Business Ethics & Corporate Social Responsibility Flashcards
What guides the moral principles and values a company follows?
Organizational ethics guide the moral principles and values that a company follows, influencing decision-making and behaviour.
What ensures a company’s operations remain transparent, fair, and honest?
Integrity and ethics ensure a company’s operations remain transparent, fair, and honest, fostering trust both within and outside the organization.
What can adherence to strong ethical standards lead to?
Adherence to strong ethical standards can lead to a better reputation, which is essential for long-term success, employee loyalty, and customers’ trust.
What is Corporate Social Responsibility (CSR)?
CSR is the commitment by businesses to contribute positively to society, going beyond profit-making.
What initiatives are involved in CSR?
CSR involves initiatives that improve the welfare of the community, environmental conservation, and ethical practices in labour.
How does CSR benefit companies?
CSR aligns business objectives with societal goals, helping companies gain a positive brand image and fostering customer loyalty.
What does CSR encourage in terms of investment?
CSR encourages responsible investment and risk management by addressing environmental and social concerns proactively.
Who are businesses accountable to?
Businesses are accountable to a variety of stakeholders: Shareholders, Employees, Customers, Community.
What does meeting obligations to stakeholders entail?
Meeting these obligations entails ensuring fair returns for investors, maintaining good working conditions for employees, providing high-quality products or services for customers, and contributing to the social and environmental well-being of the community.
What does ethical stakeholder management build?
Ethical stakeholder management builds trust and sustains long-term partnerships.
What does corporate governance refer to?
Corporate governance refers to the frameworks and processes that ensure a company’s management acts in the best interest of its stakeholders.
What principles are emphasized in corporate governance?
It emphasizes accountability, transparency, and fairness in business operations.
What is the board’s responsibility in corporate governance?
The board of directors holds ultimate accountability for a company’s governance, setting strategic goals, and ensuring management aligns with these objectives.
What must companies ensure regarding transparency?
Companies must ensure that they are transparent in their operations, providing stakeholders with clear, accurate, and timely information.
What mechanisms keep management accountable?
Accountability mechanisms, such as financial audits and performance evaluations, keep management responsible for their actions and decisions.
