BUSINESS ETHICS Flashcards
Corporate social responsibility
The idea that a business has ethical responsibilities towards the environment, its stakeholders and the communities it is part of or affects.
Environmental CSR
The responsibility a business has towards the environment
How can a business display Environmental CSR
- Reduce negative impact on the environment such as pollution and non-reycled products
- Increase the reliance on ‘green renewable and sustainable energy and products
- Offsett negative impact done to the environment (donating to pro-environment groups that will make conservation efforts)
Community CSR
The responsibility a business has to its social community, respecting human rights and avoid exploitation
How can a business display Community CSR?
- Respect human rights and avoiding exploitation
- Avoid being supplied by any business which involves exploitation, sweatshops or child labour
- Responsible treatment of employees (min. wage, health and safety provisions)
- Philanthropy- donating money to charitable causes
What is a more contemporary version of CSR?
- ESG- environmental, social and governance
Who challenged CSR and what was his article called?
- Milton Friedman
- The Social Responsibility of Business Is to Increase its Profits NY Times Magazine 1970
Milton Friedman quote about CSR
There is…only one social responsibility of business- to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game
Capitalism
An economic system based on private ownership of how things are made and sold, in which businesses compete freely with each other to make profits (free market) rather than government intervention
Socialism
A political, economic theory which argues that the means of production should be publicly owned and regulated by the community as a whole - and ultimately by the government
