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| Standards of moral behavior; that is, behavior accepted by society in general, as right versus wrong |
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•Managers can and do help instill corporate values in their employees.
•Trust between workers and managers must be based on fairness, honesty, openness, and moral integrity.
•Sadly, some overly ambitious goals and incentives can create an environment in which unethical actions can occur |
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| Compliance-based ethics code |
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this code emphasizes preventing unlawful behavior by increasing internal controls and also by quickly and severely penalizing wrongdoers. |
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| is most often an inside person who reports illegal or unethical behavior. In some cases they expose secretive information or unethical activities, within a private or public organization that is considered to beillegal, unethical, or simply not correct. |
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| Corporate Social Responsibility CSR |
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| A business’s concern for the welfare of society. It is based on a commitment to integrity, fairness, and respect and proponents argue that businesses owe their existence to the societies they serve and cannot exist in societies that fail |
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| An unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends. This highly unethical behavior does financial damage to a company and investors are cheated. |
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A systematic evaluation of an organization’s progress toward implementing socially responsible and responsive programs. |
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Ponzi Scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. The scheme leads victims to believe that profits are coming from product sales or other means, and they remain unaware that other investors are the source of funds. A Ponzi scheme can maintain the illusion of a sustainable business as long as new investors contribute new funds, and as long as most of the investors do not demand full repayment and still believe in the non-existent assets they are purported to own. A Ponzi scheme can also be a fraudulent investing scam promising high rates of return with little risk to investors. The scheme generates often “very high” returns for early investors thus luring the acquisition of new investors. This is similar toa pyramid scheme in that both are based on “using new investors' funds to pay the earlier backers.” Both Ponzi schemes and pyramid schemes eventually bottom out when the flood of new investors dries up and there isn't enough money to go around. At that point, the schemes unravel. |
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