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Questions and Answers
Most organizations have mission statements that provide a clear vision of the company's direction.
Most organizations have mission statements that provide a clear vision of the company's direction.
True
A mission statement is usually sufficient on its own to impact employee behavior effectively.
A mission statement is usually sufficient on its own to impact employee behavior effectively.
False
Codes of ethics are mandatory documents that all organizations must adhere to.
Codes of ethics are mandatory documents that all organizations must adhere to.
False
The 'TWAY' code is associated with the professional ethics of the medical field.
The 'TWAY' code is associated with the professional ethics of the medical field.
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Professional codes of ethics are only relevant to traditional professions like medicine and law.
Professional codes of ethics are only relevant to traditional professions like medicine and law.
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Industry codes of ethics are exclusively created for corporate organizations.
Industry codes of ethics are exclusively created for corporate organizations.
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Codes of ethics can help specify the desired conduct of employees within an organization.
Codes of ethics can help specify the desired conduct of employees within an organization.
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A well-crafted mission statement guarantees a specific social purpose for a company.
A well-crafted mission statement guarantees a specific social purpose for a company.
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Digital communication in corporate responsibility is fully mainstream.
Digital communication in corporate responsibility is fully mainstream.
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Stakeholder communication can be less resource-intensive than traditional corporate decision-making.
Stakeholder communication can be less resource-intensive than traditional corporate decision-making.
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Small businesses typically have ample time and financial resources to develop partnerships.
Small businesses typically have ample time and financial resources to develop partnerships.
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Culture clash can lead to significant differences in values and goals between companies and stakeholders.
Culture clash can lead to significant differences in values and goals between companies and stakeholders.
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Collaborating on one project can conflict with interests in another project.
Collaborating on one project can conflict with interests in another project.
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Consensus in stakeholder collaboration is guaranteed.
Consensus in stakeholder collaboration is guaranteed.
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Managing business ethics has become unimportant in recent years.
Managing business ethics has become unimportant in recent years.
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Coordination problems can arise when collaborating with multiple partners.
Coordination problems can arise when collaborating with multiple partners.
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The Foreign Corrupt Practices Act aims to address unethical business practices like bribery.
The Foreign Corrupt Practices Act aims to address unethical business practices like bribery.
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The world's largest cyberattack was reported in 2018, when Yahoo disclosed a data breach.
The world's largest cyberattack was reported in 2018, when Yahoo disclosed a data breach.
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Engaging in collaborative activities always supports short-term financial goals.
Engaging in collaborative activities always supports short-term financial goals.
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Risk management techniques now include addressing organizational blind spots.
Risk management techniques now include addressing organizational blind spots.
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The Equator Principles provide a framework for managing environmental and social risk in project finance.
The Equator Principles provide a framework for managing environmental and social risk in project finance.
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Assessing the likelihood of ethical risks is no longer relevant in modern business.
Assessing the likelihood of ethical risks is no longer relevant in modern business.
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Reputational risk can have significant financial implications for a company.
Reputational risk can have significant financial implications for a company.
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Ethics governance processes consist of specific managers, officers, and committees.
Ethics governance processes consist of specific managers, officers, and committees.
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Co-operation between stakeholders is increasingly recognized in business relationships.
Co-operation between stakeholders is increasingly recognized in business relationships.
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Lego's relationship with Shell was terminated after intense negotiations without any public pressure.
Lego's relationship with Shell was terminated after intense negotiations without any public pressure.
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Stakeholder relationships can only take the form of joint ventures.
Stakeholder relationships can only take the form of joint ventures.
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The field of environmental management has been a pioneer for broader stakeholder collaboration.
The field of environmental management has been a pioneer for broader stakeholder collaboration.
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Confrontational relationships between stakeholders are rare in modern business interactions.
Confrontational relationships between stakeholders are rare in modern business interactions.
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Public-private partnerships have been formed to address issues like health and education.
Public-private partnerships have been formed to address issues like health and education.
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Collaborative stakeholder relationships always result in positive ethical outcomes.
Collaborative stakeholder relationships always result in positive ethical outcomes.
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Charities and corporations can partner for cause-related marketing campaigns.
Charities and corporations can partner for cause-related marketing campaigns.
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The 2015 landmark ruling established that the internet should be free and open for all users.
The 2015 landmark ruling established that the internet should be free and open for all users.
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The 2017 ruling considered the interests of consumers as secondary to those of tech companies.
The 2017 ruling considered the interests of consumers as secondary to those of tech companies.
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Laura Noren advocates for teaching people about the potential negative impacts of rapid technological advancement.
Laura Noren advocates for teaching people about the potential negative impacts of rapid technological advancement.
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Facebook faced fines for violating the UK Data Protection Act and mishandling user information.
Facebook faced fines for violating the UK Data Protection Act and mishandling user information.
