Shared Flashcard Set

Details

Ch.4 Learning Goals
Demanding Ethical and Socially Responsible Behavior
8
Business
Professional
02/05/2014

Additional Business Flashcards

 


 

Cards

Term
How is legality different from ethics?
Definition
Ethics goes beyond obeying laws to include abiding by the moral standards accepted by society. Ethics reflects people's proper relationships with one another. Legality is more limiting; it refers only to laws written to protect people from fraud, theft and violence.
Term
How can we tell if our business decisions are ethical?
Definition
We can put our business decisions through an ethics check by asking three questions:
1. Is it legal?
2. Is it balanced?
3. How will it make me feel?
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. Management's tolerance or intolerance of ethical misconduct influences employees more than any written ethics codes.
Term
What is the difference between compliance-based and integrity-based ethics codes?
Definition
Whereas compliance-based ethics codes are concerned with avoiding legal punishment, integrity-based ethics codes define the organization's guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees.
Term
What is corporate social responsibility?
Definition
Corporate social responsibility is the concern businesses have for society.
Term
How do businesses demonstrate corporate responsibility toward stakeholders?
Definition
Business is responsible to four types of stakeholders:
1. It must satisfy customers with goods and services.
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. It must create new wealth for society, promote social justice, and contribute to making its own environment a better place.
Term
How are a company's social responsibility efforts measured?
Definition
A corporate social audit measures an organization's progress toward social responsibility. Some people believe the audit should add together the organization's positive actions and then subtract the negative effects to get a net social benefit.
Term
How can U.S. companies influence ethical behavior and social responsibility in global markets?
Definition
Many U.S. businesses are demanding socially responsible behavior from their international suppliers by making sure their suppliers do not violate U.S. human rights and environmental standards. Companies like Sears, Phillips-Van Heusen, and Dow Chemical will not import products from companies that do not meet their ethical and social responsibility standards.
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