Chapter 2 Flashcards
Ethics*
The study of right and wrong and of the morality of the choices individuals make
Business ethics*
The application of moral standards to business situations
Plagiarism*
Knowingly taking someone else’s words, ideas, or other original material without acknowledging the source
Conflict of interest*
When businesspeople take advantage of a situation for their own personal interest rather than for the employer’s interest
Bribes
Gifts, favors, or payments offered with the intent of influencing an outcome—are illegal in the U.S. and abroad
Levels of Ethical Behavior
Individual Factors, Social Factors, and Opportunity as a Factor
Individual Factors
How much an individual knows (personal knowledge), moral values and central, value-related attitudes, and personal goals and the manner in which these goals are pursued
Social Factors
Cultural norms, actions and decisions of co-workers, values and attitudes of “significant others” (spouses, friends, and relatives), the use of the internet
Opportunity as a Factor
The amount of freedom an organization affords an employee to behave unethically if they make that choice, degree of enforcement of company policies, procedures, and ethical codes
Sarbanes-Oxley Act of 2002*
Provides sweeping legal protection for employees who report corporate misconduct
Trade Associations’ Role in Encouraging Ethics
Trade associations can and often do provide ethical guidelines for their members
Code of ethics*
A guide to acceptable and ethical behavior as defined by the organization
Whistle-blowing*
Informing the press or government officials about unethical practices within one’s organization
5 Guidelines for Making Ethical Decisions
- Listen and Learn
- Identify the ethical issue
- Create and analyze options
- Identify the best option from your point of view
- Explain your decision and resolve any differences that arise
Social responsibility*
The recognition that business activities have an impact on society and the consideration of that impact in business decision making
Corporate citizenship*
Adopting a strategic approach to fulfilling economic, ethical, environmental, and social responsibilities
Caveat emptor*
A Latin phrase meaning “let the buyer beware” (a doctrine consumers generally were subject to)
Economic model of social responsibility*
The view that society will benefit most when business is left alone to produce and market profitable products that society needs
Socioeconomic model of social responsibility*
The concept that business should emphasize not only profits but also the impact of its decisions on society
Consumerism*
All activities undertaken to protect the rights of consumers
The fundamental issues pursued by the consumer movement fall into three categories:
Environmental protection
Product performance and safety
Information disclosure
The Basic Rights of Consumers
The Right to Safety, The Right to Be Informed, The Right to Choose, The Right to Be Heard, The Right to Consumer Education, and The Right to Service
Major Consumerism Forces
Consumer advocates and organizations
Consumer education programs
Consumer laws
Affirmative action program*
A plan designed to increase the number of employees from underrepresented groups at all levels within an organization
Equal Employment Opportunity Commission (EEOC)*
A government agency with the power to investigate complaints of employment discrimination and the power to sue firms that practice it
Hard-core unemployed*
Workers with little education or vocational training and a long history of unemployment
Pollution*
The contamination of water, air, or land through the actions of people in an industrialized society
Recycling*
Converting used materials into new products or components for new products in order to prevent their unnecessary disposal
Green marketing*
The process of creating, making, delivering, and promoting products that are environmentally safe
Social audit*
A comprehensive report of what an organization has done and is doing with regard to social issues that affect it
