Business & Society Exam 2

ethics

relates to choices and judgements about acceptable standards of conduct that guide the behavior of individuals and groups

shareholder loyalty

building an ethical culture results in this and can contribute to success that supports broader social causes and concerns

business ethics

comprises the principles and standards that guide the behavior of individuals and groups when carrying out tasks that meet business objectives

protected class

a group of people with a shared characteristic who are legally safeguarded from discrimination, harassment, or retaliation under federal, state, or local laws (race, color, religion, nationality, gender, age, handicap, pregnancy)

Title VII of the Civil Rights of 1964

most significant piece of legislation against discrimination including state and local governments (applies to employers w/ 15 or more employees)

intentional discrimination

disparate (different) treatment discrimination

unintentional discrimination

disparate impact discrimination (occurs when a protected group of people is adversely affected by an employer’s practices, procedures, or tests, even though they do not appear to be discriminatory)

prima facie

It describes something that appears to be true, valid, or sufficient based on a first impression, before deeper investigation or counter-evidence is presented.

Lilly Ledbetter Fair Pay Act (2009)

each time a person is paid discriminatory wages, benefits, or compensation, a cause of action arises and the victim has 180 days to file a complaint

forms of sexual harassment

quid pro quo & hostile work environment

quid pro quo

involves sexual favors which are demanded in return for job opportunities, promotions, salary, increases or other tangible benefits

hostile work environment

occurs when workplace is permeated with discriminatory intimidation, ridicule, insult so severe to alter conditions of the victim’s employment and create an abusive working environment

hostile work environment criteria

conduct was unwelcome, conduct was severe, pervasive, or claimed to be so hostile/offensive that it altered working conditions, and conduct was such that a reasonable person would find it offensive

same gender harassment

in 1998 supreme court held Title VII prohibitions against this type of harassment

online harassment

hostile work environment created using company chat, blogs, email

constructive discharge

employers causes working conditions to be so intolerable that a reasonable person would feel compelled to quit

The Age Discrimination in Employment Act (ADEA)

protects individuals over the age of 40 from workplace discrimination that favors younger workers

The Americans with Disability Act (ADA)

requires employers to offer “reasonable accommodation” to employees or applicants with a disability who are otherwise qualified for the job they hold or seek

ADA procedures

plaintiff must show they have a disability, is qualified for employment, and was excluded solely due to disability

disability

physical or mental impairment that “substantially limits one or more of major life activities”

reasonable accommodation

if an employee with a disability can perform the job without hardship on the employer, accommodation must be made

substance abusers (reasonable accommodation)

only applies to former drug users who have completed or are going through supervised drug rehab

time theft

arriving to work late, taking long lunch breaks, leaving early, daydreaming, and/or using social networking sites

conflict of interest

when an individual has competing interests and must chose whether to advance his or her own interest, those of his or her organization, or those of some other group

bribery

practice of offering something, such as money, or other gifts to gain an illicit advantage from someone in authority

Foreign Corrupt Practices Act (FCPA)

it is illegal for individuals, firms or third parties doing business in U.S. markets to “make payments to foreign government officials to assist in obtaining or retaining business.” 

fraud

any false communication that deceives, manipulates, or conceals facts to create a false impression when others are damaged or denied a benefit

privacy issues examples

monitoring employee’s use of available technology, consumer privacy, and online marketing

biometric data

used as a common method for companies with warehouses to verify employee hours and check workers in and out of their facilities (fingerprints & facial scans)

General Data Protection Regulation (GDPR)

protects the personal data and fundamental privacy rights of individuals residing in Europe

machine learning

subset of AI and computer science which focuses on the use of data and algorithms to imitate the way that humans learn, gradually improving its accuracy

