Business Ethics and Legalities Flashcards

What is whistleblowing in a business context?

Answer: Reporting unethical or illegal activities within an organization

Whistleblowing refers to an employee or insider reporting illegal, unethical, or unsafe practices within their organization to authorities or the public.

What is the primary purpose of antitrust laws?

Answer: To prevent monopolies and promote fair competition

Antitrust laws, including the Sherman Act and Clayton Act, are designed to prevent monopolies, price-fixing, and other anti-competitive business practices.

What does the term 'due diligence' mean in business transactions?

Answer: A comprehensive investigation or audit before signing a contract or making a business decision

Due diligence is the investigation and analysis a business conducts before entering into a transaction to verify facts, assess risks, and confirm the deal is sound.

Which of the following best describes corporate social responsibility (CSR)?

Answer: A company's commitment to operating in an ethical and socially beneficial manner

CSR is a business model where companies voluntarily integrate social, environmental, and ethical concerns into their operations and interactions with stakeholders.

What is the purpose of the Fair Labor Standards Act (FLSA)?

Answer: To establish minimum wage, overtime pay, and child labor standards

The FLSA establishes minimum wage, overtime pay eligibility, recordkeeping requirements, and youth employment standards.

What is the difference between ethics and compliance in business?

Answer: Ethics involves moral principles; compliance involves following laws and regulations

Ethics refers to moral principles that guide behavior based on what is right and wrong, while compliance refers to adhering to specific laws, regulations, and company policies.