Flashcards in Chapter 1 Deck (53)
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1
Person's personal philosophies about what is right or wrong
Morals
2
Organizational priciples, values and norms that may originate from individuals, organizational statements, or from the legal system that primarily guide the individual and group behavior in business.
Business ethics
3
specific and pervasive boundaries for behavior that should not be crossed
Principles
4
most far-reaching change in organization control and accounting regulations since the SEC act. made securities fraud a crim offense, creating oversight board, made executives responsibles for financial reports.
Sarbanes-Oxley Act
5
Act created to deal with the ethical lapses of financial instiutions which lead to a recession
Dodd-Frank Wall Street Reform and consumer Protection Act
6
How many employees report unethical behavior in their organizations?
about 50%
7
Who do business ethics comprise?
comprises organizational principles. values, and norms
8
What are values?
Enduring beliefs and ideals that are socially enforced
9
At what time period were environmental issues, civil rights issues, increased employee-epmployer tension, changing work ethic, and rising drug use a problem?
1960s
10
What time period was employee militancy, human rights issues, cover ups, disadvantaged consumers, and transparency issues?
1970s
11
When were bribes and illegal contacting practices, influence peddling, deceptive advertising, and fonancian fraud issues?
1980s
12
When were sweatshops and unsafe working conditions in third world countries, rising corporate liability, financial mismanagement an dfraud, and organizational ethical misconduct issues?
1990s
13
When were cybercrime, Financial misconduct, Global issues, Chinese Product Safety, Sustainability, and Intellectual property theft issues?
2000s
14
What did the progressive movement attempt to provide citizens?
A "living wage"
15
What is a living wage?
income sufficient for education, recreating, health, and retirement
16
What did the new deal of the 30s ask of business?
To work with government to raise family income
17
What did Truan's fair deal define as ethical issues that businesses had to address?
Environmental responsibility and civil rights
18
Until the 1960s how were ethical issues in business usually discussed?
Through Theology
19
What did Catholic Social Theory focus on?
morality in business, workers' rights, and living wages; humanistic values rather tyan materialistic ones; improving the conditions of the poor
20
Whgat was the first book on ethics, when was it written, and who authored it?
1936; Sharp and Fox
21
What were some major issues of the 60s
Military Industrial complex and pollution
22
What showed the rise of consumerism in 1962?
JFK's consumer bill of rights
23
What are a consumer's rights?
The right to safety, to be informed, to choose, and to be heard
24
The Modern consumerist movement is generally considered to have begun in ____ by ____
1965; Ralph Nader's unsafe at any speed.
25
What did Johnson's "great society" do?
said business resp. for providing all citizens with some degree of economic stability, equality, and social justice.
26
What happened to business in the 1970s
it began to develop as a field of study
27
What is corporate social responsibility?
An organization's obligation to maximize its positibe impact on stakeholders and minimize its negative impact
28
What was a major piece of legislation passed by carter in 1976
Foreign Corrupt Practices Act
29
What happened to business ethics in the 1980s?
It became a acknowledged as a field of study
30
Who developed the concept of Stakeholders in the 1980s
Freeman
31
What developed in the 80s to guide corp. support for ethical conduct?
Defense Industry Initiative on Business Ethics and Conduct
32
What were the six principles of the DII?
1. Distribution of understandable codes of conduct
2. Ethics training and continuous support
3. Open atmosphere condusive to reporting violations
4. internal audits and internal reporting and voluntary reporting
5. Perserve integrity of defense industry
6. public accountability
33
What was the DII the base for?
the FSGO
34
What happened in the Bush-Reagan in the 1980s?
Self regulation
35
What legislation was passed in 1991 and set the tyone for organization ethical compliance programs?
Federal Sentencing Guidelines for Organizations
36
What is the main concept of the FSGO
Companies could minitage penalities by creating ethical compliance program.
37
What was the main thrust of 21st century bus eth.
Public demand for reform b/c non complying corp.
38
What act did congress pass in 2002?
Sarbanes Oxley
39
What is the most far-reaching change in organizational control and accounting regulations since the securities and exchange act of 1934
Sarbox
40
What are the four main concepts of Sarbox?
1. securities fraud is a criminal offense
2. Accounting oversight board (greater transparency in accounting)
3. top executivies responsible for financial statements (risk fines/prison)
4. executive must disclose stock sales immediately, and no loans to managers.
41
What ammendmants to FSGO occured in 2000s?
business governing authority bhe well informed about its ethics program with respect ot content, implementation, and effectiveness
42
What reform act did Obama help pass in 2010
Dodd Frank
43
What did dodd Frank do?
make the financial services industry more ethical and responsible.
44
What is ethical culture?
acceptable behavior defined by the company and industry?
45
What does ethical culture do?
creates shared values and support ethical decisions--driven by top management
46
What is the goal of ethical culture/
minimize need for enforced compliance
maximize utilization of principles/ethical reasoning in difficult of new situations
47
What is a global ethical culture?
Collaborative efforts to establish goals and set minimum levels of ethical behavior
48
What are some organizations support a global ethical culture?
EU, NAFTA, MERCOSUR, WTO
49
What international standards are there for business?
UN Global Compact
50
What are three effects ethical culture has on performance?
Employee commitment in trust
Investor Loyalty and Trust
Consumer Satisfaction and Trust
51
What ethical contributions are employees concerned about?
safe work environment, competitive salaries nad benefits packages, fulfillment of contractual obligations
52
How has the field of ethics changed?
It is a part of achieving competitive advantage now, rather than being a compliance standard.
53
