The links below are designed for print; more screen reader friendly documents can be found on the Students: Additional Lumen Resources page.<\/p>
Standards of ethical and legal behavior are intertwined but are separate \u201ccodes\u201d arising from different sources. Legality comes from legislation or case law that establishes standards of behavior\u2014illegal behavior may be punished by fines, imprisonment, or both. As a branch of philosophy, ethics investigates the questions \u201cWhat is the best way for people to live?\u201d and \u201cWhat actions are right or wrong in particular circumstances?\u201d In practice, ethics seeks to resolve questions of human morality, by defining concepts such as good and evil, right and wrong, virtue and vice, justice and crime.<\/p>\r\n
Businesses and organizations possess a set of ethical standards just like people. When we refer to \u201cbusiness ethics\u201d we are referring to the culture, attitudes, or actions governing \u201cright vs. wrong.\u201d Most organizations have a formal code of ethics that guides the decisions and actions of the company.<\/p>\r\n
Businesses and their employees, managers, and owners face a variety of ethical issues as they go about their working lives. Ethical issues include conflicts of interest, kickbacks, bribery, and issues of honesty and integrity.<\/p>\r\n
Whistleblowing is when a person exposes illegal, unethical, or improper activities within an organization, usually motivated by a sense of justice or the fear of consequences, although it can have varying motivations and outcomes.<\/p>\r\n
Corporate social responsibility (CSR) refers to actions that businesses take or refrain from taking based on the impact of those actions on the external environment and community. Today, businesses are realizing the importance of corporate social responsibility (CSR) in attracting and maintaining employees and customers. There are several drivers pushing businesses toward corporate social responsibility, including increased pressure from consumers, pressure from shareholders and investors, and supply chain pressure.<\/p>\r\n
Different approaches to corporate social responsibility (CSR) include corporate philanthropy, cause-related marketing, sustainability, social entrepreneurship, and social marketing, each with its own unique focus and impact on society.<\/p>\r\n
When conducting business internationally, ethical issues arise due to variations in political systems, legal frameworks, cultural norms, and competitive pressures, making it challenging to distinguish between ethical and unethical practices. One prominent example is corruption, where some corporate executives resort to financial incentives to influence foreign officials, which can lead to legal risks, harm local interests, contribute to a culture of corruption, and damage a company's reputation. To combat corruption, anti-corruption laws such as the U.S. Foreign Corrupt Practices Act (FCPA) have been implemented, criminalizing bribery of foreign public officials by American businesses and foreign businesses listed on U.S. stock exchanges.<\/p>\r\n
Compliance with anti-corruption legislation poses ethical challenges for corporations due to varying social and cultural norms worldwide, where acts considered unethical in one country may be accepted in another. This highlights the importance of understanding cultural differences in ethical behavior and the need for individuals to align their own ethical standards with those of their organizations when seeking employment.<\/p>\r\n
Leadership is more than just being in charge; it involves recognizing strengths, both in oneself and others, and utilizing them to achieve organizational goals, demonstrated through behaviors such as motivating others, embracing feedback, thinking creatively, and serving as a mentor or role model.<\/p>\r\n
bribery<\/strong><\/p>\r\n the act of giving money, goods, or other forms of compensation in exchange for a benefit to the giver that the recipient would otherwise not choose to give; a quid pro quo arrangement<\/p>\r\n business ethics<\/strong><\/p>\r\n standards or sets of values that govern the actions and behavior of individuals within a business organization and of the business itself in areas that are not directly regulated by laws<\/p>\r\n cause-related marketing (CRM)<\/strong><\/p>\r\n a corporation\u2019s associating the sales of its products to a program of donations or support for a charitable or civic organization<\/p>\r\n code of ethics<\/strong><\/p>\r\n a set of standards that serves as a guide for the members of an organization<\/p>\r\n code of practice<\/strong><\/p>\r\n adopted by a profession or by a governmental or nongovernmental organization to regulate that profession<\/p>\r\n conflict of interest<\/strong><\/p>\r\n an ethical challenge that occurs when an individual or organization is involved in multiple interests that are at odds with one another<\/p>\r\n corporate philanthropy<\/strong><\/p>\r\n a corporation\u2019s gifts to non-profit organizations<\/p>\r\n corporate social responsibility (CSR)<\/strong><\/p>\r\n the voluntary ethical actions of a business in society<\/p>\r\n ethics<\/strong><\/p>\r\n a set of moral standards that govern the conduct of a person<\/p>\r\n Foreign Corrupt Practices Act (FCPA)<\/strong><\/p>\r\n criminalized bribery of foreign public officials by American businesses as well as foreign businesses that are listed on stock exchanges in the U.S.