Questions and Answers
Define ethics. - ANS Principles that serve as a compass about how to behave
Provide an example for each of the following:
legal-ethical
legal-unethical
illegal-ethical conflicts - ANS legal-ethical: by law in most states it is illegal to take part in
recreational marijuana use; and a judge that is trying a case about marijuana possession agrees
with the law and does not think its okay to consume marijuana for recreational use.
legal-unethical: cheating on your boyfriend/girlfriend is legal but most people find it unethical.
illegal-ethical: speeding is illegal but in some cases of an emergency some people might find it
ethical.
Define legal. - ANS An act that is allowed or is in conformity with the law of the land
Define values. - ANS Stable life goals that people have that reflect what is most important to
them
Define morals. - ANS Rules people develop as a result of cultural norms and values and are,
traditionally passed down through generations and characterize a cultural group
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,Define organizational ethics. - ANS Rules, principles, and standards for deciding what is
morally right or wrong when doing business
List the four main levels of ethical issues and provide an example of each. - ANS Societal
Issues: an organization holds a fundraiser to help feed the homeless.
Stakeholder Issues: A company insists on treating suppliers with respect and refuses to push
them to the lowest pricing possible.
Internal Policy Issues: Fairness in management, pay, and employee participation.
Personal Policy Issues: Gossiping at work or taking credit for another's work.
How does a company's ethical behavior impact organizational outcomes? - ANS Trustworthy
companies are better at attracting and keeping customers, keeping talented employees, and
capitol.
How does a company's unethical behavior impact organizational outcomes? - ANS They
suffer from dwindling customer bases, employee turnover, and investor mistrust.
Define corporate social responsibility (CSR). - ANS Philosophy in which a company voluntarily
engages in actions that benefit society, be it economically, socially, politically, or
environmentally
How is a company's CSR approach shaped? - ANS By seeing that their community is lacking
something that they can provide, earning more profit and reputation
Who is considered a company stakeholder? - ANS Unions
employees
consumer
investors
suppliers
local and national governments
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, communities.
What is the aim of CSR? - ANS To increase profits and trust in the long-term while promoting
positive community relations
What is the purpose of the World Trade Organization (WTO)? - ANS improve the stability and
predictability of global trade.
What is a code of ethics? - ANS Guide that publicly sets out an organization's key values and
ethical obligations
What is included in a company's code of ethics? - ANS details of how the company plans to
implement its values and vision, as well as guidance for the staff on ethical standards and ways
to achieve them. Having such a policy hopefully leads to greater ethical awareness, consistency
in application, and avoidance of ethical disasters.
Define the term greenwashing. - ANS When organizations carry about CSR missions in an
inauthentic way, using them to increase publicity rather than to spur real change
Define the term internal transparency - ANS Degree to which an organization operates with
openness, communication, and accountability
What steps can organizations take to encourage transparent practices? - ANS operating in
such a way that it is easy for others to see the actions are performed.
Why was Sarbanes-Oxley Act (SOX) passed? - ANS in response to several highly publicized
corporate fraud cases
Who is considered a whistleblower? - ANS those who tell the public or the authorities about
alleged misconduct in a government department, private company, or organization.
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