F BUSN Ch. 2 Ethics Flashcards
What are ethics?
A set of beliefs about right and wrong, good and bad.
What are universal ethical standards?
Ethical norms that apply to all people across a broad spectrum of situations.
What plays a role in shaping one’s personal ethics?
Who you are as a human being
Your family
Your culture
What are business ethics?
The application of right and wrong, good and bad in a business setting.
What are ethical dilemmas?
A decision that involves a conflict of values; every potential course of action has some significant negative consequences.
What is a code of ethics?
A formal, written document that defines the ethical standards of an organization and gives employees the information they need to make ethical decisions across a range of situations.
What are whistleblowers?
Employees who report their employer’s illegal or unethical behavior to either the authorities or media.
What is social responsibility?
The obligation of a business to contribute to society.
What are stakeholders?
Any groups that have a stake–or a personal interest–in the performance and actions of an organization.
What is consumerism?
A social movement that focuses on 4 key consumer rights:
- Right to be Safe
- Right to be Informed
- Right to Choose
- Right to be Heard
What is planned obsolescence?
Strategy of deliberately designing products to fail in order to shorten the time between purchases.
What is the Sarbanes-Oxley Act?
US federal legislation that sets higher ethical standards for public corporations and accounting firms.
Key provisions limit conflict-of-interest issues and require financial officers and CEOs to certify the validity of their financial statements.
What is corporate philanthropy?
All business donations to not-for-profit groups, including money, products, and employee time.
What is cause-related marketing?
Marketing partnerships between businesses and not-for-profit orgs, designed to spike sales for the company and raise money for the not-for-profit.
What is corporate responsibility?
Business contributions to the community through the actions of the business itself rather than donations of money and time.
What is sustainable development?
Doing business to meet the needs of the current generation, without harming the ability of future generations to meet their needs.
What is carbon footprint?
Amount of greenhouse gases that a firm emits throughout its operations, both directly and indirectly.
What is green marketing?
Developing and promoting environmentally sound products and practices to gain a competitive edge.
What is a social audit?
A systematic evaluation of how well a firm is netting it’s ethics and social responsibility goals.
