LESSON 5

Question 1

interrelated and impact all areas of the strategic-
management process.

Answer 1

Business ethics, social responsibility, and environmental sustainability

Question 2

can be defined as principles of conduct within
organizations that guide decision-making and behavior.

Answer 2

Business ethics

Question 3

is a prerequisite for good strategic
management; good ethics is just good business!

Answer 3

Good business ethics

Question 4

refers to actions an organization takes beyond
what is legally required to protect or enhance the well-being of living
things.

Answer 4

Social responsibility

Question 5

refers to the extent that an organization’s operations
and actions protect, mend, and preserve rather than harm or destroy
the natural environment.

Answer 5

Sustainability

Question 6

Bad ethics is good business. Good ethics can derail even the best
strategic plans. T OR F

Answer 6

F

Question 7

The Institute of Business Ethics (IBE) recently did a study titled________concluded that companies displaying a
“clear commitment to ethical conduct” consistently outperform
companies that do not display ethical conduct.

Answer 7

“Does
Business Ethics Pay?

Question 8

the individuals primarily
responsible for ensuring that an organization espouses and practices high ethical principles.

Answer 8

Strategistssuch as CEOs and business owner

Question 9

A key ingredient for establishing an ethics culture is to develop a clear?

Answer 9

code of business ethics.

Question 10

can be viewed as a public
relations gimmick, a set of platitudes, or window dressing.

Answer 10

code of ethics

Question 11

This is to to ensure that the code is read, understood, believed, and
remembered

Answer 11

Periodic ethics workshops

Question 12

refers to employees
reporting any unethical violations they
discover or see in the firm. Employees
should practice whistle-blowing, and
organizations should have policies that
encourage whistle-blowing.

Answer 12

Whistle-blowing

Question 13

the offering, giving, receiving, or soliciting of any item of
value to influence the actions of an official or other
person in discharge of a public or legal duty.

Answer 13

Bribery

Question 14

is a gift bestowed to influence a recipient’s
conduct. The gift may be any money, goods, actions,
property, preferment, privilege, emolument, object of
value, advantage, or merely a promise or undertaking
to induce or influence the action, vote, or influence of
a person in an official or public capacity

Answer 14

bribe

Question 15

is an intimate relationship
between two consenting employees,

Answer 15

Workplace romance

Question 16

Workplace romance has no consent while sexual harassment has consent. T OR F

Answer 16

FALSE

Question 17

is illegal,
unethical, and detrimental to any organization
and can result in expensive lawsuits, lower
morale, and reduced productivity.

Answer 17

Sexual
harassment (and discrimination)

Question 18

Some romances actually
improve work performance, adding a dynamism and energy that
translates into enhanced morale, communication, creativity, and
productivity. T OR F

Answer 18

TRUE

Question 19

embraces managerial philosophy and thinking at the
highest level of the firm

Answer 19

social policy

Question 20

The ecological challenge facing all organizations requires managers to formulate strategies that preserve and conserve natural resources
and control pollution.

Answer 20

Environmental Sustainability

Question 21

include ozone depletion, global
warming, depletion of rain forests, destruction of animal habitats,
protecting endangered species, developing biodegradable products
and packages, waste management, clean air, clean water, erosion,
destruction of natural resources, and pollution control.

Answer 21

Special natural environment issues

Question 22

Businesses must exploit and decimate
the natural environment. T OR F

Answer 22

FALSE

Question 23

This document discloses to shareholders information about
the firm’s labor practices, product sourcing, energy efficiency,
environmental impact, and business ethics practices.

Answer 23

sustainability report

Question 24

include developing or acquiring green
businesses, divesting or altering environment-damaging businesses,
striving to become a low-cost producer through waste minimization
and energy conservation, and pursuing a differentiation strategy
through green- product features.

Answer 24

Environmental strategies

Question 25

is a net- work of the national standards institutes of 147 countries, with one member per country. They are the world’s largest developer of sustainability standards.

Answer 25

International Organization for Standardization (ISO)

Question 26

refers to a series of voluntary standards in the environmental field.

Answer 26

ISO 14000

Question 27

s a set of standards adopted by thousands of firms worldwide to certify to their constituencies that they are conducting business in an environmentally friendly manner.

Answer 27

ISO 14001