Key Terms
Ethics
Principles of conduct or moral behavior.
Business ethics
Ethics as it applies to the conduct or behavior of members of a business organization.
Unethical acts can originate at any level
Board members, C-suite executives, mid-level managers, and nonmanagerial employees. Consequences range from petty annoya
Most common offenses
Fraud, hazardous waste discharge, tax evasion, antitrust violations, food and drug violations.
Factors that INCREASE punishment
1. Involvement in or tolerance of criminal activity 2.
Factors that MITIGATE (reduce) punishment
1. Existence of an effective compliance and ethics program 2.
Ethical intensity
The degree of importance of an issue for an individual or group. Not all ethical issues carry the same weight.
Each individual brings a different combination of
Perceptions, moral codes, interests, religious beliefs, convictions, and motives. What is moral to one person may be une
Code of ethics (also
Code of conduct, statement of values): A policy statement of a company's values, responsibilities, and conduct expectati
Example method
Scenario-response card matching. Employees match situations with possible responses, then the group discusses why some r
Best practice
Include the company's most ethical current employees in the interview process. They can ask role-relevant questions that
Whistleblower
An individual (typically an employee) who reports the misconduct of someone in a position of authority within their own
Whistleblower hotline
A phone number or other reporting mechanism for employees or other stakeholders to report suspected fraud, waste, abuse,
Takeaway hierarchy
1. Recognize the ethical issue (intensity framework)