E. Ch. 1 Flashcards
Business Ethics
compromises the principles, values & standards that guide behavior in the business world
Principles
specific boundaries for behavior that are universal
Values
used to develop norms that are socially enforced
1960’s
decay of inner cities and growth of ecological problems
JFK
Consumers bill of rights (right to safety, right to be informed, right to be heard)
JFK said, governments responsibility..
was to provide citizens with some degree of economic stability, equality, and social justice
Ralph Nader
fought successfully for consumer-protection legislation
1970’s
business professors began to teach and write about corporate social responsibility
social responsibility
an organizations obligation to maximize its positive impact and to minimize its negative impact on stakeholders
foreign corrupt practices act
illegal for U.S. businesses to bribe government officials of other countries (Jimmy Carter)
1970’s major business ethics issues
bribery, deceptive advertising, price collusion, product safety, environment
1980’s
business ethics became a legitimate field of study
Six principles:
understandable, detailed code of conduct
ethics training
atmosphere to report violations, without fear of retribution
extensive internal audits
preservation of the integrity of the defense industry
public accountability
1990’s
(FSGO)Federal sentencing guidelines for organizations codified into law incentives to reward organizations for developing effective internal legal and ethical compliance programs in order to prevent misconduct
2000’s
to address a loss of confidence in financial reporting and corporate ethics, congress passed the Sarbanes-Oxley Act in 2002.
Sarbanes-Oxley Act in 2002
Study concept in review
Ethical culture
charter of decision making process that employees use to determine whether their responses to ethical issues are right or wrong
Goal of ethical culture
minimize need for enforced compliance of rules and maximize the use of principles that contribute to ethical reasoning in difficult or new situations
Ethical misconduct will impact a company’s rep from :
investor
consumer
confidence
shareholder value
When employees see honesty, respect, and trust in the workplace:
Less pressure to compromise ethical standards
observed less misconduct
more satisfied with their job
feel valued as employees
