AFM131 Chapter Notes - Chapter 5: Accounting Scandals, Positive Tone, Canadian Business

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: Mohsin Bashir

Document Summary

Ch. 5 ethics and social responsibility: ethics reflects people"s proper relations with one another; it"s more than simply a behavior, legal or not. Compliance-based ethics codes: ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers. Integrity-based ethics codes: ethical standards that define the organization"s guiding values, make an environment that supports ethically sound behavior, and stresses a shared accountability among employees. Improving business ethics: top management must use an explicit code of conduct / Employees must understand that expectations for ethical behavior begin at the top / Corporate philanthropy: dimension of social responsibility that includes charitable donations. Corporate social initiatives: dimension of social responsibility that includes enhanced forms of corporate philanthropy that are more directly related to the company"s competencies. Corporate responsibility: dimension of social responsibility that includes everything from hiring minority workers to making safe products: many corporations likely offer goods and benefits instead of money when it comes to corporate philanthropy. , due to recession.