Chapter 4 (Ethics) Flashcards
Unethical Behavior
- In the office: Violate safety standards, goof off.
- Personal: Lie, not act honorably.
- At school: Plagiarize from the Internet.
- Studies found a strong relationship between academic
dishonesty and dishonesty at work.
Ethics
Standards of moral behavior; that is, behavior
accepted by society as right versus wrong
Compliance-based ethics codes
Emphasize preventing unlawful
behavior by increasing control and by penalizing wrongdoers
Integrity-based ethics codes
Define the organization’s guiding
values, create an environment that supports ethically sound behavior,
and stress a shared accountability among employees
Whistle-blowers
Insiders who report illegal or unethical
behavior
Corporate Social Responsibility (CSR)
A business’s
concern for the welfare of society
Corporate philanthropy
Includes charitable donations
Corporate social initiatives
Include enhanced forms of corporate
philanthropy directly related to the company’s competencies
Corporate responsibility
Includes everything from hiring minority
workers to making safe products
Corporate policy
The position a firm takes on social and political
issues
President Kennedy’s four basic rights of consumers:
- The right to safety
- The right to be informed
- The right to choose
- The right to be heard
Insider trading
An unethical activity in which insiders use private
company information to further their own fortunes or those of their
family and friends
SEC adopted a new rule called Regulation FD
(“fair disclosure”)
Social audit
A systematic evaluation of an
organization’s progress toward implementing socially
responsible and responsive programs
Five types of watchdogs:
- Socially conscious investors
- Socially conscious research organizations
- Environmentalists
- Union officials
- Customers
