Chapter 2
green marketing
a marketing strategy that promotes environmentally safe products and production methods.
intermediary
a negotiator who acts as a link between parties, go-between, mediators
discrimination
biased treatment of a job candidate or employee.
philanthropy
charity; a desire or effort to promote goodness, love of mankind
Equal Employment Opportunity Commission (EEOC)
commission created to increase job opportunities for women and minorities and to help end discrimination based on race, color, religion, disability, gender, or national origin in any personnel action
socioeconomic model
the belief that business, as part of its role, owes its existence to improving the society in which it operates.
Responsibilities to the General Public
Public Health Issues Dangerous products Protecting the Environment Using resources efficiently Developing a quality workforce Education and diversity initiatives Corporate philanthropy Contributions and volunteer efforts to the public
Starbucks Ethical Decision Making Framework
Is it consistent with Our Starbucks Mission, the Standards of Business Conduct, and any applicable law or regulation? Would your approach embarrass you or Starbucks? How would your approach look published in the newspaper? Would you be comfortable with the example it sets for future decisions? If the path isn't clear, ask for guidance. Follow through on your decision.
Honesty & Integrity
Telling the truth and adhering to deeply felt ethical principles in business situations Behaving with honesty and integrity inspires trust, and as a result it can help build long-term relationships with customers, employers, suppliers, and the public. Employees, in turn, want their managers and the company as a whole to treat them honestly and with integrity. Others steal from their employers by taking home supplies or products without permission or by carrying out personal business on company time. For example, Internet misuse during the workday is increasing. As shown in the photo, employees use the Internet for personal shopping, e-mail, gaming, and social networking. This misuse costs U.S. companies billions of dollars annually in lost productivity.13 While the occurrence of such activity varies widely—and employers may feel more strongly about cracking down on some activities than others—most agree that Internet misuse is a problem. Some organizations have resorted to electronic monitoring and surveillance.
Vented rotors
They have two plate design that allows air to vent through them hence vented rotors . This optimizes heat dissipation
Equal Opportunity Laws
Title VII of the Civil Rights Act of 19 64 Age Discrimination in Employment Act of 19 67 Equal Pay Act of 19 63 Vocational Rehabilitation Act of 19 73 Vietnam Era Veterans Readjustment Act of 19 74 Pregnancy Discrimination Act of 19 78 Americans with Disabilities Act of 19 90 Civil Rights Act of 19 91 Family and Medical Leave Act of 19 93 Uniformed Services Employment and Reemployment Rights Act of 19 94 Genetic Information Nondiscrimination Act of 2008
Firms
the institutions that organize the production of goods and services Firms have many responsibilities—to customers, to employees, to investors, and to society as a whole Often no clear-cut choices
product liability
the responsibility of manufacturers for injuries and damages caused by their products.
sexual harassment
unwelcome and inappropriate actions of a sexual nature in the workplace.
Ethical Education
A code of conduct provides only a framework Business must provide tools to evaluate options Many firms have instituted ethics training programs Some question whether ethics can be taught Training gives employees the chances to apply ethical values to hypothetical situations
Quality-of-Life Issues
Balancing work and family remains a challenge Sandwich generation cares for two generations - their children and their elderly parents Many companies have created innovative ways to help employees manage hectic work schedules Family Leave (Family Medical and Leave Act) is available to employees
Two Views of Social Responsibility: Socioeconomic Model
Business owes its existence to improving the society in which it operates. Business is not separate from society Business should play a role in promoting a healthy and prosperous society.
Identify the four levels of a company's ethical environment
Development of a corporate culture to support business ethics happens on four levels: ethical awareness; ethical education; ethical action; and ethical leadership.
Drum break
Drunk breaks are cheap to make, expensive to maintain Been around for centuries on wagons and carriages Their design protects them from element Weakness - if mud, water or grind does manage to get pass their design. It's a really hard time getting out which makes them horrendous at stopping. On modern cars is due to economic reason for the manufacture, their cheaper to produce but not to replace by of their strenuous labor.
