Business Ethics Flashcards
what did milton friedman say
‘the social responsibility of business is to increase profits’
what is a shareholder
people who own the business and buy shares in the companies
what is a stakeholder
they believe that they have to make a profit for the shareholders and equally ensure fair trade and customers
give an example
Co-op-people become members and are given things in return
what are the legal requirements for businesses
companies must cooperate with the law e.g. products must be labelled if they contain potentially harmful ingredients
what is fair trade
international agreement that companies can’t do whatever they want for money
what was adam smiths view
against laws for business
give an example for adam smith
Invisible hand-everything will self regulate
who are economic libertarians
they argue that there should be no laws restricting business practises; businesses will self regulate
what did adam smith believe about employers and employees
they are equal and both need eachother
what did Karl Marx believe about employers and employees
he argued the bougeriouzie employed anyone who would agree to the terms
what is globalisation
the integration of national economies into an international economy
what can an economic crisis cause
a global depression
what is whistle blowing
when an employee discloses wrongdoing on the employer or to the public
give an example of whistle blowing
an employee disclosing her boss not paying taxes
