Exam 4: Ethics and Social Responsibility

The managers of Lehman Brothers, whose bankruptcy helped propel the 2008-2009 financial crisis, used loopholes in U.K.law to hide billions of dollars of worthless assets in its balance sheet to disguise its poor financial condition.Which of the following approaches to how to be socially responsible is illustrated from this example?

Demonstrating its social responsibility helps a company build a good

When one person starts to profit by behaving unethically, it encourages other people to act in the same way.

______ ethics are the standards that govern how members of a society should deal with one another in matters involving issues such as fairness, justice, poverty, and individual rights.

The influence of one's family, peers, and upbringing in general can affect a person's ________ ethics.

What products does TOMS provide? Explain why Blake Mycoskie, the founder of TOMS, chose to create each of these products.

The _____ rule is that an ethical decision is one that distributes rewards and harms in a fair way.

Describe the four rules of ethical decision making and discuss their managerial implications.

Discuss the relationship between ethics and laws.

Managers who sell their stock in advance of other stockholders because they know that their company's performance is about to fall demonstrate the _____ approach to social responsibility.

Describe the results when a company makes unethical decisions and managers lead the company with unethical behavior.Provide an example of a company that showed unethical behavior.

Websites that allow free downloading of songs and movies illustrate the "tragedy of the commons" because there is pursuit of self-interest with no consideration for societal interest.

Which of the following statements is true of organizational ethics?

_______ is the esteem or high repute that individuals or organizations gain when they behave ethically.

Robert and his HR team have adapted several existing company policies.He is unsure if all these policies can be implemented on ethical grounds.His team can approach a(n) _____ to resolve the matter.

Stockholders are interested in how a company operates because

Steve works in the accounting department for a large manufacturing company.His manager instructed him to record a transaction in an incorrect manner to increase the revenue for the fiscal year.Steve is pondering whether to report this issue to a higher-level manager.This is an example of an ethical dilemma.

Under the _____ rule, an ethical decision is one that best maintains people's fundamental privileges.

Simon was confronted with a serious ethical dilemma.He responded with a solution that created the greatest good for the greatest number of people.Which ethical rule best describes his response?

Companies that use the _______ approach are often at the forefront of campaigns for causes such as a pollution-free environment; recycling and conservation of resources; the minimization or elimination of the use of animals in drug and cosmetics testing; and the reduction of crime, illiteracy, and poverty.