Ch. 6 - Organizational Ethics

corporate culture

a blend of ideas, customs, traditional practices, company values, and shared meanings that help define normal behavior for everyone at work "the way we do things around here"

ethical climate

an unspoken understanding among employees of what is and is not acceptable behavior based on the expected standards or norms used for ethical decision making sets the ethical tone in a company; egoism, benevolence, priinciple

institutionalizing ethics

process of building ethical safeguards into everyday routines compliance-based or integrity-based

US Foreign Corrupt Practices Act (FCPA)

prohibited US-based companies from paying bribes to foreign gov. officials, political parties, or political candidates full disclosure of company's transactions

ethical policies or codes

provide guidance to managers and employees when they encounter an ethical dilemma insufficient by itself

bribery

questionable or unjust payment often to a govt. official to ensure or facilitate a business transaction

ethics and compliance officer (ECO)

someone in charge of the development and implementation of ethics programs

employee ethics training

teducate employees on what the law requires and the company expect

ethics reporting mechanism

ways for employees to raise issues instead of to their supervisor/senior mgmt provides interpretations of proper ethical behavior, creates avenue to tell proper authorities about unethical conduct, and gives employees and corporate stakeholders a way to discover general info