Chapter 4 Key Terms/ Concepts

Ethics

the standards of moral values/behaviors that are accepted by society as right vs. wrong

Ethical Dilemma Questions to ask

1. Is it Legal

2. Is it Balanced

3. How will it make me feel about myself

Comliance Based Ethics Code

emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers

Integrity based ethics code

define the organizers guiding values, create an environment that supports ethically, sound behaviors and stress shared accountability

Corporate social responsibility (CSR)

the concern businesses have for the welfare of society

Corporate Philanthropy

includes charitable donations

Corporate Social Initiatives

include enhanced forms of corporate philanthropy that are related to companys competencies. Example TNT Logistics and Emergency Support

Corporate Responsibility

includes everything from hiring minority workers to making safe products, minimizing pollution, using energy wisely, providing a safe work environment.

Corporate Policy

the position a firm takes on social and politcal issues

Social Audit

a systematic evaluation of an organizations progress toward implementing socially responsible and responsive programs.

Five Types of Whistleblowers

1. Socially Conscious Investors

2. Socially Conscious Research Organizations

3. Environmentalists

4. Union Officials

5. Customers

Whistleblowers

insiders who report illegal and unethical behaviors

The 4 Basic Rights of Consumers

1. the right to safety

2. the right to choose

3. the right to be informed

4. the right to be heard

Insider Trading

an unethical activity in which insiders use private company info to further their own fortunes or those of their families and friends.