Chapter 1 Flashcards
Who are the stakeholders in a business? (11)
- Clients
- Customers
- Suppliers
- Investors
- Retailers
- Employees
- The Media
- The Government
- The Community
- Competitors
- The Environment
Describe the role of ethics in a business environment
Guides the conduct by which companies and their agents abide by the law and respect the rights of their stakeholders
What are the rights of the stakeholders?
By virtue of being human, we all share an obligation to one another
Principle among these is the requirement that we treat others with fairness and dignity
(Included in COMMERCIAL INTERACTIONS)
What does it mean to be a professional of integrity?
Adhere to a code of ethics implying trustworthiness and incorruptibility.
What does being a professional of integrity mean?
Consistently striving to be the best person you can be in all your interactions with others.
Also means doing what you think is right based on reason
Distinguish between ethical and legal responsibilities
1) Legal
2) Ethical
1) Compliance with the legal standards is strictly mandatory, Violating such would warrant punishment as stated through the law
2) Based on principles of an individual business leader or organization
What is the difference between ethics and law?
Law is indebted to tradition and precedence. Reason would be needed in order to change laws
Ethical reasoning often is more topical and reflects the changes in consciousness that individuals and society undergoes
What is the FIRST theory to the Normative Ethical Theory?
3 approaches for examining the ethical nature of a decision.
1) Utilitarianism, which examine the ends, otherwise known as the consequences
WHO is going to be affected by this action?
What is the SECOND theory to the Normative Ethical Theory?
3 approaches for examining the ethical nature of a decision.
2) Deontology, which examines the means, otherwise known as actions
What actions would you take?
What is the THIRD theory to the Normative Ethical Theory?
3 approaches for examining the ethical nature of a decision.
3) Virtue Theory, which reflects on the character of the decision maker.
Define LONG TERM perspective
More balanced view of profit maximization that recognizes that the impacts of a business decision may not manifest for a longer time
Define SHORT TERM perspective
An intense focus on one variable over a short time
Differentiate between Stockholder and stakeholder
STAKEHOLDERS are individuals and groups affected by a business decision.
Stockholders, otherwise known as shareholders are those who share part of the companies stock
What is goodwill?
Goodwill is the positive feeling stakeholders have for any particular company
How are ethics, goodwill, and profit linked?
Positive goodwill is generated by the ethical business practices which in turn, generates long term business success
What is Corporate social responsibility?
The practice by which a business views itself within a broader context as a member of society with certain implicit social obligations and environmental responsibilities
How does CSR help?
Ensures that a company is engaging in ethical practices and policies in accordance with the companies culture and mission beyond legality.
How are ethical norms and business standards related?
The traditions and culture of ethics we grew up with reflects itself on the business ethics standard we showcase
Explain ethical relativism and why it is problematic
States that there is no right or wrong and what is ethical depends solely on context
Why is having a single ethical standard easier?
By choosing a single ethical code for all the contexts, maximizes your ethical behavior, no matter who the other party is.
What is enculturation?
By the process of which humans learn the rules, customs, skills, and values to participate in a society.
What is acculturation?
Refers to the cultural transmission and socialization process that stems from cultural exchange.
Explain the interaction of business and culture from an ethical perspective
Businesses nowadays cannot be culturally neutral. Business around must consider the culture of their surrounding regions and thus, the ethics of the surrounding region as well.
What is consumerism?
Consumerism is defined by the lifestyle characterized by the acquisition of goods and services
