Questions and Answers
What are ethics?
Standards of moral behavior that are accepted by society as right versus wrong.
What are compliance-based ethics codes?
Ethical standards that emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers.
What are integrity-based ethics codes?
Ethical standards that define the organization's guiding values and support ethically sound behavior.
Who are whistleblowers?
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What is corporate social responsibility (CSR)?
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What is corporate philanthropy?
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What are corporate social initiatives?
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What is corporate responsibility?
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What is corporate policy?
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What is insider trading?
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What is a social audit?
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How is legality different from ethics?
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How can we tell if our business decisions are ethical?
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What is management's role in setting ethical standards?
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What's the difference between compliance-based and integrity-based ethics codes?
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What is corporate social responsibility?
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How do businesses demonstrate corporate responsibility toward stakeholders?
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How are a company's social responsibility efforts measured?
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How can U.S. companies influence ethical behavior and social responsibility in global markets?
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Executives at Enron and Tyco were found guilty of ____ behavior that damaged their companies' reputations.
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Study Notes
Ethics and Standards
- Ethics refers to societal moral behavior standards that distinguish right from wrong.
- Compliance-based ethics codes focus on preventing illegal actions through control and penalties.
- Integrity-based ethics codes promote organizational values and a shared accountability among employees.
Whistleblowers and Responsibilities
- Whistleblowers are insiders who report unethical or illegal activities within an organization.
- Corporate social responsibility (CSR) represents a business's commitment to societal welfare and ethical practices.
Aspects of Corporate Social Responsibility
- Corporate philanthropy involves charitable contributions as part of social responsibility.
- Corporate social initiatives relate directly to a company's core competencies and philanthropic efforts.
- Corporate responsibility encompasses various practices, including hiring diversity and ensuring product safety.
- Corporate policy reflects a firm’s stance on social and political issues affecting its operations.
Ethical Practices in Business
- Insider trading is the unethical use of confidential information for personal benefit.
- A social audit evaluates an organization's progress towards social responsibility initiatives.
- Ethics surpass legal compliance, involving moral standards and relationships among individuals.
Evaluating Business Decisions
- An ethical check for business decisions includes legal considerations, balance, and personal feelings about the decisions.
Management and Ethical Standards
- Management's role in setting ethical standards is crucial; actions often speak louder than formal guidelines.
- Tolerance or intolerance toward ethical misconduct by management heavily influences employee behavior.
Corporate Responsibility and Stakeholders
- Businesses show responsibility to stakeholders by providing valuable products, profitability, job creation, and contributing positively to society.
Measuring Corporate Social Responsibility
- Corporate social audits measure the effectiveness of a company’s social responsibility efforts and the overall net benefit to society through positive and negative impacts.
Global Influence and Standards
- U.S. companies often require international suppliers to adhere to human rights and environmental standards, refusing to partner with non-compliant vendors.
Case Studies in Corporate Ethics
- Executives at Enron and Tyco were found guilty of unlawful behaviors that tarnished their companies' reputations.
Financial Crisis and Accountability
- Ethical failures in financial practices, exemplified by mortgage bankers and real estate entities, contributed to the financial crisis of 2008, demonstrating the importance of ethics in business.
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Description
This quiz covers essential concepts of ethics, including compliance-based and integrity-based codes, as well as the role of whistleblowers. It explores the aspects of corporate social responsibility, such as philanthropy, initiatives, and hiring practices. Test your knowledge on ethical standards and societal responsibilities in organizations.
