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