BUSN 102 Study Guide - Quiz Guide: Corporate Social Responsibility, Making Money, Dow Chemical Company
16 Feb 2018
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Ethics goes beyond obeying laws to include abiding by the moral standards accepted by society. Ethics reflects people"s proper relationships with one another. Legality is more limiting; it refers only to laws written to protect people from fraud, theft, and violence. Managers often set formal ethical standards, but more important are the messages they send through their actions. Management"s tolerance or intolerance of ethical misconduct influences employees more than any written ethics codes. Whereas compliance-based ethics codes are concerned with avoiding legal punishment, integrity-based ethics codes define the organization"s guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees. Corporate social responsibility is the concern businesses have for society. A corporate social audit measures an organization"s progress toward social responsibility. Some people believe the audit should add together the organization"s positive actions and then subtract the negative effects to get a net social benefit.
