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Definition
| About what is right vs. wrong-what is legal may not be ethical; top management must set ethical tone, then "walk the talk" |
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Term
| Creating Ethical Codes of Conduct |
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Definition
| Need writte ethics code; need ethics training; Sarbanes-Oxley Act required publicly traded corporations to have confidential system for employees to report suspected legal and ethical violations |
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Definition
| Executive compensation-shareholder resolutions demanding "say on pay;" "clawback" provisions |
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Term
| Approaches to Ethical Reasoning--Duty-Based Ethics |
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Definition
| Based on Western religious tradition and demands respect for basic human rights |
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| Outcome-Based Ethics: Utilitarianism |
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Definition
| Seeks greatest good for greatest number of people--cost-benefit analysis; "the ends justify the means" |
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Term
| Corporate Social Responsibility |
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Definition
| Based on belief that corporations have ethical duty to society |
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Term
| Corporate Social Responsibility--Stakeholder Theory |
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Definition
| Based on belief that a corporation has an ethical duty to benefit not only shareholders, but all stakeholders |
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Term
| CSR: Corporate Citizenship |
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Definition
| Securities exchange can delist a corporation that commits ethical violations |
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Term
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Definition
| Company's capacity to endure in long-term given financial structure, natural resources, ethical behavior |
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Term
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Definition
| Should be a way of doing business-many executives say good corporate citizenship increased their profits |
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Term
| Making Ethical Business Decisions |
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Definition
| According to Business Roundtable, "being ethical--doing the right thing--pays;" key is to think broadly about how corproate decisions affect community (Enron, Arthur Anderson) |
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Term
| Making Ethical Business Decisions |
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Definition
| Every employee should evaluate every action according to: the law, company's internal rules/policies, society's values ("spirit of the law"), expectations of stakeholders, your own heroes/role models, your own conscience |
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Term
| Shifting Legal Priorities for Business |
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Definition
| In age of Internet, everything can be communicated immediately around the world |
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Term
| Business Ethics on a Global Level |
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Definition
| American companies must train employees in cross-cultural business practices; corporate watch groups can damange company's reputation |
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Term
| Business Ethics on a Global Level--Bribery |
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Definition
| An offer or acceptance of anything of legal value in exchange for unwarranted favor; under U.S. Law, it is a crime to bribe a foreign official for purpose of getting a business contract--applies to U.S. persons and to foreign persons who cause bribery to occur in connection with U.S. |
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Term
| Business Ethics on a Global Level |
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Definition
| Federal law requires companies to: keep accounting records that "fairly and accurately" reflect financial activities, and have an accounting system that provides "reasonable assurance" that all transactions are legal. Federal law prohibits any person from making false statements or false entries into any record--criminal penalties for violation |
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