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Business Ethics

Principles and standards that determine acceptable conduct in business.

Ethical Issue

A situation requiring a choice that can be judged right or wrong.

Ethical Gray Area

Situation where there are no clear values, codes, or laws.

Social Responsibility

Business obligation to maximize positive impact and minimize negative impact on society.

Business Law

Laws and regulations that govern business conduct.

Sarbanes-Oxley Act (SOX)

Prevents/cuts down corporate and securities fraud; increased penalties for corporate fraud.

Dodd-Frank Act

Reformed the financial industry and protects consumers from complex/deceptive financial products.

Bribery

Payment, gift, or favor intended to influence a decision.

Misuse of Company Time

Using work time for personal activities.

Abusive/Intimidating Behavior

Threatening, harassing, belittling, verbally abusing, or excessively criticizing others.

Misuse of Company Resources

Using company resources for improper/personal purposes.

Conflict of Interest

Choosing between your personal interests and the interests of others.

Insider Trading

Buying/selling stocks using important information that isn't public.

Plagiarism

Using someone else's work and presenting it as your own without credit.

Code of Ethics

Formal rules/standards describing what a company expects from employees.

Whistleblowing

Employee exposes an employer's wrongdoing to outsiders.

Corporate Citizenship

How well a business fulfills its economic, legal, ethical, and voluntary responsibilities to stakeholders.

ESG

Environmental, Social, Governance framework for evaluating responsible/sustainable business practices.

4 Dimensions of Social Responsibility

Economic/Financial → Make profits; Legal → Follow laws; Ethical → Do what is right; Voluntary/Philanthropic → Go beyond what's legally required.

Consumerism

Activities that protect consumer rights.

4 Consumer Rights

Safety; Be informed; Choose; Be heard.

Consumer Protection

Protection against unfair, deceptive, or fraudulent practices.

Sustainability

Conducting activities in a way that supports the long-term well-being of the natural environment.

Greenwashing

Deceptively making a product/company seem environmentally friendly.

Diversity

Presence of differences within an organization.

Equity

Equal opportunities and fair treatment.

Inclusion

Degree to which diverse people are valued and welcomed.