...strengths concerning how it conducts itself in an ethical manner. An ethics audit will involve evaluating the company’s standard of ethic, it ethic climate, and how well the company’s employees follow ethical standards. One of the first things to evaluate in an ethics audit is if a company has a written code of ethics and how comprehensive it is. Moreover, the written code of ethics should apply to everyone in the company from the top down with a clear zero tolerance policy in place for ethics violations. Included in a comprehensive ethics code should be a method for evaluating and updating the code as on a consistent basis to include immediate updates when an issue is brought under attention due to an issue that has arisen. The review process might involve a committee that reviews the code of conduct along with corrective actions concerning any reported ethical violations. An audit may also look at how employees can report ethical violations such as a confidential phone line, or other confidential means an employee could use to voice concerns to bring them to the attention of the appropriate people within the company. An ethics audit might also review the company's ongoing efforts to encourage and maintain its stated ethics to all employees. Such effort might include posters in break rooms, ethics discussion in weekly team huddles, and various other regularly occurring engaging activities. An ethics audit will determine what a company is doing right, and identify areas...
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...Louise’s Finance Code of Conduct Conducting business relations on an ethical level are of the utmost importance to Louise’s Finance. All those who affilliates with Louise’s Finance will conduct business fairly, ethically and in compliance with all laws and regulations. Louise Finance is committed to ethical behavior and has a code of ethics that will be at the enforced on every level of our business. We will keep this code of ethics current by reviewing it annually. Standards and Procedures Louise Finance employees are responsible for the integrity of their own work. Each employee must acknowledge receipt of our Conduct and confirm that they will follow the standards. This will measure the implementation of or company code of conduct and how well the value of integrity is integrated into the culture at Louise Finance. It ensures that our Code of Conduct is being applied uniformly and provides a channel for employees to raise issues. Since our Code of Conduct and the supporting policies and procedures may change from time to time, our employees are responsible being up to date with the current laws, rules, regulations, standards, policies and procedures that govern their work. They are also individually responsible for reporting wrongdoings. If a law or company policy has been broken, employees are required to report it promptly. If an employee fails to comply with applicable rules and regulation, he or she risks being terminated. All employees will avoid any action, that might...
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...Evaluation of Business Code of Ethics This paper is discussing the business code ethics of Famers Insurance Company. Farmers Insurance Company first established a reputation in the Insurance industry in 1928 and was founded by two men that shared commonalities of wanting to provide valuable insurance services at an affordable price to consumers. The mission statement that Farmers cherishes states today, “We will achieve market leadership by driving innovation and operational excellence to provide the best value and experience for every customer we are privileged to serve” (Foremost Insurance, 2012). Currently, Farmers Insurance reigns as an industry leader standing as the country’s third- largest insurer of homeowners and car insurance and offers lots of other different insurance and financial services (Farmers, 2012). Abiding by a code of ethics was of great importance to co-founders Jack Tyler and Thomas Leavey. In the insurance industry, most concerns that policyholders express are, “Will I Be Covered” and “Will I Be Compensated Fairly”. Ideally, Farmers Insurance found dedication in following a set of core values that parent company Zurich established for agents, brokers, investors, and employees to abide by that would allow business operations to flourish and remain stable in even the most uncertain times. Farmers Insurance focuses on several core components that represent ethical democracy; honesty, customer centricity, creating sustainable value, excellence...
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...Business Ethics and Virtue Ethics Virtue ethics is “a broad term for theories that emphasize the role of character and virtue in moral philosophy rather than either doing one’s duty or acting in order to bring about good consequences” (Athanassoulis, 2010). Virtue ethics are certain principles, such as merit or loyalty in which we should make every effort to consent to the full development in our organizations; these ideals are a reflection of what we ultimately have the potential to become. According to Velasquez, et.al, (1998), “Virtues are attitudes, dispositions, or character traits that enable us to be and to act in ways that develop this potential. They enable us to pursue the ideals we have adopted. Honesty, courage, compassion, generosity, fidelity, integrity, fairness, self-control, and prudence are all examples of virtues”. Virtue ethics also does not provide guidance on how we should act, as there are no clear principles for guiding action other than “act as a virtuous person would act given the situation.” (2010). In this paper, I will address and define three of these virtues, apply each virtue respectively to the Mattel: GMP case, and describe which normative ethic was the most useful in evaluating the case. Courage, Fairness and Honesty According to Dictionary.com, courage is the quality of mind or spirit that enables a person to face difficulty, danger, pain, etc., without fear. Courage is being brave in the face of adversity. Dictionary.com describes...
