Chapter 5

Question 1

When a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities.

Answer 1

Social Obligation

Question 2

the management’s only social responsibility is to maximize profits.

Answer 2

Classical View of Social Responsibility

Question 3

The view in which the managers’ social responsibilities go beyond making profits to include protecting and improving society’s welfare.

Answer 3

Socioeconomic View

Question 4

When a company engages in social actions in response to some popular social need.

Answer 4

Social Responsiveness

Question 5

A business’ intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society.

Answer 5

Social Responsibility

Question 6

Another way to view social involvement and economic performance that provide a way for individual investors to support socially repsponsible companies

Answer 6

Socially Responsible Investing (SRI) funds

Question 7

When managers have begun to consider the impact of their organization on the natural environment.

Answer 7

Green Management

Question 8

describes the different environmental approaches that organizations may take.

Answer 8

Shades of Green

Question 9

4 Facets of the Shades of Green Approach

Answer 9

1) Legal 2) Market 3) Stakeholder 4) Activist

Question 10

Lowest degree of environmental sensitivity. Simply doing what is required legally; social obligation

Answer 10

Legal or Light Green Approach

Question 11

Responding to environmental preferences of customers; social responsiveness.

Answer 11

Market Approach

Question 12

An organization works to meet environmental demands of multiple stakeholders (employees, suppliers, or community); social responsiveness.

Answer 12

Stakeholder Approach

Question 13

Highest degree. The organization looks for ways to protect the earth’s natural resources; social responsibility.

Answer 13

Activist or Dark Green Approach

Question 14

Organization that develops guidelines for becoming greener

Answer 14

Global Reporting Initiative (GRI).

Question 15

Non-govermental Organization that develops standards

Answer 15

International Organization for Standardization (ISO)

Question 16

List of companies that are the most sustainable corporations in the world

Answer 16

Global 100

Question 17

Three levels of moral develpment

Answer 17

1) preconventional 2) conventional 3) principled

Question 18

A person’s choice between right or wrong is based on personal consequences from outside sources (ex. physical punishment, reward, exchange of favors).

Answer 18

First Level: Preconventional Level

Question 19

Ethical decisions rely on maintaining expected standards and living up to the expectations of others.

Answer 19

Second Level: Conventional Level

Question 20

Moral values are defined apart from the authority of groups or society in general.

Answer 20

Third Level: Principled Level

Question 21

represent basic convictions about what is right and wrong; develop from a young age based on what we see and hear.

Answer 21

Values

Question 22

measures the strength of a person’s convictions.

Answer 22

Ego Strength

Question 23

Locus of Control

Answer 23

the degree to which people believe they control their own fate.

Question 24

people believe that they control their own destinies.

Answer 24

Internal Locus of Control

Question 25

people believe that what happens to them is due to luck or chance.

Answer 25

External Locus of Control

Question 26

Structures that minimize ambiguity and uncertainty with formal rules and regulations, and those that continuously remind employees of what is ethical are more likely to encourage ethical behavior (ex. goals, performance appraisal systems, reward allocation procedures).

Answer 26

Structural Variables

Question 27

The content and strength of an organization’s culture also influence ethical behavior.

Answer 27

Organization’s Culture

Question 28

Management style in which the organization’s values guide employees in the way they do their jobs.

Answer 28

Values-Based Management

Question 29

a document created by the UN outlining principles for doing business globally in the areas of human rights, labor, the environment, and anticorruption. Its goal is to create a more sustainable and inclusive global economy.

Answer 29

Global Compact

Question 30

opportunity to learn about an individual’s level of moral development, personal values, ego strength, and locus of control.

Answer 30

Employee Selection

Question 31

a formal statement of an organization’s values and the ethical rules it expects employees to follow; a popular choice for reducing ambiguity.

Answer 31

Code of Ethics

Question 32

Upholding shared values and setting the cultural tone. Becoming role models in terms of both words and actions

Answer 32

Leadership

Question 33

a key issue in performance appraisal.

Answer 33

Goal Achievement

Question 34

setting up seminars, workshops, and similar ethics training programs to encourage ethical behavior.

Answer 34

Ethics Training

Question 35

Evaluating decisions and management practices in terms of the organization's code of ethics.

Answer 35

Independent Social Audits

Question 36

protective mechanisms so they can do what is right without fear of reprimand.

Answer 36

Protective Mechanisms

Question 37

the world’s largest group of ethics and compliance practitioners.

Answer 37

Ethics and Compliance Officer Association

Question 38

2 things Managers can do to uphold ethical standards

Answer 38

1) Ethical Leadership 2) Protection of Employees who Raise Ethical Issues

Question 39

an individual or organization who seeks out opportunities to improve society by using practical, innovative, and sustainable approaches.

Answer 39

Social Entrepreneur

Question 40

2 ways tro promote positive social change

Answer 40

1) Corporate Philanthropy 2) Emplyoee Volunteering Efforts