Chapter 3

Question 1

friedman’s viewpoint on the purpose of a business

Answer 1

argues that a company really only has one purpose – to make a profit

Question 2

social responsibility

Answer 2

proposes that a company has responsibilities to society beyond making a profit

Question 3

stakeholders

Answer 3

have an interest in the business and are affected by its success/failure

Question 4

cultural relativism

Answer 4

based on the belief that morality is relative to a particular community or society

Question 5

carroll’s viewpoint on the purpose of a business

Answer 5

suggests that a company has 4 responsibilities to society which includes making a profit

Question 6

moral relativism

Answer 6

claims that morality is relative to some personal, social or cultural standard

Question 7

social capital

Answer 7

the goodwill of key stakeholders – which can be used for a competitive advantage

Question 8

moral development

Answer 8

concept put forward by Lawrence Kohlberg

Question 9

sustainability

Answer 9

a term used to describe the degree to which the business or organization can survive

Question 10

utilitarian approach

Answer 10

proposes that actions and plans should be judged by their consequences

Question 11

whistleblowers

Answer 11

employees who report illegal or unethical behavior on part of others

Question 12

ethics

Answer 12

the consensually accepted standards of behavior for an occupation, trade or profession

Question 13

morality

Answer 13

one’s rules of personal behavior based on religious or philosophical grounds