IoT (Internet of Things)

the collective network of connected devices and the technology that facilitates communication between devices and the cloud

microsoft

the first tech company to call for regulation of facial-recognition technology

organizational (corporate) culture

a set of values, norms, and artifacts shared by members or employees of an organization

unicorn business

a privately held startup company with a valuation of over $1 billion (ex: Uber, Airbnb)

company prospectus

is a formal, legal disclosure document and marketing tool issued by a business that offers securities (such as stocks, bonds, or mutual funds) to the public

Sarbanes Oxley Act

US federal law enacted on July 30, 2002, to protect investors from corporate financial fraud, improve disclosure reliability, and restore public confidence in financial markets

Sherman Antitrust Act

is a landmark US federal statute passed in 1890 that prohibits monopolistic business practices and promotes free competition in interstate commerce

FTC (Federal Trade Commission) Act

police anticompetitive, unfair, and deceptive business practices

Antitrust laws (competition laws)

designed to promote fair market competition, prevent monopolies, and protect consumers and workers from unfair business practices

US Antitrust laws

Sherman Antitrust Act, Clayton Antitrust Act, Federal Trade Commission Act

Clayton Antitrust Act

prohibits specific anticompetitive practices such as harmful mergers and acquisitions, tying agreements, interlocking directorates, and price discrimination

state capitalism

an economic system where the government runs commercial activity in a capitalist manner, often controlling major enterprises and acting like a giant corporation

Public Company Accounting Oversight Board (PCAOB)

private, non-profit company that oversees audits of public companies, protects the integrity of published financial information, and provides audit guidance

monopoly

when a single business is the sole provider of a particular good or service in a market with no close substitutes, it holds exclusive control over supply which results in this

economic or social

to generate a measurement of the costs of regulation, economists generally classify regulation as _____________.

laissez faire

Milton Friedman believed in this because he thought that the system could reach equilibrium without government intervention (rejected Keynesian)

ethical issue

a problem, situation, or opportunity that requires an individual or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical

CEO (Chief Executive Officer)

the person that establishes the ethical tone for the entire firm

ethics & compliance officers

an executive/specialist responsible for ensuring that an organization operates within legal, regulatory, and ethical boundaries (allows employees to report misconduct when they are unwilling to go to upper management)

law

ethics is less certain than _____.

deregulation

changing or repealing existing laws or regulations to provide less oversight of business activities, operation, and outcomes.

self regulation

when an industry-level organization, such as a trade association or professional society, creates a set of rules and enforces regulations within its industry.

NGOs (nongovernmental organizations)

nonprofit, citizen-based groups that function independent of government.

Direct Selling Self-Regulatory Council (DSSRC)

a Better Business Bureau program developed to promote truth and transparency in the direct selling industry.

lobbying

the process of working to persuade public and/or government officials to favor a particular position in decision-making.

public interest groups

people who work to influence public policy to benefit society as a whole rather than group members.

private interest groups

people with a shared interest who work to influence public policy in their favor.

special interest groups

groups of people that seek to protect a common interest by influencing public policy.

common cause

a nonprofit, nonpartisan organization that fights corrupt government and special interests.

Bribery Act

a U.K. anti-bribery law that maintains it is illegal for individuals, firms, or third parties doing business in the United Kingdom to engage in bribery

Machiavellianism

the use of duplicity or cunning to achieve business goals.

US Equal Employment Opportunity Commission (EEOC)

the federal agency that enforces workplace discrimination laws

groupthink

a phenomenon whereby individuals go along with group decisions even when those decisions run counter to one’s own values

deontology

a class of moral philosophy that focuses on the rights of individuals and on the intentions associated with a particular behavior rather than on its consequences; also called ethical formalism or absolutism

PACs

raise money from individuals and contribute to political candidates

Super PACs

raise unlimited funds for independent political expenditures supporting candidates

trade association

represents businesses within an industry and advocates for their shared interests

FSGO (Federal Sentencing Guidelines for Organizations)

establish sentencing standards for organizational crimes and encourage ethics and compliance programs

detox ads

evaluate whether claims are truthful, supported, and potentially harmful to consumers