Chapter 5 - Ethics and Social Responsibility Flashcards Preview

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Flashcards in Chapter 5 - Ethics and Social Responsibility Deck (11)
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1
Q

Ethics

A

standards of moral behaviour

behaviour that is accepted by society as right versus wrong

2
Q

Legality

A

more limited

refers only to laws written to protect people from fraud,theft, and violence

3
Q

3 questions to answer when faced with a potentially unethical action

A

1) is it legal
2)is it balanced
3)how will it make me feel
companies use these 3 questions to have a better chance than most of behaving ethically

4
Q

Managers role in setting ethical standards

A
  • the messages they send through their actions

- managers tolerance or intolerance of ethical misconduct influences employees more than written ethics codes do

5
Q

compliance based ethics code

A

concerned with avoiding legal punishment

6
Q

integrity based ethics code

A
  • define the organizations guiding values
  • create an environment that supports ethically sound behaviour
  • stress shared accountability among employees
7
Q

Six steps that improve business ethics

A

1) top management must adopt and support an explicit corporate code of conduct
2) employees must understand that expectations for ethical behaviours begin at the top and that senior management expects all employees to act accordingly
3) managers and others must be trained to consider the ethical implications of all business decisions
4) an ethics office must be set up, and phone lines to the office should be established
5) outsiders such as suppliers, subcontractors, distributors, and customers must be top about the ethics program
6) the ethics code must be enforced

8
Q

Which step is most critical in the 6 step process?

A

the last step (ethics code must be enforced) is the most critical because a company’s ethics policy must be enforced to be taken seriously

9
Q

Corporate social responsibility

A

is the concern businesses have towards stakeholders

10
Q

Business is responsible to have 5 types of stakeholders

A

1) it must satisfy customers with goods and services of real value
2) it must make money for its investors
3) it must create jobs for employees, maintain job security and see that hard work and talent are fairly rewarded
4) must create new wealth for society and promote social justice
5) must contribute to making its environment a better place

11
Q

Company’s social responsibility efforts measured

A
  • measures an organizations progress toward social responsibility
  • some people believe that a audit should ad together the organizations positive actions and then subtract the negative effects to get a net social benefit