ethics - the principles, norms, and standards of conduct governing an individual or group—focuses on
conduct
ethical behavior in business - behavior that is consistent with the principles, norms, and standards of
business practice that have been agreed upon by society
Process of Ethical Decision Making - ethical awareness > ethical judgement > ethical behavior
ethical organizations - evidence suggests employees are more attracted to and more committed
Defense Industry Initiative on Business Conduct and Ethics (DII) - 1) Adopt a written code of conduct.
2) Conduct employees' orientation and training with respect to the code.
3) Provide employees a mechanism to express concerns about corporate compliance with procurement
laws and regulations.
4) Adopt procedures for voluntary disclosure of violations of federal procurement laws.
5) Participate in Best Practices Forums.
6) Publish information that shows each signatory's commitment to the above.
stakeholders - parties who are affected by the business and its actions and who have an interest in what
the business does and how it performs
consequentialist theory - type of normative ethics that judges an action as right or wrong by the
consequences, utilitarianism is the best known consequentialist theory
deontological theory - decisions about what's right on broad, abstract universal ethical principles or
values such as honesty, promise keeping, fairness, loyalty, rights (to safety, privacy, etc.), justice,
responsibility, compassion, and respect for human beings and property
, virtue ethics - focuses more on the integrity of the moral actor (the person) than on the moral act itself
(the decision or behavior)
American Institute of Certified Public Accountants (AICPA) - National and professional organization for
CPAs, has a code of conduct for members and a mission that includes establishing and enforcing conduct
standards.
Conflict of interest - when your judgment or objectivity is compromised
Appearance of a conflict of interest - when a third party could think your judgment has been
compromised—is generally considered just as damaging as an actual conflict
bribe or kickback - persuade (someone) to act in one's favor, typically illegally or dishonestly, by a gift of
money or other inducement
"subtle" bribe - gifts or entertainment provided by company representatives
privileged information - information that would be valuable to your employer's competitors
whistleblower - a person who exposes misconduct, alleged dishonest or illegal activity occurring in an
organization.
How to blow the whistle - 1) Approach Your Immediate Manager First If You Can (your manager isn't
involved in the problem)
2) Discuss the issue with your family
3) Take it to the next level
4) Contact your company's ethics officer ombudsman
5) Consider going outside your chain of command
6) Go outside of the company
7) Leave the company
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