JSU- CBA 115- Acting Ethically and Socially Responsible

Acting Ethically and Socially Responsible

Legal and ethical

Ending relationships with suppliers who use child labor

Legal but unethical

Making low-quality products that break after a few uses

Illegal and unethical

Paying bribes to government officials to avoid environmental restrictions

Illegal but ethical

Paying union employees more than their contract allows

• Whether the behavior reflects how most people would like to be treated

• Whether the behavior conforms to cultural beliefs regarding right and wrong

From the list below, select all of the factors that make a given behavior an issue of ethics.

Ethics

What do we call the principles of right and wrong that help instruct how we deal with and treat each other?

Laws

What do we call the formal rules of conduct that are enforced by controlling authorities such as police officers and the court system?

Cultural norms

What do we call the combined ethics, values, attitudes, and behaviors that are typical among a society or group?

Legal but unethical

Which of these labels applies to a company's decision to avoid paying taxes in the United States by storing revenues in offshore banks?

norms

The ethics, values, attitude, and behaviors that are typical in a given culture are known as cultural
___________

A manufacturer uses a harmful chemical that has been banned in the United States.

Which of these behaviors is considered illegal?

values

A deeply held belief or attitude that helps determine people's ethical systems, such as a physician's oath to "first do no harm," is known as a(n)

Principles of right and wrong that influence behavior

What are ethics?

• Set an ethical example.

• Create an ethical hiring culture.

• Reward ethical behavior.

From the list below, select all of the steps managers should take to establish an ethical climate.

A formal and binding rule of conduct that is enforced by a controlling authority

What is a law?

They are seen as laws that should not be violated.

How do individuals in organizations often view compliance-based codes in comparison to integrity-based codes?

Values

What are the deeply held beliefs and attitudes that serve as the underpinnings for ethical systems?

A set of ethical standards to help guide an organization’s actions

What is a code of ethics?

cultural norms

Shaking hands when meeting someone in the United States is an example of a(n) ______.

The threat of punishment

What is the primary motivation for ethical behavior under a compliance-based ethical code?

A relatively permanent and deeply held belief or attitude

In the context of ethics and social responsibility, what is a value?

Integrity-based

Which type of ethical code stresses a culture of fair play, honesty, and diversity as a way of promoting ethical behavior?

Set an ethical example

“We’re not just giving lip service.”

Create an ethical hiring culture

“We want honest employees.

Create ethical codes and training

“We need to share our expectations.”

Reward ethical behavior.

“We should discipline appropriately.”

Managers did not set an ethical example for employees.

At an accounting firm, the top managers often charge their personal meals and trips to the company credit card. Later, several employees are indicted in a scheme to falsify the financial records of one of the company's clients. Based on this scenario, how did the organization fail to foster high ethical standards?

They help employees understand which behaviors are encouraged and which are discouraged.

Which characteristic is shared by both compliance-based and integrity-based ethical codes?

Top management and executives

Who in an organization is most responsible for setting an ethical example?

• List of prohibited behaviors

• Guidance on how to treat customers, suppliers, and competitors

From the list below, select all of the features commonly found in a code of ethics.

Ask candidates about past experiences that reflect a commitment to ethical behavior.

What is a common method organizations use to ensure job candidates are honest and ethical before they are hired?

Compliance-based

Which type of ethical code attempts to prevent criminal misconduct by increasing control and by punishing violators?

By creating a formal code of ethics

How do most organizations share their expectations for ethical behavior with employees?

• Honesty

• Shared accountability

• Diversity

From the list below, select all of the features used to promote ethical behavior under an integrity-based code of ethics.

Reward the employee and punish the unethical behavior.

What should a manager do if an employee reports witnessing an ethical violation?

Setting an ethical example

What is a manager's primary method of maintaining a culture of ethics?

ethics office

Large organizations often incorporate a(n) _____________ to help incorporate ethics programs and manage the behaviors of employees.

