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.
consequentialist theory - type of normative ethics that judges an action as right or wrong by the
consequences, utilitarianism is the best known consequentialist theory
Consequentialist - focuses on doing what will maximize societal welfare
approach requires you to do a mental calculation of all the harms and benefits of these consequences
Utilitarianism - consequentialist ethical decision should maximize benefits to society and minimize
harms. What matters is the net balance of good consequences over bad for society overall
Consequentialist - focus attention on the results or consequences of the decision
, 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
deontological - focuses on doing what is "right" (based on moral principles or values such as honesty)
deontological - What is Pat's ethical duty now that she knows about the layoff?
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
"subtle" bribe - gifts or entertainment provided by company representatives
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
Sarbanes-Oxley Act (SOX) - protections - provides whistleblowers in publicly traded companies with
protections if they
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