There is no worldwide standard of conduct for business people. This is especially true given the global nature of business activities. Cultural norms and values vary between countries, ethnics groups and even among geographic regions (Wheelen, 2012). A Code of ethics specifies how an organization expects its employees to behave while on the job. “A code of ethics, (1) clarifies company expectations of employees conduct in various situations and (2) makes clear that the company expects its people to recognize the ethical dimensions in decisions and actions.” (Wheelen, 2012). Whistle-blowers are defined by the author of the textbook as those employees who report illegal or unethical behavior on the part of others. Even though the Sarbanes-Oxley Act forbids firms from retaliating against anyone reporting unethical acts, 82% of those who uncovered fraud reported being ostracized, demoted or pressure to quit (Wheelen, 2012). The concept of Social Responsibility as it is explained in the textbook proposes that a private corporation has responsibilities towards the society that extend beyond making a profit. Many business people have agreed upon the main responsibilities of a business, which are Economic, Legal and Ethical. Being socially responsible does provide a firm a more positive overall reputation (Wheelen, 2012). Sustainability may include more
There is no worldwide standard of conduct for business people. This is especially true given the global nature of business activities. Cultural norms and values vary between countries, ethnics groups and even among geographic regions (Wheelen, 2012). A Code of ethics specifies how an organization expects its employees to behave while on the job. “A code of ethics, (1) clarifies company expectations of employees conduct in various situations and (2) makes clear that the company expects its people to recognize the ethical dimensions in decisions and actions.” (Wheelen, 2012). Whistle-blowers are defined by the author of the textbook as those employees who report illegal or unethical behavior on the part of others. Even though the Sarbanes-Oxley Act forbids firms from retaliating against anyone reporting unethical acts, 82% of those who uncovered fraud reported being ostracized, demoted or pressure to quit (Wheelen, 2012). The concept of Social Responsibility as it is explained in the textbook proposes that a private corporation has responsibilities towards the society that extend beyond making a profit. Many business people have agreed upon the main responsibilities of a business, which are Economic, Legal and Ethical. Being socially responsible does provide a firm a more positive overall reputation (Wheelen, 2012). Sustainability may include more