Chapter 4 - Intro to Busi

Ethics

A set of beliefs about right and wrong, good and bad

Ethical Dilemmas

a decision that involves a conflict of values; every potential course of action has some significant negative consequences

Universal Ethical Standards

Ethical norms that apply to all people across a broad spectrum of situations

Business ethics

The application of right and rong, good and bad, in a business setting

Code of Ethics

a formal written document, that defines the standards of an organization

Whistle Blowers

employees who report their employer’s illegal or unethical behavior to either the authorities or the media

Planned obsolescence

The strategy of deliberately designing products to fail in order to shorten the time between purchases

Stakeholders

Any groups that have a personal interest in the performance and actions of an organization

Consumerism

A social movement that focuses on four key consumer rights: right to be safe, right to be informed, right to choose, and right to be heard

Sarbanes—Oxley Act

federal legislation passed in 2002 that sets higher ethical standards for public corporations and accounting firms, limits conflict of interest issues and CEOs validate their financial statements

Corporate Philanthropy

all business donations to nonprofit groups, including money, products, and employee time

Carbon Footprint

refers to the amount of harmful greenhouse gases that a firm emits throughout its operations, both directly and indirectly

Sustainable Development

Doing business to meet the needs of the current generation, without harming the ability of future generations to meet their needs

Corporate Responsibility

business contributions to the community through the actions of the business itself rather than donations of money and time

cause-related marketing

marketing partnerships between businesses and non profit

green marketing

developing and promoting environmentally sound products and practices to gain a competitive edge

Social Responsibility

The obligation of a business to contribute to a society

Social Audit

a systematic evaluation of how well a firm is meeting its ethics and social responsibility goals