Ethics Exam 2

Front 1

fiscal policy

Back 1

looking at the economy as a whole

Front 2

monetary policy

Back 2

looks at currency as a whole

Front 3

public policy

Back 3

people in governmental agencies who set rules and regulations when it comes to social and economic decision

Front 4

Foreign Account Tax Compliance Act

Back 4

July 1st, banks around the world are signing up to fight tax dodging by Americans.



Russia was a big supporter of this Act. Swiss banks were a major problem.



People who comply with the law wont face 30% tax hits. They publicize who has signed up to show transparency.



Example of: Restaurant tips, "paid under the table"

Irony of Celebrities hiding money but also giving so much to nonprofits.

Front 5

OFCCP mandates federal contractors to have 100% online job applications to do what?

Back 5

prevent hiring discrimination

Front 6

public policy in its simplest form

Back 6

what government chooses to do and what they choose not to do

Front 7

government currently provide

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basic needs: food, safety (police, fire), some education, health regulation

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inputs

Back 8

external pressures



economic, domestic, media

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public policy can be ____________ by inputs.

Back 9

influenced

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public policy goes for

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utiliarian principle : greatest good for greatest number of people

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example of public policy issue

Back 11

Denton County banning texting and driving



1st started in school zone

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example of breathalyzer in every car

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wont's start unless you are below the legal limit

Front 13

social public policy issues

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healthcare, education, safety, security

Front 14

governments get involved in business primarily through ____________ and this is how they accomplish public policy.

Back 14

regulation

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regulations are what?

Back 15

the rules for conducting business that the government has set, and they are enforceable.

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examples of government regulation:

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chain restaurants adding calories to menus to combat obesity

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food zoning

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banning certain chains of food from entering high obesity areas

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ethical arguments/issues at hand

Back 18

government tries to be a neutral third party to make sure people are abiding by safety and health regs like they should be

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two types of regulation

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social and economic

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economic regulation affects

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the economy; broken down on an industry by industry basis

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examples of economic regulation

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minimum wage

price controls in different industries

anti-trust laws

predatory pricing laws

Front 22

examples of social regulation

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equal employment

discrimination

on the job training (safety and health)

Front 23

cost of regulation example

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paying money to train an employee properly on a piece of equipment

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deregulation

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we use to set rules and standards, now we will back off and let them regulate themselves

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reregulation

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if the economy tanks or there is a big issue (ethics, lending) the government may step back in to regulate again

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Ethical Example: GM RECALL

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girl dies from ignition switch that has been faulty for ten years. Engineers have by lying to customers for over 10 years.

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should business be involved in any type of government affairs?

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businesses believed they do

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stakeholder groups in politics

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groups of individuals who come together to voice concerns in Washington

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coalition political activity

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two or more organizations that come together to voice concerns in Washington

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arguments for political involvement of businesses in government affairs

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pluralistic system invites many participants, economic stakes are high for firms, business counterbalances other social interest, and business is a vital stakeholder of government.

Front 31

arguments against political involvement of businesses in government affairs

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managers are not qualified to engage in a political debate, business is too big; too powerful, businesses are too selfish to care about the common good, businesses risk its credibility by engaging in partisan politics

Front 32

corporate political strategies

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information

financial-incentives

constituency-building

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KNOW WHICH FIGURE ??

Back 33

9.2 on page 188

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information strategy

Back 34

organizations try to communicate with the government (usually through lobbying)

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lobbying

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providing government officials with information about certain issues, attempting to direct or influence them

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companies hire full-time lobbyists to do what

Back 36

act on their behalf on government issues

Front 37

Google spends close to $1 million a quarter on lobbying, but are still lagging behind

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Microsoft and AT&T

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direct communication with policymakers

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usually happens at local or city level (school board directors or mayor)

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expert witness

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hearings and testifying

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number one lobbyists

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lawyers

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all lobbying expenses must be

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reported

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financial strategy

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government says businesses cant directly support politicians

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political action committe

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group of individuals who voluntarily contribute money to a cause or to represent an individual

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businesses have found that political action committee is the number one

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political tool

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Facebook and Google donate heavily to

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political action committees to strength ties in Washington

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economic levarage

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use power and influence in local communities to influence

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stakeholder coalitions

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verbalize and try to get together all stakeholder to come together and voice concerns

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advocacy advertising

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org support or sell an issue through an ad

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public relations

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take a stance verbally on supporting something (press release or website usually)

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trade association

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being involved with vendors or companies that specifically support the same causes

Front 51

legal challenges

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a lot of businesses if they don't like a law or regulation and try to learn how they can overturn them. They have more money than individuals so they can actually back something like that.

