Unit 5 Test Review PDF

Test Review: Corporate Social Responsibility (CSR) This review summarizes the critical concepts, theories, and strategies related to Corporate Social Responsibility (CSR). What is Ethical Behavior? Ethical behavior refers to actions that align with societal standards of good and bad, or right and...

Test Review: Corporate Social Responsibility (CSR) This review summarizes the critical concepts, theories, and strategies related to Corporate Social Responsibility (CSR). What is Ethical Behavior? Ethical behavior refers to actions that align with societal standards of good and bad, or right and wrong. Key Concepts 1. Ethics and Values: o Terminal Values: Desired end goals, such as achieving success or happiness. o Instrumental Values: Preferred means to achieve goals, such as honesty, ambition, and self-discipline. 2. Ethical Views: o Utilitarian View: Ethical behavior delivers the greatest good to the greatest number of people. o Individualism View: Ethical behavior advances long-term self-interest. o Moral Rights View: Ethical behavior respects and protects fundamental rights, such as freedom and privacy. o Justice View: Ethical behavior treats people impartially and fairly: ▪ Procedural Justice: Fair application of rules. Distributive Justice: Equal treatment regardless of personal ▪ characteristics. ▪ Interactional Justice: Respectful treatment of individuals. 3. Cultural Contexts: o Cultural Relativism: Ethical behavior depends on the cultural context. o Universalism: Ethical standards apply across all cultures. o Ethical Imperialism: Imposing one’s ethical standards on others. Ethics in the Workplace Ethical Dilemmas An ethical dilemma arises when a decision offers potential personal or organizational gain but is morally questionable. Common Dilemmas:  o Discrimination: Unfair treatment based on race, age, gender, etc. o Sexual Harassment: Inappropriate comments or actions. o Conflict of Interest: Accepting bribes or favors in exchange for favorable decisions. o Customer Confidence: Sharing confidential customer information. o Organizational Resources: Misusing company resources for personal matters. Ethical Decision-Making Steps 1. Recognize the ethical dilemma. 2. Get the facts. 3. Evaluate alternatives. 4. Make the decision. 5. Act on the decision. 6. Reflect on the outcome. Rationalizations for Unethical Behavior “It’s not illegal.” “It’s in everyone’s best interest.” “No one will find out.” “The organization will protect me.” Maintaining High Ethical Standards 1. Whistleblower Protection Definition: Whistleblowers expose unethical or illegal behavior within an organization. Challenges: o Fear of retaliation, such as job loss or career stagnation. o Lack of confidence in corrective actions or confidentiality. Importance: Protection laws encourage ethical reporting and safeguard whistleblowers from retaliation. 2. Ethics Training Structured programs to help employees: o Recognize ethical dilemmas. o Make informed decisions. o Incorporate ethical standards into daily actions. 3. Codes of Ethical Conduct Definition: Formal statements outlining organizational ethical standards.  Importance: o Serve as guidelines for employees. o Provide accountability for actions within industries such as marketing, law, and medicine. Social Responsibility 1. Stakeholders and CSR Definition: Stakeholders include anyone affected by an organization’s actions (e.g., employees, customers, suppliers, communities). Importance: Organizations must balance profit goals with stakeholder needs and societal expectations. 2. Perspectives on CSR Classical View: Businesses should focus on profit-making. o Criticism: CSR may dilute business goals and increase costs. Socioeconomic View: Businesses should balance profit with societal and environmental well-being. o Evidence: CSR can enhance financial performance, creating a “virtuous cycle.” 3. Evaluating Corporate Social Performance Social Responsibility Audit: Assesses an organization’s CSR performance using four criteria: 1. Economic Responsibility: Is the organization profitable? 2. Legal Responsibility: Does it comply with laws? 3. Ethical Responsibility: Does it act morally and ethically? 4. Discretionary Responsibility: Does it contribute to the broader community? 4. Social Responsibility Strategies Obstruction Strategy: Focus on economic priorities; avoids CSR. Defensive Strategy: Meets minimum legal requirements. Accommodation Strategy: Balances economic, legal, and ethical responsibilities. Proactive Strategy: Fully integrates CSR into all aspects of operations, exceeding expectations. Practice Questions 1. Compare the utilitarian and moral rights views of ethical behavior. How might they lead to different CSR decisions? 2. What is a whistleblower, and why is protection necessary in organizations? 3. How can ethics training and codes of conduct improve workplace behavior? 4. Explain the difference between the classical and socioeconomic views of CSR. Provide examples of each. 5. What are the four criteria used to evaluate corporate social performance? 6. Describe the four CSR strategies and provide an example for each. 7. How do cultural relativism and universalism influence global CSR initiatives? 8. Discuss how procedural and distributive justice can promote fairness in workplace policies.