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TEST 1

business ethics

comprises the principles, values, and standards that guide behavior in the world of business

principles

specific and pervasive boundaries for behavior that are universal and absolute (freedom of speech, fundamentals of justice, equal rights to civil liberties)

values

used to develop norms that are socially enforced (integrity, accountability)

Consumer's Bill of Rights (1962)

The right to safety, be informed, to choose, and be heard.

1965 Modern Consumer Movement

Nadar's "Unsafe at Any Speed" GM putting profit and style above lives and safety

1970's

business ethics began to develop as a field of study leading to social responsibility

social responsibility

an organization's obligation to maximize its positive impact on stakeholders and to minimize its negative impact

1980's

business academics and practitioners acknowledged business ethics as a field of study

Defense Industry Initiative on Business Ethics and Conduct (DII)

developed to guide corporate support for ethical conduct

1990's

self regulation and free trade although government action was taken to deal with health related social issues

Federal SEntencing Guidelines for Organizations (FSGO)

set the tone for organizational ethical compliance programs in 1990's. focus on taking action to prevent and detect business misconduct in cooperation with government regulation

Sarbannes-Oxley Act

most far reaching change in organizational control and accounting regulations

ethical culture

character of decision making process that employees use to determine whether their responses to ethical issues are right or wrong

primary stakeholder

continued association absolutely necessary for firm's survival (employees, customer, investors, and shareholders)

secondary stakeholder

don't typically engage in transactions with a company and thus are not essential for its survival (media, trade organizations, and special interest groups)

stakeholder orientation

degree to which a firm understands and addresses stakeholder demands

Milton Friedman

basic mission of doing business is to produce goods and services for a profit, and in doing this business is making its maximum contribution to society and in fact being socially responsible

Adam Smith

one of the founders of capitalism, the invisible hand, propriety, prudence, reason, sentiment, and promoting the happiness of mankind

Four levels of social responsibility

economic, legal, ethical, and philanthropic

corporate citizenship

extent to which business strategically meet the economic, legal, ethical, and philanthropic responsibilities placed on them by their various stakeholders

duty of care/duty of diligence

make informed and prudent decisions

corporate governance

formal systems of accountability, oversight, and control

accountability

refers to how closely workplace decisions are aligned with a firm's stated strategic direction and its compliance with ethical and legal considerations

oversight

provides a system of checks and balances that limit employees' and managers' opportunities to deviate from policies and strategies and that prevent unethical and illegal activities

control

is the process of auditing and improving organizational decisions and actions

shareholder model of corporate governance

founded in classic economic precepts, including the goal of maximizing the wealth for investors and owners

stakeholder model of corporate governance

company must answer to stakeholders, including employees, suppliers, government regulators, communities, and special interest groups with which it interacts

fiduciary duty

having assumed a position of trust and confidence that entails certain responsibilities, including acting in the best interests of those they serve

executive compensation

one of the biggest issues that corporate boards of directors face

ethical issue

a problem, situation, or opportunity that requires an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical

ethical dilemma

a problem, situation, or opportunity that requires an individual, group, or organization to choose amog several wrong or unethical actions

abusive or intimidating behavior

most common ethical problem for employees

commission lying

creating a perception or belief by words that intentionally deceive the receiver of the message

noise

technical explanations that the communicator knows the receiver does not understand

omission lying

intentionally not informing the channel member of any differences, problems, safety warnings, or negative issues relating to the product, service, or company that significantly affects awareness, intention, or behavior

conflict of interest

exists when an individual must choose whether to advance his or her own interests, those of the organization, or those of some other group

active bribery

the person who promises or gives the bribe commits the offense

passive bribery

offense committed by the official who receives the bribe

facilitation payments

made to obtain or retain business or other improper advantages do not constitute bribery payments

corporate intelligence

is the collection and analysis of information on markets, technologies, customers, and competitors, as well as on socioeconomic and external political trends

hacking

considered one of the top three methods for obtaining trade secrets

system hacking

assumes that the attacker already has access to a low-level, priveleged-user account

remote hacking

attempting to remotely penetrate a system across the internet

physical hacking

the CI agent enter a facility personally

social engineering

tricking of individuals into revealing their passwords or other valuable corporate information

shoulder surfing

someone simply looks over an employees shoulder while they type in a password

dumpster diving

looking at trash for CI info

whacking

wireless hacking to eavesdrop on wireless networks

phone eavesdropping

monitor and record a fax line

Equal Employment Opportunity (EEOC)

75,000-80,000 charges of discrimination are filed annually with them

Age Discrimination in Employment Act

outlaws hiring practices that discriminate against people between the ages of 49 and 69, as well as those that require employees to retire before the age of 70

affirmative action programs

efforts to recruit, hire, train and promote qualified individuals from groups that have traditionally been discriminated against on the basis of race, gender, or other characteristics

sexual harassment

defined as any repeated, unwanted, behavior of a sexual nature perpetrated upon one individual by another

hostile work environment

conduct was unwelcome, conduct was severe, pervasive, and regarded by the claimant as so hostile offensive as to alter his or her conditions of employment; the conduct was such that a reasonable person would find it hostile or offensive

dual relationship

a personal, loving, and or sexual relationship with someone with whom you share professional responsibilities

unethical dual relationships

the relationship causes either a direct or indirect conflict of interest or a risk of impairment to professional judgement

Koyoto Protocol

world's growing concern about global warming, is an international treaty on climate change committed to reducing emissions of carbon dioxide and five other greenhouse gases and to engaging in emissions trading if member signatories maintain or increase emissions of these gases. US one of the only countries not to sign

fraud

any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression

accounting fraud

involves a corporation's financial reports in which companies provide important information on which investors and others base decisions that may involve millions of dollars

Sarbanes-Oxley Act

prohibits accounting firms from providing both auditing and consulting services to the same firm

marketing fraud

the process of creating, distributing, promoting, and pricing products

puffery

exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely and is not actionable under the Lanham Act

implied falsity

message has a tendacy to mislead, confuse, or deceive the public

test prove (established claims)

cites a study or test that establishes the claim

bald assertions (non-established claims)

makes a claim that cannot be substantiated as when a commercial states that a certain product is superior to any in the market

slamming

changing a customer's phone service without authorization

consumer fraud

when consumers attempt to deceive businesses for their own gain

guile

a person who is crafty or understands right/wrong behavior but uses tricks to obtain an unfair advantage

illegal insider trading

buying or selling of stocks by insiders who posses material that is still not public

insider

any officer, director, or owner of 10 percent or more of a class of a company's securities

legal insider trading

legally buying and selling stock in an insider's own company, but not all the time

Quid Pro Quo

if you do this I will do that. Implying certain things

Office Romances

consensual agreement can change

Basis for hiring, firing and promotion

seniority/experience, education, performance

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