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Chapter 4

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alexisturnbull's version from 2016-01-16 01:17

Section

Question Answer
Economic Responsibilityto make a profit by producing a valued product or service
Legal responsibilityto obey society's laws and regulations
Ethical responsibilityto abide by accepted principles of right and wrong when conducting business
Discretionary responsibilitiessocial roles that a company fullfils beyond its economic, legal, and ethical responsibilities
What are the steps to ethical decision making?hire ethical employees, establish a code of ethics, train employees to make ethical decisions, and create an ethical climate
What social responsibilities does an organization have?economic, legal, and discretionary responsibilities
What are the responses to demands for social responsibility?reactive, defensive, accommodative, and proactive strategies
Ethicsthe set of moral principles or values that defines right and wrong for a person or group
Ethical behaviorbehavior that conforms to a society’s accepted principles of right and wrong
Ethical intensitythe degree of concern people have about an ethical issue
Magnitude of consequencesthe total harm or benefit derived from an ethical decision
Social consensusagreement on whether behavior is bad or good
Probability of effectthe chance that something will happen that results in harm to others
Temporal immediacythe time between an act and the consequences the act produces
Proximity of effectthe social, psychological, cultural, or physical distance between a decision maker and those affected by his or her decisions
Concentration of effectthe total harm or benefit that an act produces on the average person
Principle of long-term self-interestan ethical principle that holds that you should never take any action that is not in your or your organization’s long-term self-interest
Principle of religious injunctionsan ethical principle that holds that you should never take any action that is not kind and that does not build a sense of community
Principle of government requirementsan ethical principle that holds that you should never take any action that violates the law, for the law represents the minimal moral standard
Principle of individual rightsan ethical principle that holds that you should never take any action that infringes on others’ agreed-upon rights
Principle of personal virtuean ethical principle that holds that you should never do anything that is not honest, open, and truthful and that you would not be glad to see reported in the newspapers or on TV
Principle of distributive justicean ethical principle that holds that you should never take any action that harms the least fortunate among us: the poor, the uneducated, the unemployed
Principle of utilitarian benefitsan ethical principle that holds that you should never take any action that does not result in greater good for society
Whistleblowingreporting others’ ethics violations to management or legal authorities
Social responsibilitya business’s obligation to pursue policies, make decisions, and take actions that benefit society
Shareholder modela view of social responsibility that holds that an organization’s overriding goal should be profit maximization for the benefit of shareholders
Stakeholder modela theory of corporate responsibility that holds that management’s most important responsibility, long-term survival, is achieved by satisfying the interests of multiple corporate stakeholders
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