Chapter 2

Question 1

Define Business ethics

Answer 1

Business ethics is an applied form of ethics that addresses principles and problems that arise in doing business. Business ethics can refer to the action of whole organisations and to that of groups of individuals.

Question 2

Define non-consequentialist ethics

Answer 2

(Absolutism) refers to eternal, universally applicable moral principles, objective qualities, and rational determination. Non-consequentialist ethics focus on the underlying principles of the decision makers motivation. including :
-Ethics of duties
Ethics of rights and justice

Question 3

Define consequentialist ethics

Answer 3

(Relativism) is subjective, and depend on the person, culture and circumstance. In business, this type of ethics is mostly used., referring to whether a policy, practice, or specific action results in a net benefit to a business or the wider society.
–> moral judgement based on the outcome of a decision

Question 4

Name examples for Internal initiatives

Answer 4

1. Internal reporting mechanisms and protection from reprisals
2. Sectorial initiatives (designed to share experiences and develop common standards)
3. Collective action (promoted responsible business conduct)
4. Certification (takes into account corporate liability in some jurisdictions)

Question 5

Name examples for private external initiatives

Answer 5

1. Investors and shareholders
2. Customer/client-supplier
3. Peer benchmarking
4. Employee representation
5. Sustainability reporting initiatives

Question 6

Name examples for external initiatives promted by governments

Answer 6

1. Governmental enforcement
2. Compliance incentives
3. Settlement arrangements
4. Corporate governance codes

Question 7

Define corporate citizenship

Answer 7

Corporate citizenship means acting honestly and transparently, and recognising the rights and needs of all stakeholders.

Question 8

Define CSR

Answer 8

CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.

Question 9

Neo-liberal economic theory

Answer 9

Neo-liberal economic theory is an ideology emphasizing the efficiency of private enterprise, free trade, and open global markets. It seeks to maximize the role of the private sector and private profit in all aspects of social and economic life.

Question 10

Fairtrade

Answer 10

Fairtrade is an alternative approach to conventional trade and is based on a partnership between producers and consumers.

Question 11

Ethical corporate governance

Answer 11

Ethical corporate governance refers to the processes and policies a company addresses relating to its administration, management, and the conduct of its day-to-day business.

Question 12

human rights

Question 13

partnership

Question 14

poverty

Question 15

trade

Question 16

work