Chapter 2 and 3 - Constitution and Ethics Flashcards
Chapter 2 - Focused on legislation, Chapter 3 - Ethics vs moral minimum
Commerce Clause
Congress shall have power to regulate commerce with foreign nations, among the states, and with Indian tribes. (Article 1, Section 8)
Supremacy Clause
The U.S. Constitution, laws, and treaties are ‘the supreme Law of the Land.’ Federal law prevails over conflicting state or local law.
First Amendment
Guarantees freedoms of religion, speech, the press, and rights to assemble and petition the government.
Due Process
5th and 14th Amendments guarantee that no person shall be deprived of life, liberty, or property without due process of law.
Procedural Due Process
Government must give proper notice and an opportunity to be heard before depriving life, liberty, or property.
Substantive Due Process
Limits what the government may do in legislative and executive actions, protecting fundamental rights.
Equal Protection
14th Amendment ensures that no state shall deny any person equal protection under the law.
Privacy
Implied right found in the 1st, 3rd, 4th, 5th, 9th, and 14th Amendments.
Ethics
Moral principles and values applied to social behavior.
Business Ethics
Application of moral principles to situations in a business setting.
Moral Minimum
The minimum ethical behavior expected of businesses, usually defined as compliance with the law.
Legislation Related to Ethics
Includes the Fraud Reduction and Data Analytics Act, Dodd-Frank Act, and Sarbanes-Oxley Act.
Company Code of Ethics
Examples: Costco, Google, AICPA, PMI, Financial Services Professional Board.
Attitude of Top Management
Managers must comply with ethical standards to set an example for employees.
Duty-Based Ethics
Ethical philosophy based on obligations and rights owed to others (e.g., whistleblowers).
Outcome-Based Ethics
Ethical philosophy focusing on consequences of actions to maximize benefits and minimize harm.
Corporate Social Responsibility
Corporations should act ethically and be accountable to society for their actions.
IDDR (I Desire to Do Right)
Steps: Inquiry, Discussion, Decision, Review.