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level 1

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very limited/minimal - support political action committee, support trade associations

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level 2

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moderate - have lobbyists and allow employees to vocalize on the organizations behalf

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level 3

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aggressive - advocacy advertising, legal challenges, public policy, and as a whole supporting a certain political stance

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campaign finance reform

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created to limit the amount of contributions that can be made or received in a major election or period of support. Doesn't address soft money.

Front 56

issues with campaign finance reform

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not all supporters are giving cash, but instead are giving intangibles like soft money

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soft money

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donating jets, cars, foods, etc.

Front 58

advocacy ads are also called

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issue advertisements

Front 59

businesses must not wait for a public issue to arise before

Back 59

forming a political strategy

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When a government orders companies not to conduct business in another country because of a war, human rights violations, or lack of a legitimate government; these orders are called:

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economic sanctions

Front 61

Businesses promote an information strategy by inviting government leaders to:

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Visit local plant facilities, attend company award ceremonies, give speeches to employees

Front 62

stockholders

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legal owners of a business

Front 63

stockholders are a form of

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shareholders

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types of stockholders

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individuals and corporate (organizations)

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objectives of stock ownership

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1. make money

2. make a higher return than a bond or bank

3. social and ethical = means of supporting ethical causes

4. to have control or a say

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stockholders' legal rights and safeguards

Back 66

-right to review annual reports, elect the board of directors, right to vote, hold specific hearings and timelines

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major legal rights

Back 67

-to receive dividends if declared

-to vote

-to bring shareholder suits against the company and officers

-to sell their own shares of stock to others

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right to vote on:

Back 68

members of board of directors

major mergers and acquisitions

charter and bylaw changes

proposals by stockholders

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corporate governments

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system for allocating power in the organization. It spells out who has power and how much power do they have.

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board of directors role

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group of people who dictate corporate governance

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key features of effective boards

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- they are elected

- composed of a few inside people from the corporation, but mostly comprised of people outside the company

-have a legal duty to look at the organizations vision and mission, corporate objectives, day to day activities, etc.

-review managements performance

-usually are well paid

-have committees within the board that make recommendations about different aspects

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how many people in a board

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11 people

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types of committies

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policies, compensation, organization structure

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The ________ is not typically present in regular meetings.

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CEO

Front 75

boards length?

Back 75

term limits usually, can be indefinite

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major issue in corporate governance

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executive compensation (fair or unfair)

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executive compensation includes

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salary, bonuses, insurances,

Front 78

whole foods

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executive compensation cannot be more than 14 times than the average of what employees make

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corporate governance example

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american airlines

Front 80

say on pay

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tough medicine for getting executive pay under control (company vote, the board must look at that)

Front 81

where can you find corporate governance information

Back 81

main website or Bloomberg

Front 82

shareholder activism

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taking a more active role in the company

Front 83

rise institutional investors

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more organizations are finding it necessary to invest as a stake or stockholder

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social investments

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organizations and individuals invest in places they find match their social responsibility

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american airlines is really big on

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protecting the environment

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stockholder lawsuits

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stockholders have the right to pursue legal action if there isn't enough transparency or if there is illegal actions made by the organization

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securtiites and exchange commission (SEC)

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protects against fraud and insider trading

Front 88

insider trading examples

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Martha Stewart and Mark Cuban

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Enron is most famous for

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violating information transparency and disclosure

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SEC exists to

Back 90

protect stockholders and make sure financial information is readily available and transparent

Front 91

Bloomberg Business Week is great

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for getting a snapshot of how an organization is doing

Front 92

advocacy for consumer interests is all about

Back 92

protecting the consumer

Front 93

consumer interest advocacy came about because of

Back 93

product safety and liability issues

Front 94

this consumer movement is more of a

Back 94

social movement and it's to align the rights and the power of the consumer

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reasons for the consumer movement

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1. complexity of products (choices!)

