Chapter 7: Corruption and Ethics in Global Business

What are the resources that aid in ethical decision making?

- laws, policies, code of ethics/conduct - moral intuition - follow principles of consistency and respect

What are the five fundamentals of ethics education?

- personal integrity - responsibility of business in society - ethical decision making - ethical leadership - corporate governance

What are the categories of internal control procedures?

- preventative controls - feedback controls

Integrity

adherence to moral and ethical principles; soundness of moral character; honesty. As a practical matter, a person of integrity knows what is right and holds the courage to do it

Imperative Principle

do what is right

Generalization Principle

do what is right while considering the consequences

Utilitarian Principle

do what produces the greatest good

What are the four basic steps to ethical decision making?

- define facts and circumstances - identify the people affected - determine alternative decisions and consequences - make the decision: determine the right thing to do and then do it

What are the two essential characteristics of a person with integrity?

- knowledge of what is morally right - courage to do what is right and follow through

What are the CSR mandates?

- provide a quality product or service to its customers - provide an appropriate return on investment to the company's stockholders - treat its employees with dignity and respect - take care of the environment - meet its legal obligations - fairly deal with suppliers, lenders, and other business parties

What are the Better Bureau Standards for Trust?

1. build trust 2. advertise honestly 3. tell the truth 4. be transparent 5. honor promises 6. be responsive 7. safeguard privacy 8. embody integrity

Foreign Corrupt Practices Act (FCCPA)

a U.S. federal law that consists of two parts: an anti-bribery provision and a requirement to maintain an adequate internal control system over financial books and records

Corporate social responsibility (CSR)

a company's obligations to society, including the welfare of people and places affected by company activities

Corruption Perceptions Index (CPI)

a report published each year by Transparency International, providing metrics to the potential corruption risk for most of the world's countries

Internal Controls

a system of rules and procedures designed to ensure the accuracy and reliability of financial and accounting information

Mark to Market Accounting

accounting practices that update the value of an asset to its current market levels

Ethics

the branch of philosophy that addresses the values pertaining to human behavior, with regard to the "rightness" and "wrongness" of actions and the "goodness" and "badness" of the intent and results of such actions