Ethics in Business Decision-Making

Focuses on the outcomes or consequences of actions to determine whether they are ethical. It seeks to maximize good results for the most people.

Evaluates the inherent morality of an action itself, regardless of its outcomes. It follows a set of rules or principles to define ethical behavior.

Emphasis on the impact of decisions solely on the individual and their immediate family. Focuses on self-interest and personal well-being.

Focuses on the collective good and the impact of decisions on the entire group or society. Emphasizes social responsibility and well-being.

A branch of ethics that delves into the nature of ethically relevant concepts, such as good, bad, right, wrong, and value.

Focuses on establishing ethical standards and principles for action. It explores various moral theories and frameworks for guiding ethical behavior.

Studies the application of ethical theories and principles to real-world situations and dilemmas in various facets of life, including business.

A sub-field of ethics that examines ethical issues within the business world. It involves applying ethical principles, theories, and decision-making frameworks to business practices.

A set of written standards designed to prevent wrongdoing and promote ethical conduct within an organization, fostering transparency, ethical behavior, and accountability.

The core principles and values that guide an organization's behavior, setting the tone for ethical conduct at all levels. It's a crucial part of a company's control environment and risk management framework.

The ethical implications of decisions and actions within the workplace, given increasing importance due to corporate governance reforms and financial scandals.

Moral dilemmas at work often have serious financial consequences, emphasizing the link between ethics and financial stability in organizations.

A set of rules guiding professional conduct, holding members accountable for ethical behavior and actions.

The idea that a profession owes a duty to society, its members, and the profession itself.

A key characteristic of a profession, it refers to a shared body of knowledge acquired through education, training, and ongoing professional development.

Achieved through an effective and enforceable honor code,faculty action against cheating, researching factors affecting integrity, and integrating ethics into curriculum.

A behavior that demonstrates an organization’s and individual’s commitment to acting in an honorable manner.

The impact of an organization’s activities and behavior on its stakeholders.

Key principles of the IESBA (International Ethics Standards Board for Accountants) code of ethics for professional accountants.

The accounting profession focuses on serving the public interest, acting responsibly with integrity, competency, objectivity, and transparency, and protecting investors from misleading reports.

The Sarbanes-Oxley Act (SOX) requires public companies to disclose whether they have adopted a code of ethics for their key personnel, including the CEO, CFO, and accounting officers. If not, they must explain why.

NYSE listing standards build upon SOX by requiring listed companies to adopt and disclose a code of conduct for directors, officers, and employees, and to promptly report any waivers of the code for directors and top executives.

The NYSE provides guidance by recommending that companies include specific topics in their code of ethics, such as conflicts of interest, confidentiality, and reporting misconduct.

Business ethics education aims to teach students their responsibilities and accountability to their profession and society. This includes ethical exams and continuous ethical learning for CPAs.

Ethical violations and cheating at business schools highlight the importance of academic integrity and ethical conduct. These are crucial for the reputation and well-being of higher education institutions.

Companies must disclose to the SEC whether they have adopted a code of ethics for their key personnel, including the CEO, CFO, and accounting officers. If not, they must disclose why.

The NYSE requires listed companies to not only adopt a code of ethics for their employees and officers, but also to make it public.

The NYSE provides recommendations on crucial ethical subjects that company codes should cover, including conflicts of interest, confidentiality, and reporting misconduct.

The overall approach to ethical conduct within a company, encompassing policies, values, and actions. It ensures that all business decisions and practices are aligned with ethical principles.

A document outlining an organization's ethical standards, guiding its employees' actions and promoting ethical behavior.

The duty of senior executives to set an example of ethical conduct, creating a culture of integrity that permeates the entire organization.

The processes and procedures designed to prevent misconduct or irregularities in financial reporting, ensuring accuracy and transparency.

Well-defined and comprehensive policies and procedures, regularly reviewed and updated, to ensure compliance and mitigate risks associated with financial reporting.

The creation of a work environment that values ethical behavior and rewards employees for adhering to ethical principles, particularly in financial reporting.

The process of reporting on a company's ethical performance and adherence to its code of conduct, providing stakeholders with transparency and accountability.

A framework that encompasses various elements for promoting financial reporting integrity, including policies, procedures, culture, and information systems.

A strong code of ethics is crucial, but other factors including ethical leadership, supportive supervisors, positive reinforcement, and fair compensation are equally important.

When people feel pressured to meet goals, they might cut corners or engage in unethical behavior to achieve them.

Unfair or inadequate compensation can create a sense of resentment and make employees more likely to take advantage of the company.

Ethical behavior of colleagues can influence a person's own ethical choices, making it more likely for them to act ethically or unethically.

High stress levels, long hours, and a fast-paced environment can compromise a person's judgment and make them more susceptible to unethical decisions.

People tend to justify their unethical actions by claiming they were unaware of specific rules or policies. This can be a result of poor communication or lack of training.

Stealing petty cash, cheating on expense reports, and taking credit for someone else's work are examples of unethical behavior.

Using company technology for personal use, taking a sick day when not actually ill, dating a subordinate, and asking a colleague for a personal favor are examples of questionable behavior.

People often make unethical decisions because they lack personal integrity, they're dissatisfied with their job, or they want financial rewards.

The Sarbanes-Oxley Act (SOX) is designed to improve financial reporting transparency and accountability, which has a positive impact on business ethics.