BESR 01 CHAPTER 1

Importance of Business Ethics

- Contributes to Employee Commitment - Contributes to Consumer Satisfaction - Contributes to Investor Loyalty - Contributes to Profits

The term ethical culture is associated with:

- positively related to workplace confrontation over ethics issues, reports to management of observed misconduct, and the presence of ethics hotlines - acceptable behavior as defined by the company and industry - the component of corporate culture that captures the values and norms an organization defines and is compared to by its industry as appropriate conduct - culture that creates shared values and support for ethical decisions and is driven by the ethical leadership of top management

Federal Sentencing Guidelines for Organizations (FSGO)

- set the tone for organizational ethical compliance programs in the 90's - approved by Congress in Nov 1991.

The term that comprises organizational principles, values, and norms that may originate from individuals, organizational statements, or from the legal system that primarily guide individual and group behavior in business is defined as _____.

Business Ethics

An organization's obligation to maximize its positive impact on stakeholders and to minimize its negative impact refers to its _____.

Corporate Social Responsibility

An organization that has a strong ethical environment usually has a core value of placing _____ interests first.

Customer's

Dodd-Frank Wall Street Reform and Consumer Protection Act

Designed to make financial services more ethical, and responsible.

The _____ is a set of 10 principles concerning human rights, labor, the environment, and anti-corruption. This document seeks to create openness and alignment among business, government, society, labor, and the United Nations.

Global Compact

Sarbanes-Oxley Act

Made securities fraud a criminal offense. Stiffened penalties for corporate fraud

The concept in the chapter that is defined as a situation where the person is faced with multiple choices, all of which are undesirable as defined by the person is called a _____.

Moral Dilemma

What concept refers to a person's personal philosophy about what is right or wrong?

Morals

According to the text, business ethics comprises organizational principles, values, and __________ that may originate from individuals, organizational statements, or from the legal system.

Norms

Some examples of what concept can include human rights, freedom of speech, and the fundamentals of justice?

Principles

The Consumers' Bill of Rights decreed by President John F. Kennedy specified the right to:

Safety, Heard, Informed, and Choose

The ethical component of a corporate culture relates to the values, beliefs, and established and enforced patterns of conduct that employees use to identify and respond to ethical issues.

TRUE

The concept that centers around enduring beliefs and ideals that are socially enforced, such as teamwork, trust, and integrity is called _____.

Values

Ethical Culture

acceptable behavior as defined by the company and industry

Many studies have found a positive relationship between:

an ethical culture and good business performance

Defensive Industry Initiative on Business Ethics and Conduct (DII)

developed to guide corporate support for ethical conduct

Before anything else, businesses must _____ to survive.

make a profit

Workplace Integrity

the pressure to comprise to organizational standards, observed misconduct, and report it.

Value Dilemma

two or more beliefs/values in conflict with one another