How does ethical leadership contribute to ethical standards throughout a company?
Employees more readily commit to the company's core values when they see that executives and managers behave ethically.
Age Discrimination
Employers are responsible for avoiding age discrimination in the workplace. As the average age of workers rises, employers will benefit from the older generation's knowledge.
Economic Model
Favored by U.S. economist Milton Friedman Businesses believe that their sole role is to maximize profits and increase value to shareholders Society will benefit when business is left alone
Drilled rotors
I drilled rotors are for extreme long term released usage. Like racing on a track. Best heat dissipation because the multiple holes that allow air to pass through at a fast rate. They have horrible initial bite cause since they don't have good surface area. They can warp and crack and wear unevenly because of the all holes they had in. Opp
Conventional
Individual considers the interests and expectations of others in making decisions. Rules are followed because it is a part of belonging to the group. the conventional stage, individuals are aware of and act in response to their duty to others, including their obligations to their family members, co-workers, and organizations. The expectations of these groups influence how they choose between what is acceptable and unacceptable in certain situations. Self-interest, however, continues to play a role in decisions.
Postconventional
Individual follows personal principles for resolving ethical dilemmas. He or she considers personal, group, and societal interests. represents the highest level of ethical and moral behavior. The individual is able to move beyond mere self-interest and duty and take the larger needs of society into account as well. He or she has developed personal ethical principles for determining what is right and can apply those principles in a wide variety of situations. Being passionate about a specific cause is a unique qualification for a career in fundraising (known as development), as the "Job Description" feature describes.
Development of Individual Ethics: Preconvention
Individual is mainly looking out for his or her own interests. Rules are followed only out of fear of punishment or hope of reward.
Common Business Ethical Challenges: Conflict of Interest
Situation in which an action benefitting one person or group can potentially harm another Ethical ways to handle conflicts of interest include (1) avoiding them and (2) disclosing them. Some companies have policies against taking on clients who are competitors of existing clients. Most businesses and government agencies have written policies prohibiting employees from accepting gifts or specifying a maximum gift value. Or a member of a board of directors or committee might abstain from voting on a decision in which he or she has a personal interest. In other situations, people disclose their potential conflict of interest so that the people affected can decide whether to get information or help they need from another source instead. Conflicts of interest may pose ethical challenges when they involve the businessperson's own interests and those of someone to whom he or she has a duty or when they involve two parties to whom the businessperson has a duty. The majority of mutual fund purchases are made by investors through intermediaries, such as brokers and advisors, whose high fees (commissions) associated with such funds have created a conflict of interest.
What are the four main consumer rights?
The four main consumer rights are the right to be safe, to be informed, to choose, and to be heard.
Describe how businesses can act responsibly to satisfy society.
Today's businesses are expected to weigh their qualitative impact on consumers and society, in addition to their quantitative economic contributions such as sales, employment levels, and profits. One measure is their compliance with labor and consumer protection laws and their charitable contributions. Another measure some businesses take is to conduct social audits. Public-interest groups also create standards and measure companies' performance relative to those standards. The responsibilities of business to the general public include protecting the public health and the environment and developing the quality of the workforce. Additionally, many would argue that businesses have a social responsibility to support charitable and social causes in the communities in which they earn profits. Business also must treat customers fairly and protect consumers, upholding their rights to be safe, to be informed, to choose, and to be heard. Businesses have wide-ranging responsibilities to their workers. They should make sure that the workplace is safe, address quality-of-life issues, ensure equal opportunity, and prevent sexual harassment and other forms of discrimination.
