20 Questions
What is the term for the shared beliefs, values, and behaviors that create the organizational context within which employees and managers interact?
Corporate culture
Which ethical theory suggests that an ethical decision requires us to observe only the rights and duties we owe to others, and, in the context of business, act on the basis of a primary motive to do what is right by all stakeholders?
Deontology
What is the practice in which a business views itself within a broader context, as a member of society with certain implicit social obligations and responsibility for its own effects on environmental and social well-being?
Corporate social responsibility
What is the extent to which a company conducts its business operations in accordance with applicable regulation and statutes?
Compliance
Which term refers to the implicit social obligations and responsibility for its own effects on environmental and social well-being?
Corporate social responsibility
What is the term used to describe the value of a business beyond its tangible assets?
Goodwill
Who are considered stakeholders in a business's decisions?
Customers, suppliers, investors, employees, the community, and the environment
What is the focus of short-term perspective in a business context?
Maximizing periodic profits
Which term refers to an implicit agreement among societal members to cooperate for social benefit, especially when applied to a business context?
Social contract
What does the term 'normative ethical theories' describe in the context of behavior?
How people ought to behave based on reason
What is the primary focus of business ethics?
Establishing guidelines for ethical business conduct
How does business ethics relate to business performance?
It may determine ways for better and optimum business performance
In what way does business ethics inspire professionalism?
By inspiring values, standards, and norms of professionalism for the well-being of customers
What does the philosophy of business ethics primarily seek to establish in an organization?
A culture of mutual interactions and ethical behavior
Which term best describes the approach of business ethics towards establishing a code of conduct in business?
'Art' as well as 'Science'
What is the primary objective of a formal code of conduct in business ethics?
To communicate the organization's values and standards of ethical conduct to employees
What is the role of an ethics committee in an organization with regards to business ethics?
To formulate ethical policies and develop ethical standards
What is the purpose of an ethical communication system in the context of business ethics?
To provide guidance and resolve queries for employees
How does an organization benefit from having an established ethical communication system?
By fostering a culture of transparency and accountability
In what way does having a formal code of conduct contribute to creating an ethical business climate?
By facilitating consistent decision-making based on ethical standards
Study Notes
Organizational Context
- The term "organizational culture" refers to the shared beliefs, values, and behaviors that create the organizational context within which employees and managers interact.
Ethical Theories
- The ethical theory of "deontology" suggests that an ethical decision requires observing only the rights and duties owed to others, and, in the context of business, acting on the basis of a primary motive to do what is right by all stakeholders.
Corporate Social Responsibility (CSR)
- CSR is the practice in which a business views itself within a broader context, as a member of society with certain implicit social obligations and responsibility for its own effects on environmental and social well-being.
Compliance
- Compliance refers to the extent to which a company conducts its business operations in accordance with applicable regulations and statutes.
Stakeholders
- Stakeholders in a business's decisions include anyone who may be impacted by the decisions, such as employees, customers, suppliers, and the community.
Short-term Perspective
- The primary focus of a short-term perspective in a business context is on achieving immediate financial goals, often at the expense of long-term sustainability.
Social Contract
- A social contract refers to an implicit agreement among societal members to cooperate for social benefit, especially when applied to a business context.
Normative Ethical Theories
- Normative ethical theories describe the norms and principles that guide behavior, particularly in the context of business ethics.
Business Ethics
- The primary focus of business ethics is on establishing a moral framework for decision-making in a business context.
- Business ethics relates to business performance in that it can improve reputation, reduce risk, and increase long-term sustainability.
- Business ethics inspires professionalism by establishing a moral framework for decision-making.
Code of Conduct
- The philosophy of business ethics primarily seeks to establish a code of conduct in an organization.
- A code of conduct is a formal document outlining the expectations and principles guiding an organization's behavior.
- The primary objective of a formal code of conduct is to establish a clear moral framework for decision-making.
Ethics Committee
- The role of an ethics committee in an organization is to oversee and guide the implementation of the code of conduct.
Ethical Communication System
- An ethical communication system is a framework for open and transparent communication within an organization.
- The purpose of an ethical communication system is to facilitate open and transparent communication, ensuring that all stakeholders are informed and involved in decision-making.
- Having an established ethical communication system benefits an organization by promoting transparency, building trust, and reducing risk.
Test your knowledge about compliance and corporate culture in contemporary businesses with this quiz. Explore the concepts related to the extent of company operations in accordance with regulations and the organizational context that shapes employee and manager interactions.
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