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...“Evaluating the need for Business Ethics” There is a critical need for business ethics in today’s society more than ever. The importance of business ethics should be obvious throughout every area of a small or large business. When a business is known for dealing honestly with all people, from its employees and customers, clients, to shareholders and vendors, it is more likely to become successful. While ethics is a subjective topic that may mean different things to different people, the importance of business ethics still remains in all types of corporate environments. Business ethics simply defined is known as “Corporate Ethics” as, a “form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and business organizations as a whole. Applied ethics is a field of ethics that deals with ethical questions in many fields such as medical, technical, legal and business ethics” (Wikipedia Online). Business Ethics is a term that makes CEOs, Lawyers, Doctors, Consultants and even Teachers cringe when confronted or required to take procedures to address an unethical situation that has arisen within their specific organization. Every consumer wants to believe that you are a honest, and conduct business on a high set of standards. It is everyone’s original intent to maintain a high standard of ethics,...
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...Ethics Behavior and Social Responsibility International Accounting Member of Group : 1. Rahmawati Yulistya C1I015026 2. Muhamad Ilham Akbar C1I015012 3. Astria Wulan P C1I015013 4. Siffa Sandi Sasmita C1I015025 5. Cita Husna Raisya C1I015026 6. Wulan Nilam Sari C1I015031 7. Karina Aprilia W C1I015037 8. Riyan Ardiyana C1I015043 Jenderal Soedirman University Faculty of Economics and Business I. Introduction I. Background Ethics Behavior and Social Responsibility Ethical behavior is that which is morally accepted as “good” and “right”. And opposed to “bad” and “wrong”. Social responsibility is a moral principle of an entity, be it an organization or individual, to act towards betterment of society at large. It is a duty that every firm and individual should perform so as to maintain the balance between the environment and economy. Their actions should lead towards sustainable development so as to safeguard the interests of the coming generations and at the same time fulfilling the needs of present population. The responsibility can be active, by performing activities that directly advance social goals, or passive, by avoiding any engagement in socially harmful act. Organizations can manage ethics in their workplaces by establishing an ethics management program. Brian Schrag, Executive Secretary of the Association for Practical and Professional Ethics, clarifies. “Typically, ethics programs convey corporate values...
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...Unit 6 Evaluating Ethics LJ IT590 Legal and Ethical Issues in IT September 22, 2015 Professor Unit 6 Evaluating Ethics Introduction: Ethics has a vital role when it comes to companies and how they are run. Baase (2013) stated, “Many professional organizations have codes of professional conduct. They provide valuable guidance for new and young members” (p. 406). Baase (2013) stated, These codes provide general statement of ethical values and remind those that are in that particular profession that ethical behavior is essential to doing their job correctly and professionally. For this assignment I will identify stakeholders, the risks, issues, problems, and consequences. I will also discuss the benefits, responsibilities of the decision makers, the rights of the stakeholders, and the impact of the actions of the options on stakeholders. Identify Stakeholders: According to Businessdictionary.com (2015), “a stakeholder is a person, group, or organization that has interest or concern in an organization” (para. 1). Stakeholders can affect or be affected by changes within the organization such as objectives, issues, problems, and policies. For this organization the stakeholders are consists of employees, directors, owners, suppliers, the community, unions, and creditors. Risks, Issues, Problems, and Consequences: The problem that lies here is that there is a loophole in which those who are not authorized to have personnel access do have it; they are able to see confidential...
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...Ethics and Compliance Paper FIN: 370 Finance for Business May 12, 2011 Walmart “Lowest prices guaranteed, Rollback prices and price matching”. You may have heard these lines on the radio or watched them in a commercial. These are all quotes from Wal-Mart advertisements promising the lowest prices. Wal-Mart is the biggest retailer in the world, with over 4,227 stores in the United States alone and 3,210 stores internationally. Sam Walton opened up the first Wal-Mart store in 1962 in Rogers, Arkansas little did he know how that was the start of a now; one of the largest worldwide enterprises. Wal-Mart; the largest retailer in the world, is a publically traded company. Wal-Mart has a very detailed ethical responsibility to their stakeholders, to ensure that their business practices are ethical and in compliance with the financial and legal requirements of each of the countries that Wal-Mart operates in. Ethics and Compliance Wal-Mart is one of the worlds leading companies financially, they have been widely recognized for many of there contribution (giving back to community), donations, foundations, military support, hunger relief, and world disaster relief programs. Wal-mart has also been recognized for working to reduce energy use and green house emissions buy continuing to transition to renewable energy and their goal is to one day only use energy that is derived from renewable resources. Wal-Mart has also joined with Humana, a health care insurance company...
