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.
