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74 terms

Business Ethics

TEST 1
STUDY
PLAY
business ethics
comprises the principles, values, and standards that guide behavior in the world of business
principles
specific and pervasive boundaries for behavior that are universal and absolute (freedom of speech, fundamentals of justice, equal rights to civil liberties)
values
used to develop norms that are socially enforced (integrity, accountability)
Consumer's Bill of Rights (1962)
The right to safety, be informed, to choose, and be heard.
1965 Modern Consumer Movement
Nadar's "Unsafe at Any Speed" GM putting profit and style above lives and safety
1970's
business ethics began to develop as a field of study leading to social responsibility
social responsibility
an organization's obligation to maximize its positive impact on stakeholders and to minimize its negative impact
1980's
business academics and practitioners acknowledged business ethics as a field of study
Defense Industry Initiative on Business Ethics and Conduct (DII)
developed to guide corporate support for ethical conduct
1990's
self regulation and free trade although government action was taken to deal with health related social issues
Federal SEntencing Guidelines for Organizations (FSGO)
set the tone for organizational ethical compliance programs in 1990's. focus on taking action to prevent and detect business misconduct in cooperation with government regulation
Sarbannes-Oxley Act
most far reaching change in organizational control and accounting regulations
ethical culture
character of decision making process that employees use to determine whether their responses to ethical issues are right or wrong
primary stakeholder
continued association absolutely necessary for firm's survival (employees, customer, investors, and shareholders)
secondary stakeholder
don't typically engage in transactions with a company and thus are not essential for its survival (media, trade organizations, and special interest groups)
stakeholder orientation
degree to which a firm understands and addresses stakeholder demands
Milton Friedman
basic mission of doing business is to produce goods and services for a profit, and in doing this business is making its maximum contribution to society and in fact being socially responsible
Adam Smith
one of the founders of capitalism, the invisible hand, propriety, prudence, reason, sentiment, and promoting the happiness of mankind
Four levels of social responsibility
economic, legal, ethical, and philanthropic
corporate citizenship
extent to which business strategically meet the economic, legal, ethical, and philanthropic responsibilities placed on them by their various stakeholders
duty of care/duty of diligence
make informed and prudent decisions
corporate governance
formal systems of accountability, oversight, and control
accountability
refers to how closely workplace decisions are aligned with a firm's stated strategic direction and its compliance with ethical and legal considerations
oversight
provides a system of checks and balances that limit employees' and managers' opportunities to deviate from policies and strategies and that prevent unethical and illegal activities
control
is the process of auditing and improving organizational decisions and actions
shareholder model of corporate governance
founded in classic economic precepts, including the goal of maximizing the wealth for investors and owners
stakeholder model of corporate governance
company must answer to stakeholders, including employees, suppliers, government regulators, communities, and special interest groups with which it interacts
fiduciary duty
having assumed a position of trust and confidence that entails certain responsibilities, including acting in the best interests of those they serve
executive compensation
one of the biggest issues that corporate boards of directors face
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
ethical dilemma
a problem, situation, or opportunity that requires an individual, group, or organization to choose amog several wrong or unethical actions
abusive or intimidating behavior
most common ethical problem for employees
commission lying
creating a perception or belief by words that intentionally deceive the receiver of the message
noise
technical explanations that the communicator knows the receiver does not understand
omission lying
intentionally not informing the channel member of any differences, problems, safety warnings, or negative issues relating to the product, service, or company that significantly affects awareness, intention, or behavior
conflict of interest
exists when an individual must choose whether to advance his or her own interests, those of the organization, or those of some other group
active bribery
the person who promises or gives the bribe commits the offense
passive bribery
offense committed by the official who receives the bribe
facilitation payments
made to obtain or retain business or other improper advantages do not constitute bribery payments
corporate intelligence
is the collection and analysis of information on markets, technologies, customers, and competitors, as well as on socioeconomic and external political trends
hacking
considered one of the top three methods for obtaining trade secrets
system hacking
assumes that the attacker already has access to a low-level, priveleged-user account
remote hacking
attempting to remotely penetrate a system across the internet
physical hacking
the CI agent enter a facility personally
social engineering
tricking of individuals into revealing their passwords or other valuable corporate information
shoulder surfing
someone simply looks over an employees shoulder while they type in a password
dumpster diving
looking at trash for CI info
whacking
wireless hacking to eavesdrop on wireless networks
phone eavesdropping
monitor and record a fax line
Equal Employment Opportunity (EEOC)
75,000-80,000 charges of discrimination are filed annually with them
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
affirmative action programs
efforts to recruit, hire, train and promote qualified individuals from groups that have traditionally been discriminated against on the basis of race, gender, or other characteristics
sexual harassment
defined as any repeated, unwanted, behavior of a sexual nature perpetrated upon one individual by another
hostile work environment
conduct was unwelcome, conduct was severe, pervasive, and regarded by the claimant as so hostile offensive as to alter his or her conditions of employment; the conduct was such that a reasonable person would find it hostile or offensive
dual relationship
a personal, loving, and or sexual relationship with someone with whom you share professional responsibilities
unethical dual relationships
the relationship causes either a direct or indirect conflict of interest or a risk of impairment to professional judgement
Koyoto Protocol
world's growing concern about global warming, is an international treaty on climate change committed to reducing emissions of carbon dioxide and five other greenhouse gases and to engaging in emissions trading if member signatories maintain or increase emissions of these gases. US one of the only countries not to sign
fraud
any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression
accounting fraud
involves a corporation's financial reports in which companies provide important information on which investors and others base decisions that may involve millions of dollars
Sarbanes-Oxley Act
prohibits accounting firms from providing both auditing and consulting services to the same firm
marketing fraud
the process of creating, distributing, promoting, and pricing products
puffery
exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely and is not actionable under the Lanham Act
implied falsity
message has a tendacy to mislead, confuse, or deceive the public
test prove (established claims)
cites a study or test that establishes the claim
bald assertions (non-established claims)
makes a claim that cannot be substantiated as when a commercial states that a certain product is superior to any in the market
slamming
changing a customer's phone service without authorization
consumer fraud
when consumers attempt to deceive businesses for their own gain
guile
a person who is crafty or understands right/wrong behavior but uses tricks to obtain an unfair advantage
illegal insider trading
buying or selling of stocks by insiders who posses material that is still not public
insider
any officer, director, or owner of 10 percent or more of a class of a company's securities
legal insider trading
legally buying and selling stock in an insider's own company, but not all the time
Quid Pro Quo
if you do this I will do that. Implying certain things
Office Romances
consensual agreement can change
Basis for hiring, firing and promotion
seniority/experience, education, performance