AFM131 Chapter Notes - Chapter 5: Triple Bottom Line, Carbon Footprint, Corporate Social Responsibility
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AFM131 Full Course Notes
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Following the law in an important steps, but ethical behaviour requires more than that. Ethics standards of moral behaviour, that is, behaviour that is accepted by society as right versus wrong. Ethical behaviour should be exhibited in out daily lives, not just in a business environment. Organizational ethics begins at the top leadership of strong managers instills corporate values in employees. Relationships among businesses & nations must be based on fairness, honesty, openness, and moral integrity. Businesses should be ethical to maintain a good rep, keep existing customers and attract new ones, avoid lawsuits, reduce employee turnover, avoid government intervention, please customers, and do the right thing. Overly ambitious goals & incentives can create an environment in which unethical actions can occur. Compliance-based ethics codes ethical standards that emphasizes the prevention of unlawful behaviour by increasing control and penalizing wrong-doers based on avoiding legal punishment.