Chapter 3

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ethical issue problem, situation, or opporunity that requires an individual or group to choose among actions
Honesty Truthfulness or trustworthiness

telling the truth to the best of your knowledge
dishonesty A Lack of integrety, incomplete discolsure, or an unwilligness to tell the truth
Fariness The quality of being just, equitable, and impartial
equality how wealth or income is distributed
reciprocity occurs when an action that has an effect upon another is returned
optimization the tradeoff between equity and efficency
integreity uncompromising adherence to ehtical values
ethical dilemma a proble, situation, or an opportunity that requires an individual or group to chose among several wrong or unethical actions
4 examples of shareholder issues 1. bitter interaction and positioning with shareholders
2. protest votes in director elections
3. long term value creatioin
4. expanding roles for women
what is the leading form of observed misconduct misuse of company resoures

can range from unauthorized use of equipment and computers to embezzling company funds
abusive or intimidating behaviors can be physical threats, false accusations, profanity, insults, harshness, ignoring someone, or unreasonableness

intent is important in determing abuse

bullying is a growing problem
what are the 3 types of lies 1. joking without malice

2. commission lying- creating a false perception with words that decieve the reciever

3. ommision lying- in intentionally not infomring channel members of problems relating to product that affects awareness, intention, or behavior
conflicts of interst exist when an individual must choose whether to advance his or her personal intersts of the organization, or some other group
what is bribery and what are the different types the practice of offering something in order to gain an illict advantage

1. active bribery- the person who promises or gives the bribe commits the offense

2. passive bribery- an offense committed by the offical who recievies the bribe

facilitation payments- legal as long as they are small
Corporate Intelligance the collection and anaylysis of information on:

markets

technoligies

customers and competitors

socioeconomic and external political trends
a company can be sued for discrimination if it Refuses to hire an individual for discriminatory reaons

unreasonably excludes and indivdual from employment

unreasonably discharges an individual

disciminates against an individual with respect to hiring, employment terms, promotion, or privileges
unethical dual relationship the relationship causes a conflict of interst or impariment of professional judgement
the kyoto protocol an international treaty that commits nations to reducing greenhouse gas emissions
fraud any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression
accounting fraud misreprensnetation of a company's financial reports

accountants should abide by a strict code of ethics
marketing fraud the process of dishonestly creating, distributing, promoting, and pricing products

puffery- exaggerated advertising claims, blustering, and boasting

implied falisty- an advertising message that misleads, confuses, or decieves the public,

literally false- claims can be divided into prove and bald assertions
consumer fraud when consumers attempt to decieve businesses for personal gain
- price tag switchin, item switching, or lying to obtain discounts

colllusion- involves an employee who helps a consumer comitt fruad

duplicity- involves a consumer duping a store

guile- is associated with a peroson who uses tricks to obtain unfair advantage
financial misconduct the failure to understand and manage ethical risks was a key problem in the recent financial crisis
what are the two types of insider trading? legal insider trading- involes legally buying and selling stock in an insider's own company ,but not all the time


illegal insider trading- the buying or selling og stocks by insiders who posses material that is not public
most ethical issues become visible through? stakeholder concerns
the ehtical decision making process starts when ehtical issue awarness occurs and a discussion begins