busn chapter 4
5 responsibilities businesses have
1. responsibility to employees 2. responsibility to customers 3. responsibility to investors 4. responsibility to the community 5. responsibility to the environment
four key consumer rights
1. the right to be safe 2. the right to be informed 3. the right to choose 4. the right to be heard
Sarbanes-Oxley Act
Federal legislation passed in 2002 that sets higher ethical standards for public corporations and accounting firms. Key provisions limit conflict-of-interest issues and require financial officers and CEOs to certify the validity of their financial statements -limits confit-of-interest issues by restricting the consulting services that accounting firms can provide for the companies they audit
ethical dilemmas
a decision that involves a conflict of values; every potential course of action has some significant negative consequences
code of ethics
a formal, written document that defines the ethical standards of an organization and gives employees the information they need to make ethical decisions across a range of situations
ethics
a set of beliefs about right and wrong, good and bad
consumerism
a social movement that focuses on four key consumer rights: the right to be safe, the right to be informed, the right to choose, and the right to be heard
social audit
a systematic evaluation of how well a firm is meeting its ethics and social responsibility goals
corporate philanthropy
all business donations to nonprofit groups, including money, products, and employee time
stakeholders
any groups that have a stake - or a personal interest - in the performance and actions of an organization
responsibility to the community
beyond increasing everyone's standard of living, businesses can contribute to society in two main ways: philanthropy and responsibility
corporate responsibilities
business contributions to the community through the actions of the business itself rather than donations of money and time
responsibility to customers
deliver consumer value by providing quality products at fair prices
green marketing
developing and promoting environmentally sound products and practices to gain a competitive edge
scope 1 of carbon footprint
direct emissions produced by corporate operations
sustainable development
doing business to meet the needs of the current generation, without harming the ability of future generations to meet their needs
scope 3 of carbon footprint
emissions that occur outside a company's boundary, but over which it has some control; more complex to track
scope 2 of carbon footprint
emissions that result from purchased electricity, heat, and steam
responsibility to employees
equal opportunity, workplace safety, minimum-wage and overtime requirements, protection from sexual harassment, and family and medical unpaid leave
universal ethical standards
ethical norms that apply to all people across a broad spectrum of situations
cause-related marketing
marketing partnerships between businesses and nonprofit organizations, designed to spike sales for the company and raise money for the nonprofit
responsibility to the environment
must keep in mind the effects businesses and their production have on the environment
responsibility to investors
primary responsibility is to make money - an ongoing stream of profits
carbon footprint
refers to the amount of harmful greenhouse gases that a firm emits throughout its operations, both directly and indirectly
business ethics
the application of right and wrong, good and bad in a business setting
social responsibility
the obligation of a business to contribute to society
planned obsolescence
the strategy of deliberately designing products to fail in order to shorten the time between purchases -clear violation of social responsibility