Public Health Issues
What should businesses do about products like tobacco, alcohol, sugary drinks and unhealthy food? Tobacco contributes to heart disease, stroke, and cancer Childhood obesity rates continue to rise Opioid addiction and overdose (narcotics and pain medication) Other serious public health threats include infectious and chronic disease (heart, cancer, diabetes, and Alzheimer's, and H I V)
sustainable
able to be maintained at a certain rate or level the capacity to endure in ecology.
ethical
(adj.) Having to do with morals, values, right and wrong; in accordance with standards of right conduct; requiring a prescription for purchase
integrity
(n.) honesty, high moral standards; an unimpaired condition, completeness, soundness goes beyond truthfulness. Having integrity means adhering to deeply felt ethical principles in business situations. It includes doing what you say you will do and accepting responsibility for mistakes.
The caliper
Rated by amount of pistons have, most pistons associated with better stopping, more pistons more force, and more room for larger break pad Modern cars will have more pistons in front, front more responsibility 4 pistons front, 2 piston rear is common in vehicles Performance vehicles six pistons 4 pistons rear Designed for stopping heavy vehicles.
Ecology
Scientific study of interactions among organisms and between organisms and their environment
sexism
Sexual harassment is often part of the broader problem of sexism—discrimination against members of either sex but primarily affecting women. discrimination against members of either sex but primarily affecting women. One important sexism issue is equal pay for equal work. The gender pay gap remains in the news.
What role can an ethics compliance officer play in a company?
Ethics compliance officers are charged with deterring wrongdoing and ensuring that ethical standards are met.
family leave
the Family and Medical Leave Act of 1993 states that employers with 50 or more employees must provide unpaid leave up to 12 weeks annually for any employee who wants time off for the birth or adoption of a child, to become a foster parent, or to care for a seriously ill relative, spouse, or self.
economic model
the belief that business, as part of its role, owes its existence to improving the society in which it operates.
Brake pads
PlethOra of material, metal deposit copper, iron steel, graphite,
Sexual harassment
refers to unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature
recycling
reprocessing of used materials for reuse.
Responsibilities to Investors and the Financial Community
A fundamental goal for business is an obligation to make profits for shareholders Expectation of ethical and moral behavior Investors are protected by the Securities and Exchange Commission (S E C) and state regulations The S E C investigates suspicions of unethical or illegal behavior of publicly traded companies.
Developing the Quality of the Workforce
A nation's true wealth lies in its people An educated, skilled workforce provides the intellectual capital and know-how to: Innovate Develop new technology Improve productivity, Compete in the global marketplace. Assistance for women, members of underrepresented groups, returning military veterans, and those with disabilities
Why do companies need to do more than just earn a profit?
Although a fundamental goal of any business is to make a profit for its shareholders, investors and the financial community demand that businesses behave ethically and legally.
What is the role of the Securities and Exchange Commission?
Among other functions, the Securities and Exchange Commission investigates suspicions of unethical or illegal behavior by publicly traded firms.
Describe the contemporary ethical environment.
Among the many factors shaping individual ethics are personal experience, peer pressure, and organizational culture. Individual ethics are also influenced by family, cultural, and religious standards. Additionally, the culture of the organization where a person works can be a factor.
Ethical Awareness
Awareness is the foundation of an ethical climate Ethical dilemmas will occur Help employees identify ethical problems Give employees guidance on how to respond At Google, "Don't be evil" is part of the company's code of conduct—and how the company serves its users with unbiased access to information, focusing on their needs and giving them the best possible products. Google believes in doing the right thing by following the law, acting honorably, and treating everyone with respect.1
Ethical Action
Firms must allow structures and approaches Structure allow decisions to be turned into ethical actions Set realistic goals An employee hotline with ethics officers can provide advice A company whose managers set unrealistic goals for employee performance may find an increase in cheating, lying, and other misdeeds as employees attempt to protect themselves. In today's technology-enabled business environment, the high value placed on speed can create a climate in which ethical behavior is sometimes challenged. Ethical decisions often require careful and quiet thought, a challenging task in today's fast-paced business world. Some companies encourage ethical action by providing support for employees faced with dilemmas. One common tool is an employee hotline, a telephone number that employees can call, often anonymously, for advice or to report unethical behavior they have witnessed. Ethics compliance officers can guide employees through ethical dilemmas while mobilizing them behind a culture of ethics.
