| A | B |
|---|
| Ethics | Involves personal morals and values. |
| Legality | Involves governmental laws. |
| Ethics | A set of moral principles or values that govern behavior. |
| Ethical Rules | All individuals develop their own that help them decide how to behave in different situations. |
| Ethics | What people feel are 'right' and 'wrong.' |
| Ethics | In management is very difficult. |
| Code of Ethics | A document that outlines the principles of conduct to be used in making decisions within the organization. |
| Code of Ethics | Helps managers to know how to respond ethically to different business situations. |
| Code of Ethics | Most corporations in the US have one. |
| Code of Ethics | Formal documents that are shared with all employees. |
| Code of Ethics | Must be enforced to be effective. |
| Areas of Codes of Ethics | Honesty, Adherence to the law, Product safety and quality, pricing, billing, contracting, trading, using information about competitors. |
| Areas of Codes of Ethics | Health and safety in the workplace, selling and marketing, financial reporting, security, political activists, protection to the environment. |
| Behaving Unethically | Can hurt or end a business person's career. |
| Behaving Unethically | Can cause a business to lose millions of dollars or go out of business. |
| Behaving Ethically | Helps employees gain the trust of the people with whom they work. |
| Behaving Honestly | Employee theft, lying about hours worked, falsifying records. |
| Employee Theft | Employers trust their employees not to steal from them. |
| Employee Theft | In a number of ways: embezzle money, except bribes, submit false expense accounts. |
| Lying About Hours Worked | Employees who behave ethically are honest about the hours they work. |
| Lying About Hours Worked | Do not take advantage of working from home or away from the boss. |
| Falsifying Records | One of the worst ethical problems. |
| Falsifying Records | Can cause grave damage to a company and case people to become ill or die. |
| Laws Relating to Ethics | Competitive behavior, consumer protection, product safety, environmental protection. |
| Competitive Behavior | Since the late 19the century, the federal government has regulated compaines to make sure they do not engage in anticompetitive behavior. |
| Competitive Behavior | All companies in the US must abide by these laws. |
| The Sherman Act of 1890 | Makes it illegal for companies to monopolize trade. |
| The Sherman Act of 1890 | Mergers can be prohibited if the new company that results from the merger will control too large a share of the market. |
| The Sherman Act of 1890 | Ensures that companies remain able to compete fairly. |
| The Clayton Act of 1914 | Makes it illegal to charge different prices to different wholesale customers. |
| The Clayton Act of 1914 | Bans the practice of requiring a customer to purchase a second good. |
| The Wheeler-Lea Act of 1938 | Bans unfair or deceptive acts or practices including false advertising. |
| The Wheeler-Lea Act of 1938 | Businesses must inform consumers of possible negative consequences of using their products. |
| The Wheeler-Lea Act of 1938 | Labeling of cigarette packages is an example. |
| Consumer Protection | These laws cover food, drugs, other manufactured products, and loans. |
| The Federal Food, Drug, and Cosmetic Act of 1938 | Bans the sale of impure, improperly labeled, falsely guaranteed, and unhealthful foods, drugs, and cosmetics. |
| Food and Drug Administration (FDA) | Has the power to force manufacturers to stop selling products it considers unsafe. |
| The Consumer Product Safety Commission | Establishes minimum product safety standards on consumer products. |
| The Consumer Product Safety Commission | Can force the manufacturer to recall a product. |
| Truth in Lending Act of 1968 | Creditors are required to let consumers know how much they are paying in finance charges and interest. |
| The Equal Credit Opportunity Act of 1975 | Prohibits creditors from making credit decisions on the basis of discriminatory practices. |
| Environmental Protection | Has been an important social and economic issue in the US since the 1960s. |
| The National Environmental Policy Act of 1969 | Created the Environmental Protection Agency |
| Environmental Protection Agency (EPA) | Protects human health and safeguards the air, water, and land. |
| Enforced by the EPA | Clean Air Act, Toxic Substances Control Act, Clean Water Act |
| The Clean Air Act of 1970 | A federal law that regulates air emissions. |
| The Clean Air Act of 1970 | Was amended in 1990 to deal with problems of acid rain, ground-level ozone, and toxic substances in the air. |
| The Clean Water Act of 1977 | Gives the EPA the authority to set standards on the type and quanity of pollutants that industries can put into bodies of water. |
| The Clean Water Act of 1977 | Makes it illegal to discharge any pollutant into navigable waters unless a permit is obtained. |
| Ethical Standards and Culture | Standards of business ethics differ around the world. |
| Corporate Gift Giving | Gift-giving customs differ around the world. |
| Intellectual Property | Ownership of ideas: inventions, books, movies, computer programs. |
| Intellectual Property | Creators have the right to market and sell their work. |
| Intellectual Property | The rights are guaranteed through copyright laws, trademarks, and patenets. |
