Business Ethics- Chapter 1
Business Ethics- 9th edition Ferrell
Terms in this set (13)
the principles, values, and standards that guide behavior in the world of business
Caux Round Table
a group of businesses, political leaders, and concerned interest groups that desire responsible behavior in the global community
Consumers' Bill of Rights
introduced in 1962, outlined four basic consumer rights: the right to safety, the right to be informed, the right to choose, and the right to be heard
Defense Industry Initiative on Business Ethics and Conduct (DII)
established a method for discussing best practices and working tactics to link organizational practice and policy to successful ethical compliance
the character or decision-making process that employees use to determine whether their responses to ethical issues are right or wrong
Federal Sentencing Guidelines for Organizations (FSGO)
codified into law, incentives to reward organizations for taking action to prevent misconduct
specific and pervasive boundaries for behavior that are universal and absolute
law that made securities fraud a criminal offense and stiffened penalties for corporate fraud; created an accounting oversight board that requires corporations to establish codes of ethics for financial reporting and to develop greater transparency in financial reports to investors and other interested parties
an organization's obligation to maximize its positive impact on stakeholders and to minimize its negative impact
How has business ethics developed over time?
In the 1960s it was the rise of social issues, 1970s it became a field of study, 1980s rules of business were changing at a phenomenal rate because
of less regulation and consoldation happened. 1990s institutionalization of business ethics: company must develop corporate values,
enforce its own code of ethics, and strive to prevent misconduct. 21st century: Such abuses increased public and political demands to improve ethical standards in business
What is involved in developing an ethical culture in an organization?
Ethics programs, Codes of ethics, Program responsibility, Communication of ethical standards, Systems to monitor and enforce ethical standards, continuous improvement of ethics programs
What are three benefits to business of a clear ethical framework?
Among the rewards for being more ethical and socially responsible in business are increased efficiency in daily operations, greater employee commitment, increased investor willingness to entrust funds, improved customer trust and satisfaction, and better financial performance.
Defense Industry Initiative on Business Ethics and Conduct
First, DII supports codes of conduct and their widespread distribution. These codes
of conduct must be understandable and provide details on more substantive areas.
Second, member companies are expected to provide ethics training for their employees as well as continuous support between training periods. Third, defense contractors must create an open atmosphere in which employees feel comfortable
reporting violations without fear of retribution. Fourth, companies need to perform
extensive internal audits and develop effective internal reporting and voluntary disclosure plans. Fifth, DII insists that member companies preserve the integrity of the defense industry. Finally, member companies must adopt a philosophy of public accountability.