Chapter 2 - Business Ethics and Social Responsibility Flashcards
Business ethic
The application of moral standards to business situations
Ethics
The study of right and wrong and the set of moral values that govern behavior
Conflict of interest
Employees take advantage of the situation for personal gain rather than for the employers interest
Sarbanes-Oxley act of 2002
Protects whistleblowers
Whistleblower
Informing the press or government officials about unethical practices within one’s organization
Code of ethics
A written document that outlines ethical standards in a company
Social responsibility
The obligation of the business to consider their impact on society as part of their business decisions making. “corporate citizenship”
Economic model
Society benefits most when business is left alone to produce profitable products that society needs
Socioeconomic model
This is not only has this responsibility to shareholders but also other “stakeholders” and society
Philanthropy
Charity, giving money
Consumerism
All activities undertaken to protect the rights of consumers
Consumer “Bill of Rights”
Right to safety, right to be informed, right to be heard, right to choose, right to service.
Equal employment opportunity commission (EEOC)
Government agency that can investigate complaints of employment discrimination
Affirmative action programs
The percentage of a race in the area of a business should correspond with the percentage of the Race it employs . Cons - Reverse discrimination
Hard-core unemployed
Worker with little education or vocational skill and long history of unemployment
