Business Ethics and CSR Overview

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What should take precedence when ethical norms conflict?

Universal ethical norms should take precedence. (correct)

Local norms should prevail in all situations.

The financial performance of the organization.

The wishes of a majority of stakeholders.

Which of the following is considered a consequence of ethically questionable strategies?

Criminal charges against the organization. (correct)

Increased investor confidence.

Higher employee morale.

Enhanced public relations.

What is one of the drivers of unethical strategies in businesses?

Long-term planning focus.

Pressure for short-term performance. (correct)

Excessive corporate transparency.

Strong ethical oversight.

What does Corporate Social Responsibility (CSR) entail?

Actions beyond legal obligations for societal good. Signup and view all the answers

Which viewpoint suggests that firms should do more for society than what is legally required?

View #1. Signup and view all the answers

Which of the following is NOT a component of CSR?

Offering competitive salaries. Signup and view all the answers

What aspect of strategy evaluation ensures that progress is monitored continuously?

Establishment of benchmarks Signup and view all the answers

What impact can discovering ethical wrongdoing have on a company?

It often results in civil fines and lost confidence. Signup and view all the answers

Which question is NOT typically asked when reviewing the bases of strategy?

What are our core competencies? Signup and view all the answers

Which situation does NOT contribute to unethical business behavior?

A culture emphasizing ethical practices. Signup and view all the answers

What is a primary purpose of measuring organizational performance?

To compare performance to competitors Signup and view all the answers

Which of the following actions is not part of the strategy evaluation process?

Assigning blame for poor performance Signup and view all the answers

What should be done to promptly adjust strategies based on evaluation findings?

Prepare contingency plans Signup and view all the answers

Which of the following is NOT a question to evaluate internal strengths and weaknesses?

Are our external opportunities still opportunities? Signup and view all the answers

How should the evaluation of strategies be characterized?

Continuous and adaptable Signup and view all the answers

What is the purpose of preparing contingency plans within strategy evaluation?

To allow flexibility in response to unforeseen events Signup and view all the answers

What is the primary focus of contingency plans according to the content?

Focusing only on high-priority areas Signup and view all the answers

What does auditing primarily involve?

Communicating results to relevant stakeholders Signup and view all the answers

Which ethical theory posits that businesses should adhere to universal standards of right and wrong?

Ethical Universalism Signup and view all the answers

According to Ethical Relativism, how are business-related actions evaluated?

According to local ethical standards Signup and view all the answers

What is a key feature of Integrated Social Contracts Theory?

Combination of universal and local ethical principles Signup and view all the answers

Which statement best represents the nature of business ethics?

It involves applying ethical principles to business actions and decisions. Signup and view all the answers

How can companies apply the principles of Ethical Universalism?

By implementing universally accepted ethical practices Signup and view all the answers

What does the 'social contract' refer to in Integrated Social Contracts Theory?

A framework blending universal and local ethical views Signup and view all the answers

Which of the following measures is NOT typically included in the financial measures of the Balanced Scorecard?

Customer satisfaction Signup and view all the answers

What is one primary purpose of implementing the Balanced Scorecard?

To align customer priorities with the organization Signup and view all the answers

Which component of a Corporate Social Responsibility strategy directly addresses stakeholder interests?

Environmental sustainability Signup and view all the answers

What outcome is less likely to result from corporate social agendas that focus only on social issues?

Improved competitive strength Signup and view all the answers

The Balanced Scorecard balances which of the following types of measures?

Financial and non-financial measures Signup and view all the answers

What can lead to a competitive advantage according to CSR strategies?

Strategies that provide social benefits and lower costs Signup and view all the answers

Which of the following best describes a leading indicator in the Balanced Scorecard?

Complaint tracking and trending Signup and view all the answers

What is a key focus when using strategies aimed at both social benefits and fulfilling customer needs?

Creating value for customers and stakeholders Signup and view all the answers

What is an essential component of effective strategy evaluation?