2. services have become more specialized

3. inflated advertising

4. technology has allowed mass consumer information to be readily available

5. some businesses ignore product safety

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inflated advertising

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when a business is trying to sell a product or service and appeal to emotions or inflate claims

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rights of consumers

Back 97

1. right to safety

2. right to be informed (what should it be used for?)

3. right to choose (options)

4. right to be heard

5. right to privacy

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deceptive advertising

Back 98

saying a product does something when it doesn't

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information protection

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consumer information

Front 100

direct hazard

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chemicals, cleaning products, alcohol, tobacco

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pricing protection

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no price gouging

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liability protection

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who is liable? manufacturer, seller, consumer, etc

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privacy protection

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discreet and undisclosed

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Fox 4 News example

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grout bully didn't work, none of the colors did. It was not a deal it was a dud.

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Federal Trade Commission (FTC)

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provides basic information as a neutral party providing facts and uncovering consumers eyes from deceptions out there

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consumer privacy from an internet perspective

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finding a balance between fostering eCommerce while protecting consumers privacy

Front 107

grocery store example

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RFID tag on Cheerios, that tracking continues and now I know that it has landed in her house and this is where she lives

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consumer self-help

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software you can download to get rid of cookies

Front 109

privacy legislation

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they must inform consumers of breach of privacy

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example of breach of privacy

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target when its credit card system got hacked it was required to let the public know

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product liability

Back 111

who is at fault when something malfunctions?

Front 112

examples of product liability

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hot coffee scolded a woman, was the woman at fault or McDonalds?

Front 113

why should you register products?

Back 113

to be informed of recalls about the product

Front 114

Consumer Product and Safety Commission (CPSC) website shows what

Back 114

educates consumers on hazards and recalls for consumer products

Front 115

Gordon recalls frozen fish after finding

Back 115

pills in the frozen fish fillet

Front 116

product recalls are usually pretty good, which isn't?

Back 116

food recalls

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quality management

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organizations are becoming more proactive to avoid problems

Front 118

voluntary industry codes

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organizations are coming up with there own industry standards, going one step ahead of what the law requires to avoid cutting it too close

Front 119

consumer affairs departments

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specifically voice your concerns and read about others concerns

Front 120

usa.gov

Back 120

comprehensive consumer guidelines for specific issues

Front 121

department of consumer protection

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you can file complaints specifically against a company and it provides resources

Front 122

latest trend in consumer protection

Back 122

complaints on YouTube or blog

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China is forcing what company to alter itself

Back 123

Google

Front 124

Why wasn't Google successful in penetrating the Chinese market?

Back 124

They attempted to go around China's laws and were forced to back down 

Front 125

over 40% privately held comapnies in the workplace are 

Back 125

owned by woman. 

Front 126

discrimination

Back 126

sex, color, religion, national origin, disability either physical or mental, age, 

Front 127

affirmative action

Back 127

your business composition should represent the population for which it serves

Front 128

reverse discrimination 

Back 128

unintentional discrimination, being not picked because you are a certain gender or color because of some quote for the market 

Front 129

new types of harrassment 

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gender harrassment and sexual orientation harrassment

Front 130

work life balance

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understand what is important to your employees and treat them fairly

Front 131

example of work life balance

Back 131

allowing one employee to have a flexible schedule, and also doing the rest of the employees 

 

 

 

 

 

 

 

child care, elederly care, paternity leave, religious accomadations 

 

 

Front 132

Paid Time Off (PTO)

Back 132

time off to be used for whatever 

Front 133

Lois Learner (IRS employee)

Back 133

targeted specific advocacy groups, accused of discrimination towards conservative groups 

Front 134

conservative groups were not being allowed what?

