Summary Business Ethics, Chapter 1, 2, 3, 12

Morals - -A person's personal philosophies about what is right or wrong. -Business Ethics - -Organizational principles, values, and norms that may originate from individuals, organizational statements, or from the legal system that primarily guide individual and group behavior in business. -Many people believe if a company hires good people with strong ethical values, then it will be a "good citizen" organization. -Principles - -Specific and pervasive boundaries for behavior that should not be violated. Often become the basis for rules. -Values - -Enduring beliefs and ideals that are socially enforced. Teamwork, trust, integrity. -Ethics - -Behavior or decisions made within a group's values. -Consumers' Bill of Rights - -- Right to Safety - Right to be Informed - Right to Choose - Right to be Heard 1962 - Kennedy's special message on protecting the consumer interest turned into this -Corporate Social Responsibility - -An organization's obligation to maximize its positive impact on stakeholders and minimize its negative impact. -Defense Industry Initiative on Business Ethics and Conduct (DII) - -Developed to guide corporate support for ethical conduct. Six Principle: 1) DII supports codes of conduct and their widespread distribution 2) Member companies are expected to provide ethics training for their employees as well as continuous support between training periods 3) Defense contractors must create an open atmosphere in which employees fell comfortable reporting violations without fear of retribution 4) Companies need to perform extensive internal audits and develop effective internal reporting and voluntary disclosure plans