Adequate and timely feedback Signup and view all the answers

Which of the following reinforces the need for disaggregation of data in strategy evaluation?

Assessing multiple related trends Signup and view all the answers

Which of Rumelt's criteria emphasizes the need for strategies to present consistent goals and policies?

Consistency Signup and view all the answers

What does the 'advantage' criterion in Rumelt’s criteria emphasize?

Competitive advantages through superior skills Signup and view all the answers

Which challenge in strategy evaluation is related to the environment’s complexity?

Variety of demands and regulations Signup and view all the answers

What is NOT a potential outcome of strategy evaluation?

Initiation of unrelated strategies Signup and view all the answers

Why may strategy evaluation be considered sensitive within an organization?

Too much emphasis may lead to evaluation fatigue Signup and view all the answers

What does 'feasibility' indicate in the context of evaluating a strategy?

Whether the strategy is attainable within existing resources Signup and view all the answers

Study Notes

Ethical Norms

Universal or first-order ethical norms should precede local or second-order norms in business decisions.
Adherence to ethical standards protects company reputation and investor confidence.

Consequences of Unethical Strategies

Ethical failures can lead to substantial civil fines, criminal charges, and public relations crises.
Companies experience significant drops in business value and investor trust following unethical practices.

Drivers of Unethical Business Behavior

Pressure for short-term performance results can promote unethical strategies and behaviors.
A corrupt environment contributes to the prevalence of unethical practices within organizations.
Faulty oversight and self-dealing are critical factors leading to unethical business conduct.

CSR encompasses actions beyond legal requirements to enhance well-being across society and the environment.
Views on CSR vary: one perspective emphasizes broad social obligations, while another limits obligations to legal compliance.
CSR principles include honorable operations, good working conditions, workforce diversity, environmental stewardship, and community improvement.

Strategy Evaluation

Strategy evaluation involves examining assumptions, comparing expected vs. actual results, and making necessary adjustments.
Effective evaluation relies on timely feedback and comprehensive information.
Too much focus on evaluation can hinder initiative due to information fatigue.

Rumelt's Criteria for Evaluating Strategies

Consistency: Strategies should reflect coherent goals and policies.
Consonance: Trends must be assessed in context; individual data points are insufficient.
Feasibility: Strategies need to be achievable within the organization's resource limits.
Advantage: Competitive advantages must stem from superior resources, skills, or positioning.

Challenges in Strategy Evaluation

Increasing complexity in external environments creates difficulties in evaluating strategies.
Rapid changes and the multitude of influencing variables complicate accurate future predictions.

Evaluation Process

Continuous evaluation allows for prompt adjustments based on actual progress.
Key questions guide evaluations, focusing on internal strengths, weaknesses, external opportunities, and threats.

Contingency Planning

Contingency plans are essential for unforeseen events and should prioritize high-impact areas.
It is impractical to plan for every possible scenario, thus focusing on significant risks is vital.

Ethical Standards Frameworks

Ethical Universalism: Posits that universal ethical standards apply across cultures.
Ethical Relativism: Suggests ethical standards vary by culture and context.
Integrated Social Contracts Theory: Combines universal principles with local norms, allowing culturally specific ethical practices.

Benefits of CSR

CSR initiatives can yield competitive advantages by aligning with customer needs while promoting sustainability.
Socially responsible practices can enhance organizational profits without compromising shareholder value.
A concentrated focus on social issues without strategic alignment may fail to strengthen market competitiveness.

Balanced Scorecard Overview

The Balanced Scorecard is a management tool measuring performance towards strategic goals through financial and non-financial indicators.
It ensures a comprehensive view, balancing short-term and long-term success factors.
Key performance measures include financial performance, customer satisfaction, and internal process efficiency.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz explores key concepts surrounding business ethics, including the importance of universal ethical norms versus local norms. It delves into the consequences of unethical strategies, the drivers behind unethical behavior, and the role of corporate social responsibility. Test your understanding of these critical business principles.