Before they are hired

What is the earliest point at which workers should be screened for strong personal values and a commitment to ethical behavior?

Ethics officer

Which role is tasked with integrating the organization's ethics and values initiatives, compliance activities, and business practices into the company’s decision-making processes?

Provide ethics training for all employees.

What is the best way for managers to reinforce the company's ethical standards and expectations once they have been clearly communicated to all employees?

Integrity-based

Which type of ethical code stresses a culture of fair play, honesty, and diversity as a way of promoting ethical behavior?

To protect whistleblowers from retaliation

Why should systems for reporting ethical violations be anonymous?

• Refusing to accept credit for another person's accomplishments

• Reporting another employee for harassment

• Raising concerns that the company's new product could pose a danger to consumers

From the list below, select all of the employee behaviors that should be rewarded by managers.

An employee who reports organizational misconduct to the government or the public

What is a whistleblower?

• Hire an ethics officer to integrate ethics programs into the company's decision-making

• Require human resources personnel to prioritize ethical behavior when hiring

• Provide regular ethics training programs

From the list below, select all of the steps that large organizations take to implement ethics programs.

The Sarbanes–Oxley Act

Which U.S. federal law provides protection from retaliation to whistleblowers?

The Public Company Accounting Oversight Board

Which of the following governmental bodies was formed by the passage of the Sarbanes-Oxley Act of 2002?

By creating a formal code of ethics

How do most organizations share their expectations for ethical behavior with employees?

Taking actions that benefit society as well as the organization

What is corporate social responsibility?

anonymous

To protect whistleblowers from retaliation, systems for reporting unethical behavior should be:

Economic

According to Carroll's Global Corporate Responsibility Pyramid, which corporate responsibility involves the need to be profitable?

whistleblower

An employee who reports organizational misconduct to the government or the public is called a(n):

profitable

A firm's economic responsibility involves its obligation to be:

To protect whistleblowers from retaliation

What is the purpose of the Sarbanes–Oxley Act of 2002?

• It provides job reinstatement and back pay to whistleblowers who are punished by their employers.

• It prohibits top management from taking personal loans from the company.

• It requires speedy disclosure of major changes in the company's financial or operating conditions.

From the list below, select all of the provisions that are part of the Sarbanes-Oxley Act of 2002.

Corporate social responsibility

Which term describes a concern for taking actions that benefit society as well as the organization?

To obey local, national, and international laws

What is an organization's legal responsibility?

Philanthropic

According to Carroll's Global Corporate Responsibility Pyramid, which corporate responsibility has to do with contributing resources to the community and seeking to improve the quality of life for individuals?

Economic

A firm that seeks to establish a strong foundation by becoming profitable is meeting which of its responsibilities?

The Sarbanes–Oxley Act

Which U.S. federal law provides protection from retaliation to whistleblowers?

To take into account host country and global values, norms, and standards when making business decisions

What is an organization's ethical responsibility?

The Public Company Accounting Oversight Board

Which of the following governmental bodies was formed by the passage of the Sarbanes-Oxley Act of 2002?

Legal

An organization that adheres to both local and international laws is meeting which responsibility?

Legal

An organization has the responsibility to obey the laws of the host country in which it operates. According to Carroll's Corporate Social Responsibility Pyramid, this is the firm's
_________ responsibility.

profitable

A firm's economic responsibility involves its obligation to be:

Ethical

An organization that adheres to the values, norms, and standards of the host country and the global community when making business decisions meets which of its responsibilities?

• It prohibits top management from taking personal loans from the company.

• It provides job reinstatement and back pay to whistleblowers who are punished by their employers.

• It requires speedy disclosure of major changes in the company's financial or operating conditions

From the list below, select all of the provisions that are part of the Sarbanes-Oxley Act of 2002.

To obey local, national, and international laws

What is an organization's legal responsibility?

• Contributing resources to the local community

• Improving the quality of life of individuals in the host country

• Acting as a good global corporate citizen

From the list below, select all of the actions that are part of an organization's philanthropic responsibility.

