Chapter+04+PowerPoint

Ethics

Standards of moral behavior; that is, behavior accepted by society as right versus wrong.

Compliance-based ethics codes

Emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers.

Integrity-based ethics codes

Define the organization’s guiding values and stress a shared accountability among employees.

Corporate Social Responsibility (CSR)

A business’s concern for the welfare of society, based on a commitment to integrity, fairness, and respect.

Whistleblowers

Insiders who report illegal or unethical behavior.

Social Auditing

A systematic evaluation of an organization’s progress toward implementing socially responsible and responsive programs.

Insider trading

An unethical activity in which insiders use private company information to further their own fortunes.

Golden Rule

The ethical principle of treating others as one wants to be treated, often derived from religious teachings.

Three ethical questions

1. Is my proposed action legal? 2. Is it balanced? 3. How will it make me feel about myself?

Environmental efforts

Actions taken by businesses to minimize their carbon footprint and address climate change.

Corporate philanthropy

Includes charitable donations made by a business.

Corporate policy

The position a firm takes on social and political issues.

Top management ethics

The responsibility of upper management to support and enforce corporate ethical standards.

Management’s role in ethics

Managers help instill corporate values and maintain a fair, honest, and morally sound environment.

Corporate ethical standards

Written guidelines that define what is acceptable behavior within an organization.

Unethical behavior examples

Violating safety standards, plagiarism at school, and not volunteering in personal life.

Stakeholders

Various groups that have an interest in a company's operations, including customers, employees, and investors.

Socially conscious investors

Investors who prioritize ethical considerations in their investment decisions.

Foreign Corrupt Practices Act

U.S. legislation that prohibits bribing foreign officials to obtain business.

ISO 26000

An international standard providing guidance on social responsibility.

Corporate responsibility

Includes actions like hiring minority workers and producing safe products.

The right to safety (Consumer Rights)

Consumers should be protected against the marketing of goods that are hazardous to health.

The right to be informed (Consumer Rights)

Consumers have the right to be provided with accurate information about products.

The right to choose (Consumer Rights)

Consumers should have access to a variety of products and services at competitive prices.

The right to be heard (Consumer Rights)

Consumers should have a way to express their concerns or grievances.