What is green marketing?
Green marketing is a marketing strategy that promotes environmentally safe products and production methods.
Explain the ethical responsibilities of businesses to investors and the financial community
Investors and the financial community demand that businesses behave ethically as well as legally in handling their financial transactions. Businesses must be honest in reporting their profits and financial performance to avoid misleading investors. The Securities and Exchange Commission is the federal agency responsible for investigating suspicions that publicly traded firms have engaged in unethical or illegal financial behavior.
Responsibilities to Employees
Workplace Safety Quality-of-Life Issues Ensuring Equal Opportunity on the Job Age Discrimination Sexual harassment and sexism
tone at the top
ethical tone set by top management a term used to describe an organization's ethical climate as established and acted out by its senior management, which has a "trickle-down" effect on employees.19 The owner of several juice bars paid her employees to take part in a "22 days of kindness" program," where their only job was to perform random acts of kindness—acts that would brighten someone else's day. Featured in the media, the positive publicity yielded a flood of job applicants.
conflict of interest
situation in which an employee must choose between a business's welfare and personal gain. Conflicts of interest may pose ethical challenges when they involve the businessperson's own interests and those of someone to whom he or she has a duty or when they involve two parties to whom the businessperson has a duty. The majority of mutual fund purchases are made by investors through intermediaries, such as brokers and advisors, whose high fees (commissions) associated with such funds have created a conflict of interest Ethical ways to handle conflicts of interest include (1) avoiding them and (2) disclosing them. Some companies have policies against taking on clients who are competitors of existing clients. Most businesses and government agencies have written policies prohibiting employees from accepting gifts or specifying a maximum gift value.
Triple Bottom Line
strategic business approach used by companies to evaluate performance by placing equal value on financial, social, and environmental factors.
To whom do businesses have responsibilities?
Businesses are responsible to customers, employees, investors, and society.
Current Ethical Environment
Current environment includes ethical compliance officers Companies adopt a three-pronged approach to ethics and social responsibility Corporate philanthropy Anticipating and managing risks Identifying opportunities to create value by doing the right thing
loyalty vs truth
Employees are expected to be loyal, and to act in the best interests of the company, but an ethical conflict can arise when the truth about a company is not favorable Employers and employees value honesty and integrity, but what should happen when employees misuse Internet privileges for personal purposes? Employees are expected to be loyal and to act in the best interests of the company. However, an ethical conflict can arise when an employee sees something going on within the organization that is untruthful or something that just doesn't seem legitimate, honest, and open. Individuals may have to decide between loyalty to the company and truthfulness, especially when it comes to business relationships. Some place the highest value on loyalty, even at the expense of truth. Others avoid volunteering negative information but answer truthfully if someone asks them a specific question. People may emphasize truthfulness and actively disclose negative information, especially if the cost of silence is high, as in the case of operating a malfunctioning aircraft or selling tainted food items.
Coca-Cola Company's Global Sustainability Goals
Since 2010, the company has empowered 1.7 million women producers, suppliers, distributors, retailers, recyclers, and artisans. 221 billion liters of water have been replenished through community and watershed projects across the globe. Sixty percent of bottles and cans equivalent to what was introduced in the marketplace were refilled or recovered and recycled. $106 million was donated across more than 200 countries and territories.
Equal Opportunity on the Job
Today's increasingly diverse workforce must be managed There are various laws designed to create a more diverse workplace The Equal Employment Opportunity Commission (E E O C) was created to increase job opportunities for women and minorities The E E O C is designed to investigate and manage workplace discrimination based on race, color, religion, disability, gender, or national origin in any employment practice such as hiring, firing, promotions, transfers, or wage practices.
social audit
formal procedures that identify and evaluate all company activities that relate to social issues such as conservation, employment practices, environmental protection, and philanthropy.
code of conduct
is a way to provide support A formal statement Defines how the organization expects employees to resolve ethical questions No individual makes decisions in a vacuum. Choices are strongly influenced by the standards of conduct established within the organizations where people work. Most ethical lapses in business reflect the corporate culture and values of an organization.
