Chapter 4: Demonstrating Ethical Behavior and Social Responsiblity Flashcards
Compliance-based ethics codes
Ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers
Ethics
Standards of moral behavior; that is, behavior that is accepted by society as right versus wrong
Integrity based ethics codes
Ethical standards that define the organization’s guiding values, create an environment that supports ethically sound behaviors, and stress a shared accountability among employees
Whistleblowers
People who report illegal or unethical behavior
Corporate social responsibility
A business’s concern for the welfare of society
Corporate philanthropy
Dimension of social responsibility that includes charitable donations
Corporate responsibility
Dimension of social responsibility that includes everything from hiring minority workers to making safe products
Corporate policy
Dimension of social responsibility that refers to the position a firm takes on social and political issues
Insider trading
An unethical activity in which insiders use private company info to further their own fortunes or those of family and friends
Social audit
A systematic evaluation of an organization’s progress toward implementing programs that are socially responsible and responsive
Tort
A wrongful act that causes injury to another person’s body, property, or reputation
Negligence
Behavior that causes unintentional harm or injury
Product liability
Holds businesses accountable for harm that results from the production, design, sale, or use of products they market
Strict product liability
Legal responsibility for harm or injury caused by a product regardless of fault
Patents
Documents that give inventors exclusive rights to their inventions for 20 years
Copyright
A document that protects a creator’s rights to materials such as books, articles, photos, and cartoons
Trademark
A legally protected name, symbol, or design that identifies the goods or services of one seller and distinguishes them from those of competitors
Uniform commercial code
A comprehensive commercial law adopted by every state in the U.S. that covers sales laws and other commercial laws
Express warranties
Specific representations by the seller that buyers rely on regarding the goods they purchase
Implied warranties
Guarantees legally imposed on the seller
Negotiable instruments
Forms of commercial paper that are transferable among businesses and individuals and represent a promise to pay a specified amount
Contract
A legally enforceable agreement between two or more parties
Contract law
Sets of laws that specify what constitutes a legally enforceable agreement
Consideration
Must be something of value; essential element of a contract
Breach of contract
When one party fails to follow the terms of a contract
Damages
The monetary settlement awarded to a person who is injured by a breach of contract
Consumerism
A social movement that seeks to increase and strengthen the rights and powers of buyers in relation to the sellers
Taxes
How the government raises money
Bankruptcy
The legal process by which a person, business, or entity unable to meet financial obligations is relieved of those obligations by a court that divides the assets among creditors, allowing creditors to get at least part of their money and freeing the debtor to begin anew
Voluntary bankruptcy
Legal procedures initiated by a debtor
Involuntary bankruptcy
Bankruptcy procedures filed by a debtor’s creditors
Deregulation
Government withdrawal of certain laws and regulations that seem to hinder competition
