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Chapter 2

QuestionAnswer
Ethics The study of right and wrong and of morality of the choices individuals make
Business ethics The application of moral standards to business situations
Code of ethics A written guide to acceptable and ethical behavior as defined by an organization
Whistle-blowing Informing the press or government officials about unethical practices within one’s organization
Social Responsibility The recognition that business activities have an impact on society and the consideration of that impact in business decision making
Caveat Emptor A Latin phrase meaning “let the buyer beware”
Economic model of Social Responsibility The view that society will benefit most when business is left alone to produce and market profitable products that society needs
Socioeconomic model of Social Responsibility The concept that business should emphasize not only profits but also the impact of its decisions on society
Minority A racial, religious, political, national, or other group regarded as different from the larger group of which it is a part and that is often singled out for unfavorable treatment
Affirmative Action Programs Plans designed to increase the number of minority employees at all levels within an organization
Equal Employment Opportunity Commission (EEOC) The federal agency empowered to investigate complaints of employment discrimination and to sue firms that practice it
Hard-core unemployed Workers with little education or vocational training and a long history of unemployment
National Alliance of Business (NAB) A joint business-government program to train the hard-core unemployed
Pollution The contamination of water, air, or land through the actions of people in an industrialized society
Social audit A comprehensive report of what the organization has done and is doing with regard to social issues that affect it
Sarbanes-Oxley Act of 2002 Provides sweeping new legal protection for employees who report corporate misconduct
Consumerism All activities undertaken to protect the rights of consumers
Created by: 100004996631600
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