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30 Cards in this Set
- Front
- Back
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poor business practices can harm companies & reduce competition by:
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Acquisition and shrinking of competitors
Big companies create barriers to entry heavy promotional spending power over suppliers & dealers Unfair competitive marketing practices such as predatory pricing |
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Consumerism: |
An organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers |
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Environmentalism: |
Organized movement of concerned citizens, businesses, and government agencies to protect and improve people’s current and future living environment. |
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Responsibility toward the Environment |
Air pollution Water pollution Land pollution toxic waste disposal Recycling, upcycling, biomass |
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Responsibility toward Customers |
Consumer rights include the right to: Expect the product to be safe Expect the product to perform as claimed no collusion |
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collusion |
illegal agreement among companies to "fix" prices for their products |
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Responsibility toward Employees |
no: human resource management issues privacy issues drug testing computer monitoring encouraging ethical behaviour |
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Responsibility toward investors |
Improper Financial Management Insider Trading Misrepresentation of Finances |
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Improper Financial Management |
doing a poor job of managing the financial resources of a company may be legally unpunishable because no law has been broken it may be difficult to replace management because unrest in the firm may devalue its stock |
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Insider Trading |
using confidential (non-public) information to gain from the sale of stock involves gaining knowledge of inside information about the company prior to making the purchase |
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Misrepresentation of Finances |
companies must conform to accounting guidelines called generally accepted accounting principles (GAAP) failure to follow GAAP in order to inflate expected profit figures can mislead investors |
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Ethics |
standards or moral values that dictate what is right and wrong culturally based formed upon society’s expectations vary by person, and by situation |
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Ethical and legal: |
Provide safe/quality products |
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Ethical and illegal: |
Breaking the law for humanitarian reasons |
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Unethical and legal: |
Paying low wages in foreign country with lenient labour laws |
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Unethical and illegal: |
“cooking the books” false financial reporting |
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Sources of Law |
Common Law Statutory Law Administrative Law |
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Common Law |
unwritten law, derived from precedents (previous legal judgements) |
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Statutory Law |
written
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Administrative Law |
rules, regulations based on Statutory Law Court System |
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business law |
how businesses and firms are managed -proporty protection - Contract Breach - Torts - Bankruptcy
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Criminal cases |
more serious prison |
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Civil cases |
fines sue for damages |
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Contract Breach |
when one party fails to follow contract will sue for damages or force performance |
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Intellectual Property Protection |
Trademarks: 15 year protection on brand/name Patents: 20 year protection on idea/invention Copyrights: 50 years on creations (books, music, computer programs etc.) |
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Torts |
Wrongful civil act – harm to person or property Ex) Negligence, product liability
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Negligence |
wrongful act that accidentally causes injury |
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product liability
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liability of a business for injuries caused to product users because of negligence in design or manufacturing |
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Bankruptcy |
liquidation, repayment, reorganize |
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ethics in advertising |
must be true no counterfeit brands no stealth advertising - paying individuals to talk up products without disclosing that they are paid to do so |
