○ Goods - Tangible products ○ Services - Intangible products Describe the relationship between profit and risk, and show how businesses and nonprofit organizations can raise the standard of living for all
○ Stockholders ○ Customers ○ Surrounding Community ○ Environmentalists ○ Dealers (retailers) ○ Employees ○ Government leaders ○ Suppliers ○ Media ○ Bankers Explain why obeying the law is only the first step in behaving ethically. ● Ethics - The standards of moral behavior. Behaviors that are accepted by society as right versus wrong. ● The law is the moral minimum in acting ethically ● Ethical Conduct ○ Identify the benefits of a decision and who will be harmed ○ Identify alternative courses of action ○ Choose the one you would like your family and friends to see reported on your local news Describe management’s role in setting ethical standards. ● Set an example for the company ● Factors Influencing Managerial Ethics ○ Individual ➜ Values ➜ Work Background ➜ Family Status ➜ Personality ○ Organizational ➜ Top Level Management Philosophy ➜ Firm’s Reward System ➜ Job Dimensions
○ Environmental ➜ Competition ➜ Economic Conditions ➜ Social/Cultural Institutions Recognize the global nature of business and the role of business in influencing ethical behavior in global markets. ● Many businesses want socially responsible behavior from their international suppliers. ● In the 1970s, the Foreign Corrupt Practices Act criminalized the act of paying foreign businesses or government leaders in order to get business. ● Partners in the Organization of American States signed the Inter-American Convention Against Corruption. Explain the importance of the finance and accounting disciplines to business overall. ● Accounting is the language of business. ● Finance analyzes accounting information and makes critical funding decisions. ● Marketing analyzes accounting information to both develop and to measure the success of marketing initiatives. ● Sales develops contracts that achieve financial goals, and also communicates the financial benefits of products to customers. ● Managers set goals for their area of responsibility and measure results based on accounting information.
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- Spring '20
- Balance Sheet, Generally Accepted Accounting Principles