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

compliance-based ethics codes

Ethical standards that emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers.

integrity-based ethics codes

Ethical standards that define the organization's guiding values,create an environment that supports ethically sound behavior,and stress a shared acountability among employees.


People who report illegal or unethical behavior.

corporate social responsibility

A business's concern for the welfare of society.

corporate philanthropy

Dimension of social responsibility that includes charitable donations.

corporate social initiatives

Enhanced forms of corporate philanthropy that are more directly related to the company's competence.

corporate responsibility

Dimension of social responsibility that includes everything from hiring minority workers to making safe products.

corporate policy

Dimension of social responsibility that refers to the position a firm takes on social and political issues.

insider trading

An unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends.

social audit

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

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