BUS and Society Ch 6
Not all ethics issues in the business are the same. Discuss the distinct ethical issues across three difference organizational functions. Highlight details of the processional code of conduct for each.
Accounting Ethics: Being honest about the numbers and audits. Honesty, integrity, and accuracy Financial Ethics: Accepting kickbacks as part of a scheme to steer business to another insurance company. Agreeing to settlement payments to avoid costly litigation self regulation Marketing Ethics: Honesty and fairness in advertising toward children. Health and safety. Firm responsibility for unethical use of products from buyers.
Construct a comprehensive ethics program using four of the five ethical safeguards identified in the textbook.
Building Ethics Safeguard Into the Company ♣ To improve the quality of a company's ethical performance you have to change the culture so that ethics is part of everyday decision-making. ♣ To do so means institutionalizing ethics or building ethics safeguards in to everyday routines. Top Management Ethics Policies or Codes Ethics and Compliance Officers Ethics Reporting Mechanisms
How are firms honored for their efforts to create an ethical climate? Provide examples of role model companies and what efforts they took to develop effective ethics programs.
Corporate Ethics Awards Awarded to companies for efforts in creating and improving their ethical performance and serve as role models. Demonstrate that firms can be financially successful and ethically focused. Ethisphere Magazine: honors firms based on Ethical Quotient (EQ) score. Skyline Exhibitor Source of LaVergne takes time to learn about clients, industry, etc on time and on budget.
Define ethical climate. Discuss the differences and similarities among the ethical climates outlined in the textbook.
Ethical climate: The unspoken understanding among employees of what is and is not acceptable behavior. ♣ Based on the expected standards and norms. ♣ Multiple climates (or subclimates) can exist within one organization. Egoism (Self-Centered) Benevolence (Concern for others) Principles (Integrity Approach)
Define bribery. Explain why certain countries are less likely to participate in such acts.
♣ Bribery: a questionable or unjust payment often to a government official to ensure or facilitate a business transaction. Started laws against it. Fines are high and other businesses are less likely to want to work with you if you are known for bribery.
