Midterm Exam Flashcards
(87 cards)
1
Q
What is Corporate Social Responsibility (CSR)?
A
An ethical framework in which individuals or corporations are accountable for fulfilling their civic duties and taking actions that benefit society.
CSR encompasses various areas that aim to improve societal welfare.
2
Q
List the 7 main areas of Corporate Social Responsibility.
A
- Common Good
- Consumer Protection Laws
- Sustainability
- Corporate Governance
- Philanthropy
- Legal Responsibility
- Employee Well-being
3
Q
What marked the beginning of widespread approval of CSR?
A
The 1990s
4
Q
Who released the article “The Pyramid of Corporate Social Responsibility”?
A
Archie B. Carroll in 1991
5
Q
What does the Economic Responsibility layer of Carroll’s CSR Pyramid emphasize?
A
The need for enterprises to be profitable and financially stable.
6
Q
What is the highest level of the CSR Pyramid?
A
Philanthropic Responsibility
7
Q
True or False: Ethical Responsibility refers to adherence to legal standards.
A
False
8
Q
Name two benefits of social responsibility.
A
- Trust & Reputation
- Customer Loyalty
9
Q
Fill in the blank: The CSR Pyramid was initially established in _______.
A
1979
10
Q
What is the Triple Bottom Line?
A
A framework for examining influences on profit, people, and the planet.
11
Q
Who created the Triple Bottom Line concept?
A
John Elkington in 1994
12
Q
What are the three components of the Triple Bottom Line?
A
- Profit
- People
- Planet
13
Q
What does ISO 26000 promote?
A
It establishes fundamental values for corporate social responsibility and ethical company behavior.
14
Q
List two components of ISO 26000.
A
- Organizational Governance
- Human Rights
15
Q
What is the primary purpose of stakeholder engagement?
A
To involve stakeholders who may be affected by an organization’s decisions.
16
Q
Define primary stakeholders.
A
Those directly affected by the business and its decisions.
17
Q
Who are considered secondary stakeholders?
A
Those who do not directly interact with the company daily but still hold influence.
18
Q
What is stakeholder orientation?
A
The degree to which a firm understands and addresses stakeholder demands.
19
Q
What are the three sets of activities in stakeholder orientation?
A
- Generation of data about stakeholder groups
- Distribution of information throughout the firm
- Organization’s responsiveness to this intelligence
20
Q
What is the significance of power in stakeholder attributes?
A
It refers to the extent to which stakeholders can impose their views on an organization.
21
Q
What does reputation management involve?
A
Building and sustaining a company’s good name and generating positive feedback from stakeholders.
22
Q
Fill in the blank: The __________ Stage is the actual crisis period.
A
Acute
23
Q
What is the first step in implementing a stakeholder perspective in social responsibility?
A
Assessing the Corporate Culture
24
Q
What does the Reactive-Defensive-Accommodative-Proactive Scale assess?
A
A company’s strategy and performance for each stakeholder.
25
What is Corporate Governance?
The structure of rules, practices, and processes used to direct and manage a company.
26
What is Corporate Governance?
The structure of rules, practices, and processes used to direct and manage a company.
## Footnote
It serves as the backbone of how a company operates efficiently, ethically, and in the best interests of all stakeholders.
27
Who is the primary force influencing Corporate Governance?
The board of directors.
## Footnote
The board influences decision-making processes, risk management, and oversight.
28
What are the core principles of Corporate Governance?
* Accountability
* Transparency
* Fairness
* Responsibility
* Risk Management
## Footnote
These principles guide the behavior of companies and their governing bodies.
29
What is the Reactive Approach in Corporate Governance?
Involves denying responsibility and doing less than is required.
## Footnote
It can be characterized as 'fighting it all the way.'
30
What historical development introduced structured governance in business?
Medieval guilds and trading companies introduced structured governance with boards of directors.
## Footnote
Example: Dutch East India Company in 1602.
31
What was the impact of the Stock Market Crash of 1929?
Prompted financial regulations and the creation of the U.S. Securities and Exchange Commission (SEC) in 1934.
## Footnote
This marked the beginning of regulatory oversight in corporate governance.
32
What significant act was established in response to corporate scandals like Enron?
The Sarbanes-Oxley Act (2002).
## Footnote
It strengthened financial oversight.
33
What does ESG stand for?
