Chapter 1- Business and Society Relationship Flashcards
Red Washing
A corporation presenting that they care about social justice and equality to make gains.
Green Washing
Presenting with environmental concern and activity to be accepted/ liked by society.
Integrity
appropriateness of a corporation’s behavior and its adherence to moral guidelines acceptable to society
Managing with Integrity
➢ Business leaders behave in a manner consistent with their own highest values and norms of behavior
➢ Values are self-imposed but not arbitrary or self-serving
Power Dynamic
Leader has power over employees. This can be disrespected.
Sole Proprietership
Business owned and operated by a single individual with complete control.
Incorporation
Process of forming a corporation, which is a legal entity separate from the individual.
Responsible Corporation responds to ____________ responsibilities.
Social, Ethical, and Environmental
What do we expect from a corporation to be a good corporate citizen?
business undertaking that responds to social, ethical and environmental responsibilities in addition to economic obligations
Ethics of Business
Values and ethical views of a corporation. Can be broken, but has consequences.
Stakeholder
Anyone who is involved in or by the corporation. Ex- investors, employees, government
Corporate Social Responsibility (CSR)
The way a corporation manages it’s social, ethical, and environmental aspects to keep stakeholders happy.
Corporate Sustainability (CS)
maintain social, ethical, and enviro aspects for long term wellbeing of the company.
What is the difference between CS and CSR?
CSR- meeting expectations of stakeholders
CS- long term survival/ wellbeing of company
Triple Bottom Line
Social, ethical, and environmental aspects as well as economic obligation.
Triple P- people, planet, profit
Corporate Citizen
company has to recognize their impact on society and environment, and support them.
Deontological Ethics
(rule-based) ethics
*Actions are ethical if done for sake of what is good without regard for consequences of the act
*Decisions based upon duty and adherence to universal principles
➢Individuals have duty to do the right thing even if the consequences of another action are preferable
*“Veil of ignorance”
Teleological Ethics
consequential theories
- Focuses on outcomes or results of actions
➢ Decision believed to be good if end result is good
➢ Decisions should result in the greatest good for the greatest number
Utilitarianism
individuals make decisions based on consequences of an action
Virtue Ethics
- Emphasizes individual’s character or identity
- Focuses on being instead of doing
- Morality based on development of good character traits (virtues)
Assumes “good” person will act ethically
* Absolute rules unlikely to apply in all situations
Capitalism
economic system that allows for private ownership of the means of production, and makes it so that the decision making is on individual corporations and not government.
Means of Production
land, labor, and capitol
Economic System
arrangement using land, labor, and capital to produce, distribute, and exchange goods and services to meet the needs and wants of people in society
Free- Enterprise/ Private Enterprise System
economic system characterized by ownership of private property by individuals and enterprises with profit motive. Limited gov.
Laissez- Faire Capitalism
Government only provides essential services from gov- police and fire.
Responsible Enterprise System
operates like free enterprise system, yet there is accountability.
Enterprises are responsible for their effects on society and are accountable if they are the source or cause of something.
What makes an individual able to operate a business?
➢ They are capable of entering into binding agreement
➢ Business activity is lawful
➢ Individual respects legal principles governing persons, property and obligations
Freedom of Acossiation
association of individuals coming together for some purpose is fundamental to forming a corporation
Legitimacy
belief in the rightness of an institution, in this case the appropriateness of our business system to supply the goods and services wanted by Canadian society
Social License
privilege of operating in society with minimal formalized restrictions.
Maintaining trust and respect.
EARNED AND MAINTAINED ***
Globalization
expanding a business globally.
Can result in the use of poor countries for unethical activity.
What is a corporate bailout business wrongdoing?
Business wrongdoing (SNC-Lavalin, 2008-09 corporate bailout!)
Use of tax money wrongfully.
Monopoly
where a single firm controls the entire supply of a product or service, allowing it to set prices and eliminate competition.
Ex- NB Power
Oligopoly
Multiple firms that dominate the market, leading to competition and less control.
Direct Ownership
holding legal title to an asset, such as property or shares, allowing the owner to have full control and rights over that asset.
Indirect Ownership
holding a stake in an asset through another entity, such as owning shares in a company that owns the asset.
Social Contract
set of two-way understandings that characterizes the relationship between two major institutions
Veil of Ignorance
Where individuals make choices without knowing their own social status, personal characteristics, or interests.
In business, this approach encourages fair policies and practices by promoting impartiality, ensuring that decisions benefit all stakeholders rather than favoring any specific group.
