Ethics Midterm Review Terms

Morals

A person's personal philosophies about what is right or wrong
**personal or singular -> relate to you and you alone

Business ethics

organizational principles, value and norms hat may originate from individuals, organizational statements, or from the legal system that primarily guide individual and group behavior in business

Principles

specific and pervasive boundaries for behavior that should not be violated

Values

Enduring beliefs and ideals that are socially enforced

Ethics

behavior or decisions made within a group's values

Consumers' Bill of Rights

-1960s
-safety, informed,choose, heard (SICH)

Development of Business Ethics: Before 1960s

Ethical issues related to the business were often discussed within the domain of theology or philosophy or in the realm of legal and competitive relationships

What is puffery?

Exaggerated claims that customers should not take seriously
**is acceptable

Development of Business Ethics: the 1960s

Rise of social issues in businesses
-antibusiness trend because military-industrial complex said to have vested interests that controlled economic and political aspects of society
-activities that could destabilize economy and discriminate against any cla

What is Ralph Nader known for?

-publication of Unsafe at Any Speed (criticized auto industry as a whole and GM for putting profit and style ahead of lives and safety)

Lyndon B. Johnson's "Great Society

series of programs that extended national capitalism and told the business community the US government's responsibility was to provide all citizens with some degree of economic stability

Development of Business Ethics: the 1970s

-business ethics began to develop as a field of study
-corporate social responsibility
-companies more concerned with public image

Corporate Social Responsibility

an organization's obligation to maximize its positive impact on stakeholders and minimize its negative impact

The Foreign Corrupt Practices Act

makes it illegal for US businesses to bribe government officials of other countries
*highest priority of the US Department of Justice

Defense Industry Initiative on Business Ethics and Conduct (DII)

developed to guide corporate support for ethical conduct

***What are the 6 principles of DII (Defense Industry Initiative on Business Ethics and Conduct)?

-support codes of conduct
-member companies expected to provide ethics training for employees
-defense contractors must create an open atmosphere where employees feel comfortable reporting violations without fear
-perform extensive internal audits
-preser

Development of Business Ethics: 1980s

-business ethics as field of study
-DII
-self regulation, rather than regulation by gov, thought to be in public's interest