61 terms

Business Ethics- Chapter 3

Business Ethics- 9th Edition- Ferrell
abusive/intimidating behavior
can include physical threats, false accusations, being annoying, profanity, insults, yelling, harshness, ignoring someone, and unreasonableness
accounting fraud
manipulation or falsification of a corporation's financial reports providing important information on which investors and others base decisions that may involve millions of dollars
active bribery
when the person who promises or gives the bribe commits the offense
Adam Smith
Eighteenth-century British professor whose writings formed the basis of modern economics; observed and wrote about supply and demand, contractual efficiency, and division of labor; published The Theory of Moral Sentiments and the Inquiry into the Nature and Causes of the Wealth of Nations
affirmative action
affirmative action program
a program designed to provide work and education opportunities for women and minorities
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
the practice of offering something (usually money) in order to gain an illicit advantage
behavior associated with a hostile workplace where an individual or a group considered a target is threatened, harassed, belittled, or verbally abused or overly criticized
Collateralized debt obligations
a type of structured asset-backed security (ABS) whose value and payments are derived from a portfolio of fixed-income underlying assets
conflict of interest
a situation in which a public official's decisions are influenced by the official's personal interests
consumer fraud
when consumers attempt to deceive businesses for their own gain
Corporate Fraud Accountability Act
Title VIII of the Sarbanes-Oxley act that consists of seven sections and is also referred to as the "Corporate and Criminal Fraud Act of 2002"; describes specific criminal penalties for manipulation, destruction or alteration of financial records or other interference with investigations, while providing certain protections for whistle-blowers.
corporate intelligence
the collection and analysis of information on markets, technologies, customers, and competitors, as well as on socioeconomic and external political trends
a financial instrument that is derived from some other asset, index, event, value or condition (known as the underlying); rather than trade or exchange the underlying itself, derivative traders enter into an agreement to exchange cash or assets over time based on the underlying
dual relationship
a personal, loving, and/or sexual relationship with someone with whom one shares professional responsibilities
dumpster diving
searching trash that has been discarded onto a public street or alley for trade secrets
environmental issues
include global warming, water pollution, and waste management
Equal Employment Opportunity Commission
enforces all federal laws prohibiting job discrimination and provides oversight and coordination of all federal equal employment opportunity regulations, practices, and policies
how wealth or income is distributed between employees within a company, a country, or across the globe
ethical dilemma
ethical dilemma
a problem, situation, or opportunity that requires an individual, group, or organization to choose among several wrong or unethical actions
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
facilitation payment
payment made to obtain or retain business or other improper advantages
the quality of being just, equitable, and impartial
Federal Sentencing Guidelines
codified into law, incentives to reward organizations for taking action to prevent misconduct
any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression
Futures contracts
standardized contracts to buy or sell a specified commodity of standardized quality at a certain date in the future, at a market determined price (the futures price)
Green energy
perceived to lower carbon emissions and create less pollution; sources include anaerobic digestion or biomass, geothermal, wind, small-scale hydropower, solar, and tidal power
an attempt to penetrate a system to capture data, user names, and passwords
truthfulness or trustworthiness
hostile work environment
work environment that meets the following criteria: unwelcome conduct; conduct that is severe, pervasive, and regarded by the claimant as so hostile or offensive as to alter his or her conditions of employment; and conduct such that a reasonable person would find it hostile or offensive
implied falsity
a message that has a tendency to mislead, confuse, or deceive the public
insider trading
buying or selling of company stocks by insiders; illegal insider trading involves the buying or selling of stocks by insiders who possess material that is still not public, whereas legal insider trading involves legally buying and selling stock by insiders, subject to timing and reporting constraints
uncompromising adherence to ethical values
intellectual-property right
the legal protection of intellectual properties such as music, books, and movies
Kyoto Protocol
an international treaty on climate change committed to reducing emissions of carbon dioxide and five other greenhouse gases and to engaging in emissions trading
labeling issue
a type of advertising abuse in the form of claims that misrepresent the features or properties of a product or service
literally false
advertising claims that belong to one of two subcategories: tests prove (establishment claims), in which the advertisement cites a study or test that establishes the claim; and bald assertions (non-establishment claims), in which the advertisement makes a claim that cannot be substantiated
dishonest behavior that can take one of three forms: (1) statements that cause damage or harm; (2) a "white lie," which doesn't cause damage but can be called an excuse or something told to benefit someone else; and (3) statements that are obviously meant to engage or entertain with no malice
marketing fraud
the process of creating, distributing, promoting, and pricing products
Milton Friedman
economist whose ideas were guiding principles for government policy making in the U.S., and increasingly throughout the world, starting in the second half of the 20th century; believed in deregulation and that the system could reach equilibrium without government intervention
the holding company for Moody's Investors Service, which performs financial research and analysis on commercial and government entities, as well as ranking the credit-worthiness of borrowers using a standardized ratings scale
the trade-off between equity (equality or fairness) and efficiency (maximum productivity)
passive bribery
an offense committed by the official who receives the bribe; not an offense, however, if the advantage was permitted or required by the written law or regulation of the foreign public official's country, including case law
password guessing
using personal information—such as a child's name, birthdays and anniversaries, and Social Security numbers—to guess a password
phone eavesdropping
using a digital recording device to monitor and record a fax line
physical hacking
requires that the hacker enter a facility personally to capture data, user names, and passwords
Ponzi scheme
a fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned; usually offers returns that other investments cannot guarantee in order to entice new investors, in the form of short-term returns that are either abnormally high or unusually consistent
privacy issue
issues that businesses must address include the monitoring of employees' use of available technology and consumer privacy
exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely and is not actionable under the Lanham Act
an interchange of giving and receiving in social relationships
remote hacking
involves attempting to penetrate remotely a system across the Internet
Securities Investor Protection Corporation (SIPC)
a federally mandated non-profit corporation in the United States that protects securities investors from financial harm if a broker-dealer company fails
sexual harassment
any repeated, unwanted behavior of a sexual nature perpetrated upon one individual by another; may be verbal, visual, written, or physical and can occur between people of different genders or those of the same sex
shoulder surfing
looking over an employee's shoulder while he or she types in a password
changing a customer's phone service without authorization
social engineering
the tricking of individuals into revealing their passwords or other valuable corporate information
system hacking
assumes that the attacker already has access to a low-level, privileged-user account
unethical dual relationship
a relationship that causes either a direct or indirect conflict of interest or a risk of impairment to professional judgment.
voluntary practices
the beliefs, values, and voluntary contractual obligations of an organization
water pollution
result of the dumping of raw sewage and toxic chemicals into rivers and oceans, from oil and gasoline spills, and from the burial of industrial wastes in the ground where they may filter into underground water supplies
wireless hacking