<\/p>\r\n gifts from associates<\/strong><\/p>\r\n can pose a conflict of interest<\/p>\r\n greenwashing<\/strong><\/p>\r\n corporations exaggerating or misstating the impact of their environmental actions or promoting products as being environmentally friendly when in fact they\u2019re not<\/p>\r\n kickback<\/strong><\/p>\r\n a form of negotiated bribery in which a commission is paid to the bribe-taker in exchange for services rendered<\/p>\r\n leadership<\/strong><\/p>\r\n involves being able to recognize your strengths and those of your team and take advantage of those strengths to achieve organizational goals<\/p>\r\n nepotism<\/strong><\/p>\r\n business decisions such as hiring and purchasing involve family members pose a conflict of interest<\/p>\r\n outside employment<\/strong><\/p>\r\n is a conflict of interest when the interests of one job conflict with the interests of the other<\/p>\r\n self-dealing<\/strong><\/p>\r\n a person with decision-making authority causes the organization they represent to enter into a transaction that benefits themselves; being on both sides of a deal<\/p>\r\n social entrepreneurship and social enterprise<\/strong><\/p>\r\n the use of business organizations and techniques to attain laudable social goals<\/p>\r\n social marketing<\/strong><\/p>\r\n the use of business marketing techniques in the pursuit of social goals<\/p>\r\n sustainability<\/strong><\/p>\r\n the ability of a society or company to continue to operate without compromising the planet\u2019s environmental condition in the future<\/p>","rendered":" The links below are designed for print; more screen reader friendly documents can be found on the Students: Additional Lumen Resources page.<\/p>\n Standards of ethical and legal behavior are intertwined but are separate \u201ccodes\u201d arising from different sources. Legality comes from legislation or case law that establishes standards of behavior\u2014illegal behavior may be punished by fines, imprisonment, or both. As a branch of philosophy, ethics investigates the questions \u201cWhat is the best way for people to live?\u201d and \u201cWhat actions are right or wrong in particular circumstances?\u201d In practice, ethics seeks to resolve questions of human morality, by defining concepts such as good and evil, right and wrong, virtue and vice, justice and crime.<\/p>\n Businesses and organizations possess a set of ethical standards just like people. When we refer to \u201cbusiness ethics\u201d we are referring to the culture, attitudes, or actions governing \u201cright vs. wrong.\u201d Most organizations have a formal code of ethics that guides the decisions and actions of the company.<\/p>\n Businesses and their employees, managers, and owners face a variety of ethical issues as they go about their working lives. Ethical issues include conflicts of interest, kickbacks, bribery, and issues of honesty and integrity.<\/p>\n Whistleblowing is when a person exposes illegal, unethical, or improper activities within an organization, usually motivated by a sense of justice or the fear of consequences, although it can have varying motivations and outcomes.<\/p>\n Corporate social responsibility (CSR) refers to actions that businesses take or refrain from taking based on the impact of those actions on the external environment and community. Today, businesses are realizing the importance of corporate social responsibility (CSR) in attracting and maintaining employees and customers. There are several drivers pushing businesses toward corporate social responsibility, including increased pressure from consumers, pressure from shareholders and investors, and supply chain pressure.<\/p>\n Different approaches to corporate social responsibility (CSR) include corporate philanthropy, cause-related marketing, sustainability, social entrepreneurship, and social marketing, each with its own unique focus and impact on society.<\/p>\n When conducting business internationally, ethical issues arise due to variations in political systems, legal frameworks, cultural norms, and competitive pressures, making it challenging to distinguish between ethical and unethical practices. One prominent example is corruption, where some corporate executives resort to financial incentives to influence foreign officials, which can lead to legal risks, harm local interests, contribute to a culture of corruption, and damage a company’s reputation. To combat corruption, anti-corruption laws such as the U.S. Foreign Corrupt Practices Act (FCPA) have been implemented, criminalizing bribery of foreign public officials by American businesses and foreign businesses listed on U.S. stock exchanges.<\/p>\n Compliance with anti-corruption legislation poses ethical challenges for corporations due to varying social and cultural norms worldwide, where acts considered unethical in one country may be accepted in another. This highlights the importance of understanding cultural differences in ethical behavior and the need for individuals to align their own ethical standards with those of their organizations when seeking employment.