Bussiness Ethic
CH1 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.
CH2 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.
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.
CH2 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.