Ethics >_< Chapter 1

The _________________ is responsible for the careful and responsible management of an organization.

board of directors;

_________________ is a process for generating a number of alternative solutions to a problem

brainstorming

________________ means that employees know what is expected of them, and they can employ the organizational values to help them in their decision making

consistency

The most important part of the decision-making process is _________________

problem definition

The _________________ approach to ethical decision making states that you should choose the action or policy that has the best overall consequences for all people who are directly or indirectly affected

utilitarian

________________ highlights an organization's key ethical issues and identifies the over-arching values and principles that are important to the organization and its decision-making process

code of ethics

Moral

are one's personal beliefs about right and wrong, while the term ethics describes standards or codes of behavior expected of an individual by a group

Creating an Organization That Operates Consistently

Operate with honesty and integrity, staying true to organizational principles Operate according to standards of ethical conduct, in words and action Treat colleagues, customers, and consumers with respect Strive to be the best at what matters most to the organization Value diversity Make decisions based on facts and principles

ethical decision making responsibilities

Responsibility for compliance that is, ensuring that ethical procedures are put into place and consistently adhered to throughout the organization Responsibility for creating and maintaining the ethics culture that the highest level of corporate authority wishes to have Responsibility for being a key knowledge and contact person on issues relating to corporate ethics and principles

_________________ requires public companies to disclose whether they have codes of ethics and disclose any waiver to their code of ethics for certain members of senior management

Section 406 of the Sarbanes-Oxley Act;

_________________ makes employees more aware of a company's code of ethics and how to apply it, as well as demonstrates that the company intends to operate in an ethical manner.

formal ethics training

The _________________ that socially responsible activities create can make it easier for corporations to conduct their business.

goodwill

Ethic

is a set of beliefs about right and wrong behavior within a societ

code of ethics

is a statement that highlights an organization's key ethical issues and identifies the overarching values and principles that are important to the organization and its An Overview of Ethics decision making

Law

is a system of rules that tells us what we can and cannot do

Statements about how people should behave fit together to form the _________________ by which a society lives

moral code

5 reason to promoting a work evironment

1. Gaining the good will of the community 2. Creating an organization that operates consistently 3. Fostering good business practices 4. Protecting the organization and its employees from legal action 5. Avoiding unfavorable publicity

successful ethics program

Employees are willing to seek advice about ethics issues. Employees feel prepared to handle situations that could lead to misconduct. Employees are rewarded for ethical behavior. The organization does not reward success obtained through questionable means. Employees feel positively about their company

Board members

expected to conduct themselves according to the highest standards for personal and professional integrity

corporate ethics officer

provides an organization with vision and leadership in the area of business conduct.

The goal of the Sarbanes-Oxley Act was to _________________

renew investor's trust in the content and preparation of disclosure documents by public companies;

The public _________________ of an organization strongly influences the value of its stock, how consumers regard its products and services, the degree of oversight it receives from government agencies, and the amount of support and cooperation it receives from its busi- ness partners

reputation

That an employer can be held responsible for the acts of its employee even if the employee acts in a manner contrary to corporate policy and the employer's direction is based on the principle called _________________

respondeat supervior

The board of directors

responsible for the careful and responsible management of an organization.

A(n) _________________ enables an organization to review how well it is meeting its ethical and social responsibility goals, and communicate new goals for the upcoming year.

social audit

A(n) _________________ is a moral habit that inclines people to do what is considered acceptable

virtue

The corporate ethics officer provides the organization with _________________ and _________________ in the area of business conduct

vision and leadership;