Study Plan: Business Ethics and Corporate Social Responsibility (SLO4)

Bribery

the act of giving money, goods, or other forms of compensation in exchange for a benefit to the giver that the recipient would otherwise not choose to give; a quid pro quo arrangement

Business ethics

standards or sets of values that govern the actions and behavior of individuals within a business organization and of the business itself in areas that are not directly regulated by laws

contemporary standards or values that govern the actions and behavior of individuals in the business organization and the actions of the business as a whole

cause-related marketing (CRM)

a corporation’s associating the sales of its products to a program of donations or support for a charitable or civic organization

Code of ethics

a set of standards that serves as a guide for the members of an organization

Code of practice

adopted by a profession or by a governmental or nongovernmental organization to regulate that profession

Conflict of interest

an ethical challenge that occurs when an individual or organization is involved in multiple interests that are at odds with one another

Corporate philanthropy

a corporation’s gifts to non-profit organizations

Corporate social responsibility (CSR)

the voluntary ethical actions of a business in society

Ethics

a set of moral standards that govern the conduct of a person

Foreign Corrupt Practices Act (FCPA)

criminalized bribery of foreign public officials by American businesses as well as foreign businesses that are listed on stock exchanges in the U.S.

Gifts from associates

can pose a conflict of interest

Greenwashing

corporations exaggerating or misstating the impact of their environmental actions or promoting products as being environmentally friendly when in fact they’re not

Kickback

a form of negotiated bribery in which a commission is paid to the bribe-taker in exchange for services rendered

Leadership

involves being able to recognize your strengths and those of your team and take advantage of those strengths to achieve organizational goals

Nepotism

business decisions such as hiring and purchasing involve family members pose a conflict of interest

Outside employment

is a conflict of interest when the interests of one job conflict with the interests of the other

Self-dealing

a person with decision-making authority causes the organization they represent to enter into a transaction that benefits themselves; being on both sides of a deal

Social entrepreneurship and social enterprise

the use of business organizations and techniques to attain social goals that deserve praise

Social marketing

the use of business marketing techniques in the pursuit of social goals

Sustainability

the ability of a society or company to continue to operate without compromising the planet’s environmental condition in the future

Sweatshop

A sweatshop is a factory that is guilty of labor abuse or violations, such as:

1 Unsafe working conditions

2 Employment of children

3 Mandatory overtime

4 Payment of less than the minimum wage

5 Abusive discipline

6 Sexual harassment

7 Violation of labor laws and regulations

Global Ethical Challenges

When conducting business internationally, ethical issues arise due to variations in political systems, legal frameworks, cultural norms, and competitive pressures, making it challenging to distinguish between ethical and unethical practices.

FCPA to combat corruption, but compliance with anti-corruption legislation poses ethical challenges for corporations due to varying social and cultural norms worldwide, where acts considered unethical in one country may be accepted in another.

5 Examples of CSR

1 Corporate philanthropy

2 Cause-related marketing

3 Sustainability

4 Social Entrepreneurship and Social Enterprise

5 Social Marketing

Whistleblower

A whistleblower is a person who exposes information or activity that is deemed illegal, unethical, or incorrect within an organization that is either

public or private.

Whistleblowers take action to put an end to unethical practices after witnessing injustices in their businesses or organizations

Promoting Ethics in the Workplace

Five Strategies suggested by the Ethics and Compliance Initiative (ECI):

1 Make ethics a leadership priority

2 Focus on achieving success the right way

3 Be attuned to the impact of organizational change

4 Nurture a speak up culture

5 Be transparent

Ethics vs. Legal Behavior

Ethical behavior or ethics are a set of standards that govern the conduct of a person, especially a member of a profession.

Legal behavior follows the laws