chapter 2

Ethics

Beliefs about what’s right and wrong.

Business ethics

Right vs. wrong in business decisions.

Ethical behavior

Behavior that aligns with personal values and societal norms.

Unethical behavior

Occurs when individual or company values conflict with society.

Whistle-blowers

Employees who report unethical behavior and are protected by law.

Corporate Social Responsibility (CSR)

Actions companies take to go beyond profit-making, such as donations and ethical sourcing.

Consumerism

The protection or promotion of the interests of consumers.

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

Code of Ethics

A formal document outlining ethical guidelines for the company.

Managerial Ethics

Standards of behavior that guide managers in their actions.

Proactive Stance

A social responsibility approach where a company actively seeks opportunities to contribute to society.

Defensive Stance

A social responsibility approach where a company does the minimum required by law.

Philanthropic Giving

Donating money, time, or resources to charitable causes.

Regulation

Government intervention in the marketplace to control or change business behavior.

Ethical Compliance

Adhering to laws and regulations related to ethical conduct.