Business Ethics and Sustainability

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What term is used to describe different environmental approaches organizations may take?

Green methods

Sustainability practices

Environmental strategies

Shades of green (correct)

Which of the following standards specifically relates to environmental management?

ISO 9000

ISO 14000 (correct)

ISO 12000

ISO 10000

At which level of moral development do individuals make decisions based on established societal norms?

Conventional level (correct)

Preconventional level

Principled level

Post-conventional level

Which of the following factors influences ethical behavior related to organizational structure?

Performance appraisal system Signup and view all the answers

What characteristic does NOT determine issue intensity regarding ethical dilemmas?

Corporate profitability Signup and view all the answers

Which of the following individual characteristics is considered a personal factor affecting ethical behavior?

Ego strength Signup and view all the answers

Which stage of moral development emphasizes adherence to legal and ethical standards without personal judgment?

Conventional level Signup and view all the answers

Which characteristic of issue intensity refers to how much harm is likely to occur?

Greatness of harm Signup and view all the answers

What is the main intention of social responsibility for a business?

To act in ways that benefit society Signup and view all the answers

Which of the following best describes green management?

Considering organizational impact on the natural environment Signup and view all the answers

Which approach to going green focuses on legal compliance?

Legal approach Signup and view all the answers

What does social screening involve?

Applying social criteria to investment decisions Signup and view all the answers

What is the classical view of social responsibility?

Firms have a duty to maximize profits Signup and view all the answers

What does the socioeconomic view emphasize?

Meeting economic and legal responsibilities Signup and view all the answers

Which of these best represents management's role in encouraging ethical behavior?

Guiding decisions about ethical dilemmas Signup and view all the answers

Which of the following is NOT a factor that influences social responsibility decisions?

Employee satisfaction Signup and view all the answers

What impact can unrealistic job goals have on otherwise ethical employees?

They might lead employees to adopt unethical behavior to meet the goals. Signup and view all the answers

What is one primary purpose of ethics training programs in organizations?

To promote a culture of ethical behavior. Signup and view all the answers

What do independent social audits evaluate?

Decisions and practices against the organization's code of ethics. Signup and view all the answers

How can managers promote ethical behavior among employees?

By being ethical role models and communicating values. Signup and view all the answers

What defines a whistle-blower in an organization?

An individual raising ethical concerns to others. Signup and view all the answers

What is a key characteristic of a social entrepreneur?

They seek innovative solutions to improve society. Signup and view all the answers

What is suggested for ethical leadership regarding communication?

Regularly share personal values with employees. Signup and view all the answers

Which of the following is NOT a suggested action for being an ethical leader?

Manipulate data to seem more favorable. Signup and view all the answers

What is corporate philanthropy primarily aimed at achieving?

Addressing societal problems effectively Signup and view all the answers

Which of the following best describes social obligation?

Meeting economic and legal responsibilities Signup and view all the answers

Which approach to green management focuses on market trends?

Market approach Signup and view all the answers

Which factor does NOT typically influence ethical and unethical behavior?

National economic conditions Signup and view all the answers

What role do managers primarily play in fostering ethical behavior?

Being the most significant influence on decision-making Signup and view all the answers

What can managers do to support whistle-blowers in an organization?

Encourage them to come forward about ethical issues Signup and view all the answers

Which type of decisions are considered nonprogrammed?

Unique decisions requiring custom solutions Signup and view all the answers

What characteristic is NOT typical of ethical leaders?

Using rewards to manipulate behaviors Signup and view all the answers

What does Principle 7 of the UN Global Compact emphasize?

Business should support a precautionary approach to environmental challenges. Signup and view all the answers

Which principle encourages the development and diffusion of environmentally friendly technologies?

Principle 9 Signup and view all the answers

What is the role of a code of ethics in an organization?

To serve as a formal statement of primary values and expected ethical behavior. Signup and view all the answers

Which of the following is NOT part of Cluster 1 in the Codes of Ethics?

Conduct business in compliance with all laws. Signup and view all the answers

What is the primary focus of Principle 10 of the UN Global Compact?

Working against corruption in all its forms. Signup and view all the answers

Which statement best describes values-based management?

Values guide employees in how they perform their jobs. Signup and view all the answers

What is a key aspect of the second cluster in the Codes of Ethics?

Avoiding unlawful or improper activities that could harm the organization. Signup and view all the answers

Which of the following is NOT typically included in Codes of Ethics?

Guidelines for unethical financial practices. Signup and view all the answers

Study Notes

Social obligation: A firm acts based on its economic and legal obligations.
Classical View: The sole responsibility of management is maximizing profits.
Socioeconomic view: Firms should act based on economic and legal responsibilities.
Social responsiveness: Firms should engage in social actions that address societal concerns.
Social responsibility: Firms act in ways that benefit society beyond their legal and economic obligations.

Green Management & Sustainability

Green management: Businesses consider their environmental impact.
Green approaches:
- Legal (light green): Follows basic environmental regulations.
- Market approach: Responds to customer demand for environmentally friendly products.
- Stakeholder approach: Considers the needs of all stakeholders, including the environment.
- Activist (dark green): Goes beyond legal requirements to actively promote environmental initiatives.

Ethics & Ethical Behaviour

Ethics: Principles, values, and beliefs that guide what's right and wrong.
Factors influencing ethical/unethical behaviour:
- Stages of moral development (preconventional, conventional, principled)
- Individual characteristics (personal values, ego strength, locus of control)
- Structural variables (organizational design, goals, performance appraisal systems, reward systems)
- Organizational Culture
- Issue intensity (impact, consensus, probability, immediacy, proximity, concentration)

Encouraging Ethical Behaviour

Employee Selection: Organizations can hire individuals who share the values and ethical code.
Codes of Ethics: Formal documents that outline an organization's values and ethical rules for employees.
Job Goals & Performance Appraisal: Realistic goals are crucial as unrealistic goals can lead to unethical shortcuts.
Ethics Training: Workshops and seminars that encourage ethical behavior.
Independent Social Audits: Third-party assessments to evaluate the firm's ethics and social responsibility practices.

Ethical Leadership

Managers play a significant role in shaping ethical behaviour within a firm.
Ethical leaders demonstrate honesty, transparency, accountability, and communicate shared values to employees.
Whistle-blower protection: Organizations should create safe environments for reporting ethical concerns.

Social entrepreneurs seek innovative solutions to social problems.
Corporate philanthropy: Businesses contribute to social good through charitable donations.
Employee Volunteering: Businesses encourage employees to contribute their time and skills to social causes.

Studying That Suits You

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

Description

This quiz explores key concepts in business ethics, social responsibility, and sustainable practices. It covers various views on corporate responsibility and approaches to green management. Test your knowledge of how businesses can responsibly engage with society and the environment.