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