Business Ethics Set 1

Morals

Values society deems acceptable or right

Values

Core principles or standards that guide decisions and behavior

Moral dilemma

A situation where you must choose between two right actions

Value dilemma

A situation where personal ideals conflict

Consumers’ Bill of Rights

Basic rights for buyers: safety, to be informed, to choose, and to be heard

Corporate Social Responsibility (CSR)

Companies taking responsibility for their impact on society and the environment

Defense Industry Initiative on Business Ethics and Conduct (DII)

A program encouraging defense companies to commit to ethical practices

Federal Sentencing Guidelines for Organizations (FSGO)

Rules that reduce penalties if companies have effective ethics programs

Sarbanes-Oxley Act (SOX)

U.S. law to prevent corporate fraud, requires accurate financial reporting

Dodd–Frank Act

Protects consumers/investors and adds oversight after the 2008 financial crisis

Environmental Social Governance (ESG)

Measuring a company’s impact on environment, society, and governance

Ethical culture

Shared values, beliefs, and behaviors about ethics inside a company

Equality

Treating everyone fairly with the same opportunities

Reciprocity

The idea of returning a favor or obligation

Optimization

Finding the best balance between profits, values, and stakeholders

Conflict of interest

Personal interests interfere with professional duties

Active bribery

Offering money or favors to influence decisions

Passive bribery

Accepting a bribe

Corporate intelligence

Legal and ethical collection of business information

Hacking (types)

Breaking into computer systems; can be criminal, activist (hacktivism), or ethical (for testing)

Affirmative action programs

Efforts to improve opportunities for historically disadvantaged groups

Discrimination

Unfair treatment based on traits like race, gender, or age

Hostile work environment/sexual harassment

Unwelcome behavior making the workplace intimidating or offensive

Dual relationship

Having multiple roles with someone (e.g., boss and friend) that may cause conflicts

Fraud

Deception for personal or financial gain

Accounting fraud

Falsifying financial records

Marketing fraud

False or misleading marketing to trick customers

Puffery

Exaggerated advertising claims (legal, not meant to be taken literally)

Implied falsity

Ads that mislead by suggesting something untrue without directly saying it

Literally false

Ads that contain outright lies

Consumer fraud

When customers lie or cheat businesses (e.g., fake returns)

Insider trading

Using confidential company info to trade stocks unfairly

Time theft

Misusing work hours for personal activities