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Standards of conduct and moral values regarding the right and wrong actions in the work environment
Sarbanes-Oxley Act of 2002
Punishment of corporate and accounting fraud and corruption to protect the interests of workers and shareholders
Stages of Moral and Ethical Development
Individual looks out for their own interests and only follows rules out of fear of punishment or hope of reward
Interests and expectations of others are considered. Rules are followed because its a part of fitting into a group
Individual follows personal principals for solving ethical dilemmas.
Common Business Ethical Dilemmas
- Conflict of Interest
- Honest and Integrity
- Loyalty vs. Truth
Conflict of Interest
Employee must choose between a business's welfare or personal gain
Honesty and Integrity
- Integrity- Adhering to deeply felt ethical principles in business situations.
- Employees that have integrity are highly valued. Unfortunately, violation of honesty and integrity are all too common
Loyalty vs. Truth
Individual may have to decide between loyalty to the company or truthfulness in business relationships.
Employee snitching to its boss about illegal, immoral, or unethical practices committed by an organization
How do organizations shape ethical conduct?
(4 of them)
- Ethical awareness
- Ethical reasoning
- Ethical action
- Ethical leadership
Ethical Awareness is practiced by:
Code of conduct
formal statement that defines how an organization expects its employees to resolve ethical issues
firms instituting their own ethics training programs or hire organizations to teach ethics
Firms providing structures and approaches that allow decisions to be turned into ethical actions
Executives must demonstrate ethical behavior in their actions, as well as talk about it
customers, investors, employees and the public affected by or with an interest in a company
business's consideration of a society's well-being and consumer satisfaction, in addition to profits
A business has a social responsibility to..
- General public
- Investors & financial comunity
Business Social Responsibilities to the General Public
Dealing with public health issues, protecting the environment (green marketing), and developing the quality of the workforce
Organizations effort to make a contribution to the communities in which it earns profits
Business Social Responsibilities to the Customers
- The right to be safe (product liability- responsibility of the manufactures for injuries/damages caused by their products)
- The right to be informed
- The right to choose
- The right to be heard
Business Social Responsibilities to the Employees
- Workplace safety
- Quality-of-life issues (family leave- employees are allowed to take 12 weeks off because of birth, illness etc)
- Equal opportunity on the job (no discrimination)
- Safe from sexual harassment/sexism
Equal Employment Opportunity Commission
Increase job opportunities for women and minorities and to help discrimination based on color, race, religion etc
What are some of the factors that influence business ethics?
- personal expecience
- peer pressure
- religious standards
procedure that identifies and evaluates all company activities that relate to social issues such as conservation, employment practices, environmental protection and philanthropy