Environmental, Social, and Governance.
## Footnote
ESG factors focus on broader stakeholder interests in corporate governance.
34
Fill in the blank: Corporate governance ensures _______ in a company's operations.
[accountability, fairness, and transparency]
35
What are the six aspects through which the relationship between Corporate Governance and Social Responsibility can be examined?
* Stakeholder Engagement
* Risk Management
* Sustainability Practices
* Regulatory Compliance
* Corporate Ethics and Culture
* Long-Term Value Creation
## Footnote
These aspects illustrate how governance supports CSR initiatives.
36
What is the definition of Political Stability?
The consistency and resilience of a political system in maintaining its governance, structures, and policies without significant disruptions.
## Footnote
Key factors include strong governance and social cohesion.
37
What are the three main types of Political Culture?
* Parochial Political Culture
* Participatory Political Culture
* Subject Political Culture
## Footnote
These types describe varying levels of political awareness and engagement among citizens.
38
What is a stable political system's impact on business growth?
Encourages long-term planning and investment.
## Footnote
Stability reduces uncertainty, facilitating business operations.
39
What is the role of government taxation?
To generate revenue through financial charges imposed by the government.
## Footnote
Taxation impacts business operations and consumer behavior.
40
What is the purpose of regulations and permits?
To guide industries to maintain fairness and safety.
## Footnote
Permits ensure compliance with health, safety, and ethical standards.
41
What are the three types of business responses to government policies?
* Reactive Responses
* Interactive Responses
* Proactive Responses
## Footnote
These responses vary from confrontation to collaboration with policymakers.
42
What is Direct Lobbying?
Engaging directly with lawmakers and government agencies through representatives, trade associations, or consultants.
## Footnote
This is a tactic used by businesses to influence government policy.
43
What is the role of gatekeepers in the financial industry?
To maintain transparency, accountability, and trust by overseeing compliance with financial regulations.
## Footnote
Gatekeepers prevent fraud and ensure ethical practices.
44
What are examples of gatekeepers in the financial industry?
* Auditors
* Credit Rating Agencies
* Regulatory Authorities
* Financial Analysts
## Footnote
These entities help ensure the integrity of financial practices.
45
What is the benefit of building relationships with gatekeepers?
They may provide preferential access to information or decision makers.
## Footnote
Relationships can streamline communication and improve efficiency.
46
What is the role of Executive Assistants as gatekeepers?
Work closely with decision-makers and perform tasks on behalf of executive-level employees.
## Footnote
They can connect external parties with key stakeholders if convinced of the purpose.
47
What is the role of gatekeepers in B2C settings?
Gatekeepers in B2C settings often include family members like parents or spouses who field sales pitches and decide whether to relay the message to the intended recipient.
48
What is gatekeeper marketing?
Gatekeeper marketing involves targeting messages to gatekeeper roles, establishing relationships with individuals like receptionists and assistants to facilitate access to decision-makers.
49
How do search engines act as gatekeepers?
Search engines use algorithms to rank search results by relevance, acting as digital gatekeepers and prompting businesses to optimize their websites through SEO.
50
What role do social media users play as gatekeepers?
Social media users function as gatekeepers by deciding which posts to share, influencing which content gains popularity.
51
Who can be considered influencers in the context of gatekeeping?
Influencers endorse products or services to their audiences and can also recommend options internally within organizations.
52
What is the importance of oversight in the financial industry?
Financial oversight ensures responsible resource management, compliance with regulations, and builds trust among stakeholders.
53
What are the key aspects of financial oversight?
* Achieving organizational purpose
* Promoting accountability and transparency
* Preventing fraud and financial mismanagement
* Ensuring legislative compliance
* Supporting strategic planning and sustainability
* Building donor confidence
54
What are common mechanisms of oversight?
* Audits and Reviews
* Compliance Checks
* Risk Assessment
55
What challenges do gatekeepers face?
* Conflicts of Interest
* Regulatory Capture
* Globalization
* Technology Risks
56
What ethical considerations are associated with gatekeeping?
* Whistleblowing
* Corporate Governance
* Sustainability Reporting
57
What is the Federal Sentencing Guidelines for Organizations?
The FSGO aims to streamline sentencing for organizational crimes and holds companies accountable for employee misconduct.
58
What are the seven steps to demonstrate an effective compliance effort?
