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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

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