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...CLA for them to make an identical line. CLA copies the line of clothing and sells clothing to Normandale. Normandale makes a total gross profit of $3 million, a fifty percent increase over its sale of the actual Mathis Inc. clothing line. Mathis Inc. sends Normandale a few cease-and-detest letters with no response. Eventually, Mathis Inc. sues Normandale. This paper will discuss the ethical aspect of selling knock off products at a lower price and the federal and state laws that can protect owners of intellectual property. Also discussed, will be the damages that Mathis Inc. has suffered due to Normandale’s actions. The differing views on social responsibility of corporations will be compared and contrasted along with this paper. A code of ethics that Normandale can implement will be discussed too. And lastly, personal liability and criminal liability will be determined for the owners of Normandale. In the case of Normandale and Mathis Inc., selling knock off products copying Mathis Inc. is not ethical. A knock off product is one that is copied to look similar to an original, but made with cheaper materials and is able to be sold at a lower price. “Spotting counterfeit items can be a designer’s worst nightmare. Designers work hard...
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...To: CEO Executive Team Subject: RJDT Task 2: Code of Ethics As the Elementary Division Manager it is my responsibility to establish and enforce a Code of Ethics regarding the distribution of whistles. The decision whether to distribute the whistles as scheduled or incur additional cost to reproduce/repackage the whistle involves exercising ethical decision making. According to the quality assurance manager, the whistles have traces of lead above the U.S. legal acceptable limits for children ages 7 and younger and the cost to reproduce/repackage is $100,000. It is my goal to resolve this dilemma in a manner supported by the Toy Company as well as protect the company while fulfilling our obligations. There are three possible decision alternatives to address the problem. Each having advantages and disadvantages along with financial, legal, and ethical considerations: 1. Distribute whistles as-is and on schedule a. The company’s advantage would be honoring the negotiated contract to produce the whistles. b. The disadvantage would be the potential harm to the client due to increased lead. c. The financial consideration would be the company saving $100,000 at the customer’s risk of harm. d. The legal consideration would be the risk for potential lawsuits. e. It would be unethical towards the customer and law to disregard the regulatory limit of traces of lead. 2. Reproduce and repackage the whistles a. The company’s advantage would be ensuring customer confidence in...
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...Company Mission? 23 The Need for an Explicit Mission 24 Formulating a Mission 24 Basic Product or Service; Primary Market; Principal Technology Company Goals: Survival; Growth; Profitability 26 Company Philosophy 28 Public Image 29 Company Self-Concept 33 Newest Trends in Mission Components 33 An Exemplary Mission Statement 35 Boards of Directors 37 Agency Theory 38 22 25 2/8/2012 10:17:09 AM Contents How Agency Problems Occur 39 Problems That Can Result from Agency 39 Solutions to the Agency Problem 40 Summary 41 Key Terms 41 Questions for Discussion 41 Appendix A: Company Vision 43 Appendix B: BB&T Vision, Mission, and Purpose 3. 4. SM_Prelims.indd 18 44 Corporate Social Responsibility and Business Ethics The Stakeholder Approach to Social Responsibility 52 The Dynamics of Social Responsibility 54 Types of Social Responsibility 57 Corporate Social Responsibility and Profitability 60 Sarbanes-Oxley Act of 2002 66 The New Corporate Governance Structure 69 Privatization as a Response to Sarbanes-Oxley 70 CSR’s Effect on the Mission Statement 71 Social Audit 71 Satisfying Corporate Social Responsibility 72 The Core of the CSR Debate 73 Mutual Advantages of Collaborative Social Initiatives 75 Five Principles of Successful Collaborative Social Initiatives Assembling the Components...