The Contemporary Ethical Environment
-High-profile investigations and arrests in headlines. -Vast majority of businesses are ethical. -New corporate officers charged with deterring wrongdoing and ensuring ethical standards. Corporate Social Responsibility Efforts Benefit: Consumers Investors Employees The environment The companies themselves The vast majority of businesses are ethical New corporate officers charged with deterring wrongdoing and ensuring ethical standards
Sarbanes Oxley Act
A 2002 law that added oversight for the nation's major companies Includes a special oversight board to regulate public accounting firms that audit the financial records of these corporations New rules and regulations for securities trading and accounting practices Companies are required to publish a code of ethics Development of ethical compliance programs Provides safeguards for whistleblowers State and federal laws protect whistleblowers in certain situations, such as reports of discrimination, and the Sarbanes-Oxley Act of 2002 now requires that companies in the private sector provide procedures for anonymous reporting of accusations of fraud. Under the act, anyone who retaliates against an employee for taking concerns of unlawful conduct to a public official can be prosecuted. In addition, whistleblowers can seek protection under the False Claims Act, under which they can file a lawsuit on behalf of the government if they believe that a company has somehow defrauded the government. Charges against he
Explain the concern for ethical and societal issues.
Business ethics refers to the standards of conduct and moral values that businesspeople rely on to guide their actions and decisions in the workplace. Businesspeople must take a wide range of social issues into account when making decisions. Social responsibility refers to management's acceptance of the obligation to place a significant value on profit, consumer satisfaction, and societal well-being in evaluating the company's performance.
Protecting the Environment
Businesses impact the environment by Energy consumption Waste produced Natural resources used Businesses have set goals Sustainability initiatives Recycling, packaging, green products and services
Social Responsibility
Businesses must take social issues into account How a business decision impacts the environment, employees, and customers Enhancement of society's welfare through philosophies, policies, procedures, and actions companies are well aware that gaining the trust of both their consumer base and the general public requires constant attention to detail and high ethical conduct. To maintain and gain trust, a company's social responsibility efforts should be designed to benefit consumers, investors, employees, the environment, and the companies themselves. Panera, a chain of fast casual restaurants, has been using antibiotic-free chicken for over a decade and recently announced it would do the same for all of its turkey products, a move that has received positive feedback from customers. Many consumers believe that ethically raised animals are not just better for their diets but also better for society as a whole.
Combination rotors
Carbon, ceramic slotted drilled vented dripped, they exist rotos that comb8ne all elements of prior rotor that make chad rotors.
Corporate Philanthropy
Cash contributions, donations of equipment and products, and supporting company employee volunteer efforts Recipients may include: cultural organizations, adopt-a-school programs, neighborhood sports programs, and job training programs. Positive benefits: rewards of giving, higher employee morale, enhanced company image, and improved customer relationships. Marketing efforts are aligned with charitable giving.
Discuss how organizations shape ethical conduct.
Choices are strongly influenced by the standards of conduct established within any organization. Most ethical lapses in business reflect the values of the companies' corporate cultures. Development of a corporate culture to support business ethics happens on four levels: ethical awareness; ethical education; ethical action; and ethical leadership. Ethical awareness involves providing help to employees in identifying ethical problems when they occur and giving them guidance about how the company expects them to respond. One way to provide this support is to develop a code of conduct for the organization. Ethical education involves implementing an ethics training program for employees or hiring an outside firm to develop ethics and compliance programs for the organization. Ethical action involves companies providing structures and approaches for employees that allow decisions to be turned into appropriate business actions. Ethical leadership involves commitment to the company's core values at all levels of the organization.
