Business Ethics Exam Questions With 100% Verified Answers.
1 view 0 purchase
Course
Business Ethics and Leadership
Institution
Business Ethics And Leadership
debates - answer- Legal Identity: Corporations are
typically regarded as 'artificial persons' in the eyes of the law as they can sue and they can also
be sued (Corporate Personhood). Hence, like humans, they have social obligations.
- Organizational Culture: All organisations manifest a set of b...
Business Ethics Exam Questions With 100%
Verified Answers.
Responsible business management - answer✔When businesses assumes responsibility for the
Triple Bottom Line (SUSTAINABILITY) while delivering Value to Stakeholders
(CORPORATE SOCIAL RESPONSIBILITY) and in doing so addressing Moral Dilemmas
(BUSINESS ETHICS) being faced by the business.
The triad - answer✔- Sustainability
- CSR
- Business ethics
Shareholder theory - answer✔Theory
Milton Friedman said that "The social responsibility of business is to increase its profits" (The
New York Times Magazine 1970)
Friedman argued against the notion of social
responsibilities for corporations based on three main arguments:
- Only human beings have a moral responsibility for their actions
- It is managers' responsibility to act solely in the interests of shareholders
- Social issues and problems are the proper province of the state rather than corporate managers
Stakeholder theory - answer✔Theory states that the organisation has a responsibility for any
group or individuals who can be affected or is affected by the achievements of an organisation.
(Edward Freeman, 1984).
●Principle of Corporate Rights - the corporation has the obligation not to violate the rights of
others
●Principle of Corporate Effect - companies are responsible for the effects of their actions on
others
Corporation and social responsibility debates - answer✔- Legal Identity: Corporations are
typically regarded as 'artificial persons' in the eyes of the law as they can sue and they can also
be sued (Corporate Personhood). Hence, like humans, they have social obligations.
- Organizational Culture: All organisations manifest a set of beliefs and values that lay out what
is generally regarded as right or wrong in the organisation.
- Power Argument: As powerful social actors with recourse to substantial resources, corporations
should use their power and resources responsibly.
- Dependency Argument: Corporations rely on the contribution of a larger set of constituents or
stakeholders in society, hence have a duty to take into account the interest and goals of these
stakeholders.
Corporate Social Responsibility - answer✔An attempt by companies to meet the economic,
legal, ethical, and philanthropic demands of a given society at a particular point in time. (Carroll
(1991)
comprises of:
-The responsibilities of business in wider society
-How the responsibilities are defined and negotiated
-How the responsibilities are managed and organised
Evolution of CSR - answer✔
Carrol's four part model of CSR - answer✔The four responsibilities displayed on the pyramid
are:
ECONOMIC - This is the responsibility of business to be profitable
Only way to survive and benefit society in long-term
LEGAL - This is the responsibility to obey laws and other regulations
E.g. Employment, Competition, Health & Safety
ETHICAL -This is the responsibility to act morally and ethically
With this responsibility, businesses should go beyond narrow requirements of the law
E.g. Treatment of suppliers & employees
PHILANTHROPIC -This is the responsibility to give back to society. The responsibility is
discretionary, but still important
E.g. charitable donations, staff time on projects
Business ethics - answer✔It is the study of business situations, activities, and decisions where
issues of right and wrong are addressed.
Crane and Matten (2016)
It comprises organizational principles, values, and norms that may originate from individuals,
organizational statements, or from the legal system that primarily guide individual and group
behavior in business.
Constituents of business ethics - answer✔● Morality
- Concerned with the norms, values and beliefs embedded in social processes which define right
and wrong for an individual or a community.
➢Morals for individuals are personal and singular
● Principles
- specific and pervasive boundaries for behavior that should not be violated
➢Human Rights, Freedom of Speech and Justice
● Values
- Enduring beliefs and ideals that are socially enforced
➢Teamwork, Trust and Integrity
Ethical theories - answer✔Rules and principles of ethics
These theories are Normative in nature, that is, they are prescriptive and they propose to
prescribe the morally correct way of acting.
The relationship between morality, ethics and ethical theory - answer✔
Ethical decision making - answer✔- Ethical decisions occur when accepted rules/law no longer
serve and decision makers must weigh values and reach a judgement.
- Values and judgements play a critical role when we make ethical decisions
Ethics and law - answer✔
Main drivers of business ethics - answer✔Government
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Brainbarter. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
