Chapter 1 Sexty Flashcards
Corporations are evaluated on twelve key performance indicators covering resource, employee and financial management.
- Energy consumption
• Direct/indirect GHG emissions
• Water withdrawal
• Waste produced
• Taxes paid
• Percentage of women on board of directors and in management positions
• Executive compensation tied to clean capitalism
• CEO compensation as a multiple of average worker wages
• Employee safety performance
• Innovation capacity measured by R&D expenditure
• Employee turnover
• Pension fund status
Integrity in Business
integrity refers to the appropriateness of a corporation’s behaviour and its adherence to moral guidelines acceptable to society such as honesty, fairness, and justice.
acting ethically
What means managing with integrity?
means that business leaders behave in a manner consistent with their own
highest values and norms of behaviour, which are self-imposed but at the same time not arbitrary or self-serving.
Ethics of business:
The rules, standards, codes, or principles that provide guidance for morally appropriate
behaviour in managerial decision making relating to the operation of the business enterprise’s and business’ relationship with society.
Ethics of business:
The rules, standards, codes, or principles that provide guidance for morally appropriate
behaviour in managerial decision making relating to the operation of the business enterprise’s and business’ relationship with society.
Stakeholder:
An individual or group who can influence and/or is influenced by the achievement of an organization’s purpose.
(CSR):
Corporate social responsibility.
The way a corporation achieves a balance among its economic, social, and environmental responsibilities in its operations so as to address stakeholder expectations.
Corporate sustainability (CS):
Corporate activities demonstrating the inclusion of social and environmental as
well as economic responsibilities in business operations as they impact all stakeholders to ensure the long-term survival of the corporation.
The difference from CSR is that the responsibilities are completely integrated to the structure, policies, and operations of the corporation.
Triple bottom line:
(3E) is the evaluation of a corporation’s performance according to a summary of the economic, ethical, and environmental value the corporation adds or destroys.
triple-P bottom line (3P) people, planet, and profits.
Corporate citizenship:
A corporation demonstrating that it takes into account its role in and complete impact
on society and the environment as well as its economic influence.
3 Main Approaches to Ethical Thinking
- deontological ethics
- Teleological ethics
- virtue ethics
deontological ethics
• Focus on moral obligations, duties, and rights • Rules should guide decision making and behaviour • More individualistic focus, as individuals should be treated with respect and dignity
actions are ethical if done for the sake of what is good without regard for the consequences of the act.
Teleological
• Focus on goals, outcomes, or results • Emphasizes maximum benefit and minimum harm • Considers all stakeholders impacted
The decision is believed to be good if the end result is good. A
Virtue Ethics
• Based on character of individual • If individual has good tra its or virtues, decisions will be good or ethical • Virtuous characteristics come into play when resolving ethical dilemmas
Economic system
defined as an arrangement using land, labour, and capital to produce, distribute,
and exchange goods and services to meet the needs and wants of people in society.
