Intro To Business Chapter 4

Front 1

How to restore trust in the free market system

Back 1

punish those who have broken the law; make accounting records more transparent; and consider what is ethical, not just what is legal

Front 2

Ponzi Scheme

Back 2

a fraud by paying returns to existing investors from funds contributed by new investors, new investors are promised opportunities claimed to generate high returns with little or no risk, fraudsters focus on attracting new money to make promised payments (Bernie Madoff)

Front 3

Ethics

Back 3

the standards of moral behavior (behaviors accepted by society as right vs wrong)

Front 4

Questions to ask when facing ethical dilemmas

Back 4

is it legal? Is it balanced? How will it make me feel about myself?

Front 5

Organizational ethics begins

Back 5

at the top with managers helping to instill corporate values in employees

Front 6

Individual Factors Influencing Managerial Ethics

Back 6

values, work backgrounds, family status, personality

Front 7

Organizational Factors Influencing Managerial Ethics

Back 7

top level management philosophy, firm’s reward system, job dimensions

Front 8

Environmental Factors Influencing Managerial Ethics

Back 8

competition, economic conditions, social/cultural institutions

Front 9

Compliance-based Ethics Code

Back 9

emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers

Front 10

Integrity-based Ethics Code

Back 10

define the organization’s guiding values, create an environment that supports ethically sound behavior and stress a shared accountability

Front 11

Improve America’s Business Ethics

Back 11

explicit corporate code of conduct, employees understand expectation to act ethically, training to consider ethical implications of all business decisions, existence of an ethics office, whistleblower protection, involve outside opinions, enforcement of ethics code

Front 12

Whistleblower

Back 12

insiders who report illegal or unethical behavior

Front 13

Corporate Social Responsibility (CSR)

Back 13

the concern businesses have for the welfare of society based on a commitment to integrity, fairness, ad respect. Businesses owe their existence to the societies they serve

Front 14

Corporate philanthropy

Back 14

includes charitable donations

Front 15

Corporate social initiatives

Back 15

include enhances forms of corporate philanthropy

Front 16

Corporate responsibility

Back 16

includes everything from hiring minority workers to making safe products, minimizing pollution, and providing a safe working environment.

Front 17

Corporate Policy

Back 17

the position a firm takes on social and political issues

Front 18

President Kennedy’s Basic Rights of Consumers

Back 18

right to safety, right to be informed, right to choose, right to be heard

Front 19

Insider Trading

Back 19

insiders using private company information to further their own fortunes or those of their family and friends

Front 20

Responsibility to Employees

Back 20

create jobs and provide a chance for upward social mobility, treat employees with respect, offer salaries and benefits that help employees reach their personal goals

Front 21

Social Auditing

Back 21

a system of evaluation of an organization’s progress toward implementing socially responsible and responsive programs

Front 22

5 social auditing watchdogs

Back 22

1. Socially conscious investors 2. Socially conscious research organizations 3. Environmentalists 4. Union officials 5. Customers

Front 23

Foreign Corrupt Practices Act (1970s)

Back 23

criminalized the act of paying foreign businesses or government leaders in order to get business

Front 24

Inter-American Convention against Corruption

Back 24

signed by partners in the Organization of American States