Chapter 2

Question 1

Ethics

Answer 1

discipline dealing with what is good and bad or right and wrong with moral duty and obligation

Question 2

Purpose of a whistleblower:

Answer 2

• uncovering fraud

- uncovering wrongdoings

Question 3

sources of ethical guidance

Answer 3

• the law sets the minimum standard
• leaders who want to instill ethics
• conscience
• bible or holy books
• societal mores
• behaviour and advice of others

Question 4

Legislating ethics

Answer 4

• Procurement Intergrity Act (prohibits release of source selection and contactor bid or proposal information
• Federal Sentencing Guidelines for Organizations Act (effective ethics training program to prevent and detect violations)
• corporate and auditing accountability, responsibility and transparency act (redress accounting and financial reporting abuses, broad employee whistlebower protections)
• Dodd-Frank Wall street reform and consumer protection act (trnsparency and accountability: eliminates loopholes that allow risky and abusive practices to go on unnoticed)

Question 5

Human resource ethics

Answer 5

application of ethical principles to human resource relationships and activities

Question 6

Corporate social responsibility

Answer 6

Implied, enforced or felt obligation of managers acting in their official capacity, to serve or protect the interests of groups other than themselves.

Question 7

Corporate sustainability

Answer 7

• business and investment approach that stives to use the best business practices to meet the needs of curretn and future shareholders
• how an organisations decisions could affect society an the environment as a whole
• product development, talent development, cpital investment

Question 8

social audit

Answer 8

systematic assessment of a companys activities in terms of its social impact

• 3 possible social audits:
• simple inevtory of activities
• compilation of socially relevant expenditures
• determination of social impact

Question 9

importance of creating an ethical culture

Answer 9

• ethical culture is made up of factos such as leadership, accountabiity and values
• ethical leadership begins with the board of directors and CEO and continues down
• a code of ethics establishes the rules an organisation lives by
• most companies do not link pay to ethical behaviour

Question 10

ethics training

Answer 10

should be for all employees
should be proactive not reactive
provides tools for effective problem solving

Question 11

Why are people against corporate social responsibility?

Answer 11

• Milton Friedman: the only social responsibility for businesses is to increase its profits
• society as a whole profits from the wealth created for the shareholders