Philanthropic

According to Carroll's Global Corporate Responsibility Pyramid, which corporate responsibility has to do with contributing resources to the community and seeking to improve the quality of life for individuals?

economic; philanthropic

According to Carroll's Global Corporate Social Responsibility Pyramid, the base of the pyramid is ______ responsibility, while the top of the pyramid is ______ responsibility.

Economic

A firm that seeks to establish a strong foundation by becoming profitable is meeting which of its responsibilities?

• Improved reputation

• Enhanced employee morale

From the list below, select all of the advantages associated with corporate social responsibility.

To take into account host country and global values, norms, and standards when making business decisions

What is an organization's ethical responsibility?

The Public Company Accounting Oversight Board

Which of the following governmental bodies was formed by the passage of the Sarbanes-Oxley Act of 2002?

should be pursued concurrently

Today, most business leaders agree that profits and corporate social responsibility:

Philanthropic

An organization that contributes resources to the local community and seeks to improve the quality of life for individuals as defined by the host country's expectations meets which of its responsibilities?

It detracts from the firm's only real responsibility: maximizing profits.

According to opponents of corporate social responsibility (CSR), what is the primary reason to avoid engaging in CSR programs?

Firms that spend money on CSR will be distracted from producing goods and services, leading to lower profits.

Why do opponents of corporate social responsibility (CSR) believe that profit and CSR are contradictory goals?

Ethical

An organization that adheres to the values, norms, and standards of the host country and the global community when making business decisions meets which of its responsibilities?

predefined goals

In a social audit, the assessment of a company's performance in implementing socially responsible programs is typically based on: 

Firms should seek to both maximize profits and engage in corporate social responsibility.

Which of the following positions is advocated by proponents of simultaneously pursuing both social and financial value?

social

Companies conduct a systematic assessment of their performance in implementing socially responsible programs as part of a(n)
______ audit.

• Improving the quality of life of individuals in the host country

• Acting as a good global corporate citizen

• Contributing resources to the local community

From the list below, select all of the actions that are part of an organization's philanthropic responsibility.

Social entrepreneurship

What is one of the six key areas a social audit focuses on?

economic; philanthropic

According to Carroll's Global Corporate Social Responsibility Pyramid, the base of the pyramid is ______ responsibility, while the top of the pyramid is ______ responsibility.

corporate policy

A company's stated positions on political and social issues is called:

• It does not help the company create jobs.

• It distracts from producing goods and services.

• It provides no benefit to stockholders.

From the list below, select all of the reasons Milton Friedman cited in arguing that corporate social responsibility is contradictory to the pursuit of profit.

• Donating to museums

• Encouraging employees to volunteer at charities

• Sponsoring sports teams

From the list below, select all of the examples of community activities that a company might engage in as part of its corporate social responsibility programs.

To evaluate a company's performance in implementing socially responsible programs

What is the primary objective of a social audit?

Forming a partnership with a charity or nonprofit to support a worthy cause, service, or product

What is cause-related marketing?

social audit

A systematic assessment of a company’s performance in implementing socially responsible programs is called a(n):

Innovation

Which term best characterizes social entrepreneurship?

• Corporate policy

• Community activities

• Sustainability

From the list below, select all of the key areas of focus of a social audit.

Sustainability

Which type of socially responsible program focuses on economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs?

A company's stated positions on political and social issues

What is corporate policy as it relates to social audits?

Community activities

A company that contributes to charities, sponsors local sports teams, or donates to museums is engaging in which type of corporate social responsibility program?

Making charitable donations to benefit humankind

What is philanthropy?

cause

Socially responsible programs that involve forming a partnership with a charity or nonprofit are called __________ -related marketing.

• Consumers become less likely to purchase the company's products.

• Employees are more likely to steal from the company.

• The company is forced into costly lawsuits that may result in fines or jail time.

From the list below, select all of the ways that illegal behavior can affect the profitability of a business.