Business Dynamics Ch 4

ethics

reflects peoples proper relationships with one another society's accepted standards

legality

refers to the laws written to protect from fraud,, theft, and violence

compliance based ethics codes

prevent unlawful behavior increasing control and penalizing wrongdoers

integrity based ethics codes

define organizations guiding values, create environment that supports ethical behavior

wistleblowers

insiders who report illegal or unethical information

sarbanes oxley act

protects wistleblowers

corporate social responsibility (CSR)

concern businesses have for the welfare of society

CSR good

people believe a business has society to thank for existing so they have to give back to society

CSR bad

uses investors money to better society moving towards socialism

corporate philanthropy

charitable donations to non profit groups

corporate social initiatives

more directly related to the companies

corporate policy

the position a firm takes on a social or political issue

insider trading

uses company information to improve financially for one self, family, or friends

social audit

evaluation of an organization progress toward implementing social responsible programs

socially conscious investors

companies must extend its own high standards to its suppliers

socially conscious research organizations

analyze corporate social responsibility efforts

environmentalists

pressure companies to abide by environmentalists standards

union officials

find violations and force companies to comply to avoid negative publicity

customers

make buying decisions based on social conscience