1. Does the company comply with the law?

Compliance with the law is part of the ethical performance of a company.   For example, businesses have obligations not to damage the environment.  And there are federal laws that require corporate and environmental responsibility.   One of the watch dog groups of the government is the Environment Protection Agency (EPA); this is a division of the federal government empowered to enforce environmental laws.  One of the popular and common laws enforced by the EPA that businesses are required to follow is the Clean Air Act.  “The Clean Air Act (CAA) is the comprehensive federal law that regulates air emissions from stationary and mobile sources.” (Agency, 2014)

2. Does the company have a sense of propriety?

Propriety in business is directly related to the quality and appropriateness of business decisions upon the community.  Especially in the arena of intellectual property and privacy.  The law attempts to govern the ethical nature of access and use of information, but people who need to have a greater sense ethics and maintain the spirit of the law.   “Problems like data security and privacy are more than technical questions or issues of potential liability; they demand that people handling sensitive information have a sense of doing the right thing” (Cone, 2008).

3. How honestly do product claims match with reality?

This is an ethical principle in the world of business and is keenly expressed by the Johnson and Johnson Credo which speaks to their commitment to ensure their product claims match the reality experienced by their customers.  “We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services” (Johnson, 1943).  There are laws to protect the consumer from dishonest business who look to make a profit from deceiving, misrepresenting, and misleading customers.

4. How forthcoming is the company with information?

There is a sense of honesty that accompanies the ability to see clearly and therefore there is an ethical relationship between the disclosures of corporation information.  “There are several ways by which an organization can gain legitimacy. One way is by conducting its operations according to a socially responsible manner, as determined by its reference groups, and subsequently discharging its obligation by disclosing the nature of its social responsibility activities” (Walter & Lanis, 2009)

5. How does the company treat its employees?

How a business treats its most valuable assets tells a lot about the values and character of those who run the company.  Some employers treat their employees like objects and tools to be used up and discarded and replaced before they are on the hook for retirement and medical benefits.  But a truly ethical company will care for the employees as it cares for all stakeholders.

6. How does the company handle third-party ethics issues?

There are many ethical concerns in the relationships among suppliers, distributors, and retailers.  Suppliers sometimes sell inferior products to businesses or sell products at unfair prices.  This can a have a long-term effect on the company image and distribution channels.  The company needs to ensure the success delivery of their product to internal, external, and third party customers.

7. How charitable is the company?

Giving back to the community is a true way to shows a sincere commitment to the community.  It can be called corporate philanthropy, but most employees feel good about doing good deeds for others within their community.  And often times this act of giving back has a reward that cannot be accomplish any other way.

8. How does the company react when faced with negative disclosures?

Companies have a responsibility to their stakeholders, employees, customers, and communities to refute and address negative disclosure with the disclosure values mentioned above.