Business Chapter 3 Ethic

Ethics

are rules that help people know the difference between right and wrong.

Ethics

Ethics are what guide us to make good decisions.

Ethics

Vary based on the person, situation, or culture

Ethical behavior

acting in accordance with our values and societal beliefs about what is right and good.

Business Ethics

are based on Society’s ethics and Individual beliefs
The people that work for the company
Those who purchase products or request services from the business (customers).

A code of ethics

is a document that explains specifically how employees, customers, and management personnel should respond when problems arise.

Dilemma

when a difficult decision must be made between two or more options

Ethical dilemma

a moral problem with a choice between potential right or wrong

Whistle Blowing

When an employee informs officials or the public about an illegal or ethical violation

Fraud

is an umbrella term for deceptive behavior

Fraud

False claims

Fraud

Price discrimination

“bait and switch” selling

promoting a good deal, to have it unavailable when customers come in, and then try and sell them a similar item at a higher price (MOUSE TRAP)

Accounting scandal

when accountants and senior executives alter financial records for the benefit of the company

Forensic accountants

accountants that will investigate legal and financial documents to find evidence of tampering (ACCOUNTING POLICE)

Auditors

accountants that investigate the validity of the financial statements of public and private enterprise.

Embezzlement

creation of false accounts or cheques, to redirect money for personal gain

Insider Trading

making a decision to buy or sell an investment based on confidential information.

Insider Trading

Getting an insider’s tip is illegal when trading, because it is unfair to all other investors.

Corporate Social Responsibility (CSR)

when a business provides goods and services in line with society’s beliefs.

Socially responsible business

Treat customers, employees, and shareholders fairly
Help the communities in which they operate in by supporting local organizations, community projects, and policies and programs to better the workplace.

CSR Principles

Provide a safe and healthy work environment

CSR Principles

Adopting fair labour prices

CSR Principles

Protecting the environment

CSR Principles

Being truthful in advertising

CSR Principles

Avoiding price discrimination

CSR Principles

Donating to charity

Transparency - Duty to report

corporations and their employees have a duty to report, by disclosing all important information to stakeholders

Law's that govern corporate ethics

Workplace Safety

Law's that govern corporate ethics

Antidiscrimination

Law's that govern corporate ethics

Harassment

Law's that govern corporate ethics

Accessibility

Law's that govern corporate ethics

Environmental Responsibility

Law's that govern corporate ethics

Labour Practices

Discrimination

denying a qualified individual an opportunity for employment based on their religion, gender, sexual orientation, or exceptionality.
Discrimination is the opposite of ethical behavior.

Gender Discrimination

is treating an employee differently based on their sex
All individuals have the right to work in an environment where they are not treated differently for their race, religion, gender, or exceptionality. Every qualified individual deserves equal opportunity.

Glass ceiling

invisible barrier that affects the career path of senior leaders in corporate positions.

Harassment

behavior that makes others feel uncomfortable. It can include verbal threats, insults, bullying, stalking).
Workplaces have an obligation to ensure the safety of their workers.
Employers have procedures and policies for dealing with harassment complaints.

Duty to accommodate

an employer’s obligation to ensure accessibility for all employees.

Areas of environmental concerns

include: land, air, and water

Canadian Environmental Protection Act (CEPA)

Sustainable development through pollution prevention
Protecting the environment and people, from risks associated with toxic substances
Citizens can sue businesses that significantly violate the policies presented by CEPA
Increased protection for whistle-blowers
Create a public registry, where businesses’ environmental impact can be seen

Three leged stool

Businesses have the challenge of satisfying the following areas simultaneously:

Environmental Responsibility
Social Responsibility
Profitability

The Employment Standards Act

addresses the minimum employment conditions including hours of work, overtime, minimum wage, benefits, vacation pay, termination, severance, maternity leave, stress leave, parental leave.

Pay Equity

Although pay equity legislation has changed considerably since its establishment in 1978, it still does not always deliver equal pay for work of equal value.
The legislation prohibits employers from paying employees of one gender differently than from the other when the same or substantially the same work is done

The Personal Information Protection and Electronic Documents Act (01/01/2004)

all provincially regulated businesses must disclose to customers and employees what information is needed and why. The terms must be accepted before access is gained.

Fair trade

is the voluntary practice of helping producers in developing countries bypass expensive middlemen so they can sell their goods in other countries for a fair profit.

Fair-trade initiative

began as a grassroots movement, which is a local action or response by a group of people to a problem.

Fair-trade products in Canada

are marked with the TransFair Canada symbol

Ethical trading

means using trade to ensure that the basic labour rights of employees in developing countries are met.