Chapter 4 - Demanding Ethical and Socially Responsible Behavior Flashcards Preview

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Flashcards in Chapter 4 - Demanding Ethical and Socially Responsible Behavior Deck (9)
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What are ethics?
Ethics is society's accepted standards of moral behavior, behaviors accepted by society as right rather than wrong.
How do ethics differ from legality?
Ethics goes beyond obeying laws to include abiding by the moral standards accepted by society. Ethics reflects people's proper relationships with one another. Legality is more limiting; it refers only to laws written to protect people from fraud, theft, and violence.
When faced with ethical dilemmas, what questions can you ask yourself that might help you make ethical decisions?
1. Is my proposed action legal? Is it violating any laws or company policy?
2. Is it balanced? Am i acting fairly? Would i want to be treated this way?
3. How will it make me feel about myself? Would i feel proud of my family learned of my decisions?
What are compliance-based and integrity-based codes?
Whereas COMPLIANCE-BASED ethics codes are concerned with a voiding legal punishment, INTEGRITY-BASED ethics codes define the organization's guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees.
What are the six steps to follow in establishing an effective ethics program in a business?
1. Top management must adopt and unconditionally support an explicit corporate code of conduct.
2. Employees must understand that expectations for ethical behavior begin at the top and that senior management expects all employes to act accordingly
3. Managers and others must be trained to consider the ethical implications of all business decisions
4. An ethics office must be set up with which employees can communicate anonymously. (Whistleblowers)
5. Outsiders such as suppliers, subcontractors, distributors, and customers must be told about the ethics program. Pressure to put aside ethical considerations often comes from the outside, and it helps employees resist such pressure when everyone knows what the ethical standards are.
6. The ethics code must be enforced with timely action if any rules are broken. That is the most forceful way to communicate to all employees that the code is serious.
What is corporate social responsibility, and how does it relate to each of a business's major stakeholders?
CSR is the concern businesses have for society.

Businesses demonstrate responsibility to stakeholders by:
1) satisfying customers with goods and services of real value
2) making money for investors
3) creating jobs for employees, maintaining job security, and seeing that hard work and talent are fairly rewarded,
4) creating new wealth for society, promoting social justice, and contributing to making the businesses' own environment a better place
What is a social audit, an what kinds of activities does it monitor?
A SOCIAL AUDIT is a systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs.
One of the major problems of conducting a social audit is establishing procedures for measuring a firm's activities and their effects on society.

Activities such as workplace issues, the environment, product safety, community relations, military weapons contracting, international operations and human rights, and respect for the rights of local people.
How are US businesses demanding socially responsible behavior from their international suppliers?
Many US businesses are demanding socially responsible behavior from their international suppliers by making sure their suppliers do not violate US human rights and environmental standards. Companies such as Sears, PVH, and Dow Chemical will not import products from companies that do not meet their ethical and social responsibility standards.
Why is it unlikely that there will be a single set of international rules governing multinational companies soon?
This is unlikely since the world is comprised of many different cultures and ethical beliefs. In one culture, a gift may be seen as a bribe. A single set of international regulations seem highly unlikely since we cannot enforce the world to the US ethical standards. There is no set guide that can serve as a common compilation for the entire world.