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26 Cards in this Set
- Front
- Back
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3 Dimensions to ethical effectiveness
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1 - voluntary practices
2- Core practices 3 - Mandatory boundaries |
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Voluntary Practices
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beliefs, values and voluntary contractual obligations
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Philanthropy
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giving back to communities and causes
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core practices
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documented best practices, encouraged by legal and regulatory forces
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Better Business Bureau
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leading self regulatory body that provides directions for managing customer disputes and reviews advertising cases
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Mandated boundaries
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externally imposed boundary of conduct - laws, rules, regulations and other requirements
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Civil law
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rights and duties of individuals and organizations
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Criminal Law
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prohibts specific actions - fraud, theft and securities trading violations but also imposes fines or imprisonment as punishment
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5 categories of laws to establish basic ground rules for responsible business activities
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1. Regulating competition
2. Protecting consumers 3. Protecting equity and safety 4. Protecting the environment 5. Incentives to encourage compliance |
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Pro-competitive legislation
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Encourage competition and practices that reduce or restrict competition among businesses
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Prohibits Monopolies
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Sherman Anti-Trust Act 1890
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Laws regulating competition
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laws to prevent the establishment of monopolies, inequitable pricing, and other practices that reduce or restrict competition between businesses
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Laws Protecting Consumers
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require businesses to provide accurate information about products and services and to follow safety standards
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FTC’s Bureau of Consumer Protection
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protects consumers against unfair, deceptive, or fraudulent practices
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FDA
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regulates food safety, human drugs, and tobacco, among other things
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Laws Promoting Equity and Safety
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protect the rights of minorities, women, older persons, and disabled persons
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4 Laws Promoting Equity and Safety
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Title VII of the Civil Rights Act
Equal Employment Opportunity Commission (EEOC) Affirmative action programs The Equal Pay Act Laws Promoting Equity and Safety |
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Occupational Safety and Health Administration
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makes inspections to ensure a safe working environment
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Gatekeepers
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Overseers of business actions
Accountants, regulators, lawyers, financial rating firms, auditors Are critical in providing accurate information to stakeholders |
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Accountants
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Measure and disclose financial information to the public
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Sarbanes-Oxley (SOX) Act
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Established a system of federal oversight of corporate accounting practices
Gives the Public Company Accounting Oversight Board (PCAOB) authority to monitor accounting firms Standards and rules for auditors in accounting firms Requires top managers to certify their firms’ financial reports More accountability for CEOs and CFOs Some legal protection for whistleblowers Loopholes existed and misconduct continued |
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Dodd-Frank Wall Street Reform and Consumer Protection Act
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Seeks to improve financial regulation, increase oversight, and prevent excessive risk-taking and deceptive practices
Created new offices - The Office of Financial Research - The Financial Stability Oversight Council - The Consumer Financial Protection Bureau (CFPB) Increased whistle-blower protections - Whistle-blower bounty program |
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Federal Sentencing Guidelines for Organizations
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Passed as an incentive for organizations to develop and implement programs for ethical and legal compliance
- Applies to all felonies and class-A misdemeanors committed by employees - Philosophy that legal violations can be prevented through organizational values and commitment to ethical conduct - Passed in 1991; amendments in 2004, 2008, and 2010 |
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4 Major Benefits of Voluntary Practices
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Improves quality of life in communities
Reduces government involvement Develops employee leadership skills Helps create an ethical culture |
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Cause-related marketing
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Ties an organization’s product(s) to a social concern through a marketing program
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Strategic philanthropy
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The synergistic and mutually beneficial use of a company’s core competencies and resources to deal with social issues
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