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Tech firms are believed to require less regulation due to their focus on innovation.
Tech firms are believed to require less regulation due to their focus on innovation.
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A code of ethics is considered unnecessary in the rapidly evolving technology industry.
A code of ethics is considered unnecessary in the rapidly evolving technology industry.
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The question of managing ethics in the digital age revolves around prevention, cure, and response.
The question of managing ethics in the digital age revolves around prevention, cure, and response.
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The principles of rights and postmodern perspectives on ethics cannot be reconciled in the technology sector.
The principles of rights and postmodern perspectives on ethics cannot be reconciled in the technology sector.
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Sustainability indices and benchmarking programs have little influence on corporate reporting.
Sustainability indices and benchmarking programs have little influence on corporate reporting.
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The Dow Jones Sustainability Index evaluates companies based on their financial performance only.
The Dow Jones Sustainability Index evaluates companies based on their financial performance only.
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Small and medium-sized companies (SMEs) are likely to adopt all management tools and techniques related to ethics management.
Small and medium-sized companies (SMEs) are likely to adopt all management tools and techniques related to ethics management.
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Since 2000, there has been an increased focus on managing broader social responsibilities in business ethics.
Since 2000, there has been an increased focus on managing broader social responsibilities in business ethics.
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The Carbon Disclosure Project (CDP) helps companies disclose their social impacts exclusively.
The Carbon Disclosure Project (CDP) helps companies disclose their social impacts exclusively.
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Business ethics management has shifted from a focus on external to internal aspects of business.
Business ethics management has shifted from a focus on external to internal aspects of business.
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Data from the Dow Jones Sustainability Index became available to Bloomberg terminal subscribers in 2016.
Data from the Dow Jones Sustainability Index became available to Bloomberg terminal subscribers in 2016.
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Institutional investors are increasingly using sustainability metrics in their investment decisions.
Institutional investors are increasingly using sustainability metrics in their investment decisions.
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Study Notes
Chapter 5: Managing Business Ethics
- Managing business ethics is a critical topic for global corporations and other organizations.
- Perceived ethical violations can severely damage reputations.
- Global regulations and stakeholder expectations are driving a more systematic approach to managing business ethics.
Business Ethics Management
- Business ethics management is a formal and informal approach to managing ethical issues.
- The direct attempt to formally or informally manage ethical issues is a key aspect of business ethics management.
- This includes policies, practices, and programs.
Components of Business Ethics Management
- Mission or values statements outline corporate aims, beliefs, and values.
- Codes of ethics provide explicit rules for employee conduct.
- Stakeholder consultation is vital for understanding diverse stakeholder interests.
- Auditing, accounting, and report providing comprehensive assessment of ethical performance.
- Risk analysis and management focuses on identifying, assessing, and mitigating risks.
- Reporting/advice channels facilitate ethical dilemmas and their resolution.
- Ethics governance processes include managers, officers, and committees.
- Ethics education and training aim to develop ethical decision-making skills.
Codes of Ethics
- Codes of ethics (or codes of conduct) are optional guidelines that organizations or bodies adopt.
- These codes explicitly outline expected conduct from a particular organizational, professional, or industry perspective.
- Organizational codes are specific to a single organization.
- Professional codes outline conduct for members of specific professions.
- Industry codes apply to practices within specific sectors.
- Program/group codes apply to groups coordinating projects or initiatives.
Stakeholder Relations
- Managing stakeholder relations involve engagement and communication with various stakeholders.
- Stakeholders encompass interests from multiple perspectives (e.g. individuals, groups, or institutions).
- Stakeholder influence and importance vary across contexts.
- Businesses should respect core human values, local traditions, and contextual differences.
Social Accounting
- Social accounting is the practice of assessing and communicating organizational activities and impacts
- The process of social accounting uses a variety of tools and techniques.
- Social accounting initiatives evaluate the impact of business activities on the environment and well-being.
Ethical Leadership
- Leaders play a significant role in shaping ethical expectations and culture within organizations.
- Ethical leadership focuses on articulating and personifying organizational values, inspiring, and motivating others to act accordingly.
- Leaders should be moral persons and moral managers (being honest, demonstrating integrity, and aligning with organizational values).
- Ethical leadership is crucial for managing the complexities of current business contexts and stakeholders.
Environmental Management
- Environmental management involves mitigating environmental impacts of business practices.
- Environmental management standards (like ISO 14001) and programs help companies address environmental concerns.
- Ethical leadership is expected to address environmental management issues alongside other business concerns.
Study Questions
- Detail the main elements of business ethics management.
- Explain the utility of codes of conduct and stakeholder relations.
- Assess the relative benefits and drawbacks of environmental management.
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Description
This quiz explores the significance of mission statements and codes of ethics in organizations. It covers how these components influence employee behavior and corporate responsibility. Additionally, it addresses misconceptions related to professional and industry ethics.