<\/p>\n Leadership is more than just being in charge; it involves recognizing strengths, both in oneself and others, and utilizing them to achieve organizational goals, demonstrated through behaviors such as motivating others, embracing feedback, thinking creatively, and serving as a mentor or role model.<\/p>\n bribery<\/strong><\/p>\n the act of giving money, goods, or other forms of compensation in exchange for a benefit to the giver that the recipient would otherwise not choose to give; a quid pro quo arrangement<\/p>\n business ethics<\/strong><\/p>\n standards or sets of values that govern the actions and behavior of individuals within a business organization and of the business itself in areas that are not directly regulated by laws<\/p>\n cause-related marketing (CRM)<\/strong><\/p>\n a corporation\u2019s associating the sales of its products to a program of donations or support for a charitable or civic organization<\/p>\n code of ethics<\/strong><\/p>\n a set of standards that serves as a guide for the members of an organization<\/p>\n code of practice<\/strong><\/p>\n adopted by a profession or by a governmental or nongovernmental organization to regulate that profession<\/p>\n conflict of interest<\/strong><\/p>\n an ethical challenge that occurs when an individual or organization is involved in multiple interests that are at odds with one another<\/p>\n corporate philanthropy<\/strong><\/p>\n a corporation\u2019s gifts to non-profit organizations<\/p>\n corporate social responsibility (CSR)<\/strong><\/p>\n the voluntary ethical actions of a business in society<\/p>\n ethics<\/strong><\/p>\n a set of moral standards that govern the conduct of a person<\/p>\n Foreign Corrupt Practices Act (FCPA)<\/strong><\/p>\n criminalized bribery of foreign public officials by American businesses as well as foreign businesses that are listed on stock exchanges in the U.S.<\/p>\n gifts from associates<\/strong><\/p>\n can pose a conflict of interest<\/p>\n greenwashing<\/strong><\/p>\n corporations exaggerating or misstating the impact of their environmental actions or promoting products as being environmentally friendly when in fact they\u2019re not<\/p>\n kickback<\/strong><\/p>\n a form of negotiated bribery in which a commission is paid to the bribe-taker in exchange for services rendered<\/p>\n leadership<\/strong><\/p>\n involves being able to recognize your strengths and those of your team and take advantage of those strengths to achieve organizational goals<\/p>\n nepotism<\/strong><\/p>\n business decisions such as hiring and purchasing involve family members pose a conflict of interest<\/p>\n outside employment<\/strong><\/p>\n is a conflict of interest when the interests of one job conflict with the interests of the other<\/p>\n self-dealing<\/strong><\/p>\n a person with decision-making authority causes the organization they represent to enter into a transaction that benefits themselves; being on both sides of a deal<\/p>\n social entrepreneurship and social enterprise<\/strong><\/p>\n the use of business organizations and techniques to attain laudable social goals<\/p>\n social marketing<\/strong><\/p>\n the use of business marketing techniques in the pursuit of social goals<\/p>\n sustainability<\/strong><\/p>\n the ability of a society or company to continue to operate without compromising the planet\u2019s environmental condition in the future<\/p>\n","protected":false},"author":21,"menu_order":1,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"Putting It Together: Business Ethics\",\"author\":\"Linda Williams and Lumen Learning\",\"organization\":\"\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":2916,"module-header":"cheat_sheet","content_attributions":[{"type":"cc","description":"Putting It Together: Business Ethics","author":"Linda Williams and Lumen Learning","organization":"","url":"","project":"","license":"cc-by","license_terms":""}],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"","media_targets":[]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/4096"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/users\/21"}],"version-history":[{"count":12,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/4096\/revisions"}],"predecessor-version":[{"id":9921,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/4096\/revisions\/9921"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/parts\/2916"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/4096\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/media?parent=4096"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=4096"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/contributor?post=4096"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/license?post=4096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Download a pdf of this page here.<\/a><\/h4>\n
Download the Spanish version here.<\/a><\/h4>\n
Essential Concepts<\/h2>\n
Business Ethics<\/h3>\n
Ethical Challenges<\/h3>\n
Corporate Social Responsibility<\/h3>\n
Ethics in the Global Environment<\/h3>\n
Career Connection: Leadership<\/h3>\n
Glossary<\/h2>\n