BA Chapter 2- Business Ethics.

What is a conflict of interest? (xung dot loi ich)

a situation in which a person is in a position to derive personal benefit from actions or decisions made in their official capacity.

How do we encourage ethical behavior?

1. Company managers must lead by example, be honest, trustworthy. 2. Have company policies in place. 3. Employee training. 4. Organizational environment. 5. Ethics officer. 6. Ethics reporting hotline.

Arguments for and against being a socially responsible company.

For: - Right way for a business to behave - Need to give back to the society that helped make their company - It can lead to better financial performance - Socially responsible decision making by firms can prevent increased government involved , which would force businesses to do what they fail to do voluntarily. - It is in the best interest of firms to take the initiative in social responsibility matters.

What did the Sarbanes-Oxley Act seek to accomplish?

Help to restore confidence in Corporate America. Criminalized securities fraud and stiffened penalties for corporate fraud ( cheating)

What are business ethics?

Principles and standards that determine acceptable conduct in business.

What is the Foreign Corrupt Practices Act and how it applies?

The Foreign Corrupt Practices Act (FCPA) is a United States law passed in 1977 that prohibits U.S. firms and individuals from paying bribes to foreign officials in furtherance of a business deal. The FCPA places no minimum amount for a punishment of a bribery payment.

What is the business argument for being ethical?

attract the customers. employee, investor.

What is a Code of Ethics?

A written guide of acceptance policies, standards, and punishments for the employees.

whistle-blowing

An employee exposes an employer's wrongdoing to outsiders.