Ch. 4 Ethics

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Philanthropy
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is giving back to communities and causes
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Core Practices
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are documented best practices, often encouraged by legal and regulatory forces as well as industry trade associations
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Voluntary Practices
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include the beliefs, values, and voluntary contractual obligations
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Mandated Boundary’s
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are externally imposed boundaries of conduct, such as laws, rules, regulations, and other requirements
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Values
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are broad and viewed as long – term enduring beliefs about issues such as integrity, trust, openness, diversity, and individual respect, and responsibility
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Norms
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dictate desirable behaviors through principles, rules, policies, and procedures
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Artifacts
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are visible, tangible external symbols of values and norms Ex: Websites, Code of Ethics, Rituals, language, and physical settings
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Lawsuits
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What is the primary method of resolving conflicts and serious business ethics disputes?
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Civil Law
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defines the rights and duties of individuals and organizations
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Criminal Law
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prohibits specific actions such as – fraud, theft, or securities trading violations – also imposes fines or imprisonment as punishment for breaking the law
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Corporate Espionage
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is the act of illegally taking information form a corporation through computer hacking, theft, intimidation, sorting through trash, and impersonation of organizational members.
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Pro Competitive Legislation
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are laws passed to prevent the establishment of monopolies, inequitable pricing practices, and other practices that reduce or restrict competition among businesses
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Sherman Antitrust Act (1890)
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prohibits organizations from holding monopolies in their industry
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Robinson Patman Act (1936)
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bans price discrimination between retailers and wholesalers
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McCarran Ferguson Act (1944)
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congress exempted the insurance industry from the Sherman Antitrust Act and other antitrust laws
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Consumer Protection Laws
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are laws that protect consumers and require businesses to provide accurate information about their products and services and follow safety
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1906
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When was the first consumer protection law passed?
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Pure Food and Drug Act
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prohibits adulteration and mislabeling of foods and drugs sold in interstate commerce
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Childrens Online Privacy Protection Act
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requires commercial internet sites to carry privacy policy statements, obtain parental consent before soliciting information from children under the age of 13, and provide an opportunity to remove any information provided by children using such sites
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FTC Bureau of Consumer Protection
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role is to protect consumers against unfair, deceptive, or fraudulent practices
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Division of Enforcement
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monitors compliance with and investigates violations of laws, including unfulfilled holiday delivery promises by online shopping sites, employment opportunity fraud, scholarship scams, misleading advertising for health care products, data security, financial practices
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Food and Drug Administration
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regulates food safety, human drugs, dietary supplements, vaccines, medical devices, cosmetics
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Title Seven of the Civil Rights Act (1964)
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specifically prohibits discrimination in employment on the basis of race, sex, religion, color, or national origin.
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Equal Employment Opportunity Commission
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– was created by the Civil Rights Act to enforce the provisions of Title VII – assists businesses in designing affirmative action programs
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Affirmative Action Programs
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aim to increase job opportunities for women and minorities by analyzing the present pool of employees, identifying areas where women and minorities are underrepresented, and establishing specific hiring and promotion goals, along w/ target dates for those goals
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Equal Pay Act of (1963)
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– mandates that women and men who do equal work must receive equal pay – wage differences are allowed only if they can be attributed to seniority, performance, or qualifications
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Americans with Disabilities Act (1990)
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prohibits discrimination against people with disabilities
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Occupational Safety and Health Act (1970)
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mandates employers to provide safe and healthy working conditions for all workers
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Occupational Safety and Health Administration
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which makes regular surprise inspections to ensure businesses maintain safe working environments
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Accountants
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measure and disclose financial information, with an assurance of accuracy, to the public make specific assumptions about their clients
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Jumpstart Our Business Startups Act (JOBS) (2012)
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passed in effort to jumpstart the economy. this act exempts what is termed as “emerging growth companies” from having to observe the auditor attestation requirements from the Sarbanes Oxley 404(b). – this exemption can last a maximum of 5 years – purpose of this law is to allow start ups to easily attract funding and investors -encourage entrepreneurship
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Dodd Frank Wall Street Reform and Consumer Protection Act
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– signed into las in 2010 by President Obama – seeks to improve financial regulation, increase oversight of the industry, and prevent the types of risk taking deceptive practices, and lack of oversight that led to the 2008-2009 financial crisis
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Office of Financial Research
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is charged with improvising the quality of financial data available to government officials and creating a better system of analysis for the financial industry
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Financial Stability Oversight Council
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responsible for maintaining the stability of the financial system in the US through monitoring the market, identifying threats, prompting market discipline among the public, and responding to major risks that threaten stability
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Consumer Financial Protection Bureau
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an independent agency within the Federal Reserve System “that regulates the offerings and provisions of consumer financial products or services under the Federal consumer financial laws”
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Whistle Blower Bounty Program
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– instituted to encourage more employees to come forward when they witness misconduct – are eligible to receive 10% to 30% of fines and settlements if their report results in convictions of up to 1 million dollars in penalties

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