50 regional trading alliances and international trade

50. Regional trading alliances and international trade agreements are reshaping global
business.
51. The World Trade Organization (WTO) is a permanent membership organization that
monitors trade and has authority to arbitrate disputes among 159 member countries.
52. Two important, yet sometimes controversial, regional alliances are the European
Union (EU) and the North American Free Trade Agreement (NAFTA).
53. The euro is a single European currency that has replaced the currencies of 16 EU
member nations.
Remember This
Environment
Chapter 5 Managing Ethics and Social Responsibility
2
After studying this chapter, you should be able to:
1. Define ethics and explain how ethical behavior relates to behavior governed by law and free choice.
2. Discuss why ethics is important for managers and identify recent events that call for a renewed
commitment to ethical management.
3. Explain the utilitarian, individualism, moral rights, justice, and practical approaches for making
ethical decisions.
4. Describe the factors that shape a manager’s ethical decision making, including levels of moral
development.
5. Identify important stakeholders for an organization and discuss how managers balance the interests
of various stakeholders.
6. Explain the philosophy of sustainability, including the triple bottom line, and why organizations are
embracing it.
7. Define corporate social responsibility and how to evaluate it along economic, legal, ethical, and
discretionary criteria.
8. Discuss how ethical organizations are created through ethical leadership and organizational
structures and systems.
1. Managers face many pressures that can sometimes tempt them to engage in
unethical behavior.
2. Ethics is the code of moral principles and values that governs the behaviors of a
person or group with respect to what is right or wrong.

Session 2, Management 12 th Ed. Chapter 3,4,5,6
3. Just because managers aren’t breaking the law doesn’t necessarily mean that they
are being ethical.
4. Ethical managers display honesty and integrity, act in a way that communicates and
enforces ethical standards, are fair in their decisions and the distribution of rewards,
and show kindness and concern for others.
5. Unethical managers seek to serve their own needs and interests at the expense of
stakeholders.
6. Confidence in business managers and leaders in all walks of life is at an all-time low.
7. One hot-button ethical issue concerns excessive executive compensation.
8. Companies that are ethical and socially responsible perform as well as—often even
better than—those that are not socially responsible.
9. Ethics is about making choices.
10. Most managers encounter ethical dilemmas that are tough to resolve.
11. An ethical dilemma is a situation in which all alternative choices or behaviors have
potentially negative consequences. Right and wrong cannot be clearly distinguished.