BUS-121-51 Chapter 2

  1. Ethics
    the study of right and wrong, and the morality of the choices individuals make.
  2. Business Ethics
    the application of moral standards to business situations.
  3. Conflict of Interest
    results when a business person takes advantage of a situation for his or her own personal interest rather than for the employer's interest.
  4. Factors Affecting Ethical Behavior
    • 1 Individual Factors
    • a. individual knowledge of an issue.
    • b. personal values
    • c. personal goals
    • 2 Social Factors
    • a. cultural norms
    • b. coworkers
    • c. significant others
    • d. use of the Internet
    • 3 Opportunity
    • a. presence of opportunity
    • b. ethical codes
    • c. enforcement
  5. Encouraging Ethical Behavior
    • 1 Government's role
    • 2 Trade associations
    • 3 individual companies
  6. Sarbanes-Oxley Act of 2002
    provides sweeping new legal protection for employees who report corporate misconduct.
  7. Code of Ethics
    a guide to acceptable and ethical behavior as defined by the organization.
  8. Whistle-blowing
    informing the press or government officials about unethical practices within one's organization.
  9. Social Responsibility
    the recognition that business activities have an impact on society and the consideration of that impact in business decision making.
  10. Caveat Emptor
    the Latin phrase meaning, "let the buyer beware".
  11. Two views of Social Responsibility
    • 1 The Economic Model
    • 2 The Socioeconomic Model
  12. Economic model of social responsibility
    the view that society will benefit most when business is left alone to produce and market profitable products that society needs.
  13. Socioeconomic model of social responsibility
    the concept that business should emphasize not only profits but also the impact of its decisions on society.
  14. Pros / Cons of Social Responsibility
    • For - maintain that business must do more than simply seek profits.
    • Against - business should do what it does best, earn a profit by manufacturing and marketing products that people want.
  15. Counsumerism
    all activities undertaken to protect the rights of consumers.
  16. The Six Basic Rights of Consumers (JFK - 1960s)
    • 1 Right to Safety
    • 2 Right to be Informed
    • 3 Right to Choose
    • 4 Right to be Heard
    • 5 Right to Consumer Education (Gerald Ford-1975)
    • 6 Right to Service (Clinton-1994)
  17. Minority
    a racial, religious, political, national, or other group regarded as different from the larger group of which it is a part and that is often singled out for unfavorable treatment.
  18. Affirmative Action Program
    a plan designed to increase the number of minority employees at all levels within an organization.
  19. Equal Employment Opportunity Commission (EEOC)
    a government agency with power to investigate complaints of employment discrimination and power to sue firms that practice it.
  20. Hard-core Unemployed
    workers with little education or vocational training and a long history of unemployment.
  21. National Alliance of Business (NAB)
    a joint business-government program to train the hard-core unemployed.
  22. Pollution
    the contamination of water, air, or land through the actions of people in an industrialized society.
  23. Social Audit
    a comprehensive report of what an organization has done and is doing with regard to social issues that affect it.
Card Set
BUS-121-51 Chapter 2
Terminology / Other