrity based ethics codes
Creates an environment which supports ethically sound behavior by stating and organizations guiding values, shared responsibilities, and accountability
companies whose workers have lost their commitment, confidence, and trust in the company and its management may:
Do the minimum to get by, manipulate budgets and expenses
Corporate social responsibility (CSR): researches shown that companies engaged in corporate social responsibility:
Draw more customers, retain better employees, enjoy greater employee loyalty
Corporate social initiatives
Enhance forms of philanthropically directly related to the companies competencies
Ethics and laws
Ethics guide people's decisions about how to treat one another in and honest and responsible way, where is laws are narrower and protect us from fraud,theft, and violence
Corporate Social responsibility is when business are concerned with
For the welfare do society as a whole, about being fair and honest with their stakeholders