Business Ethics

to guide corporate support for ethical conduct

set the tone for organizational ethical compliance programs

rewarding organizations for taking action to prevent misconduct

To address a loss of confidence in financial reporting and corporate ethics

to address lingering issues related to the financial crisis

is acceptable behavior as defined by the company and industry

Leads to employee commitment and trust, investor loyalty and trust, customer satisfaction and trust, which all leads to profits

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

Theological discussion --> recognition of social issues --> field of study

Activities undertaken by independent individuals, and groups to protect their rights as consumers

They can withdraw valuable resources

continued association is necessary for the firm's survival

employees, customers, investors, stockholders, governments, communities that provide infrastructure

do not engage in business and are not essential for survival

media, trade associations, special-interest groups

there are two-way relationships between the firm and a host of stakeholders

I. generation of data about stakeholder groups and assessment of the effects on these groups

II. distribution of the information

III. responsiveness to this information

--> the degree to which a firm understands, and addresses stakeholder demands 

economic, legal, ethical, philanthropic (giving back to society)

expresses the extent to which an organization meets the 4 levels of social responsibility

one of an organization's greatest intangible assets

involves the development of formal systems of accountability (how closely workplace decisions are aligned with a firm's direction and compliance with ethics and legislations), oversight (checks and balances that limit opportunities to deviate from policies etc.), and control (auditing and improving decisions and actions)

strong governance removes the opportunity for employees to make unethical decisions

1 assessing the corporate culture
2 identifying stakeholder groups
3 identifying stakeholder issues
4 assessing organizational commitment to social responsibility
5 identifying resources and determining urgency
6 gaining stakeholder feedback

a situation involving a group, a problem, or an opportunity that requires thought, discussion, or investigation before a decision can be made.

requires an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical.

being whole, sound, and in an unimpaired condition

Org: uncompromising adherence to ethical values

truthfulness or trustworthiness

business is regarded as a "game" governed by its own rules rather than by those of society

Equality, reciprocity (giving and receiving), optimization

Integrity, Honesty, Fairness

a problem, situation, or opportunity that requires an individual, group, or organization to choose among several actions that have negative outcomes.

creating a perception or belief by words that intentionally deceive (täuschen) the receiver of the message

intentionally not informing others of any differences, problems, safety, warnings, or negative issues related to the product or company that significantly affects awareness, intention, or behavior.

when an individual must choose whether to advance his or her own interests, those of the organization, or those of some other group

the practice of offering something in order to gain an illicit advantage

active, passive, facilitation payments

is one of the top methods for obtaining trade secrets

System hacking (attacker already has access to the account)

Remote hacking (remotely trying to penetrate a computer system via the internet)

Physical hacking (agent personally enters facility)

a popular method of obtaining valuable corporate information

Shoulder surfing

password guessing

once trash is discarded onto a public street or alley, it is considered fair game

wireless hacking

another tool for CI agents