Term
| What are the standards of conduct and moral values governing actions and decisions in the work environment |
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Definition
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Term
| Businesses must also take into account what? |
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Definition
A wide range of social issues such as:
i. How will a decision affect the environment?
ii. How will it affect its customers?
iii. Its employees? |
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Term
| These issues are part of _______ —the philosophies, policies, procedures, and actions that enhance society’s welfare |
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Definition
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Term
| Through ethics and social responsibility, businesses find the balance between __________ |
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Definition
| doing what is right and doing what is profitable |
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Term
| In business, as in life, deciding what is right or wrong is not always _______ |
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Definition
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Term
| The of staff at all levels, not just executives, shape a firm’s decisions and actions |
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Definition
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Term
| Business ethics are shaped by several factors: |
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Definition
i. By individuals weighing what’s right and wrong before deciding or taking action
ii. By the ethical climate, the prevailing combination of a company’s stated beliefs and its real actions
iii. By a firm’s codes of conduct, usually made up of statements in which the “right thing to do” is encouraged and applauded
iv. By a firm’s framework designed to encourage, or demand, high ethical standards from its workers |
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Term
| Business ethics are continually in the news in what forms? |
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Definition
| Investigations, lawsuits, arrests, convictions, and business collapse due to fraud and corruption |
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Term
| These stories may have obscured the fact that many firms are ethical |
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Definition
i. One study (National Business Ethics Survey) said 80% of Americans felt that their employers kept promises and that honesty and respect were on the rise
ii. Most business owners and managers have led companies without breaking the rules; some have created formal documents that state the company’s beliefs
iii. General Electric’s CEO says that a firm stays on the “most admired” list due to virtue, execution, growth, and great people |
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Term
| What two studies show that not all firms meet ethical standards? |
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Definition
i. One study (Public Agenda, Kettering Foundation) said that Americans felt greed, poor values, and disinterest in preserving jobs affected too many companies
ii. The same study said that executives felt preserving jobs was a business issue, not an ethical issue |
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Term
| What governement regulation was passed to set new rules for business trading and financial reporting |
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Definition
| The Sarbanes-Oxley Act of 2002 |
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Term
| New government regulations do what? |
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Definition
| establishe new regulations for securities trading and accounting practices |
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Term
| New governemnt regulations require what? |
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Definition
| companies to publish their code of ethics and inform public of changes in it |
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Term
| What do new government regulations make CEOs do? |
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Definition
| forces CEOs to make sure that financial statements are accurate |
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Term
| What might new government regulations encourage companies to write? |
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Definition
| It may encourage companies to write codes and guidelines |
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Term
| Why was the U.S. Sentencing Commission created? |
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Definition
| was created by the federal government to create and enforce standards |
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Term
| What does the U.S. Sentencing Commission do? |
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Definition
| institutionalizes ethics compliance programs and sets high ethical standards for corporate conduct |
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Term
| Ethics compliance officers are _______ |
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Definition
newly appointed to handle specific ethical issues such as:
i. To deter wrongdoing and upholding standards
ii. To train employees to spot fraud and abuse
iii. To investigate sexual harassment and discrimination issues
iv. To monitor conflicts of interest |
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