Key Concepts of Chapter 3
Organizational Culture: The values, beliefs, and norms that all
the employees of that organization share. (Ghillyer, 2012)
Value Chain: The key functional inputs that an organization
provides in the transformation of raw materials into a delivered product or
service. (Ghillyer, 2012)
Utilitarianism: Ethical choices that offer the greatest good for
the greatest number of people. (Ghillyer, 2012)
Universal Ethics: Actions that are taken out of duty and
obligation to a purely moral ideal, rather than based on the needs of the
situation, since the universal principles are seen to apply to everyone,
everywhere, all the time. (Ghillyer, 2012)
Accounting Function: The function that keeps track of all the
company’s financial transactions by documenting the money coming in (credits)
and money going out (debits) and balancing the accounts at the end of the period
(daily, weekly, monthly, quarterly, annually). (Ghillyer, 2012)
Auditing Function: The certification of an organization’s
financial statements, or “books”, as being accurate by an impartial third-party
professional. An organization can be large enough to have internal auditors on
staff as well as using external professionals- typically certified
professionals accountants and/or auditing specialists. (Ghillyer, 2012)
GAAP: The generally accepted accounting principles that govern
the accounting profession- not a set of laws and established legal precedents
but a set of standard operating procedures within the profession. (Ghillyer, 2012)
Conflict of Interest: A situation in which one relationship or
obligation places you in direct conflict with an existing relationship or
obligation. (Ghillyer, 2012)
Organizational Culture: The values, beliefs, and norms that all
the employees of that organization share. (Ghillyer, 2012)
Value Chain: The key functional inputs that an organization
provides in the transformation of raw materials into a delivered product or
service. (Ghillyer, 2012)
Utilitarianism: Ethical choices that offer the greatest good for
the greatest number of people. (Ghillyer, 2012)
Universal Ethics: Actions that are taken out of duty and
obligation to a purely moral ideal, rather than based on the needs of the
situation, since the universal principles are seen to apply to everyone,
everywhere, all the time. (Ghillyer, 2012)
Accounting Function: The function that keeps track of all the
company’s financial transactions by documenting the money coming in (credits)
and money going out (debits) and balancing the accounts at the end of the period
(daily, weekly, monthly, quarterly, annually). (Ghillyer, 2012)
Auditing Function: The certification of an organization’s
financial statements, or “books”, as being accurate by an impartial third-party
professional. An organization can be large enough to have internal auditors on
staff as well as using external professionals- typically certified
professionals accountants and/or auditing specialists. (Ghillyer, 2012)
GAAP: The generally accepted accounting principles that govern
the accounting profession- not a set of laws and established legal precedents
but a set of standard operating procedures within the profession. (Ghillyer, 2012)
Conflict of Interest: A situation in which one relationship or
obligation places you in direct conflict with an existing relationship or
obligation. (Ghillyer, 2012)