Business Chapter 4 Flashcards

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Questions and Answers

How can we restore trust in the free-market system and in leaders in general?

Punish those who broke the law

How do many Americans decide what's ethical?

Based upon the situation in which they find themselves

What does legality refer to?

The collection of laws to protect society from fraud, theft, and violence

What ethical challenge did Josie face with her supervisor?

Ethical dilemma Signup and view all the answers

Where does ethical behavior begin?

Each of us Signup and view all the answers

What must we ask when faced with an ethical dilemma?

How will it make me feel about myself? Signup and view all the answers

What is the most basic question in an ethics-based management system?

Is it legal? Signup and view all the answers

What question should Hal ask in making his ethical decision?

How does the action I am proposing to take make me feel about myself? Signup and view all the answers

What is the best reason for a business to be managed ethically?

An ethically managed business helps to reduce employee turnover. Signup and view all the answers

Where does organizational ethics begin?

At the top levels of management Signup and view all the answers

What term refers to individuals who report unethical or illegal behavior?

Whistleblowers Signup and view all the answers

Celeste felt this was a test to see if she followed the same __________ ethics as the others in this organization.

Integrity-based Signup and view all the answers

What statement fits under an organization's integrity-based ethics code?

Stresses shared accountability Signup and view all the answers

A legal provision known as the __________ provides a 'bounty' provision for whistleblowers.

Dodd-Frank Wall Street Reform and Consumer Protection Act Signup and view all the answers

What do proponents of corporate social responsibility (CSR) believe regarding profits?

CSR can lead to even more profits Signup and view all the answers

The business term we use to describe a company's philanthropic action is __________.

Corporate social initiative Signup and view all the answers

What dimension of social responsibility that includes charitable donations is called corporate?

Philanthropy Signup and view all the answers

What benefit does social media provide for communicating a business's CSR efforts?

Allows companies to reach broad and diverse groups directly in a low-cost, efficient way Signup and view all the answers

What actions are described by Johnny's Steak House's management during the acquisition?

Insider trading Signup and view all the answers

What is top management essentially conducting when listing and evaluating socially responsible efforts?

Social audit Signup and view all the answers

What type of group serves as watchdogs to monitor companies' ethical and social responsibility policies?

Socially conscious research organizations Signup and view all the answers

What are government and business leaders being held to?

Higher ethical standards than in the past Signup and view all the answers

What behavior are many U.S. businesses demanding from international suppliers?

Socially responsible behavior Signup and view all the answers

The United Nations condemned __________ in making business deals.

Corporate bribery Signup and view all the answers

Which statement reflects the difficulty companies face when requiring international suppliers to follow environmental and human rights standards?

Both economic conditions and culture enter into the discussion of fairness concerning international suppliers who do business with U.S. firms. Signup and view all the answers

Study Notes

Ethical Behavior and Decision Making

Restoring trust in the free-market system involves punishing illegal actions.
Many people determine ethical behavior according to situational factors.
Ethics represent societal standards, while legality refers to laws designed to prevent fraud, theft, and violence.

Ethical Dilemmas

Ethical dilemmas arise when individuals face conflicting choices, such as in Josie's case with false information in sales.
Personal accountability is essential; ethical behavior begins with individual choices.
Critical self-reflection is vital when addressing dilemmas, asking, "How will it make me feel about myself?"

Management and Ethics

The foundational question in ethics-based management is whether an action is legal.
Ethical management helps decrease employee turnover and fosters a healthier work environment.
Organizational ethics must be promoted from top management levels.

Whistleblowing and Integrity

Whistleblowers are individuals who report unethical behavior, especially protected under the Sarbanes-Oxley Act.
Integrity-based ethics focus on shared values and accountability among employees.

CSR promotes the idea that businesses can be profitable while behaving benevolently.
Corporate social initiatives involve donating resources to aid communities and address crises effectively.
Philanthropy involves long-term commitments to causes, such as support provided by organizations like McDonald’s.

Social media is an effective tool for businesses to communicate their CSR efforts widely and efficiently.

Market Practices and Regulations

Insider trading involves the unethical sharing of confidential information before a public announcement, as seen in the Johnny's Steak House scenario.
Conducting a social audit involves evaluating a company's social responsibilities and assessing negative occurrences.

Monitoring and Standards

Various groups, such as socially conscious research organizations, monitor corporate adherence to ethical and social responsibility policies.
Both business and government leaders are increasingly held to higher ethical standards.
U.S. businesses are advocating for social responsibility from international suppliers, particularly concerning environmental and human rights.

Global Ethics

The Inter-American Convention Against Corruption was signed to establish common global ethics, denouncing corporate bribery in business dealings.
Challenges arise when enforcing U.S. ethical standards on international suppliers, as economic conditions and cultural differences affect perceptions of fairness.

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Description

Explore key concepts from Chapter 4 of Business, focusing on ethics and restoring trust in the free-market system. This quiz highlights the importance of legality versus ethics and examines how situational factors influence ethical behavior. Test your knowledge and understanding of these critical issues in today's business landscape.