Bus 784_Chapter 5

Front 1

Corporate Culture

Back 1

blend of ideas, customs, traditional practices, company values, and shared meanings that help define normal behavior for everyone who works in a company

Front 2

Ethical Climate

Back 2

unspoken understanding among employees of what is and is not acceptable behavior. Sets ethical tone.

Front 3

Three ethical criteria that parallels Kohlberg

Back 3

egoism (self-interest, economic efficiency), benevolence (social responsibility, concern for others) and principle (personal morals, respect for one's integrity)

Front 4

Accounting Ethics

Back 4

financial records need to be audited by outside CPA, no conflict of interest, independent auditors of accounting

Front 5

Financial Ethics

Back 5

finance dept managers assets to raise capital, no back-dating of stocks, no fraud, no false number of employees, NASD responsible for nasdaq

Front 6

Chartered Financial Analyst, CFA

Back 6

maintain a code of conduct dealing with clients and their assets

Front 7

Marketing Ethics

Back 7

marketing, advertising, distributing and selling of products/merchandise,
honesty and fairness in advertising, consumer health and safety

Front 8

Information Technology Ethics

Back 8

invasion of privacy, collection and storage of personal info, copyright protection

Front 9

Other functional area of business ethics

Back 9

suppliers, lack of upkeep, flawed manufacturer designs, worker safety

Front 10

Institutionalizing Ethics

Back 10

build ethical safeguards into routine

Front 11

Building Ethical Safeguards

Back 11

for whole company
compliance-based approach-seek to avoid legal sanction, emphasize detection threat to employees
integrity-based approach-concern for law, help employees seek ethical advice, employees encouraged to act with integrity

Front 12

Ethical Safeguard in Company **

Back 12

1. Top Management Commitment and Involvement "Tone at the Top"
2. Ethics Policies or Codes- provide guidance to managers and employees when in ethical dilemma
3. Ethics and compliance officers-from 80s
4. Ethics reporting mechanism- ethics assist or help line for ethical gift-giving, send allegations to correct authorities, make work related topics known
5. Ethics training programs (expensive, time consuming)
6.Ethics audits-employee or outside notes deviations from company standards

Front 13

Comprehensive Ethics Programs

Back 13

Integrate safeguards in a comprehensive program: create strong ethical culture and ethical work environment for employees, employees more likely to report unethical behavior and be satisfied with company response

Front 14

Corporate Ethics Awards

Back 14

fair profits, not max
locally based, stakeholder owned
democratically accountable
life-serving
operate on human scale

Front 15

bribery

Back 15

questionable, unjust parment to government official to ensure facilitate a business transactio

Front 16

ethics in global economy

Back 16

no bribery
transparency--CPI (transparency international's corruption perceptions index); likely in low per capita income, less income variation; legal not best fix
Cures: integrative approach to economic advance policies, social investing in education, friendly bus practices, anticorruption laws, enhance cultural development----1 trillion estimate---

Front 17

Curtail Unethical Practices

Back 17

Government intervention/regulation
OECD (Organization for Economic Cooperation and Development)
calls on member countries to deter, prevent, combat bribery of public officers--make birbery a crime

Front 18

U.S. Foreign Corrupt Practices Act
FCPA

Back 18

U.S. companies cannot bribe foreign companies; full disclosure of accounting practices

Front 19

Laws

Back 19

formal rules
general public's right and wrong
business should go beyond laws to make people happy

Front 20

White-collar crime

Back 20

illegal acts (fraud, insider trading, embezzlement) by business or employee professionals
federal crime