Chapter 1: The Importance Of Business Ethics Flashcards Preview

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Flashcards in Chapter 1: The Importance Of Business Ethics Deck (37)
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Ethical behavior requires understanding and identifying issues, areas of risk, and approaches to making choices in an organizational environment

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1

Morals refer to a person's personal philosophies about what is right or wrong

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2

Business at this comprises organizational principles, values, and norms that may originate from individuals, organizational statements, or from the legal system that guide individual and group behavior in business

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3

Principles are specific and pervasive boundaries for behavior that should not be violated. Principles often become the basis for rules. Examples of principles are human rights, freedom of speech, and fundamentals of justice

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4

Values are enduring beliefs and ideas that are socially enforced. Several desirable or ethical values for business today or teamwork, trust, and integrity

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5

Investors, employees, customers, interest groups, the legal system, and the community often determine whether a specific action or standard is ethical or unethical

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6

Ethics is defined as behavior or decisions made within a group's values

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7

One difference between an ordinary decision and in ethical one lies in the point where the accepted rules no longer serve, and the decision-maker is face with the responsibility of weighing values and reaching a judgment in the situation which is not quite the same as any he or she has faced before

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8

Values and judgments play a critical role when we make ethical decisions

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9

In the 1920s a movement attempted to provide citizens with a "living wage", defined as income sufficient for education, recreation, health, and retirement

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10

In the 1930s came the new deal that specifically blamed businesses for the countries economic woes

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11

By the 1950s the new deal evolved into Pres. Harry S Truman's fair deal, a program that defined such matters as civil rights and environmental responsibility as ethical issues that businesses had to address

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12

Until 1960 ethical issues related to business were often discussed within the domain of theology or philosophy or in the realm of legal and competitive relationships

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13

The first book on business ethics was published in 1937 by Frank Chapman sharp and Philip G Fox

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14

During the 1960s American society witness the development of an antibusiness trend because many critics attacked the vested interest that controlled the economic and political aspects of society-- the so-called military --industrial complex

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15

The 1960s witnessed the rise of consumerism, activities undertaken by independent individuals, groups, and organizations to protect their rights as consumers

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16

In 1962 Pres. John F. Kennedy delivered a "special message on protecting the consumer interest" that outlined four basic consumer rights: the right to safety, the right to be informed, the right to choose, and the right to be heard. These came to be known as the consumers bill of rights

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17

The modern consumer movement is generally considered to have begun in 1965 with the publication of Ralph Nader's unsafe at any speed that criticized the auto industry as a whole and General Motors Corporation in particular

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18

Business ethics began to develop as a field of study in the 1970s

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19

Corporate social responsibility is an organizations obligation to maximize its positive impact on stakeholders and minimize is negative impact

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20

The foreign corrupt practices act was passed during Pres. Jimmy Carter's administration, making it illegal for US businesses to bribe government officials of other countries

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21

R. Edward Freeman was among the first scholars to pioneer the concept of stakeholders as a foundational theory for business ethics decisions

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22

Freeman define stakeholders as any group or individual who can affect or is affected by the achievement of the organizations objectives

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23

In the 1980s the defense industry initiative on business ethics and conduct was developed to guide corporate support for ethical conduct

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24

The defense industry initiative on business ethics and conduct established a method for discussing best practices and working tactics to link organizational practice and policy to successful ethical compliance

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25

The 1980s ushered in the Reagan Bush era, with the accompanying belief that self regulation, rather than regulation by government was in the publics interest

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26

the federal sentencing guidelines for organizations, approved by Congress in November 1991, set the tone for organizational ethical compliance programs in the 1990s.

The guidelines broke new ground by codifying into law incentives to reward organizations for taking action to prevent misconduct , such as developing effective internal legal and ethical compliance programs

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27

A mechanical approach using legalistic logic would not suffice to avert serious penalties the company must develop corporate values, enforce its own code of ethics, and strive to prevent miss conduct

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28

To address the loss of confidence in financial reporting and corporate ethics, in 2002 Congress passed the Sarbane's Oxley act, the most far-reaching change in organizational control and accounting regulations since the securities exchange act of 1934

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29

The Sarbanes-Oxley act made securities fraud a criminal offense and stiffened penalties will corporate fraud

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