Business Ethics Chapter 2 Flashcards

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Questions and Answers

Which of the following is true about ethical behavior?

Ethical behavior is determined under FTC guidelines.

Ethical behavior is behavior that conforms to what's right and wrong. (correct)

Ethical behavior is the same worldwide.

Ethical behavior varies from company to company.

If a company isn't sure how to handle situations that involve ethics, which of the following should it consider?

Poll the employees to get a consensus on ethics.

Hire only individuals with good character.

Have a formal code of ethics. (correct)

Deal with each ethical issue as it arises.

Which of the following best describes what is meant by ambiguous laws?

Ambiguous laws can often be interpreted in different ways. (correct)

Ambiguous laws are laws that are based on ethics.

Ambiguous laws reflect strict statutory standards.

Ambiguous laws are laws that apply to social deviancy.

Each of the following is a determining factor for a personal code of ethics, EXCEPT which one?

Reading a good text on ethics Signup and view all the answers

Each of the following is a category of managerial ethics, EXCEPT which one?

Personal behavior Signup and view all the answers

Which of the following describes a conflict of interest?

When an activity may benefit an individual to the detriment of the organization Signup and view all the answers

Which of the following is a concept that addresses the overall way in which a business attempts to balance its commitments to relevant groups and individuals in its social environment?

Social responsibility Signup and view all the answers

Each of the following is one of the organizational stakeholders for social responsibility, EXCEPT which one?

Competitors Signup and view all the answers

Which of the following is the defining factor for a company's decision to strictly follow the Consumer Bill of Rights?

A belief that a high level of customer satisfaction is good business Signup and view all the answers

When defining its sense of social responsibility, a firm typically addresses each of the following areas of concern, EXCEPT which one?

Tax advantages Signup and view all the answers

When a company adopts a voluntary recycling program, it focuses on what area of social responsibility?

Environment Signup and view all the answers

Which of the following is a consideration a small business owner should make before making a commitment to social responsibility?

Costs of a social agenda Signup and view all the answers

Each of the following is one of today's environmental issues, EXCEPT which one?

Recycling Signup and view all the answers

Each of the following is an example of government intervention to ensure social responsibility to consumers, EXCEPT for which one?

Consumerism Signup and view all the answers

Using renewable resources and managing limited resources responsibly and efficiently in pursuit of a green policy is known by which of the following terms?

Sustainability Signup and view all the answers

Each of the following is an approach to social responsibility, EXCEPT for which one?

Refusal stance Signup and view all the answers

The few organizations that do as little as possible to solve social or environmental problems have little regard for ethical conduct and go to great lengths to deny or cover up wrongdoing are taking which of the following approaches?

Obstructionist stance Signup and view all the answers

What is the common term used to describe an employee who discovers and tries to put an end to a company's unethical, illegal, or socially irresponsible actions by publicizing them?

Whistleblower Signup and view all the answers

Which of the following is true about a company's social responsibility?

Social responsibility is voluntary and not mandated. Signup and view all the answers

The McDonald's Corporation Ronald McDonald House is an example of which of the following approaches to social responsibility?

Proactive stance Signup and view all the answers

In a free market economy, the government can influence business behavior by which of the following?

Regulatory laws Signup and view all the answers

Each of the following is an example of U.S. government direct regulation EXCEPT which one?

U.S. tax codes Signup and view all the answers

Each of the following is an example of business influencing government, EXCEPT which one?

Tax incentives Signup and view all the answers

A company's ethical standards must be reinforced by which of the following?

Management behavior Signup and view all the answers

Prior to making any decisions regarding ethical issues, a manager should first do which of the following?

Gather all the facts. Signup and view all the answers

Study Notes

Ethical Behavior

Conformity to moral standards defines ethical behavior, distinguishing right from wrong.
Ethical behavior can vary by company and is not uniformly defined worldwide.

Code of Ethics

A formal code of ethics helps companies navigate ethical dilemmas and decision-making processes.
Instead of unstructured approaches, having a structured guideline is beneficial.

Ambiguous Laws

Ambiguous laws are subject to various interpretations, making them challenging to apply and enforce.

Personal Code of Ethics

Key influences include peer pressure, parental behavior, and aspirations for success; reading specific texts does not directly contribute.

Managerial Ethics Categories

Managerial ethics includes behavior toward the organization, employees, and stakeholders; however, personal behavior is not categorized under managerial ethics.

Conflict of Interest

A conflict of interest arises when individual benefits come at the organization's expense.

The concept of social responsibility deals with a business's commitment to balance its obligations to various stakeholders in its social environment.

Organizational Stakeholders

Key stakeholders in social responsibility include investors, customers, and employees, while competitors do not fit this category.

Consumer Bill of Rights

High customer satisfaction is a fundamental reason companies adhere to the Consumer Bill of Rights.

Common considerations in defining social responsibility include the environment, employees, and customers; tax advantages are generally excluded.

Voluntary Recycling Programs

Companies engaging in voluntary recycling programs are addressing environmental concerns.

Small Business Considerations

Small businesses must weigh the costs of social agendas against potential benefits and employee morale before committing to social responsibility.

Environmental Issues

Current environmental concerns encompass recycling, land and air pollution, and global warming.

Government Intervention

Agencies like the FDA, FTC, and laws like the Children’s Online Privacy Protection Act exemplify government efforts to ensure corporate consumer protection.

Sustainability

Sustainability encompasses responsible and efficient management of renewable and limited resources, aligning with green policies.

Approaches include refusal, accommodative, defensive, and proactive stances, signaling varying levels of commitment to social issues.

Obstructionist Stance

Organizations that avoid responsibility and attempt to cover up wrongdoing take an obstructionist stance.

Whistleblower

A whistleblower is an employee who exposes unethical or illegal actions within a company.

Corporate social responsibility is voluntary; legality does not equate to ethicality, and smaller businesses also carry responsibilities.

Proactive Stance

Programs like McDonald’s Ronald McDonald House represent a proactive approach to social responsibility.

Government Influence

The government can regulate business behavior through regulatory laws, which outline compliance requirements.

Examples of Direct Regulation

U.S. tax codes are not considered direct regulations; agencies like the NLRB, EEOC, and FTC serve this role.

Influencing Government Actions

Mechanisms through which businesses influence government actions include lobbying, political action committees (PACs), and personal networks, while tax incentives are not a direct method of influence.

Reinforcement of Ethical Standards

Management behavior is crucial in upholding a company's ethical standards and influencing overall corporate ethics culture.

Decision-Making in Ethics

Managers should prioritize gathering all relevant facts before engaging in ethical decision-making processes.

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Description

Test your knowledge of ethical behavior concepts with these Chapter 2 flashcards. This quiz explores the definitions and nuances of ethical standards in business practices. Perfect for anyone studying business ethics and corporate responsibility.