Back 134

tax exempt status 

Front 135

community

Back 135

the company's local area of business

Front 136

site

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everyone that a company services

Front 137

fence-line

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that specific neighborhood

Front 138

virtual

Back 138

the online marketplace (national or international)

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communities of interest

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specific groups that have common interest with the company 

Front 140

employee

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people who work in and around the local company

Front 141

types of communities

Back 141

site, fence line, virtual, communities interest, employee

Front 142

civic engagement

Back 142

strategy to give back to who they are servicing. What activities are the company doing that improves the community. 

Front 143

civing engagement is a mean for carrying out _____________ in an attempt to build.

Back 143

corporate cizitzenship, social capital 

Front 144

example of social capital

Back 144

whole foods helps with blood shortages, do hunger drives to help the community so I shop there to support them. 

Front 145

community relations department (public relations) 

Back 145

deals with the public image of the corporation 

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economic development

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communitiees start to rely on these businesses

Front 147

problems with economic development

Back 147

when an organization starts to perform poorly, the first area to cut is social relations to the community

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aid to minority enterprises

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minority owned businesses

Front 149

crime abatement

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national chains attempt to penetrate a high crime community to change it

Front 150

welfare-to-work job training

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get a certain amount back and tax deductions to hire felons 

Front 151

number one concern for community involvement? number two?

Back 151

health and human services, education

Front 152

health and human services encompasses

Back 152

vaccinations, basic hygiene issues 

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education

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getting people to schools (transportation), resources to them 

Front 154

corporate philanthropy 

Back 154

organization supports a cause and it is tax deductable 

Front 155

example of corporate philanthropy

Back 155

support United Way and give them money, get great publicity, and get the tax deduction

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corporate foundation

Back 156

organizations own non profit e

Front 157

example of corporate foundation

Back 157

DFW Northwestern Mutual owns Team Conner, to araise awareness and find the cure for certain types of cancer in children

Front 158

forms of corporate giving 

Back 158

charitable donations 

in-kind contributions (giving products or services away) 

volunteerism (allow so many volunteer hours for employees)

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92% of all publicly traded companies have

Back 159

their own non profit organization

Front 160

good example of volunteerism

Back 160

xerox volunteer for a year example

Front 161

charitable donations

Back 161

a check

Front 162

in-kind contributions

Back 162

giving away products or services

Front 163

the community and economy rely on __________________ to provide philanthropy and charitable donations

Back 163

corporations 

Front 164

health and human services donations are given mostly by 

Back 164

corporations, it is there number one focus 

Front 165

strategic philanthropy 

Back 165

corporate giving is linked into there strategic plan

Front 166

best example of strategic philanthropy

Back 166

one for one, Tom's shoes (built on philanthropy)a

Front 167

areas most likely to enhance the companies competitiveness

Back 167

-factor conditions (how they set themselves apart) 

-deamand

-strategy and rivalry

-related and supporting industries 

Front 168

strategies to optimize benefit from contributions

Back 168

draw on unique assets and competencies of the business, aligns with core value of the firm and employee interest

Front 169

collaborative partnerships

Back 169

one organization giving something to another organization to support the commmunity

Front 170

examples of collaborative partnership

Back 170

IBM giving computers to a school district, or to support a walk 

Front 171

the biggest cash contributor to U.S. charities? Followed by? and finally number three? 

Back 171

Wal-Mart, AT&T, Bank of America

Front 172

trend in collaborative partnership

Back 172

volunteer more, target groups hit by recession or natural disaster

Front 173

people chose Tom's 

Back 173

even though it was a lower quality product and more expensive, because it supprted a certain cause 

Front 174

advertising that is targeted to particular customers, based on their observed online behavior

Back 174

behavioral advertising

Front 175

the community relies heavily on business and business is 

Back 175

mutually dependent on the community

Front 176

reasons for businesses to get involved in the community

Back 176

-to win local support for business activity

-to build social capital

-to meet stakeholder demands

Front 177

the three types of sotckholders that own shares of stock in US corporations are

Back 177

 individuals, institutions, and government

Front 178

Deceptive advertising is _____________ in most countries.

Back 178

illegal