STR 581: Ch 9: Ethics, Corporate Social Responsibility Questions with complete Solutions!!

business ethics - Answer-deals with the application of general ethical principles to the actions and decisions of businesses and the conduct of their personnel ethical universalism - Answer-the most fundamental concepts of right and wrong are universal and transcend culture, society, and religion. ethical relativism - Answer-holds that a "one-size-fits-all" template for judging the ethical appropriateness of business actions and the behaviors of company personnel is total inappropriate. - whether certain actions or behaviors are ethically right to wrong depends not he ethical norms of the country or culture in which they take place Integrative social contracts theory - Answer-provides a middle position between the opposing views of ethical universalism and ethical relativism - ethical standards a company should try to uphold are governed by both (1) a limited number of universal ethical principles that are widely recognized as putting legitimate ethical boundaries on behaviors in all situations and (2) the circumstances of local cultures, traditions, and values that further prescribe what constitutes ethically permissible behavior. self-dealing - Answer-occurs when managers take advantage of their position to further their own private interests rather than those of the firm. short-termism - Answer-the tendency for managers to focus excessive attention on short-term performance objectives-is that it doesn't create value for customers or improve the firm's competitiveness in the marketplace; that is, it sacrifices the activities that are the most reliable drivers of higher profits and added shareholder value in the long run two reasons a company's strategy should be ethical - Answer-1. because a strategy that is unethical is morally wrong and reflect badly on the character of the company and its personnel 2. because an ethical strategy can be good business and serve the self-interest of shareholdersCorporate social responsibility - Answer-refers to a company's duty to operate in an honorable manner, provide good working conditions for employees, encourage workforce diversity, be a good steward of the environment, and actively work to better the quality of life in the local communities where it operates and in society at large. CSR strategy - Answer-defined by the specific combination of socially beneficial activities the company opts to support with its contributions of time, money, and other resources sustainable busienss practices - Answer-those that meet the needs of the present without compromising the ability to meet the needs of the future environmental sustainability strategies - Answer-entail deliberate and concerted actions to operate businesses in a manner that protects natural resources and ecological support systems, guards against outcomes that will ultimately endanger the planet, and its therefore sustainable for centuries. In general, business ethics consists of _______ - Answer-The application of ethical principles and standards to the actions and decisions of business organizations Adherents of ethical universalism are likely to believe that _______ - Answer-common agreement about right and wrong is the basis for ethical standards that apply to all businesspeople Ethical universalism ________ - Answer-allows for a single set of standards Differences in which of the following cause variations in ethical standards across cultures? - Answer-1. social customs 2. religious beliefs 3. core values Adherents of the concept of ethical relativism believe that _______ - Answer-1. holding a common template for judging the ethics of business actions everywhere is ethically problematic 2. given actions are ethically right or wrong depending on the ethical norms of the country in which they take placeTrue or false: ethical principles in business differ substantially from general ethical principles in society. - Answer-false Although many people would agree that child labor is lamentable, others have noted that which of the following are true? - Answer-1. labor opportunities for children are preferable to a life of begging, drug trafficking, or prostitution 2. many poor families throughout the world require financial contributions from their children in order to survive According to the concept of ethical universalism, fundamental concepts of right and wrong ______ - Answer-transcend culture, society, and religion In some cultures, the practices of bribing customs officials and paying kickbacks to customers have been justified on the ground that they _____ - Answer-are similar to tipping a server in a restaurant Which of the following are strengths of the concept of ethical universalism? - Answer-1. the concept of ethical universalism helps multinational companies set ethical standards that apply to all personnel 2. ethical universalism draws from the ethical views and traditions of numerous societies and cultures Companies that prohibit payment of bribes and kickbacks in countries where these practices are customary risk ______. - Answer-losing business to competitors willing to engage in these practices Which of the following statements accurately reflect how ethical standards vary among different cultures? - Answer-1. European managers, in contrast to Chinese managers, tend to emphasize business standards that protect workers' freedom of political opinion 2. Japanese managers, in contrast to managers in other countries, are likely to highly value showing respect for the collective good of society. True or false: practicing ethical relativism can lead to prosecution of both companies and individuals. - Answer-true In a world of ethical relativism, ________ - Answer-there are few absolutes for judging the conduct of a company in various marketsSocial activists in industrialized countries who focus on the issue of child labor claim that corporations ________ - Answer-should not obtain products from foreign suppliers that use underage workers In some countries it is common to pay bribes to government officials in order to accomplish which of the following? - Answer-1. facilitate an administrative ruling 2. obtain a license or permit 3. win a government contract Which of the following sanction US companies that pay bribes and kickbacks? - Answer-1. securities and exchange commission 2. organization of economic cooperation and development 3. justice department Multinational companies whose ethical standards vary from country to country ______. - Answer-may be sending the message to employees that the company does not have ethical standards of its own Which of the following are actions a company should take according to integrative social contracts theory? - Answer-1. uphold a small number of universal ethical principles that are applicable in all situations 2. adhere to local values and customers that define the boundaries of ethical behavior Integrative social contracts theory ______ - Answer-gives managers clear guidance when considering differences in ethical standards among countries In some cultures, the practices of bribing customs officials and paying kickbacks to customers have been justified on the grounds that they _____ - Answer-are similar to tipping. server in a restaurant Companies that prohibit the payment of bribes and kickbacks in countries where these practices are customary risk _____. - Answer-losing business to competitors willing to engage in these practicesWhich set of standards takes precedence in integrative social contracts theory? - Answer-universal ethical norms Senior executives can take steps to ensure that a company abides by its code of ethics by asking if _______. - Answer-there is anything in a proposed action that the SEC might consider objectionable In a world of ethical relativism _________ - Answer-there are few absolutes for judging the conduct of a company in various markets True or false: integrative social contract theory permits people working for companies to pay bribes or kickbacks under certain circumstances. - Answer-false Examining which of the following are ways to determine whether a company is actually guided by its official code of ethics? - Answer-1. whether the company adheres to the code of ethics when crafting strategy 2. the extent to which daily operations follow the code of ethics In some countries it is common to pay bribes to government officials to accomplish which of the following? - Answer-1. win a government contract 2. facilitate an administrative ruling 3. obtain a license or permit Which of the following practices increase the likelihood that a company will pursue unethical business strategies? - Answer-1. faulty oversight of daily business practices 2. putting pressure on company managers to meet short term targets Which of the following sanction US companies that pay bribes and kickbacks? - Answer-1. securities and exchange commission 2. justice department 3. organization of economic cooperation and developmentWhich of the following measures is most likely to reduce the practice of self-dealing in a company? - Answer-establishing an independent board to hold managers accountable for their actions Which of the following should take the lead in ensuring that a company's strategic initiatives are in line with the company's code of ethics? - Answer-senior executives Which of the following resulted in tighter oversight of banks and mortgage companies? - Answer-1. a court settlement that included mechanisms for monitoring lending institutions 2. a lawsuit initiated by the attorneys general of almost every state Which of the following statements about official codes of ethical conduct is most accurate? - Answer-In the US, publicly traded companies must have an official code of ethics or explain why they do not have one Which of the following statements is true concerning the thinking that the "business of business is business, not ethics?" - Answer-1. that type of thinking has been apparent in a number of business scandals covered in the media 2. that type of thinking is dangerous because ti increases the likelihood that a company will adopt unethical strategies The possible consequences of a company's missing a financial target include _______. - Answer-1. decreased stock prices 2. a lower credit rating