Ethics Compliance Programs
Compliance Standards and Procedures (code of ethics) High-level personnel responsibility to lead and oversee Due care in assignments (to the right individuals) Communication of standards and procedures (training) Establishment of monitoring and auditing systems and reporting system Enforcement of standards through appropriate mechanisms (discipline, when necessary) Appropriate responses to the offense Self-reporting (to government agency, if necessary) Applicable industry practice or standards
Responsibilities to Customers
Consumers have certain rights, as follows: The right to be safe Safe operation of products (no injury during use) The right to be informed Education and product information to make responsible buying decisions The right to choose Which products and services do consumers wish to purchase? The right to be heard A consumer's voice must be heard with regard to products and services
Whistle-Blowing
Employee's disclosure of illegal, immoral, or unethical practices in the organization despite protections, whistle-blowing has its risks, including resentment from co-workers, and ultimately, job loss. However, it is one way to expose illegal business behavior. In the defense, healthcare, financial, and pharmaceutical industries, whistleblower cases have become a common way to uncover fraud. Banking giant JP Morgan Chase & Company failed to properly inform wealth management clients about conflicts of interest when they were steered into investments that created greater profitability for the bank, resulting in a $30 million whistleblower award. According to JP Morgan Chase, its communication omissions were unintentional, and the bank has since enhanced its disclosures.14 State and federal laws protect whistleblowers in certain situations, such as reports of discrimination, and the Sarbanes-Oxley Act of 2002 now requires that companies in the private sector provide procedures for anonymous reporting of accusations of fraud. Under the act, anyone who retaliates against an employee for taking concerns of unlawful conduct to a public official can be prosecuted. In addition, whistleblowers can seek protection under the False Claims Act, under which they can file a lawsuit on behalf of the government if they believe that a company has somehow defrauded the government. Charges against health care companies for fraudulent Medicare or Medicaid billing are examples of this type of lawsuit.
Acting Responsibly to Satisfy Society: Social Responsibility
Equal value in considering profit, consumer satisfaction, and societal well-being Concerns with qualitative dimensions and traditional quantitative measures A firm's social performance is measured through a social audit, and by: Equal employment opportunities Cultural diversity Environmental concerns Safe and healthy workplace Charitable contributions and community service Businesses are judged by their interactions with the surrounding community, including employees volunteering at charitable events.
If a company is meeting all its responsibilities to others, why do ethical conflicts arise?
Ethical conflicts arise when business is trying to serve the different needs of its constituents.
Ethical Leadership
Executives must demonstrate ethical behavior in their actions Use clear, explicit language Encourage behavior that generates and fosters values Practice moral absolutism Without a framework of ethics, damage can impact stakeholders Stakeholders include customers, investors, employees, and the public
Slotted rotos
Feature slots in them that allows better air to go through them. Per effect balance for surface area and ventilation great for driving and multiple weather conditions. Commonly used on high performance vehicles. Downside is they squeak in cold we're since the holes allow for cold air to create occasional whistle sounds
Standard pads
Made for metal deposits. Firm ans flexible feel. Stop adequately, wear evenly, but downside is they make ton of breaks dust due to practically grinding metal on metal
Material rotor
Most breake rotors are carbon ceramic steal or iron Iron rust the most but the cheapest Steal motors are balanced price Carbon is gonna dissipate heat the best and weigh the lightest
Solid rotors
Most prevalent, cheapest to make and replace. Best for daily driving. Massive surface are and offer the best initial bite without any squeezing longest life span, massive surface area allows for nice even wear.
Carbon pads
Most versatile, called carbons due to graphite(carbon material Softer compounds on quieter and clean like ceramic pads but with better stopping power. Harsher compounds are good for racing Expensive
Ceramic pads
Not bees knees, Quieter, grate for luxury cars, stopping distance is wore then carbon and standard counterparts, make them very niche. Don't make that much brake dust due to the ceramic structure, that when it's rubbed against friction of rotor doesn't make that much dust.
Unethical behavior
Putting one's own interest ahead of the organization Lying to employees Misrepresenting hours Safety violations Internet abuse Nearly every employee, at every level, faces ethical dilemmas or questions. Some rationalize questionable behavior by saying, "Everybody's doing it." Others act unethically to avoid punishment or job loss because they feel pressured in their jobs to meet performance quotas. Further, some act unethically solely for the purpose of personal gain. Technology seems to have expanded the range and impact of unethical behavior. For example, anyone with computer access to data has the potential to steal or manipulate the data or to shut down the system, even from a remote location. Banks, insurance companies, and other financial institutions are often targeted for such attacks. Equifax, a 118-year-old credit reporting agency, revealed one of the largest cyberattacks and data breaches of all time, impacting over 145 million customers. Personal information like names, date of birth, Social Security numbers, and home addresses of customers was compromised. Additionally, the company learned about a major breach of its computer systems five months before the date the attack was publicly disclosed, leading to further investigations of stock sales by top level executives.9
Standard rotors
Single plate design
What is meant by social responsibility, and why do companies exercise it?
Social responsibility is management's acceptance of its obligation to consider profit, consumer satisfaction, and societal well-being to be of significant value when evaluating the company's performance. Businesses demonstrate social responsibility because such behavior is required by law, because it enhances the company's image, or because management believes it is the right thing to do.
Disc Brakes
Superior, Very few components, not complicated, only thing in common with drum is the master cylinder Design was cheaper, it was better stopping cars, safer, And better looking They feature rotor, caliper and break pads 3 main ones Pad is the design wears down most Pad is a universal replacement, labor cost extremely cheaper Rotors ansd caliper last very very long time, most last entire own ship of vehicle. They are overexposed but nothing can get trapped like mud, water or any other elements Heat also can't stick, heat dissipation. Extremely favored bc of open design. Bc wind can just blow right into them
Workplace Safety
The safety and health of workers is a responsibility of business The Occupational Safety and Health Administration (O S H A), is a federal regulatory agency O S H A tracks and investigates accidents and sets workplace safety and health standards Specific standards for worker safety in industries including construction, manufacturing, and mining
Business Ethics
The standards of conduct and moral values governing work actions and decisions in the work environment. Business ethics are often shaped by the organization's ethical climate Codes of conduct Ethical standards Doing the right things should be supported and applauded n organization that wants to succeed over the long term has as its core The ethical values of executives and individual employees at all levels can influence the decisions and actions a business takes. Throughout your own career, you will encounter many situations in which you will need to weigh right and wrong before making a decision or taking action. So we begin our discussion of business ethics by focusing on individual ethics
What are the three components of a typical company's approach to ethics and social responsibility?
The three components are (1) engaging in typical corporate philanthropy; (2) anticipating and managing risks; and (3) identifying opportunities to create value by doing the right thing.
ethical dilemma
a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal As already noted, it's not always easy to distinguish the difference between what is right and wrong in many business situations, especially when the needs and concerns of various parties conflict. In the past, some CEOs (or their companies) who were accused of wrongdoing simply claimed that they had no idea crimes were being committed, but today's environment is such that top management must make a greater effort to be aware of activities taking place in their companies. In an effort to increase business, Wells Fargo encouraged employees to cross-sell its products and services. For example, a checking account customer was encouraged to open a savings or credit card account. To encourage employees to cross-sell, the company provided financial incentives. Using fictitious or unauthorized information, employees responded to these incentives by manufacturing approximately 3.5 million fake bank accounts. On a grand scale, this "pay for performance" strategy brought about employee behavior that eventually led to a tarnished reputation, the resignation of the company's CEO, and the firing of 5,300 employees. The bank is providing $3.7 million in refunds to impacted customers. Additionally, the bank has been criticized for not acknowledging the crisis soon enough.10 Within the banking industry, constant reminders about ethical conduct and the consequences of falling short should be practiced so that employees instinctively understand and adhere strictly to the highest levels of ethical conduct.11
Stakeholders
customers, investors, employees, and public affected by or with an interest in a company.
corporate philanthropy
effort of an organization to make a contribution to the communities in which it earns profits.
Consumerism
public demand that a business consider the wants and needs of its customers in making decisions.