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Ethics

A branch of philosophy focusing on principles that guide behavior, distinguishing between right/wrong, good/bad, and just/unjust actions.

Legal

An act that is allowed/permissible or in conformity with the law of the land.

Legal-ethical

When the law and personal or organizational ethics are in accordance with each other

Legal-unethical

Dilemma in which established laws are not in accordance or do not uphold the ethical choice

illegal-ethical

Dilemma in which the ethical choice would be in violation of established laws

Example of illegal-ethical

Illegal-ethical conflict in which U.S. government officials leaked top secret papers to inform the public about government actions during the Vietnam War

Example of legal-unethical

• Outsourcing production to factories with unsafe conditions, as seen in sweatshops.

Personal ethics

Codes, principles, and values that shape people's interactions with others

value

Stable life goals that people have that reflect what is most important to them

Morals

Rules people develop as a result of cultural norms and values and are, traditionally passed down through generations and characterize a cultural group

Organizational ethics

Rules, principles, and standards for deciding what is morally right or wrong when doing business

four main levels of ethical issues

1. Societal issues

2. stakeholder issues

3. Internal policy issues

4. Personal issues

Societal issues

Issues relating to the world as a whole. Involvement happens because of the ethics the organization creates out of care and concern for individuals.

Stakeholder issues

policies that affect its customers, employees, suppliers, and people within the community

Internal policy issues

internal relationships between a company and its employees  EX: fairness in management, pay, and employee participation.

Personal issues

how people treat others in their organization  EX: gossiping at work or taking credit for another's work.

CSR (Corporate social responsibility )

Philosophy in which a company voluntarily engages in actions that benefit society, be it economically, socially, politically, or environmentally

stakeholders

Those who have a stake in the performance and output of an organization, such as employees, unions, investors, suppliers, consumers, local and national governments, and communities

code of ethics

Guide that publicly sets out an organization’s key values and ethical obligations

greenwashing

When organizations carry about CSR missions in an inauthentic way, using them to increase publicity rather than to spur real change

internal transparency

Degree to which an organization operates with openness, communication, and accountability

SOX Sarbanes-Oxley Act

Law aimed at improving corporate transparency by requiring clear reporting practices

whistleblowers

Those who tell the public or the authorities about alleged misconduct occurring in a government department, private company, or organization