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...Section 1: Introducing business ethics. Key idea: Globalization, defined as deterritorialization of economic activities, can be seen as a key context for business ethics. The effect of this is that the more business become global, the more it has to cope with regions and countries where ethical values are vastly different, p. 17, 19, 24, learning outcome 1, 2. Question 1: In which of the following areas is it not evident that deterritorialization is particularly relevant to business ethics? 1. Legal issues 2. Cultural issues 3. Personal issues 4. Accountability issues Question 2: Globalization can be seen to affect all stakeholders of the corporation. Mention four of these, explain how they are affected and provide an example. * Shareholders: globalization provides potential for both profitability and greater risks. * Consumers: global products provide social benefits to consumers, but could also meet protests. * Government and regulation: globalization weakens governments and increase corporate responsibility. * Employees: globalization provides job through outsourcing of the production, but can also raise potential for exploitation of employees through bad working conditions. * Civil society: global business activity brings the company in direct interaction with local communities, thereby raising the possibility for erosion of traditional community life. * Suppliers and competitors: Suppliers in developing countries face regulation...
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...Ethics is a term that refers to a code or moral system that provides criteria for evaluating right and wrong. An ethical dilemma is a situation in which an individual or group is faced with a decision that tests this code. Many of these dilemmas are simple to recognize and resolve. For example, have you ever been tempted to call your professor and ask for an extension on the due date of an assignment by claiming a fictitious illness? Temptation like this will test your personal ethics. Ethics deals with the ability to distinguish right from wrong. Accountants, like others operating in the business world, are faced with many ethical dilemmas, some of which are complex and difficult to resolve. For instance, the capital markets’ focus on periodic profits may tempt a company’s management to bend or even break accounting rules to inflate reported net income. In these situations, technical competence is not enough to resolve the dilemma. ETHICS AND PROFESSIONALISM One of the elements that many believe distinguishes a profession from other occupations is the acceptance by its members of a responsibility for the interests of those it serves. A high standard of ethical behavior is expected of those engaged in a profession. These standards often are articulated in a code of ethics. For example, law and medicine are professions that have their own codes of professional ethics. These codes provide guidance and rules to members in the performance of their professional responsibilities...
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...customer or business to business. If profit is the house in which our company thrives then relationships are the foundation. It is our honesty and professionalism in each of these relationships that will show Awesome-o Software devloper is honorable, capable and ultimately, the only real choice for prospective clients. How we conduct ourselves influences how consumers feel about our products as well as how shareholders perceive us as an investment (The Coca-Cola Company (n.d.)). Because Awesome-o Software devloper hires numerous employees, each person with a very different social and professional background, our Ethics Program is designed to help you adhere to all legal requirements as well as supporting Awesome-o Software devlopers’ vision of being the market leader and is strictly enforced. The Ethics Program is divided into different sections and will: • Explain Awesome-o Software devloper Code of Ethics • Define the role and responsibilities of the Ethics Enforcement Officer • Provide an introduction to Awesome-o Software devloper Ethics Training Program • Explain the process of monitoring, auditing and reporting misconduct by Awesome-o Software devloper Employees • Define how we will evaluate the Ethics Program • Provide an avenue to improve the Ethics Program Awesome-o Software devloper Code of Ethics Each individual may come face-to-face with an ethical dilemma and he/she will have to make a decision on how to respond in the moment. The goal of our Code of Ethics...
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...HISTORY The increasing complexity of modern business and other organisations has created the need for a specialist in various business controls: the internal auditor. We can understand better the nature of internal auditing today if we know something about the changing conditions in the past and the different needs these changes created. What is the earliest form of internal auditing and how did it come into existence? How has internal auditing responded to changing needs? As the operations of an organisation become more voluminous and complex, it is no longer practicable for the owner or top manager to have enough contact with all operations to satisfactorily review the effectiveness of performance. These responsibilities need to be delegated. The Development of the Profession of Internal Auditing Internal auditing has evolved from accounting-oriented to a management-oriented profession. At one time, internal auditing functioned as a junior to the independent accounting profession, and attesting to the accuracy of financial matters was the profession's main concern. Now internal auditing has established itself with a far broader focus. Modern internal auditing provides services that include the examination and appraisal of controls, performance, risk and governance throughout public and private entities. Financial matters represent only one aspect of the purview of internal auditing. Requirement to have Internal Audit Activity In January 2004, the...
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