The Importance of Trust as a Fundamental Principle in Capitalism

question 45

Multiple Choice

The importance of trust as a fundamental principle in capitalism is illustrated by expectations that:

• A) investors will be able to earn a return on their investments.
• B) employees may be discharged at any time for any reason without notice.
• C) litigation is inevitable because parties to agreements usually break promises.
• D) insider trading proves that the economic system underlying business is flawed.

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Definitions:

Bicultural Audit

A thorough examination that assesses how well an individual or organization navigates and integrates two distinct cultural identities or practices.

Corporate Culture

The shared values, beliefs, and practices that define the character and behavior of an organization and its members.

Corporate Cults

Organizations that cultivate intense employee loyalty and devotion, sometimes to the point of excluding outside influences and fostering an insular culture.

Subcultures

Distinct cultural groups within a larger culture, each with its own values, practices, and beliefs that differentiate them from the broader culture.