AP®︎ Business with Personal Finance: Topic 1.6 Flashcards

Principles and standards that guide honest, fair, transparent, responsible, and value-consistent behavior and decision making in a business, beyond merely obeying the law

Ethical behavior follows accepted moral principles and business values; unethical behavior violates them through conduct such as dishonesty, unfairness, misuse of resources, or avoidable harm

Falsification introduces false information; concealment withholds relevant information or creates a misleading impression through omission

Unauthorized personal use of resources entrusted to a business, including its money, equipment, software, confidential information, customer data, or work time

The arrangement of rewards and consequences attached to actions or results, which can encourage ethical conduct or make misconduct more attractive

A formal statement that translates a business’s values into specific standards of expected workplace behavior

Instruction that helps employees recognize ethical issues, apply the code of conduct, and follow procedures for questions or reporting concerns

Consequences imposed by a business for ethical transgressions, such as warnings, loss of bonuses, reassignment, suspension, or termination

Leaders and managers demonstrating the honest, fair, transparent, and responsible conduct they expect from employees

A customer’s continued preference for and repeated support of a brand

A choice in which a core value conflicts with another core value or with a business goal or practice

An individual or group with an interest in a business’s decisions and outcomes

An individual or group directly involved in a business’s operations, decisions, and outcomes, such as an owner, manager, or employee

An individual or group outside the business’s operations that has a vested interest in its decisions and outcomes, such as customers, government agencies, or community members

Identify the conflict, values, stakeholders, and options; compare each option’s benefits, costs, and effects on reputation and culture; then choose the greatest total benefit, least total harm, or best alignment with vision and goals

The perception that customers, employees, community members, and other stakeholders hold of a business

The shared pattern of expectations and behavior within a business, shaped by what leaders communicate, model, reward, punish, and tolerate