Glossary

A Understand how Ethical Behaviour is Applied in a Business Context

https://quizlet.com/555252762/unit-20a-business-ethics-flash-cards/

Ethics - the principles of right and wrong that guide an individual in making decisions

Business ethics - principles and standards that determine acceptable conduct in business

Honesty - truthfulness

Integrity - Being honest and having strong principles regardless of who is watching or influencing you

Competitive business environment - Situations where there are many rival firms selling the same or similar products that put pressure on the firm to improve customer satisfaction

Customers - people who buy goods and services

Stakeholders - Individuals, organisations and groups who are affected by the actions of a business

Competitors - Rival firms selling the same or similar products

General public - People who live in the environment where a business manufactures or sells a product

Legal governances in ethics -

Corporate image - Consumer perception of a company behind a brand.

Vision statement - An expression of where an organisation wants to be in the long run

Value statements - A set of standards that outline how people within the organisation with act towards colleagues and other stakeholders

Mission statements - written declaration of organizational purpose industry

Codes of practice - Standards of professional conduct that are expected of firms in a specific field mandatory

Codes of practice - The minimum expectation of the behavior of firms in an industry that are enforced by the government

Voluntary codes of practice - Self-regulated standards that are driven by integrity

Sanctions - The punishments that are issued to firms who breach codes of ethics such as fines and removal of licenses

ACCA Global - Association of Chartered Certified Accountants

CII - The Chartered Insurance Institute International

Code of ethics - Acceptable behaviours agreed by organisations in the same industry who operate globally, e.g. integrity, objectivity, professional competence and Due Care, confidentiality and professional Behavior

IESBA - The International Ethics Standards Board for Accountants

Objectivity - personal neutrality in conducting research by removing bias or personal judgement professional

Competence - Having skills, knowledge and characteristics that are valued in a specific industry or job role

Confidentiality - the act of holding information privately and only share with relevant and authorised individuals

Professional behaviour - Bring respectful and courteous in the way you treat others in a work environment

Unethical practices - Behaviour that is not morally right, e.g. forgery, misleading information, unauthorised sale of data

Corporate governance - The sets of rules and practices that direct the actions of an organisation

Executive pay - The financial pay and other rewards given to people in senior positions of an organisation

Division of responsibilities - The splitting of tasks between staff and managers in an organisation

Divorce of ownership and control - When owners of the company step away from the day-to-day decision making

Decision-makers - people who have the authority to set objectives and establish policies for an organisation

Principal agent problem - When managers have different values which lead to decisions that conflict with the values of the owners

Identification of risk - Considering factors that may be damaging to a business when making decisions

Internal checks and controls - Planned investigations into all functional areas of a business to assess potential risk and make changes

Remuneration committees - Groups that assess the expected performance targets and rewards for senior level staff

Financial responsibilities - The responsibility to pay correct taxes, avoid corrupt practices and excessive remuneration packages

Tax - money paid to the government, e.g. from profits

Tax avoidance - the use of legitimate methods to reduce one's taxes

Corrupt practices - Dishonest actions such as bribery or fraud

Bribery - the practice of offering something (usually money) in order to gain an illicit advantage

Fraud - wrongful or criminal deception intended to result in financial or personal gain

Excessive remuneration - Payments to senior staff that are thought to be over generous in comparison to their input

Severance packages - Payments and other benefits given to employees who are terminated from a company

Corporate bonus systems - Additional payments given to staff for achieving targets

Employment policies - Expectations of the conduct of staff in an organisaton

Diversity policies - written statements outlining how activities such as recruitment will take place in a way that ensures equality

Inclusion - Ensuring equal opportunities are provided to all within an organisation

Equal opportunities - All people being (legally) entitled to equal opportunities in relation to employment and provision of goods, facilities and services

Promotion opportunities - The chance to move to a more important position in a firm should be open to anybody

Training opportunities - The chance to develop skills and knowledge should be open to anybody in a firm

Health and safety responsibilities - The duty of a firm to keep staff safe within their work environment

Institute of business ethics - Established in 1986 to provide information to encourage high standards of business behaviour

Fairtrade Foundation - An organisation that partners with food suppliers to try and improve their working conditions and income

Investors in People - A scheme by which the quality of staff training and development is recognised externally

FTSE4Good - A series of ethical investment funds that people can buy shares in

Business in the Community - A network of leaders who share good practice

Trade unions - groups that represent workers try to improve pay and working conditions

Legal risks - The likelihood that a firm may face a law suit or fine based on unethical behaviour

Consumer protection - measures to shield buyers of goods and services from unsafe products and unfair or illegal sales practices

Employment practices - The way organisations structure and carry out their HR function such as recruitment, promotion, dismissal and remuneration

Data protection - Method of ensuring that personal data is correct and is not misused either by those holding it or others who have no right to access it.

Health and safety - The process of ensuring that the working environment within a firm is not harmful to those in it

Financial risks - The damage leading to loss of money as a result of unethical behaviour

Sales and market share - A measure of success of a firm by looking at the money from selling the product and comparing it to rivals

Profitability - The ability of a firm to generate profits compared to inputs such as investment

Financial performance - How well a firm can generate revenues leading to financial health and stability

Share price - The quoted price of one share on the stock exchange.

Company value - The net worth of all of a company's assets

Reputation risks - The damage to customer perceptions of a brand caused by unethical behaviour

Consumer feedback - Communication from people buying and/or using a firm's products about their satisfaction

Impact on the environment - The consequences of unethical business behaviour on their surroundings

Impact on CEOs - The consquences of unethical business behaviour on the most senior members of staff

Impact on employees - The consequences of unethical business behaviour on employees that work there

Impact on business owners - The consequences of unethical business behaviour on shareholders

Contracts of employment - A way of promoting ethical treatment of staff by agreeing expectations of both staff and managers

Training - A way of promoting ethical treatment of staff by giving them opportunities to learn new skills

Codes of conduct - A way of promoting ethical behaviour by having prescribed expectations on how different situations are dealt with as they arise

Professional qualifications - Certification that people working in a specific industry have appropriate skills and knowledge

Ethical ambassadors - Employees that assist senior staff in promoting their core values to the wider staff

Disciplinary sanctions - The punishments to staff for breach of core values and expected ethical behaviours

Sales practices - A situation where an employees may be tempted to mislead a customer to make a sale

Unethical behaviour of work colleagues - A situation where an employee or manager may have to make a decision on whether to deal with inappropriate conduct of another member of staff

Supervision of others - A situation in which a manager may need to enforce ethical standards on to the staff their oversee

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A4 Business Ethics and the Individual