Some Ethical Issue Flashcards
(24 cards)
What is a Conflict of Interest?
When someone’s personal interests get in the way of doing their job fairly.
Example: A manager hiring their friend even if they aren’t the best person for the role.
How does Conflict of Interest affect the business environment?
Affects trust, fairness, and can lead to bad decisions that hurt the business, creating an unethical organizational culture.
What are Bribes and Corruption?
Offering or accepting money/favors to get unfair advantages. Corruption is the broader abuse of power for private gain.
Example: Winning a contract by paying off an official.
How do Bribes and Corruption impact the business environment?
Damages fair competition, increases costs for businesses that don’t bribe, can lead to legal trouble and a bad reputation.
What are Inappropriate Gifts?
Giving or receiving gifts that are too valuable or intended to influence decisions. The line between a polite gesture and a bribe can be blurry.
How do Inappropriate Gifts affect the business environment?
Can create a conflict of interest or the appearance of one, leading to biased decisions and undermining trust.
What is Sexual Harassment?
Unwelcome sexual advances or conduct of a sexual nature that creates a hostile work environment.
How does Sexual Harassment impact the business environment?
Creates a toxic workplace, harms employee morale, leads to legal liabilities, and damages the company’s reputation.
What are Unauthorized Funds?
Using company money for personal expenses or in ways not approved by the business.
How do Unauthorized Funds affect the business environment?
Directly steals from the company, reduces profitability, can lead to bankruptcy, and results in legal prosecution.
What is Tax Evasion?
Illegally trying to pay less tax than what is legally required, such as hiding income.
How does Tax Evasion impact the business environment?
Harms government revenue, creates an uneven playing field for compliant businesses, and can lead to severe penalties.
What is Unfair Advertising?
Making false or misleading claims about products or services to attract customers.
How does Unfair Advertising affect the business environment?
Deceives consumers, harms honest competitors, leads to legal action, and damages the company’s credibility.
What are Employment/Labor Issues?
Violating laws related to hiring, wages, working conditions, discrimination, and employee rights.
How do Employment/Labor Issues impact the business environment?
Leads to legal battles, fines, negative publicity, and reduced productivity due to poor morale.
What is Pricing of Goods in Rural Areas?
Exploiting vulnerable populations by charging significantly higher prices for essential goods.
How does Pricing of Goods in Rural Areas affect the business environment?
Raises ethical concerns about fairness, can damage the company’s social license to operate.
What is Insider Trading?
Buying or selling company stock based on non-public, confidential information.
How does Insider Trading impact the business environment?
Unfairly advantages those with inside information, erodes trust in the stock market, and is illegal.
What are Piracy, Counterfeiting, and Bootlegging?
Illegally copying copyrighted material, producing fake goods, or selling goods illegally.
How do Piracy, Counterfeiting, and Bootlegging affect the business environment?
Harms legitimate creators, reduces profits, can fund illegal activities, and involves lower quality products.
What is Firing an Employee for Whistleblowing?
Retaliating against an employee who reports illegal or unethical activities.
How does Firing an Employee for Whistleblowing impact the business environment?
Discourages ethical behavior, allows illegal activities to continue, and can lead to legal action.
