Term | Definition Standards of moral behaviour; that is, behaviour that is accepted by society as right versus wrong. | |
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Term Compliance-based ethics codes are... | | Definition Ethical standards that emphasize preventing unlawful behaviour by increasing control and by penalizing wrongdoers. | |
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Term Integrity-based ethics codes are... | | Definition Ethical standards that define the organization's guiding values, create an environment that support ethically sound behaviour, and stress a shared accountability among employees. | |
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Term | Definition People who report illegal or unethical behaviour. | |
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Term Corporate social responsibility (CSR) is... | | Definition A business's concern for the welfare of society as a whole. | |
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Term Corporate philanthropy is... | | Definition The dimension of social responsibility that includes charitable donations. | |
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Term Corporate social initiatives are... | | Definition The dimension of social responsibility that includes enhanced forms of corporate philanthropy in that they are more directly related to the company's competencies. | |
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Term Corporate responsibility is... | | Definition The dimension of social responsibility that includes everything from hiring minority workers to making safe products. | |
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Term | Definition The dimension of social responsibility that refers to the position a firm takes on social and political issues. | |
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Term | Definition An unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends. | |
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Term | Definition A systematic evaluation of an organization's progress toward implementing programs that are socially responsible and responsive. | |
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Term | Definition |
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Term | Definition Abiding by the moral standards accepted by society | |
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Term How is legality different from ethics? | | Definition Ethics reflects people's proper relation with one another. Legality is more limiting; it refers only to laws written to protect people from fraud, theft, and violence. | |
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Term What influences our ethical decision making? | | Definition Ethical behaviour starts with you and me. We are influenced by our society and what it considers to be ethical, the behaviour of others (both socially and in a work setting), and by our own personal values and beliefs. | |
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Term How can we tell if our business decisions are ethical? | | Definition Our business decisions can be put through an ethics check by asking three questions:1) Is it legal?2) Is it balanced?3) How will it make me feel? Companies (and individuals) that develop strong ethics codes and use these three questions have a better chance than most of behaving ethically. | |
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Term Some managers think that ethics... | | Definition Is an individual issue and has nothing to do with management while others believe that ethics has everything to do with management. | |
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Term What is management's role in setting ethical standards? | | Definition Managers often set formal ethical standards, but more important are the messages they send through their actions. | |
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Term | Definition Management's tolerance of intolerance of ethical misconduct influences employees more than... | |
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Term What's the difference between compliance-based and integrity-based ethics codes? | | Definition Compliance-based ethics codes are concerned with avoiding legal punishment whereas integrity-based ethics codes define the organization's guiding values, create an environment that supports ethically sound behaviour, and stress a shared accountability among employees. | |
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Term | Definition Corporate social responsibility goes beyond... | |
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Term Corporate social responsibility is... | | Definition The concern businesses have toward stake-holders | |
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Term | Definition Business has a responsibility to... | |
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Term What responsibility do businesses have to customers? | | Definition To satisfy them with goods and services of real value. | |
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Term What responsibility do businesses have to investors? | | Definition To make money for its investors. Implicit is that decisions are good not only for the economic bottom line but also for the social responsibility bottom line. | |
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Term What responsibility do businesses have to employees? | | Definition To create jobs, to maintain job security, and to see that hard work and talent are fairly rewarded. This should be accomplished within a safe work environment. | |
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Term What responsibility do businesses have to society? | | Definition To create new wealth, to promote social justice, and to contribute to making its own environment a better place. | |
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Term What responsibility do businesses have to the environment? | | Definition To minimize its negative impact on the environment. | |
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Term How are a company's social responsibility effects measured? | | Definition A corporate social audit measures an organization's progress toward social responsibility. Some people believe that the audit should sum the organization's positive actions and then subtract the negative effects of business to get its net social benefit. | |
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Term | Definition How many dimensions of corporate social responsibility are there? | |
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Term Corporate philanthropy includes... | | Definition Charitable donations to non-profit groups | |
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Term Corporate responsibility includes... | | Definition Everything from hiring minority workers to making safe products | |
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Term Corporate policy refers to... | | Definition The position a firm takes on social and political issues | |
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Term What are the six steps that can improve business ethics? | | Definition 1) Top management must adopt and support an explicit corporate code of conduct2) Employees must understand that expectations for ethical behaviour begin at the top and that senior management expects all employees to act accordingly3) Managers and others must be trained to consider the ethical implications of all business decisions4) An ethics office must be set up and phone lines to the office should be established5) Outiders such as suppliers, subcontractors, distributors, and customers must be told about the ethics program 6) The ethics code must be enforced | |
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Term | Definition Business ethics can be improved if companies follow... | |
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Term 6) The ethics code must be enforced In order for a company's ethics policy to be taken seriously, it must be enforced.
| | Definition Which step is the most critical in the six-step process? | |
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Term Discuss the strategic approach. | | Definition The strategic approach requires that management's primary orientation be toward the economic interests of shareholders. This approach encourages managers to consider actions' effects on stakeholders other than owners, but ultimately others' interests are secondary. Often these interests are considered only when they would adversely affect profits if ignored. | |
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Term Discuss the pluralist approach. | | Definition The pluralist approach recognizes the special responsibility of management to optimize profits, but not at the expense of employees, suppliers, and members of the community. This approach recognize the moral responsibilities of management that apply to all human beings. The guiding philosophy for the twenty-first century will be some version of the pluralist approach. | |
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