Business Ethics

Association of Certified Fraud Examiners (ACFE)
The Association of Certified Fraud Examiners (ACFE) is a global professional organization with over 35,000 members dedicated to combating fraud and providing anti-fraud education and training in the business sector. The ACFE awards the Certified Fraud Examiner (CFE) designation, which is recognized worldwide.
Bribery
Under the Bribery Act 2010, bribery refers to the offering, giving, receiving, or soliciting of any 'financial or other advantage' to induce or reward the improper performance of a public function or business activity.
Business Ethics
Business ethics refers to the moral principles concerning acceptable and unacceptable behavior by business people. It encompasses values and conduct that business executives are expected to uphold to maintain honest and fair practices with the public.
C2 Principles
A code of best practice, established by Thomas Dunfee and David Hess of the University of Pennsylvania, that outlines how a company and its employees should deal with any attempt to make or solicit improper payments. This code emphasizes ethical behavior in business practices to prevent bribery and corruption.
Conflict of Interest
A conflict of interest arises when an individual, such as a public official, faces a clash between their personal interests and their professional responsibilities. This situation can compromise their impartiality and decision-making capabilities.
Cook the Books
To falsify financial records or statements with the intention of misleading others about the financial performance or financial position of an accounting entity.
Corporate Culture
Corporate culture refers to the general organizational operating environment, including ethical and value structures, impacting employees, management, and customer relations, as well as the types of products and services the organization produces, and the approaches to production, marketing, advertising, and service quality.
Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) is a business model in which companies integrate social and environmental concerns in their operations and interactions with stakeholders.
Credo
A corporate philosophy that guides the way a company does business. It encompasses the company's values, mission, and principles, influencing decision-making, behavior, and company culture.
Ethical, Ethics
Ethics refers to moral and professional principles that guide the conduct of individuals and organizations. It is crucial for maintaining public confidence and integrity in various professions, including business, accounting, law, and others.
Exploitation
Exploitation refers to the act of taking unfair advantage of individuals or situations to benefit oneself. This term is often associated with a negative connotation, implying unethical or immoral behavior.
Fair Competition
Fair competition refers to business practices that adhere to regulations and ethical standards, ensuring a level playing field for all market participants.
Fly-by-Night
Originally referred to a swindler who fled hurriedly from a business situation after their modus operandi (MO) had been discovered by the locals; now refers to a shady business, often operating out of a post office box or accommodation address, that cannot be located when its merchandise or product proves unsatisfactory.
Fraud
Intentional deception resulting in injury to another. Fraud usually consists of a misrepresentation, concealment, or nondisclosure of a material fact, or at least misleading conduct, devices, or contrivance.
Good Faith
Good Faith refers to the total absence of intention to seek unfair advantage or to defraud another party; it denotes an honest intention to fulfill one's obligations and the observance of reasonable standards of fair dealing.
Greenmail
Greenmail refers to the practice of purchasing a substantial block of a company’s shares and then selling them back to the company at a premium over the market price, often to prevent a hostile takeover bid. This contentious tactic is more prevalent in jurisdictions like the United States, where companies can more freely repurchase their shares.
Hampel Report
A report issued in 1998 by a committee under the chairmanship of Sir Ronald Hampel, reviewing the implementation of the Cadbury Code and the Greenbury recommendations and combining these into a new Corporate Governance Code.
Integrity
Integrity is a quality characterized by honesty, reliability, and fairness, developed in a relationship over time. Customers and clients have much more confidence when dealing with a business when they can rely on the representations made.
Involuntary
The term involuntary refers to actions or circumstances that occur without an individual's willing consent, often forced or opposed. It signifies situations where individuals are made to act against their own will, typically under some form of duress.
Kickback
A colloquial term for an illegal payment made to secure favorable treatment in the award of a contract.
Milking
Milking refers to the act of taking full advantage of a situation for personal or corporate gain, often to the detriment of another party.
Muckraker
An individual who consciously searches for corruption on the part of public officials or businesses and exposes it to the public.
Nepotism
Nepotism refers to the practice of favoritism towards one's family, typically manifested in employment and economic transactions. This behavior often results in family members receiving preferential treatment in hiring and business operations.
Outside Director
An outside director, also known as an independent director, is a member of a company's board of directors who is not part of the company's executive management team.
Social Responsibility
Social responsibility involves ethical and societally moral behavior. Socially responsible conduct supports acceptable societal standards and laws.
Stakeholders
Stakeholders are individuals or groups with an interest in an organization, such as shareholders, employees, suppliers, customers, and members of the community. Stakeholder theory seeks to incorporate the interests of all stakeholders in business activities and decisions.
Sustainable Business
A sustainable business operates in a manner that minimizes its impact on the environment while ensuring that sufficient resources remain available for future generations. This involves adopting practices that promote environmental conservation and reduce ecological footprints.
Underhand
The term 'underhand' signifies actions that are sly or deceitful, often with an element of secrecy and underhandedness.
Unethical
Unethical behavior or practices refer to actions or conduct that are not in accordance with the established standards of behavior within a business or profession. Being unethical can encompass a wide range of actions that violate moral principles, legal standards, or rules of conduct set by governing bodies in various fields.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.