Ethics, Social Responsibility, and DEI in the Workplace

Ethics

The principles of right and wrong that influence behavior and instruct how people treat one another.

Values

The relatively permanent and deeply held beliefs that determine people's behavior and serve as underpinnings for ethical systems.

Laws

The formal rules of conduct recognized as binding and enforced by a controlling authority, which are often based on ethical considerations.

Ethical culture

An organization can foster an ethical culture by having top executives set an ethical example through their own actions.

Ethical hiring culture

Creating an ethical hiring culture by screening for strong personal values.

Ethical codes

Guidelines that help organizations promote ethical behavior among employees.

Compliance-based ethics code

A type of ethical code that aims to prevent criminal misconduct through control and punishment, which individuals often view as laws not to be violated.

Integrity-based ethics code

A type of ethical code that seeks to foster responsible conduct by creating a supportive environment, which individuals tend to view as values that should be promoted.

Sarbanes-Oxley Act of 2002

A law that established record-keeping requirements, penalties for noncompliance, and protections for whistleblowers in public companies.

Whistleblower protection

The most significant provision of the Sarbanes-Oxley Act that protects employees who report organizational misconduct from employer retaliation.

Triple Bottom Line (TBL)

A business concept that refers to three interconnected aspects of a company's performance: economic, social, and environmental.

Three P's of TBL

Profit, People, and Planet; the three components of the Triple Bottom Line.

Social audit

A systematic assessment of a company's performance in implementing socially responsible programs, often based on predefined goals.

Key areas of social audit

Corporate Policy, Community Activities, Cause-related Marketing, Social Entrepreneurship, Sustainability, and Philanthropy.

Negative consequences of unethical behavior

Diminished reputation and profit, employee fraud, costly lawsuits, and severe criminal penalties.

Positive effects of ethical practices

Help companies build long-term relationships with customers who prefer to do business with firms known for honesty and fair dealing.

Diversity Wheel

A model that identifies five dimensions of diversity.

Internal dimension of Diversity Wheel

Represents characteristics that are inherent to individuals, such as age, race, and gender.

Workplace equity

A concept that refers to fairness and justice in the workplace.

Strategies for creating workplace equity

Key strategies include promoting diversity, ensuring equal opportunities, and implementing fair policies.

Accessibility

The ability of employees with disabilities or other accessibility needs to access and participate in all aspects of work, including physical access to facilities, communication, and technology.

Allyship

The practice of using one's privilege and influence to actively support and advocate for colleagues from marginalized or underrepresented groups.

B Corp (Certified B Corporation)

A type of for-profit company certified by the non-profit B Lab as meeting rigorous standards of social and environmental performance, accountability, and transparency.

Cause-Related Marketing

A commercial activity in which a business forms a partnership with a charity or nonprofit to support a worthy cause, product, or service.

Code of ethics

A set of ethical standards to help guide an organization's actions.

Cognitive Diversity

The utilization of the different experiences and perspectives of individuals to address a particular situation, challenge, opportunity, or problem.

Corporate Policy

A company's stated positions on political and social issues.

Corporate Social Responsibility (CSR)

A concept that refers to a company's responsibility to act in the best interests of society and the environment.

Cultural Norms

Ethics, values, attitudes, and behaviors that are deemed to be normal or typical in a given culture.

Internal Dimension

Represents an individual's visible characteristics, such as race, ethnicity, gender, sexual orientation, age, and physical ability.

Strategies for Workplace Equity

Three strategies to create it are implementing policies that promote fairness, providing training to help employees overcome bias, and creating a culture that values and celebrates diversity.

Ethical Organization

An organization that operates based on ethical standards and practices, integrating ethics into its culture and decision-making processes.

Sarbanes-Oxley Act

Specific protections and requirements established to enhance corporate governance and accountability.

Corporate Social Responsibility (CSR) Frameworks

Includes Carroll's Global CSR Pyramid, the Triple Bottom Line, and ESG criteria that guide corporate behavior.

Stakeholders

Individuals or groups that have an interest in the decisions and actions of a company, including customers, suppliers, owners, employees, and the broader community.

Negative Effects of Unethical Behavior

Includes consequences such as fraud and lawsuits.

Positive Payoffs of Ethical Practices

Benefits for customers, suppliers, owners, employees, and the broader community resulting from ethical business practices.

DEI Advantage

Building a strategy around Diversity, Equity, and Inclusion that leads to increased innovation, better decision-making, and enhanced reputation.

Data privacy and security

The principles and practices of safeguarding information from unauthorized or malicious use, ensuring confidentiality, integrity, and availability.

Digital Divide

The social and economic inequality caused by the lack of access to or skills in digital technologies, affecting opportunities and outcomes.

Diversity

The differences that individuals bring to the workplace, such as race, ethnicity, gender, sexual orientation, age, and religion.

E-waste Recycling

The process of recycling or reusing electronic devices to reduce waste and environmental harm.

Employee Fraud

Theft by employees from a business, which costs U.S. businesses $50 billion and most commonly comes in the form of embezzlement schemes.

Environmental impact

A measure of digital technologies' positive or negative environmental consequences, such as reducing emissions, saving resources, or generating waste.

Equity (Workplace)

Ensuring that a company's systems, practices, policies, and processes provide access to the same opportunities and resources for all employees.

ESG

A set of criteria (Environmental, Social, and Governance) that investors and other stakeholders use to evaluate a company's performance on these issues.

Ethics officer

An individual who integrates an organization's ethics and values initiatives, compliance activities, and business practices into its decision-making processes.

Global Compact

A voluntary agreement established by the United Nations that promotes human rights, good labor practices, environmental protection, and anticorruption standards for businesses.

Green IT

Practices and technologies that improve energy efficiency and reduce the carbon footprint of IT operations.

Greenwashing

When a company tries to claim its product or policy is eco-friendly, but that information is misleading or omits other environmental impacts.

Inclusion

Creating an environment where all employees feel valued, respected, and empowered to contribute their unique perspectives and talents.

Philanthropy

The practice of making charitable donations to benefit humankind.

Renewable Energy

Energy sourced from renewable natural processes, like solar, wind, and hydroelectric power.

Responsible AI

Using artificial intelligence (AI) in an ethical, transparent, and accountable way, based on principles like fairness, privacy, and human-centric design.

Sarbanes-Oxley Act (SOX)

A 2002 law that established protections for whistleblowers, record-keeping requirements for public companies, and penalties for noncompliance.

Smart Grid

An electricity network that uses digital technology to monitor and manage the transport of electricity efficiently.

Social Entrepreneurship

An innovative, social value-creating activity that can occur within or across the for-profit and nonprofit sectors, focused on doing good.

Sustainability

Economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Sweatshop

A shop, factory, or farm in which employees work long hours for low wages, usually under environmentally, physically, or mentally abusive conditions.

Whistleblower

An employee who reports organizational misconduct (such as corruption or fraud) to the government or the public.