Term
| How is legality different from ethics? |
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Definition
| Ethics goes beyond obeying laws to include abiding by the moral standards accepted by society. Ethics reflects people's proper relationships with one another. Legality is more limiting; it refers only to laws written to protect people from fraud, theft and violence. |
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Term
| How can we tell if our business decisions are ethical? |
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Definition
We can put our business decisions through an ethics check by asking three questions:
1. Is it legal?
2. Is it balanced?
3. How will it make me feel? |
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Term
| What is management's role in setting ethical standards? |
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Definition
| Managers often set formal ethical standards, but more important are the messages they send through their actions. Management's tolerance or intolerance of ethical misconduct influences employees more than any written ethics codes. |
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Term
| What is the difference between compliance-based and integrity-based ethics codes? |
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Definition
| Whereas compliance-based ethics codes are concerned with avoiding legal punishment, integrity-based ethics codes define the organization's guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees. |
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Term
| What is corporate social responsibility? |
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Definition
| Corporate social responsibility is the concern businesses have for society. |
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Term
| How do businesses demonstrate corporate responsibility toward stakeholders? |
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Definition
Business is responsible to four types of stakeholders:
1. It must satisfy customers with goods and services.
2. It must make money for its investors.
3. It must create jobs for employees, maintain job security, and see that hard work and talent are fairly rewarded.
4. It must create new wealth for society, promote social justice, and contribute to making its own environment a better place. |
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Term
| How are a company's social responsibility efforts measured? |
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Definition
| A corporate social audit measures an organization's progress toward social responsibility. Some people believe the audit should add together the organization's positive actions and then subtract the negative effects to get a net social benefit. |
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Term
| How can U.S. companies influence ethical behavior and social responsibility in global markets? |
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Definition
| Many U.S. businesses are demanding socially responsible behavior from their international suppliers by making sure their suppliers do not violate U.S. human rights and environmental standards. Companies like Sears, Phillips-Van Heusen, and Dow Chemical will not import products from companies that do not meet their ethical and social responsibility standards. |
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