SOM Chapter 2 Flashcards

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Questions and Answers

What does an accommodative stance mean for firms?

Do only what is legally required.

Focus solely on profit maximization.

Ignore social responsibilities.

Meet or exceed legal and ethical requirements. (correct)

Define business ethics.

Ethical or unethical behaviors by employees and managers in the context of their jobs.

Collusion only occurs between two firms.

False

What is consumerism?

Social activism dedicated to protecting the rights of consumers in their dealings with businesses. Signup and view all the answers

Which of the following are rights consumers have?

Right to safe products Signup and view all the answers

What is a corporate social audit?

A formal analysis of a firm's social performance. Signup and view all the answers

Defensive stance organizations do more than legally required actions.

False Signup and view all the answers

What characterizes ethical behavior?

Behavior that conforms to individual beliefs and social norms about what is right and good. Signup and view all the answers

Define lobbying.

The use of persons or groups to represent an organization before political bodies. Signup and view all the answers

What are managerial ethics?

Standards of behavior that guide individual managers in their work. Signup and view all the answers

What is an obstructionist stance?

Do as little as possible to solve social problems. Signup and view all the answers

Who are organizational stakeholders?

Groups, individuals, and organizations affected by the practices of an organization. Signup and view all the answers

What is philanthropic giving?

The awarding of funds or gifts to charities or worthy causes. Signup and view all the answers

What are Political Action Committees (PACs)?

Organizations created to solicit and distribute money to political candidates. Signup and view all the answers

What defines a proactive stance?

Taking social responsibility seriously and actively seeking opportunities to contribute. Signup and view all the answers

What does regulation refer to?

The establishment of laws and rules that dictate organizational actions. Signup and view all the answers

What is social responsibility?

The concept balancing business commitments to relevant groups and individuals. Signup and view all the answers

Unethical behavior conforms to social norms about what is right.

False Signup and view all the answers

Who is a whistle-blower?

An employee who exposes unethical or illegal actions within a company. Signup and view all the answers

Study Notes

Accommodative Stance

Firms that meet or exceed legal and ethical requirements.
Willing to support social programs if convinced of their merit.

Business Ethics

Refers to ethical or unethical behaviors by employees and managers in a professional context.

Collusion

Involves collaboration between two or more firms to engage in price fixing or other wrongful acts.

Consumerism

Social activism aimed at protecting consumer rights in interactions with businesses.

Consumer Rights

Originated in the early 1960s with JFK's declaration.
Key rights established:
- Right to safe products.
- Right to informed choices about products.
- Right to be heard.
- Right to choose.
- Right to education about purchases.
- Right to courteous service.

A comprehensive evaluation of a firm's social performance.
Conducted by a task force of high-level managers.

Defensive Stance

Organizations adhering to legal requirements but not engaged beyond those necessities.

Ethical Behavior

Aligns with personal beliefs and social norms regarding what is considered right and good.

Ethical Compliance

Measures how well individuals within an organization follow ethical and legal standards.

Lobbying

Represents organizations to political bodies to influence government policies.
Example: NRA lobbyists influence gun control legislation.

Managerial Ethics

Standards guiding individual managers' behavior toward employees, organizations, and economic agents.

Obstructionist Stance

Characterized by minimal efforts to address social or environmental issues, often engaging in denial of wrongdoing.

Organizational Stakeholders

Groups and individuals affected by an organization’s practices, affecting its performance:
- Employees
- Investors
- Suppliers
- Customers
- Local Communities

Philanthropic Giving

Involves donating funds or gifts to charitable causes.

Political Action Committees (PACs)

Organizations that collect and distribute funds to political candidates supporting specific agendas.

Proactive Stance

Firms actively pursue social responsibility and view themselves as societal citizens, seeking to enhance overall social welfare.

Regulation

Laws that govern organizational actions, dictating permissible activities.

Responsibility Scale

Ranks social responsibility from lowest to highest:
- Obstructionist Stance
- Defensive Stance
- Accommodative Stance
- Proactive Stance

The effort of businesses to balance commitments to various groups in their environment.

Unethical Behavior

Actions that contradict individual beliefs and social norms of what is deemed wrong.

Whistle-Blower

An employee who exposes unethical, illegal, or socially irresponsible actions within a company.

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Description

Test your knowledge on key concepts from Chapter 2 of the School of Management (SOM). This quiz covers important terms such as accommodative stance and business ethics. Perfect for students looking to reinforce their understanding of ethical business practices.