Business Ethics and Management

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Questions and Answers

What has changed in the way managers deal with social and ethical concerns?

They approach them in a similar way to traditional business functions (correct)

They ignore them completely

They have completely eliminated them from their operations

They only focus on economic considerations

What is business ethics focused on?

Ethical issues arising in the commercial realm (correct)

Environmental concerns only

Making profits only

Social media marketing only

What is sustainable development?

Ignoring environmental concerns

Using all natural resources available

A pattern of resource use that aims to meet current needs while preserving the environment for future generations (correct)

Only focusing on economic growth

What are the criteria that sustainability embraces?

Environmental, economic, and social Signup and view all the answers

What is the primary concern of sustainability?

The ability of businesses to survive and thrive over the long term Signup and view all the answers

Who are stakeholders in a business?

Individuals or groups with which business interacts and who have a vested interest in the firm Signup and view all the answers

What are the two broad groups of stakeholders?

Internal and external stakeholders Signup and view all the answers

What is Corporate Social Responsibility (CSR)?

A concept that is described in the chapter Signup and view all the answers

What is the primary focus of CSR?

Social welfare Signup and view all the answers

What are the two active aspects of social responsibility?

Protecting and improving Signup and view all the answers

What is the broader conception of a firm's responsibilities in CSR?

Responsibilities to society beyond economic and legal obligations Signup and view all the answers

What is the narrow view of CSR?

Meet minimum duties and obligations Signup and view all the answers

What is the primary goal of CSR in relation to society?

To protect and improve the welfare of society Signup and view all the answers

What does CSR suppose about the corporation's responsibilities?

Responsibilities to society beyond economic and legal obligations Signup and view all the answers

What is the relationship between economic objectives and social responsibility in CSR?

They are intertwined and equally important Signup and view all the answers

What is the primary focus of philanthropic responsibilities in the corporate social responsibility model?

The community Signup and view all the answers

What is the outcome of CSR in relation to the corporation's actions?

Protection and improvement of the welfare of society Signup and view all the answers

According to the model, what is the relationship between ethics and the other categories?

Ethics permeates all categories in the model Signup and view all the answers

What is the primary focus of ethical responsibilities in the corporate social responsibility model?

Consumers, employees, and the natural environment Signup and view all the answers

What is the result of combining economic, legal, ethical, and philanthropic responsibilities?

Total Corporate Social Responsibility Signup and view all the answers

Which of the following is a characteristic of a socially responsible company?

Makes safe products Signup and view all the answers

What is the primary focus of legal responsibilities in the corporate social responsibility model?

Owners and shareholders Signup and view all the answers

Which of the following is NOT a characteristic of a socially responsible company?

Engages in deceptive practices Signup and view all the answers

What is the relationship between laws and ethics in the corporate social responsibility model?

Laws are based on ethical rationale Signup and view all the answers

Which of the following stakeholders are classified as social stakeholders?

All of the above Signup and view all the answers

What is the primary focus of the strategic approach to stakeholders?

Pursuing shareholder profits Signup and view all the answers

Which of the following attributes refers to the ability or capacity of a stakeholder to produce an effect?

Power Signup and view all the answers

What is the primary characteristic of secondary non-social stakeholders?

They represent or speak for primary non-social stakeholders Signup and view all the answers

Which of the following stakeholders is likely to have high legitimacy?

Owners Signup and view all the answers

What is the primary characteristic of urgency in stakeholders?

The degree to which a stakeholder's claim demands immediate attention or response Signup and view all the answers

What is the primary focus of the multifiduciary approach to stakeholders?

Managing stakeholders for the benefit of all Signup and view all the answers

Which of the following best describes the concept of proximity in stakeholders?

The spatial distance between the organization and its stakeholders Signup and view all the answers

What is the term used to describe the process of dumping trillions of gallons of sewage and industrial waste into marine waters?

Marine pollution Signup and view all the answers

What is the main cause of the greenhouse effect, according to the text?

Deforestation Signup and view all the answers

What is the result of energy inefficiency, according to the text?

Wasting of precious non-renewable sources of energy Signup and view all the answers

What is the benefit of companies adopting circular business models and practicing a circular economy?

Gaining value while helping the environment Signup and view all the answers

What are the problems associated with the world's oceans and waterways?

All of the above Signup and view all the answers

What is the role of preserving biodiversity in businesses?

Boosting a company's reputation Signup and view all the answers

What is the term used to describe complex environmental problems, such as smog and acid rain?

Wicked problems Signup and view all the answers

What is the role of governments in environmental and sustainability issues, according to the learning outcome?

To discuss the role in environmental and sustainability issues Signup and view all the answers

Study Notes

Managers deal with social and ethical concerns using similar methods to traditional business functions.
Managers integrate traditional economic and financial considerations with ethical and social considerations.

Ethics and Stakeholders

Ethics refers to issues of right, wrong, fairness, and justice.
Business Ethics focuses on ethical issues that arise in the commercial realm.
Ethical questions permeate business activities as it interacts with major stakeholder groups.
Stakeholders include individuals or groups with vested interests in the firm, categorized into external and internal stakeholders.

Sustainability

Sustainability is a pattern of resource use that aims to meet current needs while preserving the environment for future generations.
Sustainability encompasses environmental, economic, and social criteria.

CSR means considering the impact of a company's actions on society.
Social responsibility is the obligation of decision makers to take actions that protect and improve the welfare of society as a whole, along with their own interests.
CSR supposes that corporations have economic, legal, ethical, and philanthropic responsibilities.

Characteristics of a Socially Responsible Company

Makes safe products.
Does not pollute air or water.
Obeys the law in all aspects of business.
Promotes honest or ethical employee behavior.
Commits to safe workplace ethics.
Does not use misleading or deceptive advertising.
Helps displaced workers with placement.

Stakeholders and Attributes

Stakeholders include government and regulators, civic institutions, social pressure/activist groups, media and academic commentators, trade bodies, and competitors.
Important attributes of stakeholders include legitimacy, power, urgency, and proximity.

Three Stakeholder Approaches

Strategic approach: views stakeholders as factors to manage for shareholder profits.
Multifiduciary approach: acknowledges multiple stakeholders with competing interests.
Synthesis approach: integrates multiple stakeholder considerations into decision-making.

Environmental and Sustainability Issues

Environmental issues include air pollution, energy inefficiency, waste management, oceans and fisheries, and deforestation.
Sustainability encompasses environmental, economic, and social criteria.
Businesses can adopt circular business models and practices to reduce waste and boost reputation.

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Description

This quiz explores how managers address social and ethical concerns in business, integrating traditional economic and financial factors. It covers the balanced and impartial approach to managing these concerns.