Business Chapter

Standards of moral behavior, that is, behavior accepted by society as right versus wrong. 2. Compliance-Based Ethics Codes: Ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers. 3. Integrity-Based Ethics Codes: Ethical standards that define the organization’s guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees. 4. Weightlessness: Insiders who report illegal or unethical behavior. 5.

Corporate Social Responsibility (CARS): A business’s concern for the welfare of society. 6. Corporate Philanthropy: The dimension of social responsibility that includes charitable donations. 7. Corporate Social Initiatives: Enhanced forms of corporate philanthropy directly related to the company’s competencies. 8. Corporate Responsibility: The dimension of social responsibility that includes everything from hiring minority workers to making safe products. 9. Corporate Policy: The dimension of social responsibility that refers to the position a rim takes on social and political issues. 10.

Insider Trading: An unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends. 1 1 . Social Audit: A systematic evaluation of an organization’s progress toward implementing socially responsible and responsive programs. Key Topics: a. Explain why obeying the law is only

the first step in behaving ethically. I. How is legality different from ethics? 1 . Ethics goes beyond obeying laws to include abiding by the moral standards accepted by society. Ethics reflects people’s proper relationships with one another.

Legality is more limiting; it refers only to laws written to protect people from fraud, theft, and violence. B. Ask the three questions you need to answer when faced with a potentially unethical action. I. How can we tell if our business decisions are ethical? 1. Is it legal? 2. Is it balanced? 3. How will it make me feel? C. Describe management’s role in setting ethical standards. I. What is management’s role in setting ethical standards? 1 . Managers often set formal ethical standards, but ore important are the messages they send through their actions.

Management’s tolerance or intolerance of ethical misconduct influences employees more than any written ethics code. D. Distinguish between compliance-based and integrity-based ethics codes, and list the six steps in setting up a corporate ethics code. I. What’s the difference between compliance-based and integrity-based ethics codes? 1 . Whereas compliance-based ethics codes are concerned with avoiding legal punishment, integrity-based ethics codes define the organization’s guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees. . Define corporate social responsibility and compare corporations’ responsibilities to various stakeholders. I. What is corporate social responsibility? Corporate social responsibility Is ten concern Duskiness’s nave Tort society. II. H do businesses demonstrate corporate responsibility towards stakeholders? 1 . Business must satisfy customers with goods and services of real value. 2. Business must make money for its investors. 3. Business must create Jobs for employees, maintain Job security, and see that hard work and talent are fairly rewarded 4.

Business must create new wealth for society, promote social Justice, and contribute to making its own environment a better place. Iii. How are a company’s social responsibility efforts measured? 1 . A corporate social audit measures an organization’s progress toward social responsibility. Some people believe the audit should add together the organization’s positive actions and then subtract the negative effects to get a net social benefit. F. Analyze the role of U. S. Genuineness in influencing ethical behavior and social responsibility in global markets. I. How can U. S. Companies influence ethical behavior and social responsibility in global markets? 1 . Many U. S. Businesses are demanding socially responsible behavior from their international suppliers by making sure their suppliers do not violate U. S. Human rights and environmental standards. Companies like Sears, Phillips-Van Houses, and DOD Chemical will not import products from companies that do not meet their ethical and social responsibility standards.