LPP 255 Chapter Notes - Chapter 5: Corporate Social Responsibility, Share Repurchase, Kantian Ethics
26 Jan 2014
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Document Summary
Ethics= the study of what constitutes right or wrong behavior: business ethics= right and wrong in the business world, moral minimum= minimum acceptable standard for ethical business behavior, follow the law, don"t get in trouble, gray areas . Court decides what is foreseeable and reasonable : short run profit maximization= increase profits by continuing to sell a product, even though it defective. Sarbanes- oxley act= requires companies to set up confidential systems so that employees and others can raise red flags about unethical accounting practices. Stock buyback- corporation buys its own stocks to boost the price of their stock: stock options= corporate executives can buy shares of the stock at a set price, they can profit by selling their shares, executive bonuses. Ethical reasoning= reasoning process in which the individual examines the situation at hand in light of his or her moral convictions or ethical standards: duty based ethics= derived from revealed truths, religious precepts or philosophical thoughts.
