Chapter 1 Flashcards
Integral part of human society
Business
This is insufficient. Can’t cover all aspects of our human behavior
Laws
Argues that business enterprise is an organ of society and its actions have a decisive impact on social scene
Peter Drucker
Part of decision making at all levels of work and management
Ethics
Occur when accepted rules no longer serve and decision makers must weigh values and reach a judgment
Ethical decisions
Observed misconduct in the workplace
Misuse of company resources
Abusive behavior
Harassment
Accounting fraud
Conflicts of interest
Defective products
Bribery
Employee theft
Concerned with morality in business, workers’ rights, and living wages
Catholic social ethics
Encouraged individuals to be frugal, work hard and attain success in the capitalistic system
Protestant work ethics
New era of consumerism
JFK’s Consumer Bill of Rights
JFK stands for
John Fitgerald Kennedy
Four basic rights
Safety
Informed
Choose
Heard
Organization’s OBLIGATION to maximize POSITIVE IMPACT and MINIMIZE NEGATIVE impact on stakeholders
Corporate Social Responsibility
Issues in corporate social responsibility
Bribery
Environment
Price collusion
Deceptive advertising
Product safety
Business ethics bacame an acknowledged field of study and firms established ethics committees
Consolidation
Introduced self-regulation that changed the rules of business
President Reagan
FSGO stands for
The Federal Sentencing Guidelines for Organization
Increased public /political demand for improved ethical standards
Sarbanes-Oxley Act(2002)
Increased accounting regulations by whom and when
George W. Bush
July 30, 2002
Aimed at making the financial industry more transparent/responsible
Dodd-Frank Wall Street Reform and Consumer protection Act(2010)
2 person involved in Dodd-Frank reform
Christopher J. Dodd
Barney Frank
Character/decision making process that employees use to determine whether their responses to ethical issues are right or wrong
Ethical culture
Comes from employees who invested in the organization and willing to make personal sacrifices for the organization
Commitment
Increasingly interested in a company’s reputation
Investors
Important factor in a successful business strategy
Customer satisfaction