* Establish codes of conduct
* Appoint a compliance manager
* Care in delegating authority
* Institute a training program
* Monitor and audit for misconduct
* Enforce and discipline
* Revise program as needed
59
What is the Sarbanes-Oxley Act (SOX) intended to achieve?
SOX aims to restore stakeholder confidence and set new standards of ethical behavior for businesses.
60
What section of SOX is most concerning to companies?
Compliance with section 404, which requires management to create reliable internal financial controls and attest to their accuracy.
61
Define business ethics.
Business ethics refers to the implementation of moral principles in business operations, promoting fairness, honesty, and accountability.
62
What are key principles of business ethics?
* Honesty
* Integrity
* Fairness
* Respect
* Transparency
63
What is the foundation of business ethics based on?
* Moral Principles and Values
* Stakeholder Considerations
* Legal Compliance
* Social Responsibility
* Organizational Culture
* Philosophical Underpinnings
64
What advantages does adhering to business ethics provide?
* Attracting and Retaining Talent
* Investor Loyalty
* Customer Satisfaction
* Favorable treatment by Regulators
65
What ethical issues can arise in finance?
* Window dressing
* Insider trading
* Bribery
* Executive compensation
* Misleading financial analysis
66
What ethical responsibilities does the human resources department hold?
HR is responsible for implementing ethical policies and ensuring an ethical culture within the company.
67
What ethical considerations are involved in marketing?
* Pricing issues
* Misleading advertisements
* Anti-competitive practices
68
What ethical issues arise in production?
* Defective products
* Environmental ethics
* Ethical relations with technology
69
What does the Stanford Financial case exemplify?
The case illustrates that ethical failures often precede financial failures, highlighting the need for ethical analysis in financial decision-making.
70
What is a Ponzi scheme?
A Ponzi scheme uses new investor capital to pay returns to existing investors rather than generating legitimate profits.
71
What is the first step in the ethical decision-making process?
Define the Ethical Problem by identifying the nature of the ethical issue and articulating the elements that cause concern.
72
What should be done after defining the ethical issue?
Gather Relevant Information to compile necessary data for informed decision-making.
73
Why is it important to seek appropriate guidance in ethical decision-making?
Diverse perspectives and expert input help ensure alignment with established ethical principles.
74
What is the significance of identifying stakeholder concerns?
Understanding stakeholder values and impacts helps craft more inclusive solutions.
75
What should be done after identifying stakeholder concerns?
Generate Multiple Alternative Solutions to address the ethical dilemma.
76
How should alternatives be evaluated in the ethical decision-making process?
Evaluate Alternatives Against Ethical Standards by examining possible consequences and aligning with ethical principles.
77
What is the final step in the ethical decision-making process?
Make and Implement the Decision after evaluating all options.
78
What should be addressed to find effective solutions in ethical decision-making?
Root causes rather than just symptoms
## Footnote
Solutions should consider the underlying issues contributing to ethical dilemmas.
79
What is a key consideration when developing solutions to ethical problems?
Balance multiple ethical principles rather than favoring one
## Footnote
Ethical decision-making involves weighing various principles to achieve a fair outcome.
80
What should each potential solution be evaluated against?
Relevant ethical principles and standards
## Footnote
This ensures that the solutions align with established ethical norms.
81
What consequences should be examined for each potential solution?
Legal, financial, reputational, and human implications
## Footnote
Understanding these consequences helps in making informed decisions.
82
What should be anticipated when evaluating alternatives?
Potential unintended consequences
## Footnote
This analysis helps in identifying risks associated with each option.
83
What is the first step after evaluating all options in ethical decision-making?
Choose the most ethically appropriate solution
## Footnote
This choice sets the foundation for the implementation plan.
84
What should a detailed plan for implementation specify?
Necessary actions, assign responsibilities, and establish a timeline
## Footnote
Clear plans facilitate effective execution of decisions.
85
Why is follow-through important in ethical decision-making?
A decision without follow-through remains theoretical
## Footnote
Implementing decisions demonstrates commitment to ethical practices.
86
What should be assessed after a decision has been implemented?
Effectiveness in addressing the original ethical problem
## Footnote
Evaluating outcomes helps in understanding the impact of the decision.
87
What should be documented during the evaluation of outcomes?
Unforeseen challenges and lessons learned
## Footnote
This reflective approach enhances future decision-making.
