RSM100 Chapter 2 Exam | Questions with 100%
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Terms in this set (79)
Business ethics Standards of conduct and moral values regarding
right and wrong actions in the business
environment
CSR Corporate social responsibilities primary objective
is to enhance society's well being through
philosophies, policies, procedures, and actions
Why is business ethics important? An organization that wants to do well over the long
term should consider its business ethics and a wide
range of social issues such as how a decision will
affect the environment, employees and customers.
Businesses must find a balance between doing
what's right and what's profitable
What shapes business ethics? Business ethics are shaped by ethical climate within
an organization or within a country. Firms have
responsibilities to customers, employees, investors,
and society as a whole. trying to serve the different
needs of these groups can lead to conflicts
What 4 categories did Walmart Environmental sustainability, people, ethical
group social responsibility? sourcing, community giving, and investment
,What is the Sarbanes-Oxley Act of US federal legislation designed to deter and punish
2002? corporate and accounting fraud and corruption.
Also designed to protect the interests of workers
and shareholder by shareholders by requiring
enhanced financial disclosures, criminal penalties
for CEOs and CFOs who defraud investors, and
safeguards for whistle blowers. The Sarbanes-
Oxley act established new rules and regulations for
securities trading and accounting practices;
companies have to publish their code of ethics (if
they have one), and inform the public of any
changes made to it.
C-SOX (Bill 198 of 2003) Canadian Sarbanes-Oxley
Ethics compliance officers Ethics compliance officers are appointed to deter
wrongdoing and ensure that ethical standards are
met.
They are responsible for conduting employee
training programs that help spot petential fraud
and abuse, investigating sexual harassment and
discrimination charges, and monitoring potential
conflicts of interest
Three-pronged approach 1. engaging in traditional corporate philanthropy
2. anticipating and managing risks
3. identifying opportunities to create value by
doing the right thing
Why would ethical behaviour be Ethical behaviour can be difficult to track/ define in
difficult to track? all situations and some individuals act unethically/
illegally on the job through putting their interests
ahead of the organization's, lying to employees,
misreporting hours worked, internet abuse, and
safety violations
, How has technology impacted Technology has expanded the range and impact of
unethical behaviour? unethical behaviour. For example, anyone who has
computer access to data may be able to steal or
manipulate the data or shut down the system, even
from a remote location. This can affect how
investors, customers, and the general public view a
firm. It can be difficult to rebuild trust. The
company may also lose some long-term
customers.
How do people explain Some people explain questionable behaviour by
questionable behaviour? saying, "Everybody's doing it", or because they feel
pressured in their jobs, or because they need to
meet performance goals. Others avoid unethical
acts because these acts don't fit with their personal
values and morals.
How do people develop individual Experiences shape our responses to different
ethics? situations
Family, educational, cultural, religious backgrounds,
work environment all play a role in morals
What are some common business Conflict of interest, honesty and integrity, whistle-
ethical challenges? blowing, loyalty verses truth
Conflict of interest a situation where an action that benefits one
person or group has the potential to harm another.
conflicts of interest
Correct Answers | Verified | Latest Update 2026
Save
Terms in this set (79)
Business ethics Standards of conduct and moral values regarding
right and wrong actions in the business
environment
CSR Corporate social responsibilities primary objective
is to enhance society's well being through
philosophies, policies, procedures, and actions
Why is business ethics important? An organization that wants to do well over the long
term should consider its business ethics and a wide
range of social issues such as how a decision will
affect the environment, employees and customers.
Businesses must find a balance between doing
what's right and what's profitable
What shapes business ethics? Business ethics are shaped by ethical climate within
an organization or within a country. Firms have
responsibilities to customers, employees, investors,
and society as a whole. trying to serve the different
needs of these groups can lead to conflicts
What 4 categories did Walmart Environmental sustainability, people, ethical
group social responsibility? sourcing, community giving, and investment
,What is the Sarbanes-Oxley Act of US federal legislation designed to deter and punish
2002? corporate and accounting fraud and corruption.
Also designed to protect the interests of workers
and shareholder by shareholders by requiring
enhanced financial disclosures, criminal penalties
for CEOs and CFOs who defraud investors, and
safeguards for whistle blowers. The Sarbanes-
Oxley act established new rules and regulations for
securities trading and accounting practices;
companies have to publish their code of ethics (if
they have one), and inform the public of any
changes made to it.
C-SOX (Bill 198 of 2003) Canadian Sarbanes-Oxley
Ethics compliance officers Ethics compliance officers are appointed to deter
wrongdoing and ensure that ethical standards are
met.
They are responsible for conduting employee
training programs that help spot petential fraud
and abuse, investigating sexual harassment and
discrimination charges, and monitoring potential
conflicts of interest
Three-pronged approach 1. engaging in traditional corporate philanthropy
2. anticipating and managing risks
3. identifying opportunities to create value by
doing the right thing
Why would ethical behaviour be Ethical behaviour can be difficult to track/ define in
difficult to track? all situations and some individuals act unethically/
illegally on the job through putting their interests
ahead of the organization's, lying to employees,
misreporting hours worked, internet abuse, and
safety violations
, How has technology impacted Technology has expanded the range and impact of
unethical behaviour? unethical behaviour. For example, anyone who has
computer access to data may be able to steal or
manipulate the data or shut down the system, even
from a remote location. This can affect how
investors, customers, and the general public view a
firm. It can be difficult to rebuild trust. The
company may also lose some long-term
customers.
How do people explain Some people explain questionable behaviour by
questionable behaviour? saying, "Everybody's doing it", or because they feel
pressured in their jobs, or because they need to
meet performance goals. Others avoid unethical
acts because these acts don't fit with their personal
values and morals.
How do people develop individual Experiences shape our responses to different
ethics? situations
Family, educational, cultural, religious backgrounds,
work environment all play a role in morals
What are some common business Conflict of interest, honesty and integrity, whistle-
ethical challenges? blowing, loyalty verses truth
Conflict of interest a situation where an action that benefits one
person or group has the potential to harm another.
conflicts of interest
