Business Ethics Flashcards

Which U.S. case established that employment tests with disparate impact must be job-related and consistent with business necessity?

Answer: Griggs v. Duke Power Co.

Griggs v. Duke Power (1971) established the disparate impact doctrine under Title VII.

A company's code of conduct is most effective at shaping ethical behavior when it is:

Answer: Reinforced through training, leadership modeling, and consistent enforcement

Codes influence behavior when leaders model them and violations are enforced consistently.

Corporate Social Responsibility (CSR) is best defined as:

Answer: A company's voluntary commitment to operate in ways that benefit society and the environment beyond legal requirements

CSR refers to voluntary actions that address social and environmental impacts beyond legal compliance.

A manager tells a diversity leader to delay reporting a harassment complaint until after a major product launch. What is the ethical course of action?

Answer: Escalate and initiate a prompt investigation per policy

Employers have a duty to promptly investigate harassment complaints; delay can increase harm and legal liability.

In ESG reporting, the 'S' pillar most directly includes which DEI-related metric?

Answer: Workforce demographic composition and pay equity

The Social pillar covers workforce, human capital, diversity, and community impact.

Ethical relativism, when applied to global DEI practices, poses which main risk?

Answer: It may be used to justify discriminatory practices because they are locally accepted

Relativism can excuse practices that violate universal human rights simply because they are culturally common.

Which action best demonstrates ethical transparency in a DEI program?

Answer: Publishing workforce demographic data and progress against goals, including shortfalls

Transparency means sharing both progress and gaps so stakeholders can hold the organization accountable.