2. Ethics Ethics – Rules that help tell the difference between right and wrong Values – Tell us what we think is important and helps us make decision about right and wrong Morals – Rules we use to decide what’s good and what’s bad (e.x., stealing) We tend to judge people more on their morals than their values

3. Code of Ethics Code of Ethics – Formal document that explains how employees should respond in different situations Famous Example – Johnson & Johnson with Tylenol recall In Canada, the law details acceptable business behavior, but companies can still behave unethically without actually breaking the law. This is why a Code of Ethics is needed!

5. How to Resolve Ethical Dilemmas Dilemma – Situation where there is a difficult choice between two or more options; have good points and bad points Ethical Dilemma – Moral problem with potential right or wrong answers; weighs values and morals Guide: 1.Who will be helped? 2.Who will be hurt? 3.What are the benefits; problems? 4.Will the decision stand the test of time? Requires honesty, ability to work co-operatively, respect for others, pride in work, integrity, loyalty

6. Whistle-Blowing Whistle-Blowing – Decision of an employee to inform officials or the public about an ethical violation Might report: False information Hiring procedures that were ignored Workplace safety codes ignored Not observing health codes

8. Accounting Scandals Accounting Scandal – Publicly exposed crime involving accountants or senior executives who alter accounting records Forensic Accountant – Investigates legal and financial documents for evidence of tampering Embezzlement – Accounting fraud; accountants invents phony accounts and redirects company money Assets – Items the business owns Liabilities – Items the business owes Auditors – Accountants who check the financial records of companies Insider Trading – Buying or selling shares in a company based on confidential information