• Holds the ultimate responsibilty for their firms' success or failure
• Assume legal responsibility for the firm's resources and decisions, and appoint its top executive officers
• Meets only a few times a year, which percludes them from managing effectively

• Made securities fraud a criminal offense and stiffened penalties for corporate fraud
•  Also created an accounting oversight board that requires corporations to establish codes of ethics for financial reporting and to develop greater transparency in financial reports to investors and other interested parties

(A) The person who promises or gives a bribe commits the offense

(P) An offense committed by the official who receives the bribes

(Def) Giving back to communities and causes

Both law and a sense of ethics increase voluntary corporate social responsibility practices

(Actional) Attempt to creat employee satisfaction through negotiating, or "bartering," for desired behaviors or levels of performance

(Mational) Strive to raise employees' level of commitment and to foster trust and motivation

• Does more damage in monetary and emotional loss in one year than violent crimes do over several years combined
• Highly educated people who are in positions of power, trust, respectability and responsibilty within a business or organization
• Abuse trust and authority normally associated with their positions

• Based on the evaluation of the outcomes or results of a business relationship
• Difficult to effect when one member of the business exchange intends to take advantage of the relationship

• Based on the relationship between organizational members, including the way employees and management treat one another
• Linked to fairness within member interactions

External Control

(Locus of Control)

• Going with the flow
• Events happen due to uncontrollable forces
• Luck, chance, and power

Internal Control

(Locus of Control)

• Believe they can control events in life with effort and skill
• Masters of their own destinies

• Decision-making authory is concentrated in the hands of top-level managers
• Suitable for organizations in which the production processes are routine and efficiency is of primary importance
• Each worker knows his or her job and what is expected

• Decision-making authority is delegated as far down the chain of command as possible
• Relatively few formal rules
• Coordination and control are informal and personal
• Strength is adaptability and early recognition of external change

1. Assessing the needs and risks that an organization-wide ethics program must address
2. Developing and distributing a code of conduct or ethics
3. Conducting training programs for employees
4. Confidental service to answer employees' questions about ethical issues
5. Making sure company is in compliance with government regulations
6. Monitoring and auditing ethical conduct
7. Taking action on violations of company's code
8. Reviewing and updating the code

(C) Creates order by requiring that employees identify with and commit to specific required conduct; uses legal terms, statutes, and contracts that teach employees the rules and penalties for noncompliance

(V) Strives to develop shared values; focus is more on an abstract core of ideals such as accountability and commitment

• Public companies that operate on a global scale without significant ties to any one nation or region
• Represent the highest level of international business commitment and are characterized by a global strategy of focusing on opportunities throughout the world

• The idea that "we" differs from "them"
• The unconscious reference to one's own cultural values, experiences, and knowledge

1. Secure commitment of top management
2. Establish an ethics audit oversight committee
3. Define the "scope" of the audit
4. Review the organizaed documents (laws, policies, etc.)
5. Collect and analyze information
6. Verify results of the study
7. Report findings and recommendations