Chapter 6: Organizational Ethics

Corporate culture

A blend of ideas, customs, traditional practices, company values, and shared meanings.

Efforts to Curtail Unethical Practices

Dow Jones Anti-Corruption Survey •U.S. Foreign Corrupt Practices Act (FCPA). •The United Kingdom's Bribery Act prohibits bribery. Anti-Bribery Law in Brazil, India and Mexico

Accounting Ethics

Financial records must be audited by a certified professional accounting firm

Ethics Reporting Mechanisms

Often called the "helpline" or "hotline" Purposes: To provide interpretations of proper ethical behavior To create avenue for reporting unethical conduct To provide information-sharing tool Executives tend to use the helpline more often than middle managers

Financial Ethics

Responsibilities to manage the firm's assets and raising capital.

Ethical climate

The unspoken understanding among employees of what is and is not acceptable behavior.

Bribery

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

Integrity-based approach:

•Combines concern for law with employee responsibility. •Promotes acting with integrity and conduct business with honesty and fairness.

Compliance-based approach:

•Seeks to avoid legal sanctions. •Emphasizes the threat of detection and punishment.