1. Business Ethics’ definition Comprises principles, values, and standards that guide behavior in the world of business Principles: specific boundaries for behavior that are universal and absolute E.g. freedom of speech, and civil liberties (rights) 公民权利 Values: Used to develop socially enforced norms强制规范
E.g. Integrity廉正，正直, accountability责任, trust
2. The 21st Century’s New Focus: Sarbanes-Oxley Act (2002) 沙賓法案 (SOX Act) Continued issues with corporate non-compliance (a series of fraud cases: Enron, WorldCom, Halliburton, Arthur Andersen). Such abuses increased public and political demands for improved ethical standards Most extensive ethics reform & increased accounting regulations “SOX Act” is the most far-reaching change in organizational control and accounting regulations since the Securities and Exchange Act of 1934. (made securities fraud a criminal offense and stiffened penalties for corporate fraud) FSGO reform (2004): amendment requires governing authorities to be well-informed regarding business ethics programs (with respect to content, implementation, and effectiveness) Firm’s greatest danger is not discovering misconduct (or lurking illegal activities) early Basic assumptions of capitalism being debated Fears in the wake of global recession and financial meltdown, there is a renewed need to address the level of ethical, legal, and compliance regulations, which need to help serve the public interest.
3. Stakeholders in a business context, customers, investors and shareholders, employees, suppliers, government agencies, communities, and many others who have a “stake” or claim in some aspect of a company’s, operations, markets, industry, and outcomes. 4. Primary and secondary stakeholders Those whose continued association is necessary for a firm’s survival; Are not essential to a company’s survival. 5. Stakeholder interaction model there are reciprocal relationships between the firm and a host of stakeholders. Primary: customers, employees, shareholders, suppliers, community, government regulatory agencies. Secondary: special interest groups, the mass media (in U.S., not in China), competitors, trade associations. 6. Stakeholder orientation
The degree to which a firm understands and addresses stakeholder demands Comprises 3 sets of activities: 1) the organization-wide generation of data about stakeholder groups and assessment of the firm’s effects on these groups; 2) the distribution of this information throughout the firm; 3) the responsiveness of the organization as a whole to this information Generating data about stakeholders begins with 1) identifying the stakeholders; 2) characterize the concerns about the business’s conduct that each relevant stakeholder group shares. 7. Corporate social responsibility
Can be viewed as a contract with society 1)Economic; 2)Legal; 3)Ethical; 4)Philanthropic: 博爱
Business ethics involves carefully thought-out rules (heuristics) of conduct that guide decision making 8. ISO26000 ( cannot be used for certification purposes but is intended as a guideline), which is a corporate social responsibility regulation meant to promote a common understanding in the area of social responsibility. ISO14000 is an environmental regulation standard any business can adopt to help it reduce its carbon footprint, pollution, and waste.(ISO The International Organization for Standardization. 9. Corporate governance definition
To remove the opportunity for employees to make unethical decisions, most companies have developed formal systems of accountability, oversight, and control. Today, the failure to balance stakeholder interests can result in a failure to maximize shareholders’ wealth. Accountability 义务; Oversight 监管; Control 控制
Accountability helps employees, customers, investors, government regulators, and other stakeholders understand why and how the organization chooses and achieves its goals. Shareholder model: including the goal of...
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