Ethics and Social Responsibility in Business

These flashcards review key concepts from the lecture on ethics and social responsibility in business, covering significant themes, laws, and examples of ethical challenges.

What percentage of the total course grade do written assignments contribute?

15%

When is the midterm exam scheduled?

September 30th.

What is the main focus of Chapter 4?

Demanding Ethical and Socially Responsible Behavior.

What are the two types of ethics codes described?

Compliance-based and integrity-based ethics codes.

What organization fined Wells Fargo, and how much was the fine?

The Consumer Financial Protection Bureau fined Wells Fargo $185 million.

What did Wells Fargo create that led to their fine?

More than 1.5 million fake accounts and 500,000 fraudulent credit cards.

What is one major outcome of corporate scandals in recent history?

Increased regulation and legislation for ethical business practices.

What act increased penalties for destroying financial records?

The Sarbanes-Oxley Act.

What are the three questions to consider when facing ethical dilemmas?

Is it legal? Is it balanced? How will it make me feel about myself?

What does CSR stand for?

Corporate Social Responsibility.

What is the primary concern of Corporate Social Responsibility (CSR)?

The welfare of society.

What is one principle from President Kennedy’s consumer rights?

The right to safety.

What happens if a company fails to uphold its CSR standards?

It may face consequences such as losing customer trust and legal repercussions.

What is the term for insiders who report unethical or illegal actions?

Whistleblowers.

What happened to Bernie Madoff for his Ponzi scheme?

He was sentenced to 150 years in prison.

Which company was involved in the largest bankruptcy in U.S. history?

Lehman Brothers.

What are unfair business practices like insider trading considered?

Unethical behavior.

What is a social audit?

A systematic evaluation of an organization’s progress towards social responsibility.

What are compliance-based ethics codes focused on?

Preventing unlawful behavior through control and penalties.

What role do managers play in ethical businesses?

They instill corporate values and ethical standards.

Why should corporations engage in corporate philanthropy?

To enhance their ethical reputation and social performance.

What consequence can arise from overly ambitious corporate goals?

It can lead to unethical practices.

What is an example of unethical behavior in academic settings?

Plagiarism.

How do integrity-based ethics codes differ from compliance-based ethics codes?

Integrity-based codes focus on values, while compliance-based codes focus on rules.

What do corporate social initiatives involve?

Enhanced forms of corporate philanthropy related to company competencies.

What does a balanced approach to ethics help maintain?

Fairness and personal integrity.

What does corporate social responsibility promote?

Concern for customer, employee, and community welfare.

How can companies use social media regarding CSR?

To communicate their CSR efforts to a diverse audience.

What should management do regarding ethics codes?

Adopt and support an explicit corporate code of conduct.

How does a company’s reputation affect its employees?

A good reputation attracts and retains better employees.

What is the importance of transparency in corporate ethics?

It helps restore trust in the free-market system.