Part of decision making at all levels of work and management
Comprises organizational principles, values, and norms that may originate from individuals, organizational statements, or from the legal system that primarily guide individual and group behavior in business
Values and judgements play a critical role when we make__?
Refer to a persons personal philosophies about what is right or wrong
Specific and pervasive boundaries for behavior that should not be violated
Enduring beliefs and ideals that are socially enforced
What are the top two most trusted industries in the world?
Technology and Automotive
Theological discussions of ethics emerged Year?
In what decade did social conscience emerge?
Who came up with the consumer bill of rights
John F Kennedy
What is the consumer bill of rights?
Right to safety Right to be informed Right to choose Right to be heard
What decade did Consumer protection groups fight for legislation changes and who led the fight?
Ralph Nader in the 1960s
An organizations obligation to maximize positive impact and minimize negative impact on stakeholders
Corporate Social Responsibilty
In what decade did business ethics become an acknowledged field of study and firms establish ethics commities
Foundation for the Federal Sentencing Guidelines for Organizations to come in the 1990s
Defense Industry Initiative on Business Ethics and Conduct (DII)
Who introduced self regulation that changed the rules of business
acceptable behavior as defined by the company and industry
Minimizing the need for enforced compliance. Maximize utilization of principles/ethical reasoning in difficult or new situations. These are the goals of the?
Do companies need profits in order to meet their responsibilities?
Helps identify internal and external stakeholders. Helps monitor and respond to needs, values, and expectations of stakeholder groups
The formal system of accountability and control of ethical and socially responsible behavior
Those who have a stake or claim in some aspect of a company's products, operations, markets, industry, and outcomes.
What are the three approaches to stakeholder theory?
Normative Descriptive Instrumental
Principles and values help identify ethical guidelines that dictate how to treat stakeholders
Focuses on actual behavior, addressing decisions and strategies in stakeholder relationships
Examines stakeholder relationships and describes outcomes for particular behaviors
stakeholders whose continued association is absolutely necessary for a firms survival
Stakeholders who do not typically engage in transactions with the firm and are not essential to a firms survival
What are the four levels of social responsibility
economic legal ethical philanthropic
Strong sustained economic performance. Rigorous compliance. Ethical actions beyond what is legally required. Voluntary contributions to advance reputation and stakeholder commitment. these are the four interrelated dimensions of
is one of an organization's greatest intangible assets with tangible value
The four Social Responsibility Issues
Social Consumer Protection Sustainability Corporate Governance
Deals with concerns that affect the welfare of our entire society, associated with the most common good
The company has the responsibility of taking precautions to prevent consumer harm
Business can no longer afford to ignore the natural environment as a stakeholder
To maximize positive outcomes that meet stakeholders needs is the purpose of a
What is the formal system of Corporate Governance
Accountability Oversight Control
How closely workplace decisions align with a firms strategic direction
A system of checks and balances to minimize opportunities for misconduct
The process of auditing and improving organizational decisions and actions
Founded in classic economic precepts. Maximizing wealth for investors and owners. Which model?
A broader view of the purpose of business.
Holds final responsibility for its firms success, failure, and ethical actions
Board of directors
Is the concept of board members being linked to more than one company
How do you implement a stakeholders perspective?
Asses the corporate culture Identify stakeholder groups Identify stake holder issues Assessing commitment to CSR Identifying resources and determining urgency Gaining stakeholder feedback
is a problem, situation, or opportunity that requires an individual or group to choose among actions
Uncompromising adherence to ethical values
Truthfulness or trustworthiness Telling the truth to the best of your knowledge
A lack of integrity, incomplete disclosure, or an unwillingness to tell the truth
The quality of being just, equitable, and impartial
How wealth or income is distributed
Occurs when an action that has an effect upon another is returned
The tradeoff between equity and efficiency
is a problem, situation, or opportunity that requires an individual or group to chose among several wrong or unethical actions
One of the most common ethical problems
Abusive or Intimidating Behavior
Can be physical threats, false accusations, profanity, insults, harshness, ignoring someone, or unreasonableness
Abusive or Intimidating Behavior
Three types of lies
Joking without malice Commission lying Omission lying
is creating a false perception with words that deceive the receiver ➢ Creating noise
is intentionally not informing channel members of problems relating to a product that affects awareness, intention, or behavior
Exist when an individual must choose whether to advance his/her personal interests, those of the organization, or some other group
Conflicts of Interest
The practice of offering something in order to gain an illicit advantage
The person who promises or gives the bribe commits the offense (type of bribery)
An offense committed by the official who receives the bribe (type of bribery)
Legal as long as they are small (type of bribery)
The collection and analysis of information on... ❖ Markets ❖ Technologies ❖ Customers and competitors ❖ Socioeconomic and external political trends
Three Corporate intelligence models
Passive monitoring system for early warning ❖ Tactical field support ❖ Support dedicated to top management strategy
A repeated, unwanted behavior of a sexual nature perpetrated upon an individual by another
A personal, loving, and/or sexual relationship with someone with whom you share professional responsibilities
The relationship causes a conflict of interest or impairment of professional judgment
Any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression
Top Method of Initial Detection of Operational Frauds
The process of dishonestly creating, distributing, promoting, and pricing products
Exaggerated advertising claims, blustering, and boasting
An advertising message that misleads, confuses, or deceives the public
Claims can be divided into tests prove (establishment claims) and bald assertions (non-establishment claims)
When consumers attempt to deceive businesses for personal gain
involves an employee who helps a consumer commit fraud
involves a consumer duping a store
is associated with a person who uses tricks to obtain an unfair advantage
Involves legally buying and selling stock in an insider's own company, but not all the time
Legal insider trading
The buying or selling of stocks by insiders who possess material that is not public
Illegal insider trading
Involve the legal protection of intellectual properties