Business Ethics and Corporate Social Responsibility Flashcards
Chapter 4
Ethics
the principles and standards of moral behavior that are accepted by society as right and wrong
Ethical Behavior
competing fairly, being truthful in communicating, being transparent*, and not causing harm to others
Insider Trading
which company insiders use confidential information to gain an advantage in stock market trading
Code of Ethics
the values and principles that
should be used by managers in making decisions.
Whistle-Blowing
the disclosure of a company insider that exposes illegal
behaviour by others within the organization.
Corporate Social Responsibility (CSR)
the notion that business has obligations to society beyond the pursuit of profits.
Two types of CSR
- Philanthropy
- Strategic CSR
Philanthropy
involves donating money, employee time, or other resources to various
causes without regard for any direct business benefits for the company (round-up at checkouts, the innocent project or donate free products to a local school)
Strategic CSR
involves social contributions that are directly aligned with a company’s
overall business strategy.
CSR, the natural environment
Businesses have an important role in discussing the natural environment and sustainable development.
Companies have embraced efforts to minimize the use of limited natural resources and promote
sustainable development
CSR, consumer
in 1960 a movement put pressure on businesses to consider their environmental responsibilities called: Consumerism
Consumerism
a movement that pressures businesses to consider consumer needs and interests
CSR, Employees
The past few decades have brought dramatic changes in the composition of the global workforce and in the attitudes of workers
Discrimination
the denial of opportunities to individuals based on characteristics
(gender*, race, disability, or religion) not related to their ability to perform in a job
Affirmative Action
In the 1960s, these programs were developed to encourage organizations to recruit and promote members of groups whose past economic progress has been hindered through legal barriers or common practices. (College admissions have also been influenced by affirmative action laws, but the focus here is on business practices.
