Chapter 1- Business and Society Relationship

Question 1

Red Washing

Answer 1

A corporation presenting that they care about social justice and equality to make gains.

Question 2

Green Washing

Answer 2

Presenting with environmental concern and activity to be accepted/ liked by society.

Question 3

Integrity

Answer 3

appropriateness of a corporation’s behavior and its adherence to moral guidelines acceptable to society

Question 4

Managing with Integrity

Answer 4

➢ 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

Question 5

Power Dynamic

Answer 5

Leader has power over employees. This can be disrespected.

Question 6

Sole Proprietership

Answer 6

Business owned and operated by a single individual with complete control.

Question 7

Incorporation

Answer 7

Process of forming a corporation, which is a legal entity separate from the individual.

Question 8

Responsible Corporation responds to ____________ responsibilities.

Answer 8

Social, Ethical, and Environmental

Question 9

What do we expect from a corporation to be a good corporate citizen?

Answer 9

business undertaking that responds to social, ethical and environmental responsibilities in addition to economic obligations

Question 10

Ethics of Business

Answer 10

Values and ethical views of a corporation. Can be broken, but has consequences.

Question 11

Stakeholder

Answer 11

Anyone who is involved in or by the corporation. Ex- investors, employees, government

Question 12

Corporate Social Responsibility (CSR)

Answer 12

The way a corporation manages it’s social, ethical, and environmental aspects to keep stakeholders happy.

Question 13

Corporate Sustainability (CS)

Answer 13

maintain social, ethical, and enviro aspects for long term wellbeing of the company.

Question 14

What is the difference between CS and CSR?

Answer 14

CSR- meeting expectations of stakeholders

CS- long term survival/ wellbeing of company

Question 15

Triple Bottom Line

Answer 15

Social, ethical, and environmental aspects as well as economic obligation.

Triple P- people, planet, profit

Question 16

Corporate Citizen

Answer 16

company has to recognize their impact on society and environment, and support them.

Question 17

Deontological Ethics

Answer 17

(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”

Question 18

Teleological Ethics

Answer 18

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

Question 19

Utilitarianism

Answer 19

individuals make decisions based on consequences of an action

Question 20

Virtue Ethics

Answer 20

• 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

Question 21

Capitalism

Answer 21

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.

Question 22

Means of Production

Answer 22

land, labor, and capitol

Question 23

Economic System

Answer 23

arrangement using land, labor, and capital to produce, distribute, and exchange goods and services to meet the needs and wants of people in society

Question 24

Free- Enterprise/ Private Enterprise System

Answer 24

economic system characterized by ownership of private property by individuals and enterprises with profit motive. Limited gov.

Question 25

Laissez- Faire Capitalism

Answer 25

Government only provides essential services from gov- police and fire.

Question 26

Responsible Enterprise System

Answer 26

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.

Question 27

What makes an individual able to operate a business?

Answer 27

➢ They are capable of entering into binding agreement
➢ Business activity is lawful
➢ Individual respects legal principles governing persons, property and obligations

Question 28

Freedom of Acossiation

Answer 28

association of individuals coming together for some purpose is fundamental to forming a corporation

Question 29

Legitimacy

Answer 29

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

Question 30

Social License

Answer 30

privilege of operating in society with minimal formalized restrictions.

Maintaining trust and respect.

EARNED AND MAINTAINED ***

Question 31

Globalization

Answer 31

expanding a business globally.

Can result in the use of poor countries for unethical activity.

Question 32

What is a corporate bailout business wrongdoing?

Answer 32

Business wrongdoing (SNC-Lavalin, 2008-09 corporate bailout!)

Use of tax money wrongfully.

Question 33

Monopoly

Answer 33

where a single firm controls the entire supply of a product or service, allowing it to set prices and eliminate competition.

Ex- NB Power

Question 34

Oligopoly

Answer 34

Multiple firms that dominate the market, leading to competition and less control.

Question 35

Direct Ownership

Answer 35

holding legal title to an asset, such as property or shares, allowing the owner to have full control and rights over that asset.

Question 36

Indirect Ownership

Answer 36

holding a stake in an asset through another entity, such as owning shares in a company that owns the asset.

Question 37

Social Contract

Answer 37

set of two-way understandings that characterizes the relationship between two major institutions

Question 38

Veil of Ignorance

Answer 38

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.