Business Ethics - Quiz 2

What is corporate culture?

Shared beliefs and values that guide behavior in an organization.

What does corporate culture influence?

Decision-making and ethical behavior.

What is power distance?

Acceptance of inequality in hierarchy.

Individualism vs collectivism?

Individual goals vs group goals

Uncertainty avoidance?

Comfort with risk and ambiguity.

Long-term orientation?

Focus on future rewards vs short-term outcomes.

Masculinity vs femininity?

Competition vs relationships.

Indulgence vs restraint?

Freedom vs control of desires.

How does culture affect ethics?

Shapes habits and moral decisions.

Who is responsible for ethical culture?

Leadership.

What is “tone at the top”?

Ethical example set by leadership.

Why is visible ethical behavior important?

Employees follow what they see.

Compliance-based culture?

Rule-following focus.

Values-based culture?

Ethics-driven behavior.

Mission statement?

Organization’s purpose.

Code of conduct?

Behavioral guidelines.

What is whistleblowing?

Reporting wrongdoing.

Preferred type?

Internal reporting.

FSGO purpose?

Enforce corporate ethics.

Due diligence?

Prevent and detect misconduct.

FCPA?

Anti-bribery law for U.S. companies.

What is CSR?

Ethical responsibilities businesses have to society beyond profit and legal requirements.

What is ethical responsibility?

What a business morally should do, even if not required by law.

What is the strongest ethical responsibility?

Do no harm.

What is tort law?

Laws covering civil harm or injury caused to others.

What does “prevent harm” mean?

Taking action to stop harm before it occurs.

What does “do good” include?

Volunteering and philanthropy.

What is the economic model of CSR?

Businesses should maximize profit within the law.

Who is associated with the economic model?

Milton Friedman

What is managerial capitalism?

A system where managers prioritize shareholder wealth.

What is stakeholder theory?

Businesses must consider all groups affected by decisions.

What is the moral minimum?

The duty to not cause harm.

What is the integrative model?

Combining profit-making with social good.

What is a benefit corporation?

A company that prioritizes both profit and social impact.

What is sustainability in CSR?

Balancing economic, environmental, and social goals.

What is a sustainability report?

A report on a firm’s financial, environmental, and social performance.

What is reputation management?

Managing a company’s public image.

What is the risk of CSR tied to reputation?

It may become just marketing.

What is enlightened self-interest?

The belief that ethical behavior benefits businesses long-term.

What is a key criticism of CSR?

It only benefits niche markets and may not apply to all firms.

What is workplace ethics?

Ethical issues in employer-employee relationships beyond legal requirements.

What is the instrumental perspective?

Treat employees well to gain business benefits.

What is the duty-based perspective?

Treat employees well because it is morally right.

What is due process?

Protection from arbitrary use of authority.

What is Employment at Will (EAW)?

Employers can fire employees at any time for any reason.

What is just cause?

Employer must have a fair reason for discipline or termination.

What is downsizing?

Reducing workforce to cut costs.

What is intrinsic value?

Value in itself (human life).

What is instrumental value?

Value as a means (wages).

What is acceptable risk?

Risk that is considered tolerable.

What is OSHA?

U.S. agency enforcing workplace safety laws.

What is distributive justice?

Fair distribution of resources.

What are sweatshops?

Exploitative workplaces with poor conditions.

What is child labor?

Harmful work done by children.

What is workplace diversity?

Inclusion of different backgrounds and identities.

What is affirmative